Zhongxin Jingwei, January 22 (Xinhua) on the 21st, New Oriental issued a profit warning, with a loss of US $800-900 million in advance for the six months ended November 30, 2021. On the same day, the online education website of New Oriental released the semi annual performance report.
half year pre loss of more than 800 million US dollars
On January 21, New Oriental Education Technology (Group) Co., Ltd. (hereinafter referred to as "New Oriental") issued a profit warning. It is expected that it will record a net loss of US $800-900 million in the six months ended November 30, 2021, with a profit of US $229 million in the same period of last year.
New Oriental explained that the expected loss was mainly due to the significant adverse impact of business termination on the total revenue during the reporting period and a large number of additional costs arising therefrom.
In addition to the above data, New Oriental did not disclose more information. However, Yu Minhong, founder of New Oriental, recently released an annual summary, saying that "the market value of New Oriental has fallen by 90%, the operating revenue has decreased by 80%, 60000 employees have been dismissed, and the cash expenses such as tuition, employee dismissal n + 1 and teaching point rent dismissal are nearly 20 billion."
However, the above remarks were soon "beaten in the face" by New Oriental officials. New Oriental announced that the board of directors of the company has noticed a number of recent media reports, including citing Mr. Yu Minhong's personal blog post published in "Lao Yu Xianhua" since January 8, 2022, which is related to (including) the company's business and financial performance. The announcement reminds shareholders and investors that these media publications are not authorized by the company and do not represent the views of the company.
website medium-term revenue decreased by 15.3%
on the same day, New Oriental online, an online education website of New Oriental, disclosed the interim performance announcement. data show that in the six months ended November 30, New Oriental online realized an operating revenue of 574 million yuan (RMB, year-on-year), a year-on-year decrease of 15.3%; During the period, the loss was 544 million yuan, a year-on-year decrease of 19.3%; The loss per share was 0.54 yuan, a year-on-year decrease of 25.0%.
During the reporting period, the total revenue of the education division of New Oriental online university decreased by 8.5% to 268 million yuan. The financial report explained that it was mainly due to the adjustment of core products and marketing strategies. In terms of K-12 education, the total revenue decreased by 19.7% to 270 million yuan. The total revenue of Preschool Education Division decreased by 62.2% to 1.679 million yuan, mainly due to the impact of new regulations.
Screenshot source: New Oriental online semi annual report
Looking forward to the future, New Oriental online said that on the one hand, it will continue to expand the existing university and institutional business departments and online education products and services. On the other hand, New Oriental online is actively exploring new initiatives to expand its customer base and products, and implementing transformation to meet the needs of the changing regulatory and educational environment.
latest statement "live broadcast with goods"
New Oriental online disclosed that its has been exploring new initiatives, including Shenzhen Agricultural Products Group Co.Ltd(000061) and live delivery of other products and the development of new educational intelligent hardware innovation. New Oriental online also said that aims to establish an e-commerce platform for selling Shenzhen Agricultural Products Group Co.Ltd(000061) and other products.
In November 2021, the economic daily published the title "New Oriental should not copy Li Jiaqi". Yu Minhong, founder of New Oriental, responded at that time, "I don't quite agree with one point. The article says' jump from one industry that earns fast money to another. In fact, there is no 'fast money' and 'bad money' in the business model. The field of education is also very difficult. Many education companies lost money in the past. Live broadcasting is not easy. No industry is easy to do."
In December 28, 2021, the New Oriental official Xuan will be on the live platform of the tiktok, "Oriental selection". At 8 o'clock on the evening of 28, Yu Minhong will be carrying the first live farm product with the sound.
According to wind data, as of the closing on January 21, New Oriental online fell 1.49% to HK $4.620, and new oriental-s fell 2.36% to HK $13.220. On the US stock market, as of the early morning closing of January 22, New Oriental (NYSE: EDU) fell 7.65% to $1.57. (Zhongxin Jingwei APP)
