New Oriental announced its third-quarter earnings report, with revenue falling by nearly half. Although the financial report data is not optimistic, it expresses confidence in the business of New Oriental. New Oriental is also actively exploring various new business opportunities. New Oriental announced its third-quarter earnings report, with revenue falling by nearly half.
New Oriental announced its third-quarter financial report, with revenue falling nearly 1. On April 26th, New Oriental Education Technology (Group) Co., Ltd. (NYSE:edu；; ; HKEx: 990 1) announced the unaudited comprehensive performance of the third quarter of fiscal year 2022 as of February 28, 2022.
The financial report shows that in the third quarter of fiscal year 2022, the net revenue of New Oriental decreased by 48.4% year-on-year to 6 1 10,000 USD, of which the net revenue of educational projects and services was 5 1 10,000 USD, down by 54 1% year-on-year. The main reason for the decline is the influence of terminating the after-school counseling business of K-9 subjects.
The operating loss of New Oriental in this quarter was US$ 654.38+US$ 400 million, while the operating profit in the same period last year was US$ 654.38+US$ 000 million. Non-GAAP operating loss was $65,438 +0. 1 billion, compared with $65,438 +0.2 billion in the same period last year. The operating profit margin was -23.0%, compared with 8.5% in the same period of the previous fiscal year; The non-GAAP operating profit margin (excluding equity compensation expenses) in this quarter was-18. 1%, compared with 9.7% in the same period of last fiscal year.
The financial report shows that the net loss attributable to shareholders of New Oriental in the third quarter was $6543.8+$200 million, compared with $6543.8+$500 million in the same period last year. The net loss attributable to non-GAAP New Oriental shareholders in this quarter was $96 million, compared with a profit of $65.438+600 million in the same period last year. The basic loss and diluted loss per ADS attributable to non-GAAP New Oriental shareholders are $0.56 and $0.56 respectively.
Operating costs and expenses in this quarter were $760 million, down 30.6% year-on-year; Non-GAAP operating costs and expenses (excluding share-based compensation expenses) were $730 million, down 32.5% year-on-year. The main reason for the decline is the reduction of facilities and staff due to the restructuring in the past two fiscal quarters.
By February 28th, 2022, the total number of New Oriental schools and learning centers was 847, which was 778 fewer than 1625 on February 28th, 2026 and 822 fewer than 1669 on May 28th, 2026.
Yu, executive chairman of the Board of Directors of New Oriental, said that although the company is in the stage of business restructuring, new business and new measures are showing positive and good growth momentum. In addition, in the first nine months of this fiscal year, the income of New Oriental's remaining major businesses-overseas exam preparation and overseas consulting business increased by 65,438+05% year-on-year, and the domestic adult and college students' exam preparation business increased by about 59% year-on-year.
At the same time, New Oriental is actively exploring various new business opportunities, including non-academic counseling, intelligent learning systems and equipment, study tours and research camps, teaching materials and digital intelligent learning solutions, and preparing for the college entrance examination. He said that although these new businesses are still in the initial stage, it is expected that these new businesses will make a meaningful contribution to the group's total revenue from the next fiscal year by using the brand awareness and educational resources accumulated by New Oriental from many years of business history. "
Zhou Chenggang, CEO of New Oriental, said: "In the past two fiscal quarters, we have basically completed the business and operational restructuring to tie in with the policy. Our pure online education platform, New Oriental Online (Koolearn.com), will continue to expand online education services for adults and college students, and actively seek business opportunities in new areas such as live e-commerce, enterprise cooperation and intelligent learning innovation. "
On the evening of February 28th, 20021,12, Yu and Sun, CEO of New Oriental Online, respectively, sold agricultural products in their personal live broadcast room and Oriental Select live broadcast room. According to the statistics of the third-party live broadcast data statistics platform, the cumulative number of viewers in the live broadcast of agricultural products reached 6.5438+0.82 million, the total order amount reached 57,000, the income of sound wave (reward) ranged from 6.5438 million yuan to 500,000 yuan, and the sales amount was 4.865438+0 million yuan.
