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July 25,Dong YuhuiAnnounced his resignation from Oriental Selection. At the same time, Dong Yuhui acquired 100% of the shares of Yuhui Tongxing from Oriental Selection at a cost of RMB 76.59 million. As a result, Yuhui Tongxing, a wholly-owned subsidiary of Oriental Selection, will be officially separated from Oriental Selection and will be 100% held by Dong Yuhui personally.

Regarding Dong Yuhui's acquisition of Huitongxing,Yu MinhongHe explained, "I arranged the money for Yuhui to buy the company, and the company was given to Yuhui." In the eyes of industry insiders, this is a rare case where a big IP and a company can finally "break up" decently. For this, Yu Minhong gave up huge interests and showed an "unexpected big picture." So how much is Yuhui worth?

According to the announcement of Oriental Selection, Yuhui Xingxing was established on December 22, 2023. From December 22, 2023 to June 30, 2024, the company's pre-tax profit was 189 million yuan and its net profit was 141 million yuan.

Yuhuixingxing's net profit for the past six months and nine days was 141 million yuan. Based on the average monthly profit of nearly 22 million yuan, the estimated annual net profit is 260 million yuan.A sharesFrom the perspective of price-to-earnings ratio, if Huitongxing is independently listed on the A-share market, the current average price-to-earnings ratio of the A-share e-commerce index is 25.73, so the corresponding market value should be close to 6 billion yuan.

A rough estimate shows that Yuhui Tongxing's net profit in the first quarter was about 70 million yuan. Among the 508 e-commerce concept stocks in the A-share market, 156 had a net profit of over 70 million yuan. Yuhui Tongxing belongs to the upper-middle echelon.

Similar to Huitongxing, the e-commerce concept stock Struer had a net profit of 74.32 million in the first quarter, and its latest market value is 3.807 billion yuan. The e-commerce concept stock with the lowest market value in the A-share market is *ST Meiji, with a market value of 304 million yuan. The company is on the verge of delisting due to business suspension. Even so, *ST Meiji's market value is far higher than the 76.59 million yuan valuation given by Yu Minhong for Huitongxing.

In terms of live streaming, on the Douyin platform, the data of Dongfang Zhenxuan's live streaming room has almost always been crushed by Yuhui Tongxing. Data provided by the third-party data platform Chanmama shows that during the Douyin 618 this year, Yuhui Tongxing ranked third in sales on the entire platform, far exceeding Dongfang Zhenxuan, which ranked 15th. This is a big boon to Yuhui Tongxing's valuation.

The Douyin account of "Dongfang Zhenxuan's own products" has exceeded 100 million yuan in GMV for several consecutive months, becoming the third account of Dongfang Zhenxuan on Douyin with a monthly GMV of over 100 million yuan. This year, Dongfang Zhenxuan will add more than 10 vertical accounts on Douyin and will gradually launch live broadcasts. However, Yuhuixingxing has only one live broadcast room so far, and the non-matrix live broadcast has greater risks. Once the only live broadcast room has problems, the company's valuation will be greatly reduced.

Since its establishment, Yuhui Tongxing has been selling products from third-party brands and no longer carries the self-operated products of Dongfang Zhenxuan. In terms of third-party product selection, Yuhui Tongxing also focuses on food, agricultural products, books and other categories. In this way, Yuhui Tongxing will not be restricted by Dongfang Zhenxuan in product selection. After Yuhui Tongxing becomes independent, it can also form a closed business loop, which greatly increases its valuation space.

Then, the divestiture of Yuhui Tongxing, which was so highly valued, directly led to a 27% intraday drop in the share price of Dongfang Zhenxuan.StockholdersIn the stock forum, some investors complained bitterly, saying, "I am like Dong Yuhui, I have suffered heavy losses in stocks." Other investors said, "It's not fair. You are a listed company, but you are giving away your core assets at a bargain price. What should small investors do?"