TMTPOST--Dong Yuhui, China’s leading live-streaming influencer, has departed from East Buy, the e-commerce subsidiary of New Oriental Education & Technology Group, in a move that has significantly impacted the sector and caused a plunge in the parent company’s pre-market shares.

The 31-year-old former teacher, who rose to fame and fortune in China’s live-streaming e-commerce arena, left East Buy, citing career aspirations, personal commitments, and the need for flexible time arrangements, according to a filing by Hong Kong-listed East Buy on Thursday. His resignation is effective immediately.

In a social media post on Thursday, Dong said the company will have to face uncertainties and challenges without support from the parent company.

"I'm grateful for (East Buy's Chairman) Yu Minhong's understanding and respect for us and I'll try and do my best," he said.

Along with his departure, East Buy has agreed to sell Dong’s new venture, Time With Yuhui, to the influencer for 76.6 million yuan (US$10.5 million), as disclosed in a separate filing. Additionally, East Buy’s CEO Yu Minhong said that he would ensure Dong receives his venture without any financial burden.

Time With Yuhui has staged many livestreaming sessions at famous tourism spots in Hubei province, Chongqing Municipality and Shanxi province to introduce local cultural legacies and promote specialty products.

East Buy said it needs to channel more of its resources to the development and upgrading of healthy and high-quality products, to strengthen its brand-building and maintain a positive image and user mindset.

Meanwhile, East Buy will provide its self-developed information system to Time With Yuhui free of charge.

Dong announced on Douyin, the Chinese counterpart of TikTok owned by ByteDance, that Time With Yuhui will operate independently moving forward.

Following the announcement of Dong’s departure, shares of New Oriental, listed on Nasdaq, fell by as much as 8% in pre-market trading on Thursday. East Buy has outlined plans to repurchase up to 500 million yuan worth of shares over the next year.

Dong’s exit underscores the delicate relationship between Chinese e-commerce platforms and their top live-streaming influencers, who are pivotal in driving audience engagement and online sales. Platforms, however, are increasingly seeking to reduce dependency on individual star talents.

Controversy arose last December regarding whether the entire editorial team or Dong alone should receive credit for many highly praised promotional materials and slogans. This issue escalated into broader concerns about whether East Buy was adequately recognizing Dong’s contributions and providing him sufficient opportunity to maximize his potential.

Former East Buy CEO Sun Dongxu was subsequently ousted due to management incompetence.

Yu emphasized that East Buy owes much of its rapid growth to Dong’s meteoric rise, noting that the rift caused by the dispute with Sun has strained their partnership.

The tutor-turned-livestreamer gained prominence in 2022 for his distinctive approach of integrating Chinese poetry and bilingual content into his live-streaming sales presentations. He is also recognized for hosting conversations with prominent Chinese business leaders and cultural icons during his broadcasts. Recently, he conducted a well-received online discussion with Yu Chengdong, the Chairman of Huawei Technologies’ consumer business group.

Dong boasts over 26.4 million followers on Douyin, with his e-commerce live-streaming account, Time With Yuhui, amassing more than 21 million followers as of Thursday.

Dong's departure marks the end of a significant chapter for East Buy. Known for his cultural and educational approach to live-streaming, Dong was instrumental in creating a unique niche for the company. His transition from an "internet salesman" to a senior partner and cultural assistant underscored his impact.

Despite Dong's resignation, East Buy's future looks promising. The company has seen substantial growth in its self-operated product lines, a key revenue driver. For the fiscal year 2023, self-operated products and live-streaming e-commerce generated 3.9 billion yuan, accounting for 87% of the company's total revenue. This success has positioned East Buy as a leading player in the live-streaming e-commerce sector.

In 2024, East Buy continues to expand its self-operated product categories and aims to create an integrated shopping platform. Recent reports indicate that from December 2023 to May 2024, the company’s self-operated product GMV exceeded 3.6 billion yuan, showing remarkable year-on-year and growth.

As East Buy transitions from an MCN (multi-channel network) model to a retail-focused approach, the company is navigating a transformative period. Industry analysts suggest that Dong's departure might allow East Buy to focus more on long-term strategic development rather than relying on individual Intellectual Properties, thereby reducing operational risks.