After the live broadcast, Yu said that agricultural products will mainly be monopolized by the new platform of New Oriental Live "Oriental Select". According to the data of Tik Tok, the main body of Oriental Selection is Oriental You Xuan (Beijing) Technology Co., Ltd., which is a 0/00% holding enterprise of New Oriental Online/KLOC.
As of February 28th, 2022, the cash and cash equivalents of New Oriental were $6,543.8+$47 million. In addition, the company's time deposits are 920 million US dollars, and the short-term investment amount is 2.03 billion US dollars.
The balance of deferred revenue in New Oriental (that is, the course cash collected from registered students and confirmed as income in proportion when providing relevant services) was $970 million at the end of the third quarter of fiscal year 2022, which was 47.9% lower than the $654.38+$87 million in deferred revenue at the end of the third quarter of fiscal year 2002/kloc-0. The main reason for the decline is that the after-school tutoring business of K-9 subjects was terminated according to the policy of the China Municipal Government.
On April 26th, 2022, we updated the weekly diary "Let's look forward to a better tomorrow" on the official account of WeChat. Yu said that he still goes to work in New Oriental every day in his daily life, and will constantly adjust his work direction and business policy in the future. He said: "Self-confidence is the most important thing. Even blind confidence is better than no confidence. "
In addition, Yu revealed in the article that the "New Oriental Capital Hotel" began to open to the outside world. This hotel is a four-star hotel bought by New Oriental three years ago. It is mainly used to train internal teachers and managers of New Oriental, but it is closed to the outside world. Later, the business of New Oriental was compressed and the hotel began to receive guests.
On April 26th, New Oriental Education Technology Group (hereinafter referred to as "New Oriental", 0990 1. HK) disclosed the financial results of the third quarter as of February 28, 2022 on the Hong Kong Stock Exchange. During the reporting period, the total revenue of New Oriental was US$ 665,438+US$ 0,465,438+US$ 0,000,000, compared with US$ 654,38+US$ 0,654,38+US$ 0,905,000 in the same period last year, a year-on-year decrease of 48.4%.
In the financial report, Yu, the founder of New Oriental, said that although the company is in the stage of business restructuring, the other major businesses continue to perform well and have bright prospects. "New business and new initiatives also show positive and good growth momentum."
"From profit to loss" is mainly affected by K9 business.
The breakdown data shows that in the third quarter, the total income of New Oriental from educational projects and services was 5 1 10,000 US dollars, down 546,438+0% year-on-year. The main reason for the decline is the influence of the policy of terminating after-school counseling in K-9 subjects.
According to the net profit data, the operating loss of New Oriental in the third quarter was $65,438 +0.4 1 billion, compared with $65,438 +0.0 1 billion in the same period last year, which turned from profit to loss, down by 239.6438+0%. The net loss attributable to shareholders of New Oriental was US$ 65.438+US$ 22 million, while the net profit for the same period last year was US$ 654.38+US$ 0.565438+US$ 0.00 billion, down 654.38+0.80% year-on-year. The basic loss and diluted loss per ADS attributable to shareholders are $0.72 and $0.72 respectively.
Expenditure and cost data show that the operating cost and expenditure of New Oriental in the third quarter was $760 million, down 30.6% year-on-year; Operating costs and expenses (excluding share-based compensation expenses) were $730 million, down 32.5% year-on-year. The main reason for the decline is the reduction of facilities and staff due to the restructuring in the past two fiscal quarters.
Although the financial report data is not optimistic, it expresses confidence in the business of New Oriental.
He said that in the first nine months of this fiscal year, the company's remaining main businesses: overseas exam preparation and overseas consulting business increased by 65,438+05% year-on-year, and domestic adult and college students' exam preparation business increased by about 59% year-on-year.
