Recently, a news about “Beijing New Oriental bilingual school will close its primary and junior high schools” triggered a heated discussion in the education circle. At the same time, it was reported that Yu Minhong, chairman of New Oriental Education Technology Group, wrote an open letter to parents on this matter.
close the primary school and junior middle school, and compensate 20000 yuan per person
Public information shows that the New Oriental International Bilingual School, located in Changping District, Beijing, was established in 2010. It is a full-time International Bilingual School built by the New Oriental Education and technology group. It provides international bilingual education from primary school to high school. It has a school running history of 12 years.
In a recent open letter, Yu Minhong said that after careful discussion, the new Orient Group Incorporation(600811) management made a final decision to suspend the education of the compulsory education section of Changping New Oriental bilingual school from the autumn of this year (2022), that is, the education of the primary school department and the junior middle school department.
For the main reasons for the suspension, Yu Minhong said that the first is due to policy reasons. Due to national policies and regulations, Xin Orient Group Incorporation(600811) as a listed company, it will not be able to continue to run the New Oriental bilingual school in Changping District, Beijing at the stage of compulsory education, and will not be able to provide continuous venues and financial support for the school, which will lead to the school’s inability to rely on its own continuous operation.
Secondly, due to historical reasons, New Oriental has been unable to provide children with a campus with perfect facilities and complete school buildings and venues. In the past few years, according to the requirements of relevant departments, Changping New Oriental bilingual school has successively demolished several aboveground buildings such as teachers’ dormitory, 400m runway, outdoor playground and grandstand. These buildings are unlikely to be allowed to be rebuilt in the company’s foreseeable future. The teaching complex building, stadium, science classroom, music, sports and beauty professional classroom to be built in the school planning will remain on the drawings forever because of the land formalities, so there is no possibility of construction.
The open letter mentioned that Beijing Changping New Oriental bilingual school will close the compulsory education section after the spring semester in 2022, that is, the primary school department and Junior Middle School Department of the school. Grade 9 (grade 3) students are normally promoted to the high school Department of our school to continue their studies according to their personal wishes. The school will provide resources and help to help students in grades 1-8 enter other schools in Beijing to continue their studies. In addition, it will compensate all students in grades 1-8 for 20000 yuan per person.
According to Zhongxin finance and economics, the relevant person in charge of New Oriental said that it was impossible to reply whether to completely shut down the compulsory courses of Changping bilingual school in autumn, but there were no enrollment places for relevant grades this autumn.
However, the current enrollment policy on the school’s official website still shows that the enrollment object is to recruit students from primary school to high school.
In addition, New Oriental did not respond to whether the New Oriental bilingual school in Yangzhou, Jiangsu Province would suspend education in the stage of compulsory education.
made its first financial loss after listing and entered the live broadcast with goods
In February this year, New Oriental announced the financial report for the first half of fiscal year 20212022, with a net loss of more than US $900 million (about RMB 5.7 billion), which is the first performance loss financial report of New Oriental since its listing in 2004.
According to the financial report, the financial data for the six months ended November 30, 2021 showed that the revenue of New Oriental in the first half of the year was US $1.967 billion, compared with us $1.874 billion in the same period in 2020; The operating loss was US $736 million and the operating profit for the same period in 2020 was US $118 million; The net loss was US $907 million and the net profit for the same period in 2020 was US $179 million.
As of November 30, 2021, the cash and cash equivalents and restricted cash held by New Oriental were US $1.05 billion. In the same period of last year, the cash and cash equivalents and restricted cash held by New Oriental were US $2.648 billion, a decrease of nearly US $1.6 billion (equivalent to RMB 10 billion).
As for the reason why the performance turned from profit to loss, New Oriental said that after the “double reduction”, all learning centers in New Oriental have stopped providing discipline related training services (K-9 discipline training services) to kindergarten to ninth grade students. The termination of the service has a significant adverse impact on the total revenue of New Oriental for the six months ended November 30, 2021.
In addition, New Oriental terminated the lease agreements of several learning centers; And the implementation of the layoff plan, resulting in increased costs and expenses for the six months ended November 30, 2021.
It is reported that in January this year, Yu Minhong, the founder of New Oriental, disclosed that in 2021, the market value of New Oriental fell by 90%, the operating revenue decreased by 80%, 60000 employees were dismissed, and the cash expenses such as tuition, employee dismissal n + 1 and teaching point rent were nearly 20 billion.
In the financial report, New Oriental also said that the company has turned and will continue to turn its key resources to educational products and services unrelated to K-9 discipline training services, such as exam preparation courses, adult language training courses and teaching materials, and will explore other business opportunities by using the business experience, brand awareness and educational resources accumulated in the past. The management of New Oriental will continue to make every effort to adjust the company’s operation and explore new growth drivers.
According to the information on the official website, at present, New Oriental mainly has three sections: University examination, international education and English learning, and provides new services such as international study tours, family education centers and books. According to public reports, New Oriental has recently invested and established a number of new companies, involving software development, career intermediary, food management, Internet information service, sales of chemical fertilizer, intelligent Siasun Robot&Automation Co.Ltd(300024) R & D, teaching model and teaching aids manufacturing and many other fields.
At the end of last year, New Oriental announced the establishment of Shenzhen Agricultural Products Group Co.Ltd(000061) e-commerce platform “Oriental selection” to enter the field of live broadcasting and delivery, which also attracted a lot of industry attention.
According to the new data, as of 2:00 on March 23, the cumulative live broadcast sales of Dongfang selection in the past 30 days were 100121 million yuan. Compared with the cumulative sales of 337 million yuan in the live broadcast room of Luo Yonghao, a former employee of New Oriental, in the past 30 days, New Oriental may still need to work hard on the track of live broadcast with goods.
In terms of share price, as of the closing on March 22, New Oriental reported $1.3 per share, with a total market value of $2.21 billion.
