New Oriental's Koolearn Reports 2020 Fiscal Year Earnings
The online education arm of the edtech giant New Oriental generated CNY 1.08 billion in revenue in the 2020 fiscal year.
Koolearn's revenue of CNY 1.08 billion was an increase of 17.6% year-on-year with a net loss of CNY 758 million, up 1082.7% year-on-year. The total number of paying students reached 2.852 million, also an increase of 30.9% year-on-year.
The financial report shows that, thanks to the implementation of the long-term development strategy and the active measures during the epidemic, New Oriental Online's university education and K12 education businesses have grown. Among them, the K12 segment's net income and number of paying students increased by 85.4% and 224.5% year-on-year respectively. The university education business was relatively stable, with a net income of CNY 642 million, a year-on-year increase of 1.6%. Due to the optimization and enhancement of the Donut English app and the termination of the live English courses of the app's online classroom, the pre-school education business income has declined, with a net income of CNY 30 million, down 10.1% year-on-year.
The revenue of Koolearn's K12 education was CNY 295 million, an increase of 85.4% compared to CNY 159 million in the same period last year. This part of the growth is due to the increase of New Oriental Online K12 courses and the expansion and strengthening of Oriental Youbo.
At the same time, the number of K12 paying students has also increased. During the reporting period, the number of paying students increased from 572,000 in the same period last year to 1.85 million. Among them, the number of paying students in K12 courses increased by 269.4% year-on-year, while the number of paying students for Oriental Youbo courses increased by 184.2% year-on-year.
Koolearn has adjusted its university business division and now focuses on the domestic and overseas test preparation business lines. In the future, the firm plans to continue to strengthen cooperation with overseas English test providers such as Cambridge University's English Assessment Department.
In terms of pre-school business, Koolearn is now focusing on optimizing the Donut English App. In the report, it outlines the improved quality and participation rates of the app and how it expanded the scope of the educational content provided.
As for the K12 business, it will remain the strategic focus. As of May 31, 2020, Dongfang Youbo had entered 172 cities in 24 provinces across the country. In the future, Dongfang Youbo will continue to expand its business to more cities and further deepen customer operations in existing cities.