Oriental Selection (Dongfang Zhenxuan) reported a dramatic mid‑fiscal‑year reversal: revenue ticked up and net profit surged, sending the stock sharply higher. The market greeted the results as evidence that the livestreaming retailer — once battered by a high‑profile talent exodus — can stabilise its business, even as questions persist about the sustainability of its recovery and the balance of influence between founder Yu Minhong and former star anchor Dong Yuhui.
For the six months to November 30, 2025, Oriental Selection posted revenue of RMB 2.312 billion and net profit of RMB 239 million, a year‑on‑year net‑profit increase of 347.7%. Investors responded immediately: shares opened strongly on January 29 and closed up more than 14%, lifting the company’s market value to about HK$26.6 billion and renewing confidence in a company that, only months earlier, had seen its market standing and audience evaporate.
The jump to profitability is largely the product of aggressive cost cutting. Administrative expenses plunged 78.6% to RMB 83.9 million, R&D spending fell 21% to RMB 53.7 million, and sales and marketing outlays edged down to RMB 440 million. Management also pared roughly 360 employees, which the company says directly freed nearly RMB 200 million in margin headroom.
At the same time Oriental Selection has been reshaping its product mix. Self‑operated goods accounted for RMB 2.0 billion of revenue, up 18.1% year‑on‑year and representing 86.5% of total revenue; self‑operated GMV surpassed the 50% threshold and the company expanded its standardised product units to 801. Gross margin rose to 36.4% from 33.6%, evidence that higher‑margin owned inventory is lifting profitability even as aggregate transaction volumes remain weak.
But the recovery is fragile and incomplete. Core GMV for the period was RMB 4.1 billion — below prior‑year comparatives of RMB 4.8 billion and RMB 5.7 billion in earlier periods — and reliance on the Douyin platform remains entrenched. Orders originating on Douyin fell by about 8 million to 42.1 million in the six‑month window, while the company’s app contributed only 18.5% of GMV and paid membership numbers fell to 240,100 from 264,300, undermining Yu’s aim to build a more resilient, membership‑driven private domain akin to a digital “Sam’s Club.”
The clearest test of Oriental Selection’s durability is the rise of Dong Yuhui’s independent operation, Yuhui Tongxing. In 2025 that group reportedly generated more than RMB 200 billion in GMV and amassed roughly 38–39 million Douyin followers. Industry rankings placed Yuhui Tongxing among the new generation of heavyweight live‑commerce players, and its rapid ascendancy crystallised the narrative that a charismatic anchor can outgrow the corporate home that incubated him.
The rivalry has reshaped behaviour at the top. Yu Minhong has stepped up his own public‑facing role and personally fronted a series of “see the world” broadcasts while promising to expand Oriental Selection’s anchor roster from about 27 to 60 people and to build a matrix of more than 20 Douyin accounts. Dong, by contrast, has signalled a more selective on‑camera presence even as he remains the central performer for many of Yuhui Tongxing’s largest shows.
This episode matters because it highlights the structural tensions of China’s creator‑driven commerce: brands can be rebuilt by ruthless cost control and product moves, but celebrity talent is portable and can strip value from platform‑dependent retailers overnight. Oriental Selection’s rebound buys time and credibility, yet the company’s path to durable scale will require channel diversification, genuine membership growth and a deeper product play — not just slimming the cost base.
Investors and competitors will watch the coming quarters for evidence that revenue growth can outpace savings and that traffic can be recaptured without overreliance on a single platform. If Dong Yuhui’s team continues to command outsized audience and GMV, the sector will increasingly resemble a marketplace of star‑led franchises rather than a few dominant corporate incumbents.