Regarding Dong Yuhui's departure from $EAST BUY(01797.HK), and the purchase of 100% equity in Yuhui Tongxing for 76.59 million yuan, Dolphin Research has some speculative thoughts and hopes to discuss them with everyone.

As soon as the news broke last night, the stock price of $New Oriental EDU & Tech(EDU.US) immediately dropped.

Those who follow Dolphin Research know that KOL livestream selling is a business model where KOLs earn money while companies essentially work for them. When we first covered New Oriental, we didn't factor the livestream e-commerce business into its valuation.

In the end, Dong Yuhui still left. In terms of current valuation, his departure has a relatively small impact on New Oriental but a significant one on East Buy. His departure was expected, mainly for the following reasons:

A. Selling a livestream channel asset with 20 million fans for less than 100 million yuan—does this make sense for East Buy, which has a market cap of 1.4 billion USD? Could this be seen as selling listed company assets at a suspiciously low price?

B. Even if it doesn't make sense, how much value does Yuhui Tongxing retain without Dong Yuhui?

C. It's said that Yu Minhong provided the 70-80 million yuan purchase amount, essentially gifting Yuhui Tongxing to Dong Yuhui. Given such a huge favor and their reportedly good relationship, will Dong Yuhui reciprocate by offering Yu some equity in Yuhui Tongxing? Is there any undisclosed equity arrangement?

These are just Dolphin Research's speculative thoughts, offered here for discussion.