East Buy Profit Plummets 70% Amid Departure of Top Influencer Dong Yuhui
East Buy, the e-commerce subsidiary of New Oriental, reported a significant 70% decline in profit from continuing operations for the fiscal year ending May 2024, dropping to RMB 249.1 million. Although the company posted a total net profit of RMB 1.7 billion, this figure was largely inflated by RMB 1.3 billion in gains from divesting its education business. Revenue rose by 56.8% to RMB 7.07 billion, driven primarily by Douyin, which accounted for the majority of transaction value. The financial results highlight growing uncertainty following the departure of Dong Yuhui, China’s leading livestreaming influencer. East Buy recently sold Dong’s venture, Time with Yuhui, to him and distributed approximately RMB 129 million in unallocated profits. This split follows internal controversies, including the firing of former CEO Sun Dongxu, which damaged relations with Dong’s fanbase. With Dong now operating independently and holding 23 million followers on Douyin, East Buy faces challenges in sustaining its previous growth momentum despite strong platform metrics, raising questions about its future stability without its star performer.
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East Buy Profit Plummets 70% Amid Departure of Top Influencer Dong Yuhui
East Buy, the e-commerce subsidiary of New Oriental, reported a significant 70% decline in profit from continuing operations for the fiscal year ending May 2024, dropping to RMB 249.1 million. Although the company posted a total net profit of RMB 1.7 billion, this figure was largely inflated by RMB 1.3 billion in gains from divesting its education business. Revenue rose by 56.8% to RMB 7.07 billion, driven primarily by Douyin, which accounted for the majority of transaction value. The financial results highlight growing uncertainty following the departure of Dong Yuhui, China’s leading livestreaming influencer. East Buy recently sold Dong’s venture, Time with Yuhui, to him and distributed approximately RMB 129 million in unallocated profits. This split follows internal controversies, including the firing of former CEO Sun Dongxu, which damaged relations with Dong’s fanbase. With Dong now operating independently and holding 23 million followers on Douyin, East Buy faces challenges in sustaining its previous growth momentum despite strong platform metrics, raising questions about its future stability without its star performer.
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