Author: Zoe
$TAL Education (TAL.US)$If you really want to have TAL Education Group, you may need a financial report that is more standardized and discloses more information.
On January 19, 2023, TAL Education Group, a company listed on the New York Stock Exchange, released its unaudited financial report for the third quarter of fiscal year 2023 ended November 30, 2022. TAL Education Group's net income fell from $1.021 billion in the same period last year to $233 million in the current quarter, down 77.2% from a year earlier, according to the report. The operating loss narrowed to $32.88 million during the reporting period, compared with a $108 million operating loss in the same period last year.
The 2023 fiscal year is the year when the double reduction policy actually had an impact, and TAL Education Group's performance shows such a situation is also in line with market expectations. But for TAL Education Group's future, it is difficult for investors who follow it to grasp through the financial results, because the company's three-quarter report only disclosed the income statement in the three tables. The income statement also includes only overall income and does not disclose costs. Therefore, it is difficult to judge the future of the company only from the disclosed data.
Zhang Guo, a researcher at the Beijing Reading Research Institute and founder of Metrology Technology and CEO, pointed out that TAL Education Group's financial reporting standardization needs to be strengthened. The financial statement should contain at least three statements: the balance sheet, the income statement and the cash flow statement. The income statement should clearly write down the cost structure of several major items, and the cash flow statement needs to write clearly the investment income and non-investment income, showing the main business, investment and so on.
According to the common sense of financial accounting, the governance level of an enterprise is closely related to the disclosure level of public information. Generally speaking, the higher the governance level is, the more detailed and sufficient the disclosed information should be. Because if you want to disclose it, you need to sort it out, and if you want to sort it out, you need to have management and statistics, which are so-called interlinked.
Zhang Guo pointed out that through the public information displayed by TAL Education Group, TAL Education Group has not yet had a clear direction of transformation, and as to whether the transition can be successful or not, we still need to wait and see. Correspondingly, as a former educational enterprise, New Oriental Education & Technology Group has developed new business-agricultural products e-commerce live broadcast business, and the recent financial report selected by the East is also very eye-catching.
Peng Zhuangzhuang, President and Chief Financial Officer of TAL Education Group, said: "although our revenue in the quarter was affected by exchange rate fluctuations and seasonal factors, our new business has maintained a momentum of sustained development. We look forward to maintaining momentum in the fourth quarter, increasing the value we provide to our customers, while further optimizing our operational efficiency to strengthen our competitive position and drive sustainable long-term growth of our business. "