On February 24, Nandu reporter noted that New Oriental recently announced the financial report for the first half of the 2021-2022 fiscal year, with a net loss of 908 million US dollars, about 5.745 billion yuan; holding cash, cash equivalents and restricted cash was 1.05 billion US dollars, a decrease of nearly 1.6 billion US dollars, about 10 billion yuan. This is the first loss of performance since the listing of New Oriental in 2004.
On the evening of the 22nd, Yu Minhong also personally brought agricultural products to New Oriental's official live broadcast platform Oriental Zhenxuan, setting a record for single-day sales of about 1.6 million yuan. According to data, in the past 2 months since the start of the broadcast, the cumulative sales of Oriental Zhenxuan reached 7.0873 million yuan, and the sales volume with a unit price of less than 50 yuan was the highest. In addition, since July 2021, New Oriental has established 94 new companies, that is, an average of one every 2.4 days, covering online live broadcasting, off-campus hosting, sports industry, digital technology and other fields, the education field is still the main line, but there are also many layouts in the non-education field.
New Oriental's first loss in 18 years, a six-year net loss of 5.7 billion, cash flow sharply reduced
On the evening of February 22, New Oriental announced the financial report for the first half of the 2021-2022 fiscal year, and the financial data for the six months ended November 30, 2021 showed that New Oriental's half-year net revenue was $1.967 billion, compared with $1.874 billion in the same period last year. In addition, New Oriental held cash, cash equivalents and restricted cash of US$1.05 billion, compared to US$2.648 billion in the same period last year, a decrease of nearly US$1.6 billion, or about RMB10 billion; total operating costs and expenses were US$2.703 billion, compared to US$1.755 billion in the same period last year; and a half-year net loss of US$908 million, or about RMB5.745 billion.
New Oriental's financial report for the first half of fiscal 2021-2022.
New Oriental said in its financial report that all learning centers nationwide have now stopped providing subject training services to students from kindergarten to ninth grade, and the termination of this business has caused a significant adverse impact on New Oriental's revenue in the six months ended November 30, 2021. In addition, New Oriental's related expenses due to the termination of multiple learning center lease agreements and the implementation of layoff plans have increased costs and expenses.
New Oriental also said that the company has and will continue to shift its focus resources to educational products and services that are not related to K9 discipline training services, such as exam preparation courses, adult language training courses and teaching materials, and will use the business experience, brand awareness and educational resources accumulated in the past to explore other business opportunities.
Nandu reporter noted that on the same day that the financial report was released, Yu Minhong published an article on his personal public account "Life is not easy, everyone lives well". When talking about recent work, he revealed, "Eight working meetings were held in a week to clarify ideas and design future development paths for different business lines. After the initial hectic changes, the new and transformational businesses began to advance step by step, and some of them have begun to bear fruit." Yu Minhong also said, "New Oriental people have a courage not to admit defeat and not to buy it, and have the spirit of only fighting for the day." With them in it, I believe that New Oriental can continue to develop."
In addition, Yu Minhong revealed that on February 17, he led a team to the European and American Returned Scholars Association and participated in the signing ceremony of the strategic cooperation between New Oriental and the China Overseas Chinese Talent Development Foundation. "This cooperation will bring a certain endorsement to New Oriental."
As of February 22, New Oriental's U.S. stock price was reported at $1.52, down more than 90% from its February 2021 high of $19.97, and New Oriental's Hong Kong stock price also fell from a high of HK$158.8 to HK$11.14 on February 22 in a year. In addition, the share price of its subsidiary, New Oriental Online, also fell from a high value of HK$30.05 in January 2021 to HK$5.16 on February 22, a drop of more than 80%.
New Oriental's two-month sales of goods were 4.54 million, and the sales volume with a unit price of less than 50 yuan was the highest
On the evening of February 22, Yu Minhong personally brought goods to Oriental Reserve, a live streaming platform of New Oriental. The Nandu reporter noted that when Yu Minhong brought agricultural products, he would habitually popularize the origin of agricultural products, eating methods and other information, and also discussed the history of Hanfu with the two assistants.
Since the launch of the Oriental Elite on December 28, 2021, it has been nearly 2 months since the new Oriental transformation live broadcast has been carried with goods, with a total of 27 live broadcasts. According to the data of the new jitter data platform, as of February 23, the cumulative number of goods selected by Oriental was 391, and the cumulative sales volume was 7.0873 million yuan. Among them, February 22 had the highest single-day sales volume, with 47,000 items sold, with sales of about 1.6 million yuan.
