Market rumors have circulated claiming that New Oriental Group CEO Zhou Chenggang, a long-term partner of Yu Minhong, is suspected of embezzling listed company interests through related-party transactions and has been placed under regulatory investigation. This information has not been officially announced. In response to these claims, EAST BUY (01797) stated that the rumors are "completely false."

EAST BUY is scheduled to release its full-year results for the fiscal year ending May 31, 2025, on August 22 (next Friday). Previously, New Oriental announced its fourth quarter results for fiscal year 2025. According to Huaxi Securities' calculations based on the earnings announcement and earnings call, EAST BUY's fourth quarter fiscal 2025 revenue reached $150 million, representing a year-over-year decline of approximately 30%, though the decline rate narrowed compared to the previous quarter. Non-GAAP operating profit was approximately RMB 79 million, corresponding to an operating profit margin of about 7%, showing sequential improvement.

The firm noted that after experiencing the divestiture of Yuhui Tongxing and the departure of top anchor Dundun, the company's profitability has continued to improve. The firm recommends focusing on the company's transformation from anchor-driven to product-driven operations.

Guoxin Securities highlighted EAST BUY's "Sam's Club model" approach. The current consumer market is characterized by diversified supply, transparent information, and rational demand. Against this backdrop, companies capable of providing high value-for-money products with mature membership systems (such as Sam's Club, Haidilao, and EAST BUY) are expected to have more prominent advantages.

EAST BUY's recent operations have shown marginal improvement, with successful expansion into new product categories and enhanced growth quality in self-operated businesses. The firm believes that EAST BUY's marginal operational improvements serve as validation of the growth logic for this type of enterprise.