The Zhitong Finance App learned that on the evening of July 25, Oriental Selection (01797) announced that its famous anchor Dong Yuhui left his job and sold 100% of his shares with Hui to Dong Yuhui at a price of 76.5855 million yuan, which sparked a buzz in the market. On the 26th, Oriental Selection held an online shareholder communication meeting. Yu Minhong, founder of New Oriental and CEO of Oriental Selection, said that he was very sorry for the outcome of the divestment with Hui, but it can be said that in the face of the actual situation faced by the company, this outcome is indeed unavoidable, and even this result is beneficial to the company's development.

Yu Minhong: Dong Yuhui's treatment is reasonable

Yu Minhong said that after going independent with Hui's colleagues, various issues involving at least the two companies, internal conflicts, and complications after the participation of external forces were resolved once and for all. “The environmental situation will be cleaner. As far as Oriental selection is concerned, we can carry out development layout reforms with great fanfare. We don't need to worry about the imbalance between the two sides, nor the huge pressure and pain caused by the participation of external forces or public opinion.”

When talking about Dong Yuhui's earnings, Yu Minhong said that specific data cannot be disclosed. The board of directors treated Dong Yuhui reasonably and excellently. There is now a net profit of 0.14 billion yuan on the bank account with Hui. According to the agreement, the reward of 0.14 billion yuan was originally selected by Dongfang. At the time, Yu Minhong proposed that since Dong Yuhui made great personal contributions, this money needed to be rewarded to Yu Hui. Now Oriental Selection is a transparent company, and it is common practice to give Dong Yuhui a reward when he wants to leave.

Yu Minhong said that for the possibility of future cooperation with Dong Yuhui, etc., these are all the best practices. I have been doing my own business for many years. I have experienced countless dangerous times, and have led New Oriental out of trouble many times. He said that he is confident about Oriental Selection. After resolving the internal and external environment, Oriental Selection will have a cleaner development environment in the future, and a better strategic layout can be made.

Yu Minhong said that as for the purchase price of 76.5855 million yuan, it did not encroach on the personal interests of Oriental Choice and Dong Yuhui; it was his own gift to Dong Yuhui as the “big brother.”

Yu Minhong said that there is no separation between him and Dong Yuhui. There is no way to break up this time. This is not a world of two people. As Oriental selected shareholders, he will never personally participate in the operation of Liehui's peer capital.

Yu Minhong also said that the share purchase amount of more than 70 million yuan will be paid through some kind of partnership between New Oriental and Dong Yuhui. It will comply with all regulations of New Oriental's listed companies in the US, and will not encroach on any Oriental selection interests.

Yu Minhong: New Oriental will not participate in shares with Hui in the future, and Dongfang will not select another anchor to set up an independent platform

On the issue of shareholding, some shareholders think whether New Oriental will take a share in Huixing soon after becoming independent. Yu Minhong said that New Oriental will not hold any shares in Huidong now or in the future; this situation does not exist.

Yu Minhong mentioned that becoming independent with Hui this time was an experience. “I've actually never been allowed to set up an independent studio in New Oriental. In the future, we will give anchors good enough treatment and incentives, and a good enough platform for development. I hope to make the anchors an excellent team that unites and works together, which means they can play against each other. However, within the scope of what I can see in the future, Oriental Selection will no longer be able to have an anchor independently set up a platform and operate a model like this one, because this will lead to some kind of self-interest, and it will also lead to some kind of unpredictable outcome. The future development direction of our anchors is to develop together.”

Yu Minhong: Personally bringing anchors to drive Oriental selection traffic

In response to the next operational issues of Oriental Selection, Yu Minhong said that now he personally brings anchors to manage and encourage the anchors' mentality, including activities such as dialogues with famous writers. In the current state, traffic is very important to the development of Oriental Selection. We will continue to tap anchors and promote Oriental Selection Traffic. Later, gradual efforts can ensure the growth of Oriental Selection traffic and fan participation.

Regarding the company's negative problem control, Yu Minhong said that it is already on the agenda. Over the past month, the face of the anchor has changed rapidly.

Yu Minhong also said that there are more than 0.03 million teachers on the New Oriental platform, and anchors will be selected in the future. The strength of the operation team, the multi-platform operation strategy, and traffic will be well expressed. Active cooperation and negotiations with Douyin executives will continue to express their desire for Douyin development, and the cooperation with Douyin will be closer.

Yu Minhong revealed that Oriental Selection has a new plan, which relies on 800 teaching sites on New Oriental to test a model combining online and offline to open ground stores, ground service stores, etc., but currently this is just an idea.

Yu Minhong: My image has been greatly lost due to internet violence. If you are not satisfied, you can re-elect the CEO

Yu Minhong also responded to public opinion on the conference call: “In the past three months, my image has been greatly damaged due to internet violence, and there has been an endless stream of comments on the internet about my plots, attacks, and abuse of employees. It seems like I have become the most vicious capitalist and boss in the world. For my age, I don't care about outside reviews, but these have really affected the company's business development.”

Yu Minhong said, “Actually, in the beginning, I tried to fix the problems on both sides, and I was also desperately trying to please fans on both sides (Oriental Selection, Together with Hui). At that time, I also often appeared on the Youhui Peer Platform, and once on the Oriental Selection Platform, but I didn't expect this bowl of water not only to be flat, but in the end, it would burn the fire on my own head.”

Yu Minhong said that almost everyone's mentality, including the anchor team and manager selected by Dongfang, and he himself has been greatly affected and hurt. Two problems have arisen: First, the internal status of the company's personnel is unstable; second, minor mistakes made by the anchors can trigger cyber attacks, further damage the body and mind, and bring uncertainty to the company's development.

“This uncertainty can be seen from the company's stock price. The stock price was supposed to rise, but instead fell. This is the stock market's reaction to the uncertainty of Oriental selection. Every action of the company, including my own, is going back and forth. A series of strategic layouts could not be implemented, and once action was taken, it was met with a sharp reaction. Even if I post an announcement, or show up in front of the camera, or post a video on a personal trip, people will come and scold me. This has led Dongfang to select as an online sales company. On the surface, GMV is increasing, but in reality it is facing many difficulties.” Yu Minhong said.

Yu Minhong also said, “If everyone thinks I am unqualified to be the CEO or chairman, we can choose a new chairman or CEO.”

In the secondary market, Oriental Choice fell more than 27% on July 26. By the close, it closed at HK$9.50 per share, a decrease of 23.39%.