The "Double 11" shopping festival in 2025 is in full swing, but EAST BUY's internal "battle" has reached its final chapter in an unexpectedly dignified manner.
On the afternoon of November 6, Yu Minhong, founder of New Oriental, announced via his personal Douyin account that Sun Dongxu, co-founder and former CEO of EAST BUY (1797.HK), had officially resigned due to "personal reasons" and would no longer be involved in any company operations.
Yu handled the farewell with utmost grace and warmth, praising Sun as a key founder of EAST BUY. "Without Dongxu's efforts and dedication, EAST BUY would not have achieved its current development," Yu wrote. He also revealed that he had attempted to retain Sun, hoping for his eventual return, but ultimately "respected his decision." To dispel speculation about their relationship, Yu emphasized that they maintained "excellent communication without any discord."
However, the capital market responded with skepticism. On the first trading day after the announcement, EAST BUY's stock price dropped sharply. Its Hong Kong-listed shares opened lower and fell over 6% intraday, closing at HK$20.26—a 5.5% decline from the previous day's close of HK$21.44. Trading volume surged nearly 90% above the daily average. As of November 7, EAST BUY's market capitalization stood at HK$21.4 billion (approximately RMB 19.6 billion).
Sun's departure marks the separation of EAST BUY's "content IP" and "product strategy" paths, leaving Yu, 62, without his most trusted "executor" after Dong Yuhui's exit.
**The End of Sun Dongxu's Era at EAST BUY** Sun's exit was not abrupt but the culmination of a two-and-a-half-year transition.
To understand his departure, one must revisit February 2023, when EAST BUY's stock soared to record highs amid Dong Yuhui's "knowledge-driven livestreaming" craze. Yet, just 10 months before the "essay controversy," then-CEO Sun sold a significant portion of his EAST BUY shares, cashing out over HK$200 million.
This move sparked controversy at the time but now appears prescient. Sun was a staunch advocate of "product-first" strategy, aiming to "diminish individual IPs and strengthen supply chains." Ironically, he capitalized on the "IP bubble" at its peak, converting it into personal wealth.
The turning point came in December 2023 with the "essay controversy," where a dispute over script authorship escalated into a public feud involving management, Dong Yuhui, and fans. Sun's rigid crisis management made him a target, leading to his removal as CEO and executive director, retaining only a nominal non-executive director title.
This marked the start of Sun's gradual exit. He retreated to supply chain management, spearheading in-house products like coconut water. Yu acknowledged Sun's prowess in "product selection." In November 2024, Sun briefly returned to livestreaming as "Classmate Sun," achieving record sales of RMB 15 million in a single day. By August 2025, rumors of his departure surfaced, with EAST BUY stating he was "on leave."
From the HK$200 million cash-out in February 2023 to his CEO removal in December 2023 and the November 2025 resignation, Sun's exit was a prolonged fade-out.
**"Sun Dongxu's Productism" vs. "Dong Yuhui's IP Route"** Sun championed a "platform-first" approach, building EAST BUY's supply chain to reduce reliance on individual influencers. His vision was a Sam's Club-like brand where customers trusted the product quality, not the主播.
Dong Yuhui's rise embodied the opposite—IP-driven success. Millions tuned in for his lectures, not just products. This IP dependency clashed with Sun's strategy, as stock prices and sales became tethered to one personality.
Yu once admitted, "Without Sun, Yuhui and I can't execute anything." Sun was the enabler who turned visions into reality.
Post-essay controversy, Yu chose to preserve the IP. He removed Sun as CEO to appease Dong and fans, then spun off Dong's "Yu Hui Tong Xing" (YHTX) studio, granting him full autonomy. EAST BUY lost control of its superstar IP—and now, its product strategist.
**Dong Yuhui's Solo Flight: YHTX Surpasses EAST BUY** In July 2024, EAST BUY announced Dong's resignation and sold YHTX to him for RMB 76.59 million.
YHTX's model is pure IP leverage. Since its January 2024 debut, it topped Douyin charts, hitting 200 million likes in 20 minutes. By May, YHTX ranked second in Douyin sales (RMB 533 million), while EAST BUY dropped to sixth.
In August, Luo Yonghao claimed Dong earned RMB 2–3 billion annually post-spinoff. Though unverified, YHTX has clearly outpaced EAST BUY.
During this year's Double 11 presale, YHTX attracted 70 million viewers and RMB 300 million in sales, setting a Douyin record. Its Douyin粉丝 hit 34.26 million, surpassing EAST BUY's 28.09 million.
YHTX's success underscores IP dominance in livestream commerce. Meanwhile, EAST BUY's FY2025 report (June 2024–May 2025) showed steep declines: GMV plunged 39.2% to RMB 8.7 billion, revenue fell 32.7% to RMB 4.4 billion, and orders halved to 91.6 million.
Economist Pan Helin noted EAST BUY's core issue: "It lacks strong traffic appeal post-Dong."
To counter, EAST BUY doubled down on productism: - In-house products now contribute 43.8% of GMV. - It launched its first cold-chain warehouse and expanded offerings to 732 SKUs, spanning food, nutrition, pet care, and apparel. - Its app's GMV share rose from 8.4% to 15.7%, building a "traffic moat" beyond Douyin.
**Talent Drain: EAST BUY's Crisis** Sun's exit caps a two-year exodus of key personnel.
Dong's spinoff began the crisis. Though nominally a partner, YHTX is now a direct competitor.
"Super IPs" like Dong are irreplaceable, but even mid-tier talents like Dun Dun (Wang Ruodun) have left. Dun cited "contract expiry" in June 2025, but insiders revealed clashes between personal ambitions and EAST BUY's IP-suppression strategy.
Such strategy—limiting主播's external exposure to curb individual IP growth—creates a ceiling for ambitious talents. Dun's departure reflects systemic attrition.
With Sun gone, EAST BUY loses its productism executor. Yu now faces a strategic and execution vacuum.
EAST BUY, born from "knowledge + IP," now stands at a crossroads: Can it transform into a pure product company without its superstar IP or the executor who built its supply chain?
This is the question 62-year-old Yu Minhong must answer alone.