Yu Minhong's "year-end summary": New Oriental's revenue decreased by 80% and 60,000 employees were dismissed

Reporter | Cha Qinjun

"The development of New Oriental is still my responsibility and mission, which seems to be disliked by what I like, and I must go all out." Establish the purpose of working together with everyone to let New Oriental move to the next stage of development. ”

On the afternoon of January 8, Yu Minhong, founder of New Oriental (NYSE:EDU), posted on his personal public account, reviewing 2021 and looking forward to the future transformation direction.

"At the end of the year and at the beginning of the year, it is a time to summarize the past and plan for the future." Yu Minhong said that on January 4 and 5, for two consecutive days, all departments and subsidiaries of New Oriental Headquarters made work reports, summarized the work in 2021, and deployed the work in 2022.

"All of a sudden, I entered a hectic and cumbersome situation, with many meetings and many upsetting things." Yu Minhong said in the text.

Yu Minhong said that in 2021, New Oriental has encountered too many changes, and many businesses are in uncertainty due to policies, epidemics, international relations and other reasons. The company's market value fell by 90%, revenue decreased by 80%, employees dismissed 60,000 people, and cash expenses such as tuition refunds, employee dismissals N+1 (compensation), and teaching point rent withdrawals were nearly 20 billion yuan. In the process, New Oriental decided to completely stop K9 ground and online training.

According to New Oriental's annual report, the number of teachers as of May 2021 is about 54,200.

"In the past six months, with everyone's efforts, New Oriental has survived hard and has preserved a little strength." Yu Minhong said.

In the future, New Oriental will transform quality, literacy, research, camp education, etc., and at the same time decide to increase investment in the college student market and overseas Chinese market. In addition, New Oriental Online (01797. HK), founded Oriental Selection, transformed into an e-commerce platform for the screening and sales of agricultural products, and provided value-added product services for farmers across the country.

In the first live broadcast on December 28, 2021, Yu Minhong put more than 30 agricultural products on the shelves in the live broadcast room, and the live broadcast lasted for 3 hours, as of the next broadcast, Sun Dongxu, CEO of Oriental Selection, revealed that Yu Minhong superimposed Oriental Selection accumulated more than 5 million sales. Previously, the total transaction volume of Luo Yonghao's first live broadcast exceeded 110 million yuan.

In addition to the first live broadcast with Yu Minhong's appearance, the data of Oriental Selection in the following days was relatively dismal. Feigua data shows that the cumulative sales of 7 live broadcasts from December 29 to January 4 are less than 900,000.

"Every business line is looking for new growth opportunities." Yu Minhong's internal requirements are, "under the premise of controllable resources, strive for breakthrough development in core strategic projects." ”

For the international education business, at the 2022 New Oriental International Education Win-win Development Conference, Liu Shuojiao, general manager of the New Oriental International Education and Training Division, announced a new business segmentation strategy, that is, on the basis of the original OSSD curriculum, launch a study abroad system for domestic ordinary high school people, art college entrance examination groups, and middle vocational groups, and at the same time focus on launching exclusive international professional master's courses for domestic higher vocational/college groups.

In addition to the business segmentation of the To C end, Liu Shuo also proposed a series of To-B cooperation international curriculum solutions for ordinary high schools, international high schools, and vocational colleges.

Yu Minhong also mentioned that Xinwei Film Company, invested by New Oriental, participated in the production of an inspirational movie last year. The story is based on a Yi youth basketball team in the Daliangshan area. Yu Minhong said that when he first made this movie, he intended to make it into an online movie, and now he wants to push it into a theatrical movie. In terms of inspirational movies, New Oriental may further invest in the future.

Yu Minhong finally said, "We must do certain things in the midst of uncertainty." The so-called uncertainty means that the situation and policies are still changing, and it is necessary to cooperate with the changes in the situation and policies, adapt to changes, and look for development opportunities that conform to the general policy; the so-called certain things are to always do things that are valuable, help others, and help social progress, that is, "cultivate themselves and benefit others."

As of January 7, EST, New Oriental's stock price closed at $1.86 per share, with a total market value of $3.156 billion.