$EAST BUY (01797.HK)$After falling for 5 consecutive trading days with a total decline of more than 20%, it rebounded. As of press time, it rose by 4.55%, to HKD 15.64.

In terms of news, New Oriental Founder and Eastbuy CEO Yu Minhong issued an open letter apologizing to customers, shareholders, and investors. Yu mentioned that the comment 'Eastbuy made a mess of it' being debated in public opinion was only a humble expression between friends. He has said 'Eastbuy has been made a mess of it by me' not only in one place, but also as a habitual expression, and has said similar things on more than one occasion.

For his claim of 'staying away from disputes and living the life he wants', Yu Minhong apologized for such an inaccurate expression. In addition, his greatest wish in life is to transcend disputes and travel the world. He said this 20 years ago, but it does not mean that he is no longer responsible for the operation of Eastbuy and New Oriental.

Why did Yu Minhong issue an apology letter?

Recently, New Oriental founder Yu Minhong appeared in WM group founder Zhang Wenzhong's live broadcast room. When Zhang Wenzhong mentioned learning live broadcast sales experience from Yu Minhong, Yu Minhong said, "Dongfang Zhenxuan is also doing all sorts of messy things now, and has no ability to offer you any suggestions."

In addition, Yu Minhong also pointed out the negative impact of the internet on himself, saying that in the past year, he has suffered more insults, accusations and insults on the internet than in 100 lifetimes combined. He intends to stay away from the business world in the future, leaving more time for himself to travel and not strive desperately or get involved in disputes.

Subsequently, 'Yu Minhong said Eastbuy was a mess' became a hot search on Sina Weibo on June 3. The stock fell 9.92% on the same day, closing at HKD 16.52.

What happened to Eastbuy recently?

Eastbuy has been weakening recently, in addition to being influenced by Yu Minhong. There are also reports that its 618 live streaming style has caused widespread controversy. 'After Dong Yuhui left, the Eastbuy live streaming room changed its style' became a hot topic on June 1st.

The video shows that in the Eastbuy Beautiful Life live streaming room, the anchor fiercely promotes their products, saying 'You are all here, buy one before leaving', and the closing remark is '321, go to the link!' Some netizens said that this is the true face of Eastbuy and they are finally not pretending anymore.

In fact, Eastbuy is currently experiencing the pains of transformation. According to data from a third-party data platform, since the launch of 'Walking with Hui' on January 9, 2024, Eastbuy's main account has declined in terms of number of fans, traffic, and sales, losing a total of 1.12 million fans. As of the 3rd, Eastbuy's account on Douyin has 30.38 million fans, while the 'Walking with Hui' account has 19.198 million fans.

In April of this year, 'Walking with Hui' ranked first on the Douyin sales list with a sales volume of RMB 580 million, while Eastbuy ranked ninth with RMB 190 million and Eastbuy Beautiful Life ranked tenth with RMB 160 million.

In addition, MSCI, an internationally renowned index company, removed Eastbuy and 56 other stocks from its constituents in the May review change. Some analysts believe that this adjustment may have a negative impact on its stock price.

Edited by Jeffrey