"In 2021, New Oriental has encountered too many changes, and many businesses are in uncertainty due to policies, epidemics, international relations and other reasons." On January 8, 2022, Yu Minhong, the founder of New Oriental, posted on his personal public account, reviewing the work in 2021 and looking forward to the future transformation direction. Yu Minhong wrote in the article that in 2021, New Oriental's market value fell by 90%, revenue decreased by 80%, employees were dismissed 60,000 people, and cash expenditures such as tuition refunds, employee dismissalS N+1 (compensation), and teaching point rent withdrawals were nearly 20 billion yuan.
"New Oriental decided to completely stop the ground and online training of K9, break the arm of the hero, and do more projects to provide services for the comprehensive growth of students." Yu Minhong said, "In the past six months, New Oriental has survived hard and has preserved a little strength. ”
Born in 1962, Yu Minhong has come to the year of "Sixty Ears Shun". Where will New Oriental go under his helm?
Tuition refunds, rent refunds and other expenditures are nearly 20 billion yuan
"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.
Yu Minhong said that New Oriental's market value fell by 90 percent, operating income decreased by 80 percent, employees dismissed 60,000 people, and cash expenses such as tuition fee refunds, employee dismissalS N+1, and teaching point rent withdrawals were nearly 20 billion. In this process, New Oriental decided to completely stop the ground and online training of K9, break the arm of the hero, and do more projects that provide services for the comprehensive growth of students, such as quality, literacy, research, camp education, etc., and decided to increase investment in the college student market and the overseas Chinese market.
According to industrial and commercial information, in the past 3 months, New Oriental has successively invested in the establishment of a number of new companies, involved in a variety of fields, including software development, career intermediaries, food management, Internet information services, fertilizer sales, intelligent robot research and development, education hardware and so on.
Yu Minhong also mentioned in the "year-end summary" that Xinwei Film Company, invested by New Oriental, made an inspirational movie last year, based on a Yi youth basketball team in the Daliangshan area.
"Originally, I made this movie, I wanted to make it into an online movie, and now I want to make it a theatrical movie." Yu Minhong revealed, "In terms of inspirational movies, New Oriental may further invest in the future. ”
Shell financial reporter noted that on September 24, on the pulse platform, there were employees certified as "New Oriental HR" who posted to recruit short video directors and live broadcast operation supervisors.
In September 2021, New Oriental released its annual report for fiscal year 2021 ended May 31. According to the report, New Oriental's revenue in fiscal 2021 was US$4.277 billion, an increase of 19.5% year-on-year; net profit was US$230 million, down 35.03% year-on-year, and net profit attributable to shareholders was US$334 million.
In fiscal 2021, New Oriental Education Curriculum Services generated revenue of US$3.94 billion, accounting for 92.1% of total revenue, and revenue from books and other services was US$340 million, accounting for 7.9%.
Close K9 discipline training and comprehensively transform quality education
On October 25 and November 15, 2021, New Oriental Online and New Oriental successively issued announcements to close the company's K9 discipline training business.
New Oriental Online disclosed that the termination of the K-9 business will have a material adverse effect on the Group's total revenue for the financial year ended May 31, 2022 and subsequent periods. The Board estimates that the K-9 business accounted for approximately 58 to 73 percent of the K-12 Education Segment in terms of total revenue contribution for the two financial years ended May 31, 2021. New Oriental said that for the financial years ended 2020 and May 31, 2021, the total revenue generated by the provision of K-9 subject training services accounted for about 50% to 60% of New Oriental's total revenue in each financial year, respectively, and it is expected that the termination of services will have a material adverse impact on new Oriental's total revenue in the financial year and subsequent periods.
After the complete suspension of K9 discipline training, New Oriental began to transform into a quality, literacy, research, camp education and other projects to provide services for the overall growth of students, and decided to increase investment in the university student market and overseas Chinese market.
In October 2021, New Oriental issued a notice of organizational structure adjustment, and each school needs to set up an international study tour and camp education department, which is mainly responsible for the business of the study camp for the whole school section. In December, New Oriental once again revealed that in the future, it will continue to provide educational services such as level 4 and 6, graduate school, Chinese language (English, small language), study abroad consultation, international study tours, domestic research and study & camp education, and try to force students' general education, quality literacy education, and adhere to the public welfare of rural education.
Enterprise investigation data shows that in the past 3 months, New Oriental has successively invested in the establishment of a number of new companies, in addition to some consulting companies, off-campus hosting companies and K12 education are related, Oriental Selection (Beijing) Technology Co., Ltd., Beijing Excellent Programming Network Technology Co., Ltd., Beijing New Far Horizon Human Resources Service Co., Ltd. and other companies are not directly related to K12 education, but involve network live broadcasting, software technology, human resources, sports industry and other fields.
New Track: Open live screening for the sale of agricultural products
"Work hard, study hard, try to find new directions. These should be my top three themes for 2022. Yu Minhong said.
Yu Minhong specifically mentioned New Oriental's live streaming platform Oriental Selection.
Yu Minhong said that New Oriental Online, with Hong Kong listed companies as the main body, founded the Oriental Selection Live Selling System, transformed into an e-commerce platform with agricultural product screening and sales as the core, provided product value-added services for farmers across the country, and made a trustworthy platform linking farmers and consumers.
In 2021, on the evening of December 28, Yu Minhong, who claimed to be a "farmer's child", opened his first live broadcast to help farmers on the Douyin platform, and New Oriental's live streaming platform "Oriental Selection" was also officially launched on the same day.
According to the enterprise investigation, the New Oriental Agricultural Products Live Streaming Platform Oriental Selection (Beijing) Technology Co., Ltd. was established on December 7, 2021, with a registered capital of 10 million yuan and the legal representative is Sun Dongxu.
According to data from the third-party data platform Feigua, on the day of the premiere on December 28, The sales of Yu Minhong's live broadcast reached 4.932 million, the number of viewers reached 1.869 million, and the account increased by 44,000. At the same time, Sun Dongxu, CEO of New Oriental Online, mentioned at the end of the live broadcast that the sales of Yu Minhong and Dongfang Selection between the two live broadcast rooms totaled more than 5 million yuan.
Why do you choose live streaming of agricultural products? New Oriental's introduction is based on two aspects: First, Yu Minhong himself likes agriculture. Yu Minhong once said that he likes agriculture, growing up in the countryside from the age of 1 to 18, as long as all the agricultural products can be planted in his hometown. Since he was a child, he liked to watch crops, such as wheat seedlings, emerge from the ground, slowly become green, grow vigorously after the frost and winter, and finally produce a golden yellow of wheat ears, which brought him a great sense of happiness.
The second is to do the right thing. Yu Minhong had exchanged views with farmers about the sale of agricultural products, and a few years ago, when he was passing through farmland in Shandong, he chatted with local farmers. The main crop of local farmers to generate income is garlic, because the price of garlic in the previous year is very good, this year many locals have changed to garlic, and finally oversupply, the original 10 yuan / kg of garlic, can only be sold for 2 yuan / 1 kg, equivalent to farmers hard work for a year, but it is white. So Yu Minhong germinated the idea of building a platform to help farmers sell.
However, without Yu Minhong's personal appearance, the live broadcast popularity of New Oriental has dropped significantly. According to the data of the gray dolphin, from December 29 to January 9, Oriental Selection held a total of 9 live broadcasts, with cumulative sales of less than 1 million yuan. Up to now, Oriental Selection has brought a total of 2.222 million yuan and a total of 26,000 fans.
Beijing News shell financial reporter Zhao Fangyuan Editor Xu Chao
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