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Text | Ye Er, editor of Lan Media | Wei Xiao

Yu Minhong and Dong Yuhui eventually parted ways.

Just now, Oriental Selection issued an announcement stating that Dong Yuhui has decided to no longer serve as an employee of the company and senior management of a merged affiliated entity of the company. The resignation was due to Dong Yuhui's career ambitions, his commitment to his other careers and personal time arrangements, and will take effect on July 25, 2024.

At the same time, Oriental Selection will sell 100% of the equity of Yuhui Tongxing to Dong Yuhui for RMB 76.5855 million.

To put it bluntly, from now on, Oriental Selection and Yuhui Xingxing will be two independent and competing companies. Apart from competition, there will be no relationship between them.

The two parties broke up completely.

Short pain is worse than long pain

Although the market's perception was very sudden, there were already signs of it in the dark.

According to people familiar with the matter, since the establishment of Yuhui Tongxing in December last year, under external pressure, the priority of almost all business within Yudongfang Selection has been based on Dong Yuhui.

This point is also mentioned in Yu Minhong's "An Open Letter to Shareholders and Friends of Oriental Selection".

In order to ensure that Yuhui and Yuhui Tongxing could carry out their work in a timely manner, under my coordination, we quickly completed the registration of Yuhui Tongxing Company. In just a few days, we freed up more than 1,000 square meters of office space for Yuhui Tongxing, reorganized a mature team of about 60 people, and provided a sales system, pallet supply and a large amount of equipment and facilities support.

This has led to the rapid development of Yuhui.

Later, Dong Yuhui revealed in the live broadcast room of Yuhui Xingxing that due to the narrow space, the samples in the warehouse were full and could no longer meet the space requirements for launching new products.

Since then, Yuhui Xingxing moved to the Internet Finance Center in Zhongguancun, Beijing in July, with 3 floors and an area of ​​about 2,100 square meters.

This is also strongly supported by Yu Minhong.

According to Yu Minhong's open letter, Yuhui Tongxing needed a new office space. From site search, transaction negotiation, to work area decoration, all were completed by the professional team of New Oriental Asset. In order to shorten the construction period, they worked day and night to complete the task on schedule. Now, the Yuhui Tongxing team has moved into the new area for office work. Yuhui and all employees are very satisfied with the decoration quality and environment.

This shows that Yu Minhong and Oriental Selection are fully supporting Yuhui Xingxing.

According to people familiar with the matter, fans had previously been saying that Dong Yuhui's office was too small, putting pressure on Oriental Selection. Now Dong Yuhui's office even has a shower room.

At the same time, due to the imbalance of resources, Oriental Selection's own business will inevitably suffer an impact, and the external pressure situation has not improved. Once the so-called mother-in-law said that "Dong Yuhui was wronged", it will still be a huge controversy.

However, many of these controversies may not be completely tenable.

According to insiders, Dong Yuhui is not as honest as the outside world imagines. It can be said that he is a bit of a green tea. In many controversies against the company, sometimes Dong Yuhui can completely stand up and explain, and there will be no problem, but Dong Yuhui is not active in responding. Even in certain matters, Dong Yuhui may also intend to project the image of himself as "wronged" in the company.

For example, in a live broadcast, Dong Yuhui revealed that he had bought a house in Beijing, and the money for the house was lent to him by Yu Minhong, which was a favor to him.

This was interpreted by Dong Yuhui's fans as, such a big anchor, we contributed so much sales, Yuhui had to borrow money from Yu Minhong to buy a house, Oriental Selection was going too far.

But according to insiders, at that time, both Yu Minhong and Dongfang Zhenxuan gave Dong Yuhui tens of millions of cash, plus the company's shares at that time, the overall value was close to 100 million yuan. In fact, Dong Yuhui has bought luxury houses in Beijing and Xi'an. Whether in the company or in his personal life, Dong Yuhui has fully enjoyed the treatment of a super anchor. But the difference in the word "borrow" he mentioned naturally makes a world of difference in the overall external perception.

This further caused Oriental Selection itself to be under tremendous pressure, from Yu Minhong to the Oriental Selection anchors, from the public opinion side to the business side, all of them had great troubles.

From the market's perspective, the breakup with Dong Yuhui is definitely a loss for Dongfang Select, and it is inevitable that they will experience intense pain. The capital market has already voted with its feet, and Dongfang Select's US stocks plunged before the market opened.

But in the opinion of insiders, the current situation does not allow Yu Minhong to have a second choice. It is better to suffer a short pain than a long pain. At present, Dong Yuhui has become a burden to Oriental Selection, and it can even be said to be a negative asset. Neither Yu Minhong nor Oriental Selection has been able to gain enough benefits from working with Hui. Instead, they have supported Dong Yuhui with all their strength and given priority to him everywhere, but they have been burdened with all kinds of abuse and controversy. Therefore, it is better to break up completely and cut off the involvement.

According to the current announcement, in the past six months, Yuhui Tongxing has generated a total net profit of 140 million.