At the same time, New Oriental is actively exploring various new business opportunities, including non-academic counseling, intelligent learning systems and equipment, study tours and research camps, teaching materials and digital intelligent learning solutions, and preparing for the college entrance examination. "Although these new businesses are still in their infancy, we believe that they will bring a bright future to the company. We expect the new business to contribute to the total revenue in the next fiscal year. " Yu said.
Yang Zhihui, CEO and CFO of New Oriental, said that New Oriental maintained a stable cash flow during the restructuring process. As of the end of this quarter, the company's cash and cash equivalents, time deposits and short-term investments totaled about $4.4 billion.
"In the first half of the year, the company incurred a number of one-time expenses due to lease termination and layoffs involving the closure of the learning center, but we believe that the losses caused by restructuring are only temporary." Yang Zhihui expressed his confidence in the sustainable profitability of all major businesses and the growth and profit potential of new initiatives, and said that the management team of New Oriental will continue to strive to achieve profit growth.
Yu wrote that "blind confidence is better than no confidence"
On the day of the release of the financial report, Yu talked about the work of New Oriental by posting "Let's look forward to a better tomorrow" on the official account of personal WeChat. He said that due to some uncertain factors, the work direction and business policies will be dynamically adjusted in the future.
He also mentioned that the "New Oriental Capital Hotel" began to open to the outside world. This hotel is a four-star hotel bought by New Oriental three years ago. It is mainly used to train internal teachers and managers of New Oriental, and it is not open to the public. Later, the business of New Oriental was compressed and the hotel began to receive guests.
New Oriental is in a period of drastic business transformation. According to the financial report, as of February 28th, 2022, there were 847 schools and learning centers in New Oriental, which was 778 fewer than 1625 as of February 28th, 2026 and 778 fewer than 1669 as of May 28th, 2026.
Zhou Chenggang, CEO of New Oriental, said that the company's business and operational restructuring have been basically completed to tie in with the policy. "Looking ahead, we will continue to develop and further strengthen the OMO platform, and strive to use educational infrastructure and technology in the remaining key businesses and new initiatives to provide more advanced and diversified educational services for students of all ages."
The company's online education platform, New Oriental Online (Koolearn.com), will continue to expand online education services for adults and college students, and actively seek business opportunities in new areas such as live e-commerce, enterprise cooperation, and intelligent learning and innovation.
New Oriental announced the third quarter financial report, and the pain of the "double drop" transformation is being digested by New Oriental.
According to the latest financial report data as of the end of February this year, in the first nine months of fiscal year 2022 (June 20021year to the end of February 2022), the net revenue announced by New Oriental was $25,865,438+RMB 200 million, or about RMB1690 million, down 654.38+0.5% year-on-year. The net loss attributable to shareholders of New Oriental in the first nine months of fiscal year 2022 was 998.4 million dollars, with a loss of about 6.5 billion yuan, while the income in the same period of last fiscal year was 379.9 million dollars and the profit was about 2.5 billion yuan.
After the release of the "double reduction" policy, K9 (kindergarten to junior high school) subject education has been strictly supervised, and New Oriental officially ended its K9 subject training business from this year. In February this year, high school teaching and training was also stopped by the regulatory authorities. At present, New Oriental Online has no K 12 related subjects at all, only CET-4, CET-6, postgraduate entrance examination and other related subjects.
At the end of an era, half of the stores in New Oriental closed and a large number of teaching and training personnel changed careers. According to the financial report data, by the end of February this year, there were 847 schools and learning centers in New Oriental, a decrease of 822 compared with 1669 at the end of 2002/kloc-0. New Oriental executives pointed out in a conference call that by the end of this year, the number will drop to about 600.
Business is shrinking, profits are falling, accompanied by falling stock prices and shrinking market value. At present, New Oriental has three listed companies in Hong Kong and the United States. The market values of Hong Kong stocks New Oriental and New Oriental Online are HK$ 654.38+03.3 billion and HK$ 3.2 billion respectively. The market value of China Stock Exchange New Oriental is1800 million USD, that is11700 million RMB.
