East Buy (01797.HK) shares plummeted 11.20% in intraday trading, continuing the downward trend following the release of its disappointing fiscal year 2025 earnings report. This sharp decline comes on the heels of a 13% drop in the previous session, highlighting investors' concerns about the company's financial performance.

According to the recently published report, East Buy's net profit for the fiscal year ending May 31, 2025, plunged to a mere 5.735 million RMB, representing a staggering year-over-year decrease of 99.67%. The company's revenue also took a significant hit, falling 32.7% from 6.526 billion RMB in the previous fiscal year to 4.392 billion RMB. This dramatic decline in performance is largely attributed to the company's separation from popular streamer Dong Yuhui, which resulted in a substantial reduction in paid orders and Gross Merchandise Volume (GMV) on the Douyin platform.

Despite these challenges, East Buy is actively working to adjust its strategy and increase investments in its own brands. The company reported that, 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, East Buy is diversifying its sales channels beyond Douyin and expanding its self-operated product lineup, which now accounts for 43.8% of total GMV. However, the market remains skeptical about the company's ability to overcome key challenges, including stabilizing its streamer lineup, enhancing brand competitiveness, and boosting user loyalty in the wake of reduced dependence on leading streamers.