Yu Minhong: New Oriental quits 60,000 employees to transform quality education and starts live broadcast to sell agricultural products

　　"In 2021, New Oriental has encountered too many changes. Due to policies, epidemics, international relations and other reasons, many businesses are in uncertainty." On January 8, 2022, New Oriental founder Yu Minhong posted on his personal public account, reviewing The work situation in 2021 and the future transformation direction are prospected.

Yu Minhong wrote in the article that in 2021, New Oriental’s market value will drop by 90%, revenue will decrease by 80%, 60,000 employees will be dismissed, and cash expenditures such as tuition refunds, employee dismissal N+1 (compensation), and teaching site rent cancellation will be nearly 20 billion yuan.

　　"New Oriental decided to completely stop the ground and online training of K9, and the strong man broke his arm to do more projects that provide services for the all-round growth of students." Yu Minhong said, "In the past six months, New Oriental has managed to survive and has preserved a little strength. ."

　　Yu Minhong, who was born in 1962, has come to the year of "Sixty Ears".

Where will the New Oriental under his helm go?

Nearly

　　"The end of the year and the beginning of the year are the times to sum up the past and plan the future." Yu Minhong said that on January 4th and 5th, for two consecutive days, various departments and subsidiaries of New Oriental headquarters conducted work reports and carried out work reports for 2021. Summarize and deploy the work for 2022.

　　Yu Minhong said that New Oriental’s market value has dropped by 90%, operating income has decreased by 80%, 60,000 employees have been dismissed, and cash expenditures such as tuition refunds, employee dismissal N+1, and teaching site lease cancellations have nearly 20 billion.

During this process, New Oriental decided to completely stop the ground and online training of K9, and the strong man broke his arm to do more projects that provide services for the overall growth of students, such as quality, literacy, research, and camp education. At the same time, it decided to increase its presence in the college student market and investment in overseas Chinese markets.

　　Industry and commerce information shows that in the past three months, New Oriental has successively invested and established a number of new companies, covering various fields, including software development, occupational intermediary, food management, Internet information services, fertilizer sales, intelligent robot research and development, educational hardware, etc. .

　　Yu Minhong also mentioned in the "Year-end Summary" that Xinwei Pictures, invested by New Oriental, filmed an inspirational film last year, based on a Yi youth basketball team in the Daliangshan area.

　　"The original purpose of shooting this movie was to make it into an online movie, but now I want to make it a theatrical movie." Yu Minhong revealed, "In the aspect of inspirational movies, New Oriental may make further investment in the future."

　　The Shell Finance reporter noticed that on September 24, 2021, on the Maimai platform, employees certified as "New Oriental HR" posted to recruit short video directors and live broadcast operation directors.

　　In September 2021, New Oriental released its annual report for the 2021 fiscal year ended May 31.

The report shows that in fiscal 2021, New Oriental’s revenue was US$4.277 billion, a year-on-year increase of 19.5%; net profit was US$230 million, a year-on-year decrease of 35.03%, and net profit attributable to shareholders was US$334 million.

　　In fiscal year 2021, New Oriental’s education course service brought revenue of US$3.94 billion, accounting for 92.1% of total revenue; revenue of books and other services was US$340 million, accounting for 7.9%.

Close

　　On October 25 and November 15, 2021, New Oriental Online and New Oriental successively issued announcements to close the company's K-9 subject training business.

　　New Oriental Online disclosed that the termination of the K-9 business will have a material adverse impact on the Group's total revenue for the financial year ending May 31, 2022 and subsequent periods.

The Board estimates that the K-9 business will account for approximately 58% to 73% of the K-12 education segment in terms of total revenue contribution for the two fiscal years ending May 31, 2021.

New Oriental stated that for the fiscal year ending May 31, 2021, the total revenue generated by the provision of K-9 subject training services accounted for approximately 50% to 60% of the total revenue of New Oriental in each fiscal year. Total revenue for the year and subsequent periods is materially and adversely affected.

