The Zhitong Finance App learned that Oriental Selection (01797) fell by more than 5%, with a cumulative decline of more than 44% during the year. As of press release, it had a decrease of 5.51% to HK$15.44, with a turnover of HK$149 million.
BOC International released a research report on New Oriental saying that Oriental's selection revenue is growing at an accelerated pace, but profit margins may have dropped 4 percentage points year over year. The bank said that according to data estimates from Mama Cicada, Dongfang Selection's GMV increased 75% year over year to 5 billion yuan in the 3rd quarter. The main increase came from the “Walk with Hui” Douyin account, as well as non-live streaming contributions from Taobao, its own apps, and its own products. The estimated revenue is about 1.96 billion yuan, an increase of about 56% over the previous year, mainly due to the incremental GMV contribution of the new “Walk with Hui” account. Oriental Selection's adjusted operating profit margin is expected to be 16%, offsetting New Oriental Education's profit margin optimization.
It is worth noting that on April 9, the Supreme Court said it was conducting research on issues such as online rewards. Furthermore, the Oriental Selection recently faced another public controversy. The incident of pickled plum dishes came to light at the March 15 gala. On March 18, Oriental Selection apologized for selling Yuhuiyuan plum cuisines on behalf of others. The company has decided to advance refunds for consumers. On March 30, Yu Minhong responded to the rumor that “the early live broadcast in Henan was to steal Dong Yuhui's limelight.” Yu Minhong said that he has never had plans to go to Henan for a live broadcast, and has requested Henan New Oriental Cultural Tourism to completely stop the live broadcast and carry out rectification.