New Oriental Education & Technology Group Education Technology Group Technology Co., Ltd. (hereinafter referred to as New Oriental Education & Technology Group) due to a dispute over the education and training contract.$New Oriental Education & Technology Group (EDU.US) $$New Oriental Education & Technology Group-S (09901.HK) $Another piece of information about the person subject to execution has been added, and the amount of the subject matter for execution is 113800 yuan.

From the perspective of public information, the implementation of New Oriental Education & Technology Group is related to Beijing Tianyue Mingde Education Technology Co., Ltd. But in fact, according to Zero Finance and Economics, it is not the first time that New Oriental Education & Technology Group has been "implicated" by Tianyue Mingde education.

In the face of the court's repeated decisions, New Oriental Education & Technology Group said that he was not a party to the contract and had not reached any agreement with his parents, so what kind of role did New Oriental Education & Technology Group play in this dispute?

01

New Oriental Education & Technology Group was executed another 113800 yuan.

On May 21, due to a dispute over the education and training contract, New Oriental Education & Technology Group added another piece of information about the person subject to execution, with the target amount of 113800 yuan.

According to the enterprise investigation, the execution number of this execution is: (2022) Beijing 0105 holds No. 16572, and the person being executed is Beijing Tianyue Mingde Education Technology Co., Ltd. (hereinafter referred to as: Tianyue Mingde Education), New Oriental Education & Technology Group Education Technology Group Co., Ltd. the enforcement court is the Beijing Chaoyang District people's Court.

Mingde Education, whose full name is Beijing Tianyue Mingde Education Technology Co., Ltd., was established on December 9, 2016. Wang Junying is the legal representative. The scope of business is technology development, technology transfer, technology consulting, technical services; education consulting (excluding overseas study consultation and intermediary services); software development, etc.

Tianyue Mingde Education has three shareholders, Beijing Tianyue Investment Development Co., Ltd. holds 60%, Beijing Maobofeng Investment Consulting Co., Ltd. holds 37%, and Hong Yi holds 3%. But at present, the major shareholders and the important members of the two shareholders have problems.

Among them, Wang Junying, the actual shareholder and legal person of Beijing Tianyue Investment and Development Co., Ltd., and another shareholder, Huang Beihai, have been restricted to high consumption, and some shares have been frozen, while the company has also broken promises and been implemented.

The second shareholder, Beijing Maobofeng Investment Consulting Co., Ltd., one of the main personnel, has also been restricted to the maximum consumption.

There are many problems with shareholders, and so is Tianyue Mingde Education. At present, Tianyue Mingde Education has been listed as the executor of bad faith, and the operation is abnormal, involving 108 judicial cases.

02

Affected by a cooperation agreement?

From the perspective of industrial and commercial information, New Oriental Education & Technology Group has nothing to do with Tianyue Mingde Education, so how do they have a connection and come together?

Up to now, among the people executed in New Oriental Education & Technology Group's history, there have been 10 cases of education and training contract disputes between parents and Tianyue Mingde and New Oriental Education & Technology Group. The date of filing the case is from May 2020 to February 2022.

Judging from the civil judgment, the execution of New Oriental Education & Technology Group is related to the cooperation agreement signed with Tianyue Mingde Education.

In a judgment issued on March 27 last year, plaintiff Ma claimed that his child was admitted to Beijing Tianyue School, which was jointly set up by New Oriental Education & Technology Group and Tianyue Mingde, and officially began in August 2017 after paying a tuition fee of 178100 yuan.

It was not until December 2017 that parents learned that the school was not qualified to run a school. Due to the failure of the school to provide proof of transfer, students failed to transfer in time. In response, Ma claimed that his children had wasted at least one school year in a teaching school that did not have the qualifications to run a school, causing huge losses to parents in terms of time and economy.

In the part of responsibility, parents believe that Beijing Tianyue School publicizes the school as a school under New Oriental Education & Technology Group Company during enrollment, and in the course of operation, Tianyue Mingde Company provides all the hardware facilities, New Oriental Education & Technology Group Company provides software input, is responsible for the management of the school, the input of teachers, and dispatches the headmaster Gao to Tianyue School. Therefore, Tianyue Mingde Company and New Oriental Education & Technology Group Company should bear joint and several liability.

In fact, after enrollment, it was found that the parents of Tianyue School who did not have the qualifications for running a school were not Ma. Zero Finance checked all New Oriental Education & Technology Group's judgments related to Tianyue Mingde and found that a number of parents appealed to the two companies for roughly the same reasons as Ma.

However, New Oriental Education & Technology Group did not agree with the parents, saying that he was not a party to the contract and had not reached any agreement with the parents, nor did he charge any fees or provide educational services.

In the defense, New Oriental Education & Technology Group said that although Beijing Tianyue Investment and Development Co., Ltd. signed an agreement on cooperation in running a school in May 2016, the condition for the contract to take effect was that Tianyue School obtained a school license by September 2016. As Tianyue School did not obtain a school license, the contract between the two parties did not take effect from the beginning.

New Oriental Education & Technology Group said that Tianyue School was established and opened by Tianyue Mingde Company, and New Oriental Education & Technology Group does not have any hardware, software or personnel investment in Tianyue School. As for headmaster Gao, New Oriental Education & Technology Group said that although it was recommended to Tianyue Mingde based on the agreement with Tianyue Investment Company, it was eventually hired by Tianyue Mingde, not New Oriental Education & Technology Group staff. And New Oriental Education & Technology Group has never received any remuneration or fees from Tianyue Mingde Company and Tianyue Investment Company.

