"Science and Technology Innovation Board**" on December 16 (reporter Zhang Yangyang special researcher Chen Junqing).The "small composition" incident of Oriental selection, which has been boiling for a week, ushered in the first official processing result.
At 11:31 a.m. today, the Dongfang Selection Douyin account issued a notice of personnel appointment and dismissalAccording to the decision of the board of directors of Oriental Selection, Chairman Yu Minhong concurrently serves as the CEO of Oriental Selection, and Sun Dongxu is removed from the position of executive director and CEO of Oriental Selection, effective immediately.
As of today (December 16), it has been 6 days since the "small composition" storm occurred. The mysterious operations and responses of Dongfang Selection several times before have made the public's jaws drop. On the evening of the 15th, the anchor's inappropriate remarks in the Douyin live broadcast room once again exacerbated the development of the situation.
The success created by Oriental Selection is reflected in the tens of millions of salaries and high cash-out of senior executives, in addition to "eating melons", Dong Yuhui's salary and future in New Oriental have become confusing again, and behind his going and staying is the trend of "traffic decentralization".
From the perspective of company management, the release of this personnel notice, Yu Minhong, who had been hotly discussed before, wanted to "choose one between Dong Yuhui and Sun Dongxu", and now it has become a prophecy.
The anchor's gaffe caused Dongfang Selection to stop broadcasting
On the evening of the 15th, Dongfang Selection anchor Tianquan imitated CEO Sun Dongxu throwing his mobile phone, and his words were suspected of provoking consumers, claiming that "I am personally a person who is not afraid of big things" and "Come here, before being blocked, you use three coupons (coupons) first, and we sell them for money, if you collapse us, you will buy it!"."If you want to bring down Dongfang Selection, you just crazy buy these things with coupons, it's a win-win!."”
This incident may have exacerbated the dismissal of Sun Dongxu, the CEO of Dongfang Selection.
In the early morning of the 16th after the incident, Dongfang Selection first stopped broadcasting urgently, and at the same time, its Douyin account also updated its profile, announcing that it would be temporarily suspended during the day that day.
It should be pointed out that the 4-hour live broadcast on the evening of the same day made Dongfang Selection lose more than 800,000 fans. At the time of the release of this personnel appointment and dismissal notice, the number of followers of the Oriental Selection account was 287510 thousand. Before the incident, on December 9, this figure was 311590,000, 240 fans in 7 days80 thousand.
New Oriental ** will be renamed Oriental Selection, and the business will be transformed from education and training to live broadcasting. Judging from the performance of the past two years, the company has developed rapidly, and New Oriental ** is undoubtedly a leader in the successful transformation.
According to the financial report, for the fiscal year ended May 31, 2023, Oriental's total revenue increased from 60.1 billion yuan surged 651% to 4.5 billion yuan in fiscal 2023, with a net profit of 9$7.1 billion, compared to a net loss of $5 in fiscal year 20223.4 billion yuan to turn losses into profits. The GMV of the whole year reached 10 billion yuan, and the total number of orders reached 13.6 billion orders, with more than 120 self-operated products.
The stock price fell nearly 22% in a single week
The success created by the transformation of Oriental Selection is reflected in the tens of millions of salaries and high cash-out of senior executives.
According to Internet information, wind public information shows that Yu Minhong, chairman of the board of directors, will have a salary income of 1069 in 2023030,000 yuan, directly holding 268%；Executive Director Sun Dongxu, 2023 salary income of 1813730,000 yuan, directly holding 033%；Yin Qiang, executive director and chief financial officer, has a salary income of 527 in 2023380,000 yuan, directly holding 01%。
In the first half of 2023, Sun Dongxu, CEO of Oriental Selection, cashed out 200 million yuan, and CFO Yin Qiang also cashed out 61.59 million Hong Kong dollars.
When the management is holding huge commissions and cashing out on a large scale, on the other hand, Dong Yuhui's side:
According to high-level sources inside Dongfang Selection, Dong Yuhui's income is composed of annual salary plus options, and the real annual salary is about several million after tax, but the options have not yet been issued, and the first batch of options is expected to be lifted in April next year. Of course, once Dong Yuhui leaves early before April next year, all options will be zeroed. Therefore, many fans complained about Dong Yuhui, thinking that Dong Yuhui did not get the reward he deserved.
Of course, there is also a second voice. Previously, Sun Dongxu's public response caused a huge controversy: Sun Dongxu took the initiative to mention Dong Yuhui's salary when responding to the "small composition turmoil", and revealed that it was rumored on the Internet that Dong Yuhui's annual income was tens of millions of yuan, "only a part of his income, and the company has been expressing its high recognition of Yuhui with practical actions."
In this regard, Yu Minhong criticized that Dong Yuhui's salary should not be mentioned. Yu Minhong, the founder of New Oriental, issued a statement on his personal social platform, saying that when Sun Dongxu explained the problem, he mentioned that Dong Yuhui's salary was inappropriate, and he had leadership responsibility as the chairman, and also apologized to Dong Yuhui.
On the evening of December 14th, Sun Dongxu, CEO of Dongfang Selection, also issued an apology on Weibo**, apologizing to netizens for his recent "aggressive" demeanor in the live broadcast, the action of putting his mobile phone on the table, and mentioning Dong Yuhui's salary, and he mentioned that Dong Yuhui's annual salary is "unprofessional".
As of the 15th, Hong Kong stocks, Oriental Selection continued the trend, down 558% to close at 26HK$25 shares. This week, Oriental Selection fell by nearly 22% in a single week, and the total market value shrank to 266HK$4.4 billion.