HK Movers | East Buy Shares Plunge as Net Profit Drastically Declines in Fiscal Year 2025

East Buy shares sank 15% in Hong Kong, drawing market attention. This decline in stock price is closely linked to the company's recently released earnings report for fiscal year 2025.

According to the report, East Buy's net profit for fiscal year 2025 (ending May 31, 2025) was merely 5.735 million RMB, marking a substantial year-over-year decrease of 99.67%. The company's revenue also fell from 6.526 billion RMB in the previous fiscal year to 4.392 billion RMB, representing a 32.7% drop. This performance decline was largely influenced by the company's parting ways with prominent streamer Dong Yuhui. Data shows that the number of paid orders on the Douyin platform reduced from 180 million in the previous fiscal year to 91.6 million, and GMV (Gross Merchandise Volume) fell from 14.3 billion RMB to 8.7 billion RMB.

Despite these challenges, East Buy is actively adjusting its strategy and increasing investments in its own brands. The company stated that if excluding the financial impacts of selling assets related to Hui Tongxing, the net profit from continuing operations actually grew by 30% to 135.4 million RMB. Additionally, the number of self-operated products has exceeded 700, accounting for 43.8% of total GMV. Furthermore, East Buy is making efforts to expand sales channels beyond Douyin, including strengthening operations of its own app and WeChat mini programs. However, after reducing dependence on leading streamers, stabilizing the "mid-tier" streamer lineup, enhancing own brand competitiveness, and boosting user loyalty are key challenges the company needs to address in the future.