Finance Associated Press|New consumption**December 28th (researcher Liang Youyun),Recently, Dongfang Selection announced that the company's board of directors has approved Dongfang Selection to pay 1.5 billion yuan in cash to the parent company New Oriental ** education business.
*The reason shows that the adjustment of the education business is part of the business restructuring of New Oriental Group, which aims to more clearly divide the business lines. It is expected that after the completion of this transaction, the various businesses operated within New Oriental Group will be different from each other, and in the future, Oriental Selection will no longer operate in the field of education, but will become a specialized self-operated product and live broadcast business operator.
According to reports, the part that has been selected and operated by the company includes some related assets of Dongfang Selective and operated university education and institutional customers, as well as all the shares of its three education-related subsidiaries.
At the opening of the market on December 28, the share price of Oriental Selection Hong Kong stocks continued to rise after the "* burden reduction", and as of the same day, it closed up 223%, with a total market capitalization of 279HK$600 million. New Oriental also ushered in a second consecutive rise after announcing the continuous integration of education and training business. As of December 28**, New Oriental Hong Kong stocks closed up 098%, with a total market capitalization of 933300 million yuan.
Give up online education and make every effort to build an e-commerce brand of "Oriental Selection".
According to the latest announcement, China's off-campus training regulatory policies and education business environment have been significantly adjusted, and students' learning and living habits are increasingly changing to both online and offline and OMO models. The market opportunities in the pure online education segment of Dongfang Selection's original operation are limited, and the financial return rate is declining compared to the e-commerce business, and the business adjustment will help the company focus on more potential and higher return businesses.
According to the previously released financial report, in the year ending May 31, 2023, Dongfang Selection's annual revenue reached 45100 million yuan, an increase of more than 5 times compared with fiscal year 2022, and an increase of 317 percent year-on-year in fiscal year 2021 before the double reduction policy83%。During the same period, the increase in net profit attributable to shareholders of the parent company was more significant, and the net profit attributable to the parent company in fiscal 2023 reached 97.1 billion yuan, compared to a loss of 5. in fiscal 2022 and fiscal 2021, respectively3.4 billion and 165.7 billion yuan.
In the process of significant growth in revenue and net profit, the proportion of Dongfang Selection's e-commerce business has rapidly increased from 0 to 8605%, achieving revenue of 4.5 billion yuan, and the turnover of goods has also increased rapidly from 0 to 10 billion. At the beginning of 2023, the company's name was also changed from "New Oriental**" to "Oriental Selection".
Oriental Selection's education-related business is also slowly recovering. In fiscal year 2023, the company's university education revenue accounted for approximately 131%, achieving revenue of about 5900 million yuan, a year-on-year increase of about 139%。In terms of growth, with the recovery of demand for going abroad and vocational training, the demand for education business has grown rapidly, but compared with the exponential growth of live broadcast e-commerce and self-operated commodity sales, the potential for education business expansion under the pressure of double reduction is not large.
For the transaction amount of 1.5 billion yuan reached this time, Dongfang Selection plans to put it into e-commerce operation in the next five years. Among them, other general development and operation of self-operated products and live broadcast business accounted for 40%, general working capital, R&D accounted for 20%, and marketing and sales accounted for 10%.
Specifically, about 600 million yuan is expected to be invested in self-operated products and live streaming business, which will be used to strengthen the relationship between ** merchants and find more ** business and agricultural companies, and expand the category catalog, especially the self-operated product category. Through continuous publicity and partnership establishment, the influence of the "Oriental Selection" brand in high-quality products, dissemination of knowledge and culture will be enhanced.
However, in order to build a good brand power and product power, Dongfang Selection still has a long way to go. Recently, Dongfang's selection of kumquat products has been questioned by popular science bloggers.
Fruit hunter Yang Xiaoyang said in ** that the "big fruit" of Dongfang's selected kumquat products is actually the "medium fruit" in the industry, and the actual weight of each kumquat is only 15g 20g, and the origin of the fruit is not all from the "Guangxi Rong'an" as claimed in the propaganda, and there are many suspicions of false publicity.
In response to this accusation, Dongfang Selection's customer service responded that "kumquat" is only a trade name, which is used to describe the brittle characteristics of the product, and the product is produced in Rong'an, Guangxi, so consumers can buy it with confidence. But the response of the customer service, popular science blogger Yang Xiaoyang did not buy it, and said that he would follow up to the end. The incident is still fermenting.
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It is worth noting that Oriental Selection also plans to transfer 10% of the funds (about 1.).500 million yuan) for talent entry and retention.
At the beginning of December, Dongfang Selection had a large negative impact due to the internal outbreak of a management crisis, and there were rumors that the company's head anchor Dong Yuhui was suppressed or would leave the company. The outside world believes that the management of core anchors with goods has become the biggest potential risk to the development of Dongfang Selection's business.
After a series of resolute measures such as the dismissal of CEO Sun Dongxu by the company's founder Yu Minhong and the promotion of Dong Yuhui to become a "senior partner", the turmoil was calmed down, and Dongfang Selection's sales returned to the forefront of the Douyin platform, and the number of fans soon recovered to more than 31 million.
The latest announcement on talent training mentions,Continue to cultivate, grow and retain an excellent team of anchors, and disseminate knowledge and information about the product and its background to the audience in an entertaining and educational way. The company will motivate streamers to expand their audience and improve their live streaming capabilities through internal training and methods.
In fact, since Dong Yuhui's turmoil, his idea of independent development as the company's IP image has become clearer and clearer.
Recently, Dong Yuhui registered and established Hehui Peer (Beijing) Technology with a registered capital of 10 million yuan, and the registered address is the location of the Oriental Selection Office. The company's business scope includes: fresh fruit retail, fresh vegetable retail, publication retail, radio and television program production and operation, network culture management, food sales, tourism business, etc.
Subsequently, the independent account of "Walking with Hui" completed the registration and certification on Douyin, and released the first personal image display of Dong Yuhui**, which gained 1.65 million fans in a short period of time.
At the same time as the number of followers increased, the account's action of bringing goods also quickly followed. On the afternoon of the 28th, "Walking with Hui" once launched 6 models with a price of 0Low-priced drainage products ranging from 01 yuan to 6 yuan. Without any product introduction and marketing, 325 people paid and placed orders, and the cumulative sales reached 455 pieces. However, at present, the account-related products have been removed from the shelves, and the account is expected to premiere on January 9, 2024.
Previously, according to Dong Yuhui's disclosure in the live broadcast room, his personal future development plan will be more invested in cultural content and products such as cultural tourism and interviews, and he will also insist on bringing goods to help farmers, and will appear in the Dongfang Selection live broadcast room from time to time.
It was revealed that Dong Yuhui's personal independent studio is still under the management of Dongfang Selection CompanyIt is 100% controlled by Oriental Selection, and the turnover of goods will also be included in the overall turnover of Oriental Selection. The penetration of the company's shares with Hui shows that its legal person, executive director and manager is Dong Yuhui, and the ultimate beneficiary and actual controller is Yu Minhong.