The traffic "walked with Hui", but it was "chased" by Wang Hai, and Dongfang Selection was in trouble
Oriental Selection once again encountered a fraud storm. Recently, Wang Hai posted a message on his meager account, saying that there was a report that Dongfang Selection was suspected of illegally ** 6.95 million copies of Ecuadorian South American white shrimp, which was suspected of illegally adding metabisulfite (preservatives and bleaching agents), and overusing "shrimp medicine". The staff of Oriental Selection told "Big Fish Finance" that the company got a batch of samples from a female anchor, and the samples all met the national standards.
Both sides have their own opinions, and the case remains inconclusive. Dongfang Selection's products have been repeatedly infringed, and the brand, which has always been known for its high quality, has gradually become obscure. As of the afternoon of the 22nd, the number of sales of this South American crayfish has exceeded 7.05 million, of which there are 620,000 positive reviews and 27,000 negative reviews. At the same time, the company's ** has also been hit by the company**, compared with the peak in 2023, it has increased by nearly 70%. In the investment world, trust in investors is also waning.
And the live broadcast with Brother Hui is a South American white shrimp, not Dongfang Selection's own production. In fact, since Daystar, it has not sold its own products selected by Dongfang. After the two "parted ways", ** was obviously biased towards Dong Yuhui, and many scandals about plagiarism did not affect Huitong.
After losing the number one anchor, Dongfang Selection's main income ** is the problem of its own brand. After the "small composition" turmoil, it seems that it will be difficult to recover.
The recipe of shrimp products operated by yourself has been flipped?
Wang Hai said that the shrimp's ingredient list did not indicate the sodium metabisulfite used, but 0155 g kg of SO2 residue, while the amount of sodium metabisulfite in shrimp and crab in GB2760 should not be higher than 01 g/kg。
Dong Yonghui deliberately said in the live broadcast that his recipe only has shrimp, water and salt, which is an act of deceiving customers. Wang Hai advised those customers who bought this product not to eat it, first of all, to the platform not to refund the payment, and then start with 1000 yuan**, and return it at 10 times**. "I feel like we should get that money back, we've paid six billion nine billion for a responsible brand, and it's definitely worth it. ”
On February 20, the staff of Dongfang Selection told "Big Fish Finance" that they also did an inspection of the batch of goods submitted in the live broadcast, and the results of the inspection were all qualified, which was a monthly inspection, and they all passed the customs inspection. "We at Oriental Selection are very concerned about the quality of food, and our service is also to protect the rights of customers, so please don't worry. ”
The reporter found that this South American white shrimp produced by Oriental Selection has two test results on the product information page, namely: December 19 and February 22, 2022, the SO2 residue of South American white shrimp was 0022 g kg, the standard stipulates that the residual amount of SO2 cannot be greater than 01 gram kg, and no SO2 residue was found in another sample. All test results were qualified.
Shrimp medicine, also known as metabisulfite, is a drug widely used in the preservative of aquatic products, but it will produce a large amount of SO2 when degraded. According to a chemical company, after shrimp leave the water, the head is prone to blackening, metabisulfite is a chemical reducing agent used to prevent shrimp blackening and deterioration, is a common chemical reducing agent in chilled aquatic products, after being caught by fishermen, it is usually added directly to fishing boats or fishing boats.
Sodium metabisulfite is an important feed additive, and its use has great limitations. According to the Regulations on the Use of Food Additives, fresh aquatic products (limited to shrimp, crabs and their products) (food category no. 0901), frozen aquatic products and their products (food category number 09.)02), the maximum dosage is 01 g kg (maximum dosage is calculated based on sulfur dioxide residue).
On February 20, Wang Hai posted another Weibo post about Dongfang Selection, "If there is no shrimp drug, where does the residue of SO2 come from?" ”
Drop "shrimp medicine" or naturally generated?
Now there are two versions on the Internet. One faction felt that Wang Hai's complaint was justified, while Dongfang Selection was deceiving customers, and some people said: "No wonder the shrimp I eat have a medicinal smell in them." Others say that Dongfang Selection has a good reputation and that its self-produced goods are more focused on quality, and it is likely that Wang Hai's complaint is just to make some money.
At present, the incident has been reported to **, and relevant information has been collected to fight for rights and interests. And Wang Hai kept making statements: "Dongfang Selection knew that it added stimulants to the lobster, but it also sued us, saying that we were malicious slander." Wang Hai said that the "GB7718-2011 National Food Safety Standard Prepackaged Food Labeling Principles" has clear requirements for the labeling of food, and Dongfang Selection knows that it is sold fake, and does not indicate any ingredients, regardless of whether it exceeds the standard, it is unqualified food.