From the perspective of goods with goods, most of the commodities selected by Oriental Are fruits, beef and mutton and other agricultural products. As of February 17, Oriental Selection had sold a total of 15,000 items with a unit price of less than 50 yuan; more than 3,200 items with a unit price of 50 to 100 yuan; more than 1,500 items with a unit price of 100 to 300 yuan; and the sales of goods with a price of more than 300 yuan were almost negligible.
It is worth noting that at present, the sales of goods with a unit price of less than 50 yuan in the Oriental Reserve live broadcast room are the highest, and the goods below 300 yuan bear most of the sales data of the entire live broadcast room, and the unit price of customers is low. On the first day of the launch of Oriental Zhenxuan, it was also complained by many netizens because of the high pricing of the products sold, taking an organic flour of a certain brand as an example, the gift box price of nearly 10kg was 960 yuan. Yu Minhong responded to this in the live broadcast room, "We are not choosing the cheapest agricultural products, it is the best and most high-quality" "Otherwise, why is it called Oriental Selection, not Oriental Bargains".
In terms of the number of fans, as of February 22, the total number of fans selected by the East was 325,000. In terms of the number of viewers, the cumulative number of viewers was 3.316 million, the peak popularity of a single game was 15,900, and the average sales volume was 173,700 yuan. On January 21, the highest number of visitors was 557,000; however, since the Spring Festival holiday, the number of viewers in the live broadcast room has averaged more than 200,000 people.
For the effect of New Oriental Live Broadcasting, many netizens said that "like in class", there is still a certain gap compared with professional anchors. Yu Minhong once revealed during the live broadcast that the New Oriental teachers who participated in the live broadcast with goods were recruited, selected, screened and trained 5 times through internal recruitment, selection, screening, and 5 online trainings, and finally realized the anchor signing.
On average, a new company is formed every 2.4 days, laying out non-educational fields such as technology
Since the landing of the "double reduction" policy in 2021, New Oriental, as a leading enterprise in the education and training industry, has attracted much attention from the outside world. In addition to exploring live streaming of agricultural products, New Oriental has also intensively established and invested in a number of new companies in the past six months, involving in many fields.
According to the data of Tianyancha, from July 2021 to February 23, 2022, New Oriental has established 94 new companies, that is, an average of one every 2.4 days. Nandu reporter noted that the business scope of New Oriental New Company covers network live broadcasting, off-campus hosting, sports industry, digital technology and other fields, and the education field is still the main line, but there are also many layouts in the non-education field.
In December 2021, Nanjing Kuxue Yanxuan Technology Co., Ltd., a subsidiary of New Oriental, was established to deal in the retail business of publications, teaching aids, electronic products and other products. In January 2022, New Oriental Subsidiary established Taiyuan Layout Future Technology Co., Ltd., whose business scope includes 5G communication services, information system integration services, and integrated circuit sales. In February, another subsidiary established Chengdu Zhihe Oriental Technology Co., Ltd., which covers non-residential real estate leasing, radio and television program production and operation.
Nandu previously reported that on January 8 and January 10, Yu Minhong successively posted on his personal public account that in 2021, due to policies, epidemics, international relations and other reasons, New Oriental's market value fell by 90%, revenue decreased by 80%, employees dismissed 60,000 people, tuition fees, employee dismissal N+1 (compensation), teaching point rent withdrawal and other cash expenditures of nearly 20 billion yuan. At present, there are still about 50,000 employees and teachers left by New Oriental.
Although the above article was announced by the Board of Directors of New Oriental that "these media publications are not authorized by the Company and do not represent the views of the Company", they still reveal the future transformation direction of New Oriental. Yu Minhong said that New Oriental decided to completely stop the ground and online training of K9 disciplines, to do more projects that provide services for the comprehensive growth of students, quality, literacy, research, camp education, etc., and decided to increase investment in the college student market and overseas Chinese market. In addition, New Oriental Online, with Hong Kong listed companies as the main body, established the Oriental Selection Live Selling System and transformed it into an e-commerce platform with agricultural product screening and sales as the core.
Written by: Nandu reporter Fang Shiqi