Author/Lv Qian
On January 17, 2023, New Oriental Online Technology Holdings Limited (stock code: 1797.HK, referred to as “New Oriental Online”), which will soon be renamed “Oriental Selection”, announced the first half of fiscal year 2023 (from June 1 to June 11, 2022). This is also the first time that the company’s e-commerce platform Dongfangxuan has disclosed detailed financial performance since it left the circle in June 2022.
The financial report shows that the company’s total revenue from continuing and discontinued operations increased by 262.7% from 570 million yuan for the six months ended November 30, 2021 to 2.08 billion yuan; net profit increased from 544 million yuan in the same period last year. The net profit reached 585 million yuan; the total revenue cost increased by 174.0% from 400 million yuan to 1.098 billion yuan, mainly due to the substantial growth of self-operated products and live e-commerce business. The rapid growth of revenue data during the reporting period was also due to the company’s Significant progress has been made in the strategic transformation from focusing on online education to self-operated products and live streaming e-commerce.
Since fiscal year 2022, New Oriental Online has established an e-commerce platform, Dongfang Selection. Relying on New Oriental Group’s brand awareness and years of operating history, live classroom technology and existing talent pool, it sells agricultural products, daily necessities and books through live marketing. Products, And pilot live e-commerce activities on different social media platforms such as Douyin and Tencent Mall. Among them, the GMV from Douyin accounts for the vast majority of the company’s overall GMV. According to the financial report, for the six months ended November 30, 2022, Douyin’s The total number of paid orders for third-party products and self-operated products on Yinshang is 70 million orders. Yu Minhong, chairman of New Oriental Online Technology Holdings Co., Ltd., said: The development of Oriental Selection has undoubtedly brought more optimism and firmer confidence in development.
In terms of education business, in the fiscal year ending May 31, 2022 (that is, fiscal year 2022), the company has terminated the preschool and K-12 business. For the remaining university education segment, the company continues to provide university test preparation and overseas test preparation courses, mainly for university students and working professionals who are preparing for the unified test or seeking to improve their English proficiency. During the reporting period, the company adopted a multi-channel marketing strategy and organized various online and offline activities to attract a more diversified customer base. Among them, the average expenditure per paid student in the formal domestic university preparation course business was stable at 1025 during the reporting period. Yuan, which was 1023 yuan in the same period last year.
In the process of optimizing the course portfolio and providing full-process solutions for student customers, the company continues to upgrade its marketing strategy for overseas test preparation, focuses on developing overseas markets, and actively cooperates with upstream and downstream institutions. As these initiatives began to bear fruit, coupled with the impact of market demand recovery and strengthening brand building, during the reporting period, the number of paying students in the university education segment increased by 14.5% to 315,000, compared with 275,000 in the same period last year.
In addition to the live broadcast e-commerce and university education business, the institutional customer business is also one of the three parts of the company’s revenue. During the reporting period, the company’s total revenue from institutional clients decreased by 43.2% to 19 million yuan from 34 million yuan in the same period last year.
According to the analysis of Haitong International Research Report, Dongfangxuan has launched high-quality anchors, operated self-operated products, enriched matrix accounts, and launched outdoor special sessions. In December, the GMV and conversion rate of Dongfang’s selected main account hit a new high; since the launch of Beautiful Life, various indicators have improved significantly. The live broadcast rooms such as drinking wine and watching the world that will be broadcast in November are expected to continue to increase in volume, and the matrix live broadcast is expected to further open up space.
The research report also stated that it is necessary to be alert to risks such as market competition, loss of anchor teams, decline in brand reputation, regulatory policies for the e-commerce live broadcast industry, and supply chain construction progress that is not as expected.
media reports
Sohu Technology Sohu Technology Sina Technology IT Home TechWeb Sina Sohu Technology 36Kr The Paper
related events
- Oriental Selection disclosed detailed financial results for the first time Yu Minhong said it brought confidence in development2023-01-17
- Dong Yuhui is in the rehearsal for the Spring Festival Gala selection, New Oriental’s share price has risen by 15% 2023-01-13
- It is reported that the partner of the live broadcast of the main venue of the Spring Festival Gala is Dongfang Selection2023-01-13
- New Oriental Online will change its name to “Oriental Selection”, Yu Minhong: It is more suitable for the future business direction2023-01-05
- The data of the first anniversary of Dongfang Selection’s live broadcast delivery: fans exceeded 36 million, and 52 self-operated products sold a total of 18.25 million orders2022-12-28
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