According to the latest regulatory developments, it plans to shut down a certain number of learning centers in the fiscal year 2022.
The Chinese edtech giant released the audited performance report for the fiscal year 2021 on September 24
Revenue was USD 4.27 billion, a year-on-year increase of 19.5%.
The net profit was USD 230 million, a year-on-year decrease of 35.03%.
The net profit attributable to shareholders was USD 334 million.
The revenue of New Orientals plans and services in the fiscal year 2021 was USD 3.93 billion, accounting for 92.1% of the total revenue while the revenue of books and other services was recorded as USD 340 million, accounting for 7.9% of the total revenue.
The firm's business is mainly divided into seven categories, including K12 after-school counseling, examination preparation courses, adult language training, kindergartens, primary and secondary schools, textbook development and distribution, online education, overseas study consultation, overseas study tour and other services.
New Oriental's revenue from K12 after-school counseling, test preparation and other courses was USD 3.66 billion, accounting for 85.8% of the total revenue, an increase for three consecutive years.
Online education revenue was USD 211 million, accounting for 4.92% of the total revenue, with a year-on-year increase of 37.91%.
The revenue of kindergartens, primary and secondary schools, textbook development and distribution, study abroad consultation, overseas study tour and other services was USD 399 million, accounting for 9.33% of the total revenue.
In terms of the number of students, as of the reported period New Oriental has 6.723 million students participating in extracurricular counseling courses for middle school and high school students, and 5.348 million students participating in extracurricular counseling courses for kindergarten and primary school students. There are about 390000 students enrolled in the preparatory courses, including 198000 overseas preparatory courses and 193000 Chinese preparatory courses. About 5000 students enrolled in the adult English course.
In terms of the number of teachers, the financial report shows that as of May 31, 2021, New Oriental has employed 54200 teachers, mainly full-time teachers, followed by contract teachers.
In terms of expenses, the total operating costs and expenses of New Oriental during the reporting period were USD 4.159 billion. Among them, the revenue cost was USD 2.037 billion, the sales and marketing expenses were USD 600 million, the general and administrative expenses were USD 1.49 billion, and the impairment loss of intangible assets and goodwill is USD 31.79 million.
In this report, New Oriental believes that the measures taken to comply with the 'double reduction' policy will have a significant adverse impact on the firms' business, financial condition, operating performance and prospects.
New Oriental said that it may take further actions on discipline counseling services in the stage of compulsory education in the near future to ensure its legal compliance, including closing some learning centers and layoffs when necessary, so as to maintain continuous operation.