On the evening of July 25th, Dongfang Zhenxuan announced on the Hong Kong Stock Exchange that its well-known anchor Dong Yuhui had resigned. 100% equity of Tonghui was sold to Dong Yuhui for 76.5855 million yuan.
On the 26th, the stock price of Dongfang Zhenxuan (01797. HK) fell sharply. As of the close, Dongfang Zhenxuan had dropped 23.39%, with a total market value of HKD 9.797 billion. On the 25th, the stock price of New Oriental in the US fell 5.46%, with a total market value of 11.64 billion US dollars.
On July 26th, Yu Minhong expressed regret at the shareholder communication meeting of Dongfang Zhenxuan for the result of divesting from Huitong. However, it can be said that in the face of the reality faced by the company, this result is indeed inevitable, and even beneficial for the company's development.
Yu Minhong also stated that some shareholders believe that shortly after becoming independent from Hui Tong, New Oriental will invest in Hui Tong. New Oriental will not hold any shares in Hui Tong at any time now or in the future, and this situation does not exist.
Yu Minhong said that today's result is a great situation for Dongfang Selection, including for colleagues from Yuhui, because if Yuhui is independent, at least the various issues between the two companies, internal conflicts, and the complexity of external forces involved can be resolved in one go. The environmental situation will be cleaner. For Dongfang Zhenxuan, we can carry out development layout reforms with great fanfare, without worrying about the imbalance between the two sides, and without worrying about the huge pressure and pain brought by external forces and public opinion participation
When talking about Dong Yuhui's earnings, Yu Minhong stated that specific data cannot be disclosed. The board of directors' treatment of Dong Yuhui is reasonable and generous. There is still a net profit of 140 million yuan in the accounts of Huitong. According to the agreement, the 140 million yuan reward originally belonged to Dongfang Zhenxuan. At that time, Yu Minhong proposed that due to Dong Yuhui's significant personal contribution, this money should be rewarded to Yuhui. Now Dongfang Zhenxuan is a transparent company, and it is customary to reward Dong Yuhui when he is about to leave.
Yu Minhong stated that this is the best approach for the possibility of future cooperation with Dong Yuhui. I have been doing business for many years and have encountered countless dangers. I have led New Oriental to overcome these difficulties multiple times. He expressed confidence in Dongfang Zhenxuan. After solving the internal and external environment, Dongfang Zhenxuan will have a clearer development environment in the future and can make better strategic layouts.
As for the acquisition price of 76.585 million yuan, it did not encroach on the personal interests of Dongfang Zhenxuan and Dong Yuhui, but was a gift given to Dong Yuhui by myself as the "big brother".
Yu Minhong stated that there is no barrier between himself and Dong Yuhui, and this breakup is inevitable. This world is not for two people, and as a shareholder of Dongfang Zhenxuan, he will never participate in the capital operation of Tonghui.
Yu Minhong also stated that the equity purchase price of over 70 million yuan will be paid through some kind of cooperative relationship between New Oriental and Dong Yuhui, which will comply with all the regulations of New Oriental's listed companies in the United States and will not infringe on any benefits of Oriental Selection.
Yu Minhong said, "In the past three months, my image has suffered huge losses due to online bullying. There has been a constant stream of conspiracy, attack, and abuse of employees about me on the internet, as if I have become the most vicious capitalist and boss in the world. At my age, I don't care about external comments, but these have indeed affected the company's business development
The mentality of almost everyone, including the anchor team, managers, and myself at Dongfang Selection, has been significantly affected and hurt. Two problems have arisen: first, the internal personnel status of the company is unstable; second, the small mistakes of the anchors can trigger cyber attacks, further harming the body and mind, and bringing uncertainty to the company's development
Regarding the stock price of Dongfang Zhenxuan, Yu Minhong stated that this uncertainty can be seen from the company's stock price. The stock price should have risen, but instead fell, which is the stock market's response to the uncertainty of Dongfang Zhenxuan. Any action taken by the company, including mine personally, is in a dilemma. A series of strategic layouts cannot be implemented, and once there is action, it will receive a severe response. Even if I make a notice, appear in front of the camera, or post a video while traveling alone, people will come and scold me. This has led to Dongfang Zhenxuan, as an online sales company, facing many difficulties despite the apparent increase in GMV.
According to the Xiaoxiang Morning Post, Yu Minhong also said, "If people feel that I am not qualified as CEO or chairman, we can choose a new chairman or CEO