Oriental Selection still has a long way to go
In Yu Minhong's plan, Oriental HE Tuber Selection "will build an excellent agricultural and life industry chain." He mentioned the need to establish a three-dimensional sales platform to serve more Chinese merchants. In addition to Douyin, this three-dimensional sales platform will also consider other platforms and even build its own platform.
But what is the result? At the end of February this year,
Oriental Selection also disclosed its first performance report after the name change. In addition to revenue growth, during the six months of the reporting period, Oriental Selection's GMV (gross merchandise transactions) reached 4.8 billion yuan, of which self-operated products contributed Sales revenue of 1.089 billion yuan, and third-party products generated commission service
Revenue of 677 million yuan. The two incomes accounted
for 85% of the total revenue, while the revenue of the traditional education sector was only 295 million yuan, and the proportion shrank to 14%. The revenue and profits disclosed in the report were lower than market expectations.
At the same time, Oriental Screening CEO
Sun Dongxu and CFO Yin Qiang successively reduced their holdings by nearly 5 million shares, cashing out at a high level of nearly HK$280 million. This unexpected reduction directly caused Oriental Screening's stock price to plummet 20% that day.
Tianfeng Securities analyzed this in a research report and stated
that the decline in GMV was one of the main reasons for the correction in Oriental Selection’s stock price. In addition, the reduction of holdings by Oriental Selection executives was also the reason for the decline in the stock price. "Recently, Oriental Selection's GMV has averaged between 20 million and 30 million yuan per day, which has dropped significantly from the 40 million to 50 million yuan before the Spring Festival. On the one hand, the reason is due to the off-peak consumption season and offline recovery; on the other hand, On the other hand, due to the impact of the epidemic two years ago, the pace of launching new self-operated products after the new year will be slow.”
In terms of goods, in March this year, Oriental Selection
was included in the hot search for "the wild white shrimps sold in Ecuador are actually farmed." Last year, there were precedents of high-priced corn incidents and moldy peaches growing hairy incidents. The control of the supply chain Obviously, Eastern Selection requires continuous improvement. As a company that makes a living by selling agricultural products, apart from the anchor halo and conceptual packaging, only "product power" is the key factor that can help it go further.
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it has fallen by about half from its high point in January this year. This reminds Oriental Selection to a certain extent: the temporary hype will eventually pass, and we should continue to think about the possibilities and solutions for our own business development. It is an eternal proposition.
At present, "Oriental Selection Beautiful Life" has undoubtedly supported the performance growth of Oriental Selection, but is this phenomenon sustainable? Where is the next "Oriental Selection Beautiful Life"? How to increase profits while improving product capabilities? Dongfang Selection obviously still has a long way to go in the future.