The company's share price has shrunk dramatically compared with a year ago: Take New Oriental as an example, the current price of $ 10.40 has shrunk by 95% compared with the high point a year ago.
The share price of New Oriental China Stock Exchange has been falling all the way. Whether you can stay in the US stock market according to the requirements of the exchange has become a stress test for New Oriental in the near future.
In April this year, the share price of New Oriental fell below $65,438 +0. In order to avoid receiving the warning of delisting, New Oriental US stocks 10 were merged into 1 share, and the share price per share also became the previous 10 times. Yu, chairman of New Oriental Education Technology Group, wrote in his personal WeChat official account "Laoyu Bagua" that "10 shares were merged into 1 share, so that the share price of New Oriental would look better on the surface, but the actual value has not changed."
On April 26th, Yu published the article "Let's look forward to a better tomorrow together" on the official account of WeChat.
"I still go to work in New Oriental every day. Due to some uncertain factors, we have to communicate closely with you in the future and constantly adjust our work direction and business policies dynamically. Fortunately, the spirit of doing things is still there, and there are optimistic expectations for the future. At this moment, the confidence of the team is the most important. What I can do is to give everyone confidence. Even blind confidence is better than no confidence. "
Active adjustment and transformation of business.
The teaching and training center was changed to a hotel.
It is not surprising that this teaching and training leader is in the pain of transformation. It is important to find the direction of growth. In the latest fiscal quarter, New Oriental continued to lose 1.4 1 billion dollars, or about 900 million yuan. New Oriental pointed out that one-off impairment such as store closing and layoffs mainly occurred in the first half of fiscal year (before 2022 1 1 month), and the quarterly losses in the latest fiscal year were mainly caused by new business and investment. New Oriental executives are also full of confidence in turning losses into profits in fiscal year 2023.
The income from adult education business and quality business is still expected to be the main driving force for the company's future income growth. In the first nine months of fiscal year 2022, the income of New Oriental's remaining major businesses-overseas exam preparation and overseas consulting business increased by 65,438+05% year-on-year, and the domestic adult and college students' exam preparation business increased by about 59% year-on-year.
Recently, New Oriental is still actively laying out its main business: On April 22nd, New Oriental announced the release of brand-new business English products. In his speech, Chairman Yu explained that in the future, the relevant sub-sectors of adult English training will still receive attention:
"New Oriental started by training college students to study English abroad, and now it has returned to this main business line. The release of this business English product is, in a sense, a return, hoping to make this business glow with new vitality in the future. " On the same day, New Oriental also announced that it has reached a new cooperation with ETS in the field of business English, and jointly released TOEIC test products.
On the evening of April 25th, New Oriental International Education released the blended learning platform "Rong Hui Classroom" online. The platform fully integrates online and offline learning, through concise learning content, vivid presentation and interesting interactive experience, big data-driven learning feedback, customized practice push and teacher's 1 to 1 diagnostic teaching.
In addition to studying abroad, university education and other main businesses, New Oriental has also launched an online live broadcast platform for agricultural products, and the newly established company has quietly laid out the periphery of the chip, and the hotel business has also become the business scope of New Oriental.
It was revealed today that New Oriental bought a hotel three years ago, which was originally used to train internal teachers and managers. He said: "This place was originally closed to the public. Later, when the business of New Oriental was compressed, it began to receive individual customers.
Because the environment is ok, it was taken away by the relevant departments before the Winter Olympics and became a special hotel for the Winter Olympics to receive the service personnel of the Winter Olympics. Last week, we commended our internal staff and thanked them for staying in the hotel for more than 60 days and providing perfect service for the Winter Olympics. Now the hotel has been unsealed and continues to open to the outside world. Friends in Beijing are interested, so they can go and have a look. "