According to Yu Minhong:

I have asked the board of directors and the compensation committee for their approval to award all the net profits of Youhui Xingtong to Yuhui. At the same time, I have also arranged for the payment of the equity purchase funds required by Yuhui Xingtong in accordance with the rules of listed companies and the company's articles of association.

In other words, Dong Yuhui can take away the 140 million yuan net profit of Yuhui Tongxing, and use 76.5855 million yuan of it to pay Dongfang Zhenxuan for the equity of Yuhui Tongxing.

After that, Dong Yuhui will get a company with a current asset value of 76.5855 million yuan, as well as nearly 70 million yuan in cash remaining in the account. In essence, in the past six months, Dongfang Zhenxuan has not made any profit from Huixingxing, and now, along with the company, it has all been given to Dong Yuhui for free.

According to people familiar with the matter, this may also be a helpless move by Dongfang Zhenxuan. After all, the two parties had not clearly defined the distribution of benefits before, and Dong Yuhui has always been in a dominant position in the management of Huixingxing. Now giving the company and its profits to Dong Yuhui, in addition to the company's perspective, from a personal perspective, Yu Minhong may also want to seek peace. In the past six months, whenever Yu Minhong appeared in Dong Yuhui's live broadcast room or went to Dongfang Zhenxuan's live broadcast room, he was scolded and cyber-bullied. It would be better to break up.

From family to strangers

In the eyes of the outside world, they have been a "family" for a long time.

At the beginning of the month, Yu Minhong posted a video article on his Douyin account titled "Please give young people more room to grow", saying that "however people evaluate me, I can accept it with a calm mind", but he pleaded with everyone "not to attack any anchor of Oriental Selection and Yuhui Xingxing", because "they are still growing children" who need care to thrive.

In fact, ever since the essay incident brought the internal conflicts between the top anchors and the management of Oriental Selection to the surface, the rift seemed destined to be unbridgeable.

After that incident, Yu Minhong invited Dong Yuhui back to the Oriental Selection, and they talked heart to heart in front of the camera. Dong Yuhui said that he was like a small grass, facing the storms of the outside world. Yu Minhong put on a very low profile, constantly pouring tea and water for Dong Yuhui, and the intention of winning him over was very obvious. But at the same time, he also recounted Sun Dongxu's past contributions in the live broadcast. In this way, it seemed that he kept Sun Dongxu and gave Dong Yuhui enough face.

However, the good times did not last long. What the outside world finally waited for was Dong Yuhui setting up an independent studio and opening a separate account and live broadcast room.

Now it seems that even if they didn't break up at that time, they would have already been estranged in spirit and it would be difficult to mend the relationship.

In the past six months, Yu Minhong has not found a good solution to balance and coordinate the two systems of Oriental Selection and Yuhui Tongxing.

Since the establishment of Yuhuixingxing in January, the interest dispute between Dongfang Zhenxuan and Dong Yuhui has always been the focus of outside attention.

Whether it’s because of the product selection, the lineup of anchors, or even the venue of the live broadcast room, a war of words can break out between fans of both sides.

For example, one time Dong Yuhui wanted to try out a certain type of pot in the live broadcast room of "Yuhui Xingxing", but when he wanted to try it, the staff outside the camera said, "It's being used over at Oriental Selection and it can't be brought now", so the mothers-in-law started to take action.

Dong Yuhui also turned on the fill light during a live broadcast at a museum, which was also caught by some fans of Dongfangzhenxuan and caused a quarrel...

This also affected Yu Minhong. In April, due to a "Henan Cultural Tourism Live Broadcast" incident, fans of Yu Hui questioned whether Yu Minhong was trying to steal Dong Yuhui's limelight. In the end, Yu Minhong and Dong Yuhui both left the stage, which was considered to be a clear explanation of the incident.

Yu Minhong is indeed under a lot of pressure, and he also frankly admitted:

Although there has been no communication barrier between me and Yuhui, the complicated public opinion disputes, coupled with the guidance and rumors of a few forces with ulterior motives, directly led to the estrangement between Dongfang Selection and Yuhui. At the same time, I was also deeply caught in the tide of public opinion, constantly attacked and stigmatized, and Yuhui also suffered a lot of unwarranted accusations and harm, which has continued to this day.

Rather than being together in a twisted way, it is better to separate completely. Yu Minhong finally made this choice.

Dong Yuhui also responded:

"Taking into account the current actual situation and development plan, after friendly consultation and unanimous decision of both parties, the company Yuhui Xingxing will start to operate independently. Leaving the protection of the port, Yuhui Xingxing will sail to the vast sea alone from today. The future is unpredictable, and we can only go all out."

Yes, from today on, the road is straight and we will each go our separate ways.

In an interview program, Dong Yuhui once admitted, "I am very resistant to selling things. To be honest, I still don't enjoy this job today."

Now, Dong Yuhui, who is truly flying solo, probably can no longer resist. After all, overnight, the person who can cover the bottom is no longer in the same boat. Time will eventually prove everything.