China: Big annual loss for New Oriental Education & Technology Group
New Oriental Education & Technology Group, a New York-listed Chinese tutoring firm, has reported a net loss of $1.22 billion for its 2022 fiscal year ending 31 May 2022. This compares to net income of $230 million reported for fiscal year 2021.
Net revenue for the year was $3.1 billion, down from $4.28 billion in the prior fiscal year.
The Beijing-based company also reported results for the fourth quarter of its 2022 fiscal year ending 31 May 2022. The company made a net loss of $186.7 million for the period compared to a net loss of $75.2 million reported in Q4 2021
The company reported net revenue for the quarter ending of $524 million, down from $1.21 billion reported for the fourth quarter of fiscal year 2021.
New Oriental’s chairman Michael Yu said: “Fiscal year 2022 has been a year full of challenges and opportunities. We restructured our core businesses and operations to comply with the government policies in China and stepped onto a new stage. Our remaining key businesses are seeing a stable trend that lays a solid foundation for our future development. In this fiscal year, the overseas test preparation and overseas study consulting businesses increased by 6% and 16% year-over-year, respectively. Our domestic test preparation business targeting adults and university students witnessed a record rapid growth of approximately 30% year over year. At the same time, various new businesses that we embarked on earlier this year achieved promising results.
“The non-academic tutoring business was rolled out in over 50 cities, same as the intelligent learning system and devices that were adopted and tested in around 60 cities. Both have achieved positive customer feedback and improved customer retention. Other businesses, including study tour and research camp, educational materials and digitalised smart study solutions, as well as exam preparation courses designed for students with junior college diplomas to obtain bachelor’s degrees, are making remarkable progress. We are confident that by leveraging our brand recognition and educational resources accumulated over our operating history, these new businesses will start to generate notable revenue from the next fiscal year.”