Original title: New Oriental Education & Technology Group said: it will expand the business of computer grade examination, judicial examination and so on in the future.
Under the policy of economic observation network reporter Li Jingshuang reduction, the education giant is adjusting its strategy.
On September 25th, New Oriental Education & Technology Group announced that he would upgrade the courses and products of the existing four major business sectors, namely, CET-4 and CET-6, postgraduate entrance examination, overseas examination and vocational education, and expand education and training programs such as computer grade examination and judicial examination in the future.
In response to this upgrade, Xu Shunkang, vice president of New Oriental Education & Technology Group Education and Technology Group and general manager of the University Business Department of the Group, said that New Oriental Education & Technology Group University Learning and Development Center will comprehensively upgrade all projects in the future, including product upgrades, refinement of service processes, increased monitoring of learning effects, and enhancement of AI school inspectors.
"starting from Peking University in 1991, he trained college students in TOEFL, GRE and GMAT until New Oriental Education & Technology Group was officially founded in 1993."
Yu Minhong, chairman of New Oriental Education & Technology Group, regards the development of university business as persistence and return, rather than a transformation of New Oriental Education & Technology Group.
In spite of this, the significant impact of the double reduction policy on discipline counseling institutions is evident in several head training institutions.
On September 24th, New Oriental Education & Technology Group's financial report, which was postponed for nearly two months after the double reduction policy, finally surfaced. New Oriental Education & Technology Group's revenue in fiscal 2021 was $4.277 billion (27.655 billion yuan), up 19.5 percent from a year earlier, and net profit was $230 million (1.487 billion yuan), down 35.03 percent from a year earlier, according to the financial report. Net profit attributable to shareholders was $334 million.
At present, New Oriental Education & Technology Group's business is mainly divided into seven categories, namely, K12 after-class tutoring, exam preparation courses, adult language training, kindergartens and primary and secondary schools, teaching material development and distribution, online education and other services such as overseas study consultation, overseas study and so on.
In terms of business, the income from education programs and services is US $3.937 billion, accounting for 92.1% of the total income, and the income and share have increased year by year for three consecutive years; and the income from books and other services is US $340 million, accounting for 7.9% of the total income. Among them, the income of K12 after-school tutoring, exam preparation and other courses was US $3.667 billion, accounting for 85.8% of the total income, which has increased year by year for three consecutive years.
In the face of the recent regulatory policy on off-campus training, New Oriental Education & Technology Group said that further actions may be taken on subject training at the compulsory education stage in the near future, including the closure of a certain number of learning centers and necessary layoffs to maintain operations.
As of May 31, the company had 122 schools and 1547 training centers and about 54200 teachers in 108 cities, according to the financial report. In addition, New Oriental Education & Technology Group plans to close some training centers in fiscal year 2022.
Due to the adverse impact of the policy on off-campus training institutions, in order to ensure compliance, New Oriental Education & Technology Group on behalf of the representative has stopped providing disciplinary off-campus training courses on weekends in Beijing, national legal holidays and during the current school holidays. At the same time, organize and close business involving K12 online and offline.
Online, on September 13, 2021, the K12 business of New Oriental Education & Technology Group online, Oriental Youbroadcast, was completely closed, and the student refund and employee layoff compensation work was fully launched on the same day. In terms of offline business, Yu Minhong, founder and chairman of the company, announced at the New Oriental Education & Technology Group executive meeting that offline enrollment of primary and junior high school subjects will be stopped after the fall course, and teaching sites will be gradually closed in various cities, according to a report by LatePost later.
In view of the complexity and uncertainty of the regulatory environment, New Oriental Education & Technology Group noted in this financial report that due to the complexity and uncertainty of the regulatory environment, New Oriental Education & Technology Group cannot guarantee that operations can comply with applicable regulations and policies in a timely or full manner. including "double reduction" opinions and implementation measures. New Oriental Education & Technology Group may be subject to fines or other penalties, or may be required to terminate certain businesses, in which case New Oriental Education & Technology Group's business, financial position and operating performance may be further significantly adversely affected.