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PostsBreaking news from East Buy! Dong Yuhui goes solo, how much is Yuhui Tongxing worth?
As a phenomenal top live-streamer, Dong Yuhui has taken a critical step forward.
On July 25, Oriental Selection announced that Dong Yuhui has decided to step down as an employee of the company and as a senior executive of a consolidated affiliated entity, effective July 25, 2024, due to his career aspirations, commitment to other endeavors, and personal schedule.
Oriental Selection will sell 100% equity of Yu Hui Tong Xing to Dong Yuhui for 76.5855 million yuan.
Notably, after the listed company's announcement, Yu Minhong subsequently issued a statement.
Yu Minhong stated that Dong Yuhui holds the funds required to purchase the equity of Yu Hui Tong Xing, and he arranged the payment in compliance with the rules of the listed company and the company's articles of association.
In other words, Yu Minhong personally purchased the equity of Yu Hui Tong Xing from the listed company and then gifted it to Dong Yuhui, which indeed demonstrates considerable generosity.
Of course, as a live-streaming company, the core asset is the top live-streamer themselves. Yu Hui Tong Xing is also a newly established company this year. We have reason to believe that if Dong Yuhui starts his own venture, he will quickly regain his prominence.
Moreover, Yu Minhong once said that if Dong Yuhui resigned to start his own business, he would gift "Yu Hui Tong Xing" to Dong Yuhui, and now he has fulfilled that promise.
Dong Yuhui later posted that, considering the current situation and development plans, after friendly negotiations and mutual agreement, Yu Hui Tong Xing will begin operating independently.
In reality, Dong Yuhui's solo venture was almost an inevitable outcome.
Luo Yonghao once said that China's top live-streaming agencies, such as Xin Youzhi's, Qianxun, and Xiao Yangge, are all 100% family-controlled businesses. Non-family-controlled top agencies include Meiwan, Jiaogepengyou, and Oriental Selection. Taking Meiwan as an example, when the company was founded, Li Jiaqi was a minor shareholder, but after all these years, he has become the major shareholder. In the company's profit-sharing, Li Jiaqi takes the lion's share, which is a fair market distribution.
Additionally, Luo Yonghao mentioned that when Jiaogepengyou was launched, he also had full control.
This shows that almost all top live-streaming companies revolve around these phenomenal live-streamers, but Oriental Selection and Yu Minhong apparently failed to recognize this.
After the "small essay" incident erupted, the internal conflicts within Oriental Selection were made public, which was highly unprofessional. Even worse, the company's top live-streamer, Dong Yuhui, was thrust into the spotlight and repeatedly became a trending topic.
Judging by the course of events, this outcome was destined.
Of course, the occurrence of such an incident is also related to Oriental Selection's "strategy." As a listed company, binding the company to an individual is risky, indicating weak risk resistance. Thus, "de-Dong Yuhui-ization" was a necessary move, but the consequence is that Dong Yuhui going solo seems inevitable.
Overall, Dong Yuhui played a decisive role in Oriental Selection's successful transformation. Choosing to "part ways" at this stage leaves a positive impression for both sides.
So, how much impact will the spin-off of Yu Hui Tong Xing have on Oriental Selection? How much is Dong Yuhui's personal brand worth?
According to Lanjing News, since its launch on January 9 this year, Yu Hui Tong Xing's total sales (GMV) have reached 4.284 billion yuan. On June 19, Oriental Selection announced that its self-operated products' GMV for the second half of the 2024 fiscal year exceeded 3.6 billion yuan. Based on previous financial reports, the full-year GMV for the 2023 fiscal year was 10 billion yuan.
From this data, Yu Hui Tong Xing's independence will take away a significant portion of Oriental Selection's sales, which is a substantial blow. Ultimately, these figures will be directly reflected in the financial reports.
Luo Yonghao once said that Dong Yuhui's personal brand is worth about 10 billion yuan. Based on Yu Hui Tong Xing's current GMV, this estimate is likely accurate. Therefore, we believe Dong Yuhui's personal brand value is around 10 billion yuan.
In summary, Dong Yuhui's departure marks the beginning of a new phase for him, but for Oriental Selection, the impact may be unbearable.
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