New Oriental(新东方)
Fast facts
- Year Founded
- 1993
Source: New Oriental Websitewww.neworiental.org/english/who/201507/8213540.html
- HQ Location
- Beijing, China
- Publicly Traded?
- Yes
Source: Nasdaqwww.nasdaq.com/market-activity/stocks/edu
- Overseas Operations
- No
- US Sanctions
- No
- Military Affiliation in China
- No
Revenue
2020Source: New Oriental 2020 Annual Reportinvestor.neworiental.org/static-files/8afc19aa-2380-40a8-a43a-302e3f8005a7
Valuation
Valuation is reported as market capitalization. It was last updated on June 26, 2022 13:49:38.Source: Yahoo Financefinance.yahoo.com/quote/EDU/key-statistics
Employees
Source: Investor FAQinvestor.neworiental.org/shareholder-services/investor-faqs
The largest after-school tutoring firm in China, New Oriental Education & Technology Group, Inc., was founded by a former English teacher who presents his rags-to-riches journey as evidence that education is the key to success.
Yu Minhong, who has been dubbed China’s “Godfather of education,” was born to illiterate parents and struggled through school, but went on to found New Oriental Education in 1993, in the form of English language test prep courses taught in a single Beijing classroom. Within 13 years, the company’s stock had a soaring NYSE debut. By 2020, 64.9 million students had passed through the company’s programs for primary and secondary school subjects, foreign language training, test preparation, and more. Yu had built an $11 billion company.
All of that changed in 2021. New Oriental Education’s stock dropped as much as 90% on news that China had banned for-profit tutoring on K-12 subjects — which made up 75% of the company’s revenue. The company is now on an uncertain path forward, and could pivot to forms of tutoring not targeted by government regulations: test prep, foreign language instruction, vocational training, and even parental education.
-
- Name
- Ownership
-
- Beijing Shiji Youhao Education Investment
Source: Tianyanchawww.tianyancha.com/company/2345084071
- 100%
- Beijing Shiji Youhao Education Investment
- Michael M Yu, Founder and Chairman
- Zhou Chenggang, Chief Executive Officer
- Yang Zhihui, Executive President and Chief Financial Officer
New Oriental Sanctions
While at this time it appears that this company is not the subject of any U.S. or other global sanctions, it is important to note that Chinese companies tend to have more opaque organizational structures than their Western peers. Chinese companies' affiliated brands, operating units, and overseas subsidiaries are not always obvious or even identifiable. Given this, a Chinese company may not be the subject of sanctions, but one of its subsidiaries may be, thus making it difficult to accurately ascertain a company's full sanctions status.
New Oriental Reputational Disclosures
New Oriental was significantly impacted by the CCP crackdown on edtech. The company announced it would cease offering tutoring services to students from kindergarten through to grade nine, a revenue stream that accounted for approximately 50% to 60% of the company’s total revenue for FY2020 and FY 2021.
In an effort to pivot away from the now-defunct education sector, New Oriental will establish a new e-commerce platform where they will sell agricultural produce with the help of hundreds of teachers. New Oriental aims to help farmers increase their professional skills and earn higher incomes through the platform. They also hope to encourage more young farmers to return to their hometowns and spend time with their children so that there will be fewer children left behind in China. This effort aligns closely with the CCP’s Common Prosperity initiative by seeking to assist with a multitude of rural-related issues.
The latest news on New Oriental from SupChina
What will happen to private tutoring? New Oriental’s 2022 game plan
New Oriental Education ($EDU), the largest Chinese tutor on the block, recently posted a year-end summary: Revenues in 2021 decreased by 80%; 60,000 employees were dismissed; and the company lost 20 billion yuan ($3 billion) through such expenses as tuition refunds and severance pay.
After crackdowns, Beijing to issue licenses to resume after-school tutoring
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Barred from tutoring children, Chinese test-prep giant wants to educate parents
Maybe the lesson we’ll learn about China’s great tech and education business crackdown of the summer of 2021 is that you can never put an entrepreneurial company down: New Oriental, China’s original scrappy education startup, is down but very far from out.
Shares plunge as Beijing pushes ahead with new rules for education and tech companies
Investors are fleeing Chinese education stocks and pricing in risks across a range of industries as Beijing heats up a long-brewing regulatory storm.
China’s after-school tutoring crackdown goes nuclear
New draft rules circulated today would force China’s private education companies to turn nonprofit. Share prices of tutoring companies plummeted, and some see the end of a highly lucrative industry.
Beijing rolls out tuition guidelines for after-school tutoring sector
Beijing regulators issued a long-anticipated guideline on tuition fees in the after-school tutoring sector. The message: “Stop blindly expanding.”
Beijing slaps private tutoring companies with $80,000 maximum penalty
The penalty on companies including GSX Techedu, New Oriental Education, and TAL Education is the flashiest move to date following Beijing’s new resolve to crackdown on the private tutoring industry.
The latest news on New Oriental from across the web
新东方：计划于2021年底前停止K-9学科辅导服务
New Oriental Education will discontinue K-9 tutoring by the end of 2021, it announced today. Those services once accounted for 50% to 60% of the company’s revenue.
Corporate Profile | New Oriental Education and Technology Group, Inc.
The Investor Relations website contains information about New Oriental Education and Technology Group, Inc.'s business for stockholders, potential investors, and financial analysts.
