As of midday close on September 2nd, EAST BUY (HK01797, total market cap HK$26.255 billion) closed at HK$25.1 per share, declining 3.61%. Compared to its recent peak of HK$53.7 on August 19th, the stock has been nearly "cut in half."

Who would have thought that two rumors could put EAST BUY through such dramatic ups and downs. On August 19th, a false rumor about "New Oriental CEO Zhou Chenggang being investigated" caused the previously soaring EAST BUY stock to plummet 20.89% in a single day. Subsequently, rumors emerged that former EAST BUY CEO Sun Dongxu was "about to resign." Despite official statements clarifying it was merely "normal leave," this failed to halt the stock's decline.

Similar to when Dong Yuhui's departure caused the stock to be "cut in half," news of core personnel turbulence has severely damaged EAST BUY's vitality, even when it's merely a rumor.

This serves as a wake-up call. At the same time, a question confronts founder Yu Minhong: Who can EAST BUY not do without?

Actually, Yu Minhong has answered this question once before. After Dong Yuhui's departure, Yu Minhong paid out a total of over 300 million yuan as an astronomical "severance package" to prove to the "mother-in-laws" and public criticism that he had not bullied or mistreated Dong Yuhui. Later, investors witnessed EAST BUY's rebound from the bottom, creating an impressive upward trend.

Fundamentally, during the Dong Yuhui departure controversy, Yu Minhong completed the farewell to the "influencer IP-driven e-commerce" model. EAST BUY no longer needs "the next Dong Yuhui" but has shifted its strategic focus toward supply chain and proprietary products, driving the evolution from an "influencer-driven" to "product-driven" business model, creating an "online Sam's Club."

This represents the general trend as live-streaming e-commerce enters its second half. EAST BUY has taken the lead, establishing a benchmark.

Yu Minhong has already proven that EAST BUY can operate without top influencers. Even when the departure of streamer Dundun, who was later called "the next Dong Yuhui," caused barely a ripple. But now, Yu Minhong needs to answer whether EAST BUY can still function without key executives and supply chain leaders.

The rumors related to two executive changes that caused the stock to be "cut in half" indicate that EAST BUY's transformation journey continues. Sun Dongxu's importance to EAST BUY lies in his strategic execution and supply chain building capabilities. After graduating from Nankai University, he joined New Oriental and rose from frontline teacher to CEO of a listed company over 18 years. Sun Dongxu witnessed the listing of New Oriental Online, experienced the education industry's winter, and led EAST BUY from ground zero to explosive success. During the most difficult times, he was Yu Minhong's most capable executor.

At the end of 2023, the "small essay" incident erupted, and Sun Dongxu was removed from his CEO position but remained at EAST BUY as a "behind-the-scenes hero." Clearly, this wasn't just because he was a meritorious minister, but more importantly because of his significance to EAST BUY's supply chain and product-driven model. In Yu Minhong's words, he "performed excellently in product selection and quality control."

Yu Minhong certainly doesn't need to prove again whether he mistreated "Little Sun of the East," but he needs to demonstrate that EAST BUY possesses a complete supply chain system, mature management mechanisms, and a sustainable business model; that it can function without top influencers and without certain executives. This proof may be more challenging but also more important.

This isn't a challenge facing only EAST BUY. Every listed company may face significant personnel changes, and capital markets are highly sensitive to such developments. Many companies heavily depend on the personal capabilities of founders and core executives. Once key figures leave, companies may fall into difficulties.

Yu Minhong has proven that New Oriental could survive the education industry adjustments, that EAST BUY could stand out in the red ocean of live-streaming e-commerce, that the company could operate without popular streamers, and demonstrated his entrepreneurial vision and capabilities. Now, he needs to prove that the company can break free from the constraints of more personal factors.

Who can EAST BUY not do without? The answer might be: EAST BUY can do without anyone, even including Yu Minhong himself. Yu Minhong is already 62 years old, at an age when he should consider corporate management "succession." Only then can he travel and enjoy the scenery without distractions in "Journeying with Yu," immersing himself in poetry and distant places.