Yu Minhong, who started again at the age of 60, has attracted everyone’s attention
On the 8 day, Yu Minhong issued a document on his personal official account, reviewed the 2021 and looked forward to the future direction of transformation.
In the article, Yu Minhong said that in 2021, New Oriental encountered too many changes, and many businesses were in uncertainty due to policies, epidemic situations, international relations and other reasons. The market value of the company decreased by 90%, the revenue decreased by 80%, 60000 employees were dismissed, and the cash expenses such as tuition, employee dismissal n + 1 (compensation) and teaching point rent were nearly 20 billion yuan
revenue decreased by 80%, 60000 layoffs
total market value evaporated by 300 billion
Yu Minhong said that in the past year, the market value of New Oriental fell by 90%, the revenue decreased by 80%, 60000 employees were dismissed, and the cash expenses such as tuition, employee dismissal n + 1 (compensation) and teaching point rent were nearly 20 billion yuan.
According to the financial report of New Oriental in 2021, as of May 31, 2021, in fiscal year 2021, the revenue of New Oriental in fiscal year 2021 was $4.277 billion, of which the revenue brought by New Oriental Education Curriculum service was $3.94 billion, accounting for 92.1% of the total revenue; The revenue of books and other services was US $340 million, accounting for 7.9%.
In terms of personnel, as of May 31, 2021, New Oriental has 88000 full-time personnel and 17000 contract workers, totaling nearly 110000.
In this financial report, New Oriental had planned to lay off 40000 people. In terms of share price, as of January 8, 2021, New Oriental’s share price closed at $1.86/share, down more than 90% from the high of $199 in 2021, and the total market value evaporated by 300 billion yuan
Yu Minhong’s three themes in 2022
As a benchmark in the education and training industry, New Oriental has stood for nearly 30 years. The current situation is bound to make people sigh. But in Yu Minhong’s article, there is no sorrow, but full of hope for the future.
When talking about the future, Yu Minhong said “do certain things in uncertainty”.
The so-called uncertainty means that the situation and policies are still changing. We should adapt to changes in the situation and policies and look for development opportunities in line with major policies; The so-called doing certain things is always doing things that are valuable, help others and help social progress,
Perhaps because of this, New Oriental’s transformation is also all-round, such as quality, literacy, research, camp education, etc. at the same time, it decided to increase its investment in the college student market and overseas Chinese market. 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 Shenzhen Agricultural Products Group Co.Ltd(000061) screening and sales as the core.
Yu Minhong also mentioned that Xinwei film company invested by New Oriental participated in the production of an inspirational film last year. The prototype of the story is a Yi youth basketball team in Daliangshan area. Yu Minhong said that he originally planned to make the film into an online film, but now he wants to push it into a cinema film. In terms of inspirational films, New Oriental may further invest in the future.
To sum up, Yu Minhong said that working hard, studying hard and trying to find a new direction should be my three themes in 2022
turn the live studio into a “New Oriental small classroom”
At 8 o\’clock on December 28th, Yu Minhong officially started his Shenzhen Agricultural Products Group Co.Ltd(000061) tiktok show in his live broadcast. At the same time, New Oriental also officially launched the live delivery platform “Oriental selection”.
During the live broadcast, Yu Minhong put 30 products on the shelves in the live broadcast room, with prices ranging from 9.9 to 960 yuan. Every time he introduces a new product, he will take out the A4 paper prepared in advance. On the paper are geographical knowledge and humanistic allusions related to the Shenzhen Agricultural Products Group Co.Ltd(000061) .
“Let me tell you where quinoa is planted. You can take a look at this picture. Here is Jiuquan, Zhangye and Wuwei. This is the four counties in Hexi Corridor, which was set up during the period of Emperor Wu of the Han Dynasty. Here is Gansu Qilianshan Cement Group Co.Ltd(600720) covered with snow Mai, this is a huge grassland area, this is the Hexi Corridor, and the Yugur people who grow quinoa are here… ” Facing the camera, Yu Minhong skillfully took out the prepared map and began to carefully explain where quinoa is produced, the characteristics of Yugur people planting quinoa, the history of Yugur people planting quinoa, and so on.
In addition, Yu Minhong has not forgotten his identity as an English teacher and is teaching English knowledge all the time.
“3j cherizi’s j is actually English jumbo, which means huge and extraordinary.”
“Now in foreign countries, wood ear or tree ear is OK.”
“Orange, I\’m an English teacher. I want to speak standard”
“Do you understand? Can you understand?”
Although sun Dongxu, CEO of New Oriental online, mentioned at the end of the live broadcast that the overall turnover of the two live broadcast rooms exceeded 5 million. 5 million in 3 hours, which is a lot worse than Luo Yonghao next door. It is understood that Luo Yonghao’s first show has a maximum of 2.7 million people online at the same time. The cumulative number of viewers of the whole live broadcast exceeds 48 million, and the total transaction volume exceeds 110 million yuan.
“Expensive” has become the main reason for many make complaints about the crowd. But Yu Minhong insists that Oriental selection is not an oriental bargain. He has been explaining in the live broadcasting room, “we have two standards for selecting products, one is pollution-free, the other is… In this way, because of organic, the output will not be too much, at the same time, the overall labor cost will be very high, and the price of products will be relatively high.”
However, in addition to the first live broadcast with Yu Minhong, the data of goods brought by Dongfang selection in the next few days were relatively bleak. According to the data of feigua, the cumulative sales of seven live broadcasts from December 29 to January 4 were less than 900000.
Affected by the unsatisfactory live data, on December 29, New Oriental online, the parent company selected by Dongfang, plunged rapidly in the opening, once falling by more than 22%, and by the end of the closing, it had fallen by 21.78%. Since then, it has also continued to decline. As of January 7, New Oriental online closed at HK $4.50, down by half from the share price when Yu Minhong just announced live delivery.
Transformation is not easy. I still wish New Oriental, who loves education and adheres to the public welfare of rural education, can find a new direction as soon as possible.
(source: China Fund News)