In addition, New Oriental Education & Technology Group mentioned in his reply that some parents applied to drop out before the start of the 2017-2018 school year, including the uncompleted teaching building and the lack of qualification of the school, which can also reflect that parents are well aware of the lack of qualifications of the school. However, parents still choose to continue to receive education, and parents advocate that there is a loss of time and cost, which is inconsistent with their behavior of continuing to go to school. even if there is a loss, it is a loss that parents expand on their own. Parents are at fault for this.

As for compensation, Tianyue Mingde said that the fees paid by parents included school buses, school uniforms, meals and other fees that had nothing to do with teaching qualifications, and had informed the school in writing or orally that it was not qualified to run a school. parents are aware of the situation that the school is not qualified to run a school, and since the contract has been fulfilled, it should not be refunded.

So, how did the court decide?

Taking the above case as an example, the court held that the above education and training contract was invalid because Tianyue School did not obtain a school license. In addition, combined with the evidence submitted by all parties, it has been concluded that parents "have reason to believe that the school their children attend is a school under New Oriental Education & Technology Group" and that New Oriental Education & Technology Group should establish joint liability with Tianyue Mingde.

In the end, the court decided that the defendant New Oriental Education & Technology Group and Tianyue Mingde Education jointly refunded 124679 yuan to the plaintiff Ma within seven days from the effective date of the judgment.

In addition, according to another judgment, New Oriental Education & Technology Group and Tianyue Mingde also refunded a certain fee of 178100 yuan and Yang Maili's tuition fee of 198700 yuan.

03

Walk on two legs

July 24, 2021, is a major turning point in the education and training industry, all players are spared, and the industry giant New Oriental Education & Technology Group is no exception.

At that time, the "double reduction" policy officially landed. According to the regulations, "out-of-school training institutions are not allowed to occupy national statutory holidays, rest days and cold and summer holidays to organize discipline training." This is undoubtedly a blow to the education and training institutions.

Subsequently, educational institutions began a long road of consolidation, either exit or transformation.

New Oriental Education & Technology Group online said in its annual report on Sept. 16 that it had changed its business development in the future. of the original three major sectors of preschool education, K12 education and university education, only university education was preserved. preschool education and K12 education were replaced by overseas exam preparation, product business innovation, technology and so on.

New Oriental Education & Technology Group announced on October 25 that it would stop operating out-of-school training services for compulsory education in mainland China (hereinafter referred to as "K9 business") by the end of November.

Then, on November 4, Yu Minhong announced on moments that "the era of education and training is over" and revealed the disposal of some of New Oriental Education & Technology Group's assets during his previous business period of education and training. "he has donated nearly 80, 000 desks and chairs to rural schools." Four days later, Yu Minhong revealed in a live broadcast that New Oriental Education & Technology Group had nearly 1500 teaching sites to surrender their rents.

According to the financial report, as at the end of February this year, the total number of New Oriental Education & Technology Group schools and learning centres was 847, which was 822 fewer than that of 1669 at the end of May 2021. New Oriental Education & Technology Group executives say that number will drop to about 600 by the end of this year. At present, New Oriental Education & Technology Group online has not involved K12 subjects at all, involving CET-4 and CET-6 and postgraduate entrance exams at the university level.

The main business has been hit, and revenue and profits have fallen off the cliff.

From June 2021 to the end of February 2022, New Oriental Education & Technology Group's net income was about 16.9 billion yuan (RMB, the same below), down 15.8% from the same period last year, while the net loss was about 6.5 billion yuan, compared with $379.9 million in the same period of the previous fiscal year, earning about 2.5 billion yuan.

On January 8 this year, Yu Minhong posted on his official account Lao Yu that in the past six months, New Oriental Education & Technology Group's market value has fallen by 90%, operating income has decreased by 80%, and employees have laid off 60, 000 people. Nearly 20 billion was spent on cash, such as tuition fees, staff dismissals, and rental dismissals at teaching sites.

Under the tightening of regulation, New Oriental Education & Technology Group cleaned up the discipline business involving K12 while transforming to seek new business.

According to Tianyan investigation, as of January 10 this year, New Oriental Education & Technology Group has set up 90 new companies in about half a year, an average of one new company every 1.88 days. The new company mainly covers live e-commerce, books and teaching aids, non-disciplinary training, child care and other areas.

Recently, at the Abuli Forum, Yu Minhong said that at present, New Oriental Education & Technology Group chose to "walk on two feet", the US stock New Oriental Education & Technology Group insisted on the main business of education, and the Hong Kong stock New Oriental Education & Technology Group online opened up a new live broadcast business. But at present, it is not easy to go either way.

In terms of live broadcasts, New Oriental Education & Technology Group launched Oriental selection, an e-commerce platform for agricultural products, in December last year, opening the way for live broadcasts with goods. In the following two months, a total of 37 broadcasts were broadcast, with cumulative sales of 9.2848 million and average sales of 250900 per game. Although the sales are more than 10,000, this set of data is seen by the outside world as a sign that its live broadcast business is not going well.

In this way, it remains to be seen when New Oriental Education & Technology Group will usher in the "second spring" under the fierce competition.