The SO2 residue test conclusions in the three inspection reports of the same variety are different. What Wang Hai said was exceeding, but on the Dongfang selection side, one did not exceed the standard, and the other did not exceed the standard.
At present, all parties have their own accounts, and the relevant departments have not investigated this, but have focused on the "shrimp medicine" containing metabisulfite in Penaeus vannamei shrimp. According to the 21st Century English Newspaper, naturally, there is also a natural amount of organic matter in the water body, but when its content is higher than 100 mg kg, it does not become background data. It may also be due to the introduction of spices, i.e. shrimp meal containing brine and table salt. In addition, trace amounts of SO2 may also be generated in aquaculture, storage, transportation, etc., due to contact with the relevant environment or microorganisms.
This is not the first time that Dongfang Selection has been involved in the "anti-counterfeiting" incident. In March this year, the user Mr. Wang bought 100% of the "wild" shrimp online through the "Oriental Selection" platform from the "Langhaiqing"**, but was found to be artificially bred shrimp, and after complaining to no avail, he sued Dongfang Selection and Langhaiqing, who took the initiative to explain to consumers that he had been deceived by ** businessmen. Mr. Wang said the customer won the lawsuit and received a 500 yuan refund.
On January 22, Wang Hai complained that Dongfang Selection had sold nearly 1.5 million copies of its self-produced Wuchang Rice Daohua No. 2, but the DNA test results showed that it was not "Daohua No. 2". China's food security network also added P5 rice to its list, calling it a fake. Wang Hai also complained on February 8 this year that Wuchang rice did not have any geographical indication or certification, and that it was a counterfeit product of the brand.
Increasing revenues and decreasing profits make it difficult to maintain liquidity.
It is worth mentioning that only one of the three suspected counterfeit products is "100% wild sea cucumber", and the other two are self-produced.
On February 21, when Oriental Pick released its interim results for the 2024 fiscal year, it pointed out that it has more than 264 private brands. The FY2024 interim results are full of proprietary products, and it's clear that it puts proprietary business first. For the six months ended November 30, 2023, the Company's own merchandise and online sales segment revenue was 24100 million yuan, an increase of 36 percent year-on-year6%, compared to 6 months ago this year, the company's revenue was 17700 million. Of these revenues, private label revenue is about $1.9 billion, accounting for 78 percent of the e-commerce sector8%。
The reporter found that on the live broadcast platform that he went to with Hui Zai, he did not see this South American white shrimp operated by Dongfang Selection. When opening the signal synchronized with Huize, some of the items on display were similar to Dongxuan, but they did not have Dongxuan's own brand. This also confirms the questioning of Dong Yuhui's "characterization" at an extraordinary board meeting held in January. According to the surging news, "Walking with Hui" is a company owned by Dongfang Selection, and the relationship between its shareholders and Dong Yuhui is carried out in the form of shares, Dong Yuhui has greater independent choice in product sales, and the remuneration of employees is set by Dongfang Selection.
The resignation from Dong Yuhui put him in a situation of "embattled". Proudly, its self-operated products are frequently pirated, and its number of visits is difficult to compete with that of Hehui in its neighborhood.
Statistics show that during the Chinese New Year holiday, Dongfang Selection lost about 10,000 followers a day, compared to 3,160 before Dong Yuhui became a senior partner80,000, now it's 309670 thousand. This anti-black campaign against South American white shrimp has caused more than 40,000 fans to lose followers. And the anchor with Hui Zai, on the first day after the holiday, there were more than 1,958,500 live broadcast rooms, selling more than 20 million goods, and in the live broadcast that day, Dongfang Selection's sales reached between 7.5 million and 10 million.
In the middle of fiscal year 2024, the company's total revenue was 28.8, an increase of 344%。However, compared to the same period last year, net profit fell by 574%, down to 24.9 billion yuan. The main factors contributing to this are inventory fees and shipping costs**, marketplace fees**, and incentive fees** for your own products.
On ***, as of February 19, the *** of Oriental Selection was 241, down 5 from the previous day3%。On Feb. 20 this year, Oriental Choice** rose 3.11 percent to 24 per shareHK$85**, down 67 from the highest record set on 26 January 202311%。