　　After the complete suspension of K9 subject training, New Oriental began to transform into projects that provide services for students' overall growth, such as quality, literacy, research, and camp education. At the same time, it decided to increase investment in the college student market and the overseas Chinese market.

　　In October 2021, New Oriental issued a notice of organizational structure adjustment, and each school needs to set up an international study tour and camp education department.

In December, New Oriental once again revealed that in the future, it will continue to provide educational services such as CET 4 and 6, postgraduate entrance exams, foreign languages ​​(English, minor languages), study abroad consultation, international study tours, domestic research studies & camp education, and try to focus on general education and quality of students. Literacy education, adhere to the public welfare of rural education.

　　According to the company's investigation data, in the past three months, New Oriental has successively invested in the establishment of a number of new companies. Except for some consulting companies and off-campus hosting companies that are related to K12 education, Dongfang Selection (Beijing) Technology Co., Ltd., Beijing You Programming Network Technology Co., Ltd. Co., Ltd., Beijing Xinyuanfang Human Resources Service Co., Ltd. and many other companies are not directly related to K12 education, but are involved in various fields such as webcasting, software technology, human resources, and sports industry.

New track:

　　"Work hard, study hard, and find new directions. These should be my three major themes in 2022." Yu Minhong said.

He specifically mentioned Dongfang Selection, a live streaming platform owned by New Oriental.

　　Yu Minhong said that New Oriental Online, a Hong Kong-listed company as the main body, established the Oriental Selection Live Broadcasting System, transformed it into an e-commerce platform centered on the selection and sales of agricultural products, provided product value-added services for farmers across the country, and served as a link between farmers and consumers. A trusted platform.

　　In 2021, on the evening of December 28, Yu Minhong started his first live broadcast to help farmers on the Douyin platform by claiming to be a "peasant's child".

　　According to the company's investigation, Dongfang Xuan (Beijing) Technology Co., Ltd., a live broadcast platform for agricultural products from New Oriental, was established on December 7, 2021, with a registered capital of 10 million yuan, and the legal representative is Sun Dongxu.

　　According to data from Feigua, a third-party data platform, on the day of the premiere on December 28, Yu Minhong’s sales in the live broadcast room reached 4.932 million, the number of viewers reached 1.869 million, and the number of fans on his account increased by 44,000.

At the same time, Sun Dongxu, CEO of New Oriental Online, mentioned at the end of the live broadcast that the total sales of the two live broadcast rooms of Yu Minhong and Dongfang Selection exceeded 5 million yuan.

　　Why choose live agricultural products?

New Oriental once introduced it based on two aspects: First, Yu Minhong himself likes agriculture.

Yu Minhong once said that he likes agriculture and grew up in the countryside from the age of 1 to 18. All agricultural products can only be grown in his hometown.

Since he was a child, he liked to watch crops, such as wheat seedlings, emerge from the ground, slowly turn green, after frost and winter, they grow vigorously, and finally bear golden ears of wheat. That feeling brought him incomparable of happiness.

　　The second is to do the right thing.

Yu Minhong once exchanged with farmers about the sales of agricultural products. A few years ago, he passed farmland in Shandong and chatted with local farmers.

The main income of local farmers is garlic. Due to the good price of garlic in the previous year, many local people have switched to garlic this year. In the end, the supply exceeds demand. The original 10 yuan/catties of garlic can only be sold for 2 yuan/catties. To go, it is equivalent to the farmers who worked hard for a year, but they did it in vain.

So Yu Minhong came up with the idea of ​​building a platform to help farmers sell.

　　However, without Yu Minhong's personal appearance, the popularity of New Oriental's live broadcast has dropped significantly.

According to the data of Grey Dolphin, from December 29, 2021 to January 9, 2022, Dongfang Selection held a total of 9 live broadcasts, and the cumulative sales were less than 1 million yuan.

Up to now, Dongfang Selection has brought a total of 2.222 million yuan in goods and a total of 26,000 fans.

　　Beijing News Shell Finance reporter Zhao Fangyuan editor Xu Chao proofreads Wang Xin