New Oriental Education & Technology Group (NYSE:EDU) stock falls 12% in past week as one-year earnings and shareholder returns continue downward trend
It's not a secret that every investor will make bad investments, from time to time. But it's not unreasonable to try to avoid truly shocking capital losses. We wouldn't blame New Oriental Education & Technology Group Inc. (NYSE:EDU) shareholders if they were still in shock aft
Tal Education Is A Slightly Better Pick Than New Oriental (NYSE:EDU)
China’s after school tutoring market has lots of potential for growth. Tal Education and New Oriental are Tier 1 companies that should benefit the most from industry expansion.
New Oriental Education & Technology Group (NYSE:EDU) stock falls 12% in past week as one-year earnings and shareholder returns continue downward trend
It's not a secret that every investor will make bad investments, from time to time. But it's not unreasonable to try to avoid truly shocking capital losses. We wouldn't blame New Oriental Education & Technology Group Inc. (NYSE:EDU) shareholders if they were still in shock aft
Why New Oriental Education Shares Are Rising
New Oriental Education & Tech Grp (NYSE: EDU) shares are trading higher in sympathy with Gaotu Techedu after the company announced second-quarter earnings results....
The casualties of China’s education crackdown
Elliott Zaagman Contributor Share on Twitter Once the darlings of Wall Street and venture capital as recently as the beginning of this year, China’s edtech firms are now wondering if they will be able to remain solvent long enough to see the beginning of the next. In a series of sweeping regulations, the central government […]
China Freezes Tutoring Firms’ Fees, Enrollment Pending Approvals
China has banned firms that teach school subjects from enrolling new students or collecting fees until they’re officially registered as non-profits by the end of 2021.
China Says Government to Set Prices for After-School Classes
China said local governments should set the fees for after-school tutoring institutions that offer compulsory education subjects, another step in the country’s efforts to overhaul the private education sector.
Morgan Stanley thinks Chinese education companies have a way forward despite the crackdown
One beaten-down U.S.-listed Chinese education stock can recover by 55% as tutoring companies shake off the regulatory crackdown, Morgan Stanley analysts said.
China’s Education Crackdown Pushes Costly Tutors Underground
China’s latest campaign to rein in its $100 billion out-of-school education sector was meant to level the playing field for all. Instead, the crackdown is forcing tutors under the radar, making their services even more expensive -- and exclusive.
Chinese Bond Swings Threaten Global Debt Investors
Policy moves in Beijing are hitting Chinese corporate bonds and rippling across global markets through the U.S. and European money managers who loaded up on the securities in recent years.
China’s ‘Godfather of education’ faces existential test
Yu Minhong rose from poverty to lead one of the world’s biggest education groups
Investors Lost Hundreds of Billions on China in July
The widening regulatory crackdown by Beijing wiped some $400 billion off the value of U.S.-listed Chinese companies this month.
Beijing Gives Tech Investors a Brutal New Tutorial
Anyone who bought into Chinese internet stocks hoping for a bounce following the dramatic fall from grace of ride-hailing giant Didi has been taught another painful lesson this week.
China gives its largest edtech company an ultimatum: pivot or else
New Oriental Education, worth $11 billion last week, has already lost 70% of its market value.
Chinese Tech Stock Selloff Deepens
A selloff in Chinese technology stocks accelerated as investors unnerved by Beijing’s widening crackdown on internet companies and other industries sold down their holdings.
Xi's Four Pillars of Regulation Will Change the Way Big Tech Works in China
Beijing’s regulatory crackdown on fintech to education to ride-hailing will alter the corporate landscape and affect foreign investment.
China Education Tycoon Loses $15 Billion as Shares Tumble
Larry Chen, the former school teacher who became one of the world’s richest people, has lost his billionaire status as China cracks down on its private education sector.
New Oriental Announces Results for the Third Fiscal Quarter Ended February 28, 2021 | New Oriental Education and Technology Group, Inc.
Quarterly Net Revenues Increased by 29.0% Year-Over-Year Quarterly Student Enrollments Increased by 43.0% Year-Over-Year BEIJING , April 20, 2021 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or " New Oriental") (NYSE: EDU and SEHK: 9901), the largest provider of
Shaming and Blaming | The World of Chinese
Reactions to the Jiang Jinfu scandal show how domestic abuse is widely misunderstood in China—with the victims often held accountable
World’s Biggest Stock Losers Are Chinese Tutors Amid Crackdown
Shares of China’s once high-flying private education companies are the world’s worst performers this year amid a government crackdown aimed at easing student workloads and costs.
World’s Top Hedge Fund Soars 275% With Bets on China Schools
Long before he ran the world’s best-performing hedge fund, Qian Yongqiang chaired China’s biggest online dating service.
One of the Year’s Worst Short Bets Defies Scathing Reports and an SEC Investigation
No stock has been more heavily attacked by activist short sellers this year than GSX Techedu, but the New York-listed Chinese tutoring company has so far come out on top.
Why Shares of New Oriental Education Group Gained 10% Last Month @themotleyfool #stocks $EDU $TAL
The response to its earnings report was surprising.
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Tariff tensions have knocked down their shares, creating an opportunity for investors. Meanwhile, a handful of lower-profile Chinese stocks look attractive. One to avoid: Baidu.
New Oriental online education subsidiary files for Hong Kong IPO · TechNode
Analysts forecast Koolearn could raise $90 million to $104 million.
