Oriental Selection expects net profit to exceed 500 million yuan in fiscal year 2026, with self-operated products accelerating expansion into offline channels.

The recovery in performance for Oriental Selection is ongoing, with income expansion accelerating further in the second half of the fiscal year.

On July 23, Oriental Selection issued a positive earnings forecast. The company expects that for the fiscal year ending May 31, 2026, it will achieve revenue of 5.6 to 5.8 billion RMB, up 27.3% to 31.8% year-on-year; net profit will be 520 to 550 million RMB, compared to just 6 million RMB in the previous fiscal year.

Of this, second half revenue is expected to reach 3.3 to 3.5 billion RMB, up 50% to 59.1%; net profit is expected to be 281 to 311 million RMB, up 172.8% to 201.9%.

The revenue growth rate in the second half is significantly higher than for the full year, and profit scale is nearly 2-3 times higher than the same period last year.

The year-on-year net profit growth of over 85 times is influenced by last year’s low base, but in absolute terms, Oriental Selection’s profitability has clearly recovered.

The company attributes growth mainly to continual launches of self-operated products and increased sales of popular items, while also enriching the overall product portfolio by adding third-party distribution brands.

As of the first half of fiscal 2026, Oriental Selection's own products have reached 801 SPUs in total, up from 600 the same period last year; self-operated products contributed 52.8% of total GMV, clearly accounting for more than half of transaction volume for the first time.

Oriental Selection is also expanding its traffic sources by adding additional Douyin matrix accounts, enlarging the streamer team, and extending live broadcast hours. The increase in paid members and higher user repurchase rate have helped self-owned app revenue maintain steady growth; supply chain construction and optimization of the full-link quality control system have also been cited as reasons for profit improvement.

Based on the forecast range, the net profit margin for Oriental Selection in the second half of the fiscal year is about 8.1% to 9.5%, lower than about 10.3% in the first half.

Although revenue clearly accelerated in the second half, profit margins did not expand in step. Livestream matrix, streamer team, supply chain, and new channel construction may have resulted in more investment.

As self-operated products gradually become the core operational pillar, Oriental Selection is extending sales scenarios from live broadcast rooms to offline channels.

On May 21, Oriental Selection’s first nationwide offline experience store officially opened in Zhongguancun, Beijing. The store covers about 400 square meters, with about 1,500 SKUs on shelves, more than 50% of which are self-operated products. There are also restaurant, water bar, tasting, and leisure areas.

In mid-July, Oriental Selection also opened stores in Xi’an and Zhengzhou, bringing the number of offline experience stores to three.

For Oriental Selection, the value of offline channels is not only to increase sales, but also to provide scenarios for showcasing, tasting, immediate purchase, and member services for self-operated products, further converting users accumulated from live broadcasts and the app into stable product consumers.

However, offline expansion also means a heavier business model. Compared to live commerce, brick-and-mortar stores require bearing costs for rent, labor, inventory, and shrinkage.

Changes in streamers are also a variable that Oriental Selection cannot avoid. Even trickier, some departed streamers are regrouping in the same sector.

Mingming and Tianquan, who announced their departure this April, have recently co-founded "Beautiful Tomorrow" with former Oriental Selection CEO Sun Dongxu. The new company was registered on July 10, with Sun Dongxu owning 34% of shares, Ming Shi and Guo Tianquan each owning 33%.

Currently, "Beautiful Tomorrow" has started recruiting for customer service, quality inspection, business, and other roles, and is screening and testing samples sent by suppliers. Sun Dongxu has stated that the new account will launch its first live broadcast no later than August.

As Oriental Selection’s fiscal year ends in late May 2026, this performance only covers about one month after Mingming, Tianquan, and others left, and the full impact of personnel changes on live streaming traffic, content capability, and user stickiness has yet to be reflected.

The answer currently given by Oriental Selection is to diversify its reliance on individual IPs through matrix accounts and a larger streamer team, then use self-operated products, app members, and offline stores to foster consumer relationships.

This transformation is still ongoing: Oriental Selection now needs to prove whether, with continuous streamer flow and even transformation into competitors, products, members, and stores can truly catch the flow left behind by individual IPs.

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