Shares of New Oriental Education & Technology plunged 5.08% in intraday trading on Tuesday, as investors reacted to the successful launch of a rival livestreaming channel by former top executives and anchors of its subsidiary EAST BUY.

The new channel, “Beautiful Tomorrow,” spearheaded by ex-EAST BUY CEO Sun Dongxu and popular streamers Mingming and Tianquan, went live on August 2nd and immediately shot to the number one spot on Douyin’s overall sales chart. In stark contrast, the main EAST BUY account lagged far behind in twenty-second place, raising concerns about intensifying competition and the erosion of EAST BUY’s market share in the key livestream e-commerce segment.

The defection marks the latest chapter in a series of high-profile departures from EAST BUY, following the earlier exit of star anchor Dong Yuhui. With these key talents now operating a directly competing venture, the market is questioning the viability of New Oriental’s “de-heading” strategy and its ability to maintain growth in the face of a fragmented talent pool.