New Oriental founder admits inadequacies
New Oriental Founder Yu Minhong admitted management inadequacies after a row over one of its top livestreaming hosts' online discussions caused a drop in stock prices.
In a video clip posted on Toutiao.com and WeChat Channels on Thursday, Yu said the social media account handler at livestreaming e-commerce unit East Buy failed to act professionally and CEO Sun Dongxu's misbehavior also caused further dispute.
"We did not address the internal management issue properly and caused disturbance for many supporters and followers," he said.
New Oriental Founder Yu Minhong admits management inadequacies in a short video clip on Thursday.
The argument originated last week when East Buy's official live-streaming account on Douyin pointed out that its promotional material was prepared and written by teamwork instead of solely by its top livestreamer Dong Yuhui, a former English tutor, who became a social media sensation last year known for his down-to-earth style to help East Buy's livestreaming clips go viral.
Dong's postings last week for a special promotional campaign for agricultural products in Jilin Province was applauded by many but also raised questions over whether it was his own or the work of a team.
A group of online shoppers who follow Dong questioned why the company's official account took credit for Dong's contribution in preparing the wording and promotional materials.
Dong later responded that he and the team worked together ahead of the livestreaming sessions.
CEO Sun Dongxu said on Tuesday during a livestream that the social media handlers failed to address the issue properly, adding that the company thought highly of Dong's contribution with a salary package worth tens of millions of yuan a year.
East Buy's official Douyin account suggested that its editorial and content team contributed backstage teamwork instead of relying solely on the livestreaming host himself.
Many followers took their anger online to show support for Dong by delisting East Buy's official account, leading to a 100,000 drop in the number of followers in four days. Currently, East Buy has around 30.8 million followers.
East Buy's Hong Kong-listed shares lost over 15 percent in five days but recovered some losses on Thursday with a 2.2 percent pickup.
Yu on Thursday called for followers to stay rational and to be tolerant for any twist in the company's development as it had been in the livestreaming sector for less than two years.
"I've apologized to Dong and apparently Sun was not sophisticated enough which I hope is understandable," he said.
"The best protection for the livestreamer you support is to be rational and offer constructive advice," he added.
Dong Yuhui's livestreaming clips went viral last year for his down-to-earth style.
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