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How will Oriental Selection respond after Dong Yuhui’s resignation?

On August 23, Oriental Selection (01797.HK) announced its 2024 fiscal year results ending May 31, 2024. In fiscal year 2024, Oriental Selection's total revenue reached 7.072 billion yuan, a year-on-year increase of 56.8%. Oriental Selection's total GMV (total transaction volume) was 14.3 billion yuan, a year-on-year increase of 43%. The adjusted net profit of 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. The adjusted net profit of continuing operations was 709 million yuan, compared with 916 million yuan in fiscal year 2023. The profit attributable to the owners of the company was 1.7195 billion yuan, a year-on-year increase of 77%.

It is worth noting that according to the financial report, Dong Yuhui received a reward of about 129 million yuan from Dongfang Selection. The reporter of The Paper learned from an informed source that in a closed-door shareholder exchange meeting after the release of the financial report, Yu Minhong revealed thatThe development of Oriental Selection in fiscal year 2025 will make up for the GMV (gross merchandise volume) lost from the divestiture with Huitongxing.

As of the close of the market on the 23rd, Oriental Selection rose 2.84% to close at HK$10.88. Wind showed that the stock price has fallen by 60% this year.

Self-operated APPs contribute less than 10% of GMV

In terms of business, the total revenue of the core business of Oriental Selection, self-operated products and live e-commerce divisions, increased by 68.1% year-on-year to 6.5 billion yuan. The financial report stated that the substantial growth was mainly due to the multi-platform strategy of Douyin, Taobao and its own applications, diversified product categories and SKUs, and the company's membership day promotion launched in December 2023.