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Editor: Ye Jinyan

Produced by: Deepnet·Tencent News Xiaoman Studio

August 23,Oriental SelectionAnnounced the results for the fiscal year 2024 ending May 31, 2024. In the fiscal year 2024, the total GMV of Oriental Selection was 14.3 billion yuan, a year-on-year increase of 43%.

In this fiscal year, Oriental Selection's total revenue reached 7.072 billion yuan, a year-on-year increase of 56.8%; the adjusted net profit from continuing operations and discontinued operations was 2.2 billion yuan (including 1.3 billion yuan of after-tax disposal gains from the sale of education business), compared with 1.1 billion yuan in the same period last year.

In terms of revenue structure, self-operated business is still the largest source of revenue for Oriental Selection. In fiscal year 2024, the revenue of self-operated business reached 6.5 billion yuan, an increase of 68.1% compared with 3.9 billion yuan in fiscal year 2023. In two years, Oriental Selection has launched 488 SKUs of self-operated products, and the product categories have expanded from the initial fresh food and snacks to a more diversified product series.

"Our GMV and total revenue achieved strong growth at the end of fiscal year 2024, which demonstrates the resilience of our business model and the potential of our self-operated products and live streaming e-commerce business," said Yu Minhong, Chairman and CEO of Oriental Selection.

It should be pointed out that due to the promotion of membership day events held by Oriental Selection and the continued sales of more agricultural products with lower profit margins, the company's gross profit margin was 25.9% in fiscal 2024, a year-on-year decrease from 38.2% in fiscal 2023.

The direct consequence of the decline in gross profit margin is that the company's ongoing business (self-operated and live broadcast) has seen a significant decline in net profit during the period. From the financial report of Oriental Selection, it can be seen that the sharp increase in the total salary expenses of Oriental Selection is also one of the reasons for the decline in the company's net profit during the period.

According to the financial report, in fiscal year 2024, the total salary expenses (including share-based compensation expenses) incurred by Oriental Selection were RMB 1.4 billion, a year-on-year increase of 94.1% from RMB 735.9 million in fiscal year 2023.

As of May 31, 2024, the total number of people in the Oriental Selection's proprietary products and live e-commerce teams reached 1,883, including 1,318 full-time employees and 565 part-time employees;Supply ChainThe product team has reached 830 people, including 565 full-time and 265 part-time.

In its financial report, Oriental Selection also revealed the distribution of profits retained by Oriental Selection and Hui Tongxing.

Yu Minhong revealed at a previous shareholders' meeting that "Yuhui Tongxing still has 140 million in net profit in its account. This 140 million in net profit is actually the net profit that should have belonged to Dongfang Zhenxuan after Yuhui's income had been distributed. According to the previous agreement, Yuhui can get 50% of Yuhui Tongxing's net profit. In other words, 50% has been distributed to Yuhui, leaving 140 million. The distribution to Yuhui has already reached his personal account, which will be reflected in the annual report."

The financial report shows that the target company's unaudited net profit is approximately RMB141 million (reflected as "other payables" in the valuation report), of which approximately RMB129 million can be distributed to Mr. Dong. In accordance with applicable Chinese laws, the difference of approximately RMB12 million will be retained by the target company.

Regarding the development of the Oriental Selection channel, Yu Minhong once revealed at a shareholders meeting, "New OrientalThere are seven or eight hundred ground-based teaching sites, and Oriental Selection will explore a model that combines online and offline teaching.”

According to Shenzhen Net, in the second half of this year, Oriental Selection will launch a pilot program of this model in Beijing, adding offline product promotion video advertising space and smart vending machines through New Oriental's offline outlets, and will gradually radiate to offline outlets across the country in the future.