BEIJING, Jan. 17,
2023 /PRNewswire/ -- New Oriental Education
& Technology Group Inc. (the "Company" or "New Oriental")
(NYSE: EDU/ 9901.SEHK), a provider of private educational services
in China, today announced its
unaudited financial results for the second fiscal quarter ended
November 30, 2022, which is the
second quarter of New Oriental's fiscal year 2023.
Financial Highlights for the Second Fiscal Quarter Ended
November 30, 2022
- Total net revenues decreased by 3.1% year-over-year to
US$638.2 million for the second
fiscal quarter of 2023.
- Operating loss was US$2.5
million, compared to the loss of US$768.1 million in the same period of the prior
fiscal year.
- Net income attributable to New Oriental was US$0.7 million, compared to the loss of
US$936.5 million in the same period
of the prior fiscal year.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
2Q
FY2023
|
2Q FY2022
(5)
|
% of
change
|
Net revenues
|
638,214
|
658,321
|
-3.1 %
|
Operating
loss
|
(2,488)
|
(768,103)
|
-99.7 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
16,303
|
(737,058)
|
102.2 %
|
Net income/ (loss)
attributable to New Oriental
|
732
|
(936,510)
|
100.1 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
17,750
|
(901,625)
|
102.0 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
0.00
|
(5.52)
|
100.1 %
|
Net income/ (loss) per
ADS attributable to New Oriental -
diluted
|
0.00
|
(5.52)
|
100.0 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - basic (2)(3)(4)
|
0.11
|
(5.31)
|
102.0 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - diluted (2)(3)(4)
|
0.10
|
(5.31)
|
101.8 %
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
1H
FY2023
|
1H
FY2022
|
% of
change
|
Net revenues
|
1,383,036
|
1,967,132
|
-29.7 %
|
Operating income/
(loss)
|
75,501
|
(735,670)
|
110.3 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
113,347
|
(661,448)
|
117.1 %
|
Net income/ (loss)
attributable to New Oriental
|
66,734
|
(875,980)
|
107.6 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
101,456
|
(790,396)
|
112.8 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
0.39
|
(5.17)
|
107.6 %
|
Net income/ (loss) per
ADS attributable to New Oriental -
diluted
|
0.38
|
(5.17)
|
107.4 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - basic (2)(3)(4)
|
0.60
|
(4.66)
|
112.8 %
|
Non-GAAP net income/
(loss) per ADS attributable to New Oriental -
diluted (2)(3)(4)
|
0.58
|
(4.66)
|
112.5 %
|
|
|
|
|
(1) Each ADS
represents ten common shares. The Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE. The weighted average number
of ADS and earnings per ADS have been retrospectively adjusted to
reflect the ADS ratio change from one ADS representing one common
share to one ADS representing ten common shares, which became
effective on April 8, 2022.
|
(2) GAAP
represents Generally Accepted Accounting Principles in the United
States of America.
|
(3) New Oriental
provides net income/ (loss) attributable to New Oriental, operating
income/ (loss) and net income/ (loss) per ADS attributable to New
Oriental on a non-GAAP basis that excludes share-based compensation
expenses and gain / (loss) from fair value change of investments to
provide supplemental information regarding its operating
performance. For more information on these non-GAAP financial
measures, please see the section captioned "About Non-GAAP
Financial Measures" and the tables captioned "Reconciliations of
Non-GAAP Measures to the Most Comparable GAAP Measures" set forth
at the end of this release.
|
(4) The Non-GAAP
net income/ (loss) per ADS attributable to New Oriental is computed
using Non-GAAP net income/ (loss) attributable to New Oriental and
the same number of shares and ADSs used in GAAP basic and diluted
EPS calculation.
|
(5) The key
financial results for the second fiscal quarter of 2022 have not
been previously released.
|
|
Operating Highlights for the Second Fiscal Quarter Ended
November 30, 2022
- The total number of schools and learning centers was 708 as of
November 30, 2022, an increase of 2
compared to 706 as of August 31, 2022
and a decrease of 585 compared to 1,293 as of November 30, 2021, respectively. The total number
of schools was 95 as of November 30,
2022.
Michael Yu, New Oriental's
Executive Chairman, commented, "It is encouraging to see a
continuously strong momentum of our overall business in the
second fiscal quarter of this year, which marks a fresh start after
downsizing throughout the last fiscal year. Our remaining key
businesses started to show a steady trend of recovery after several
years of pandemic disruption. In this fiscal quarter, our overseas
test preparation and overseas study consulting businesses increased
by approximately 17% and 14% year over year, respectively.
Simultaneously, our educational new business initiatives sustained
a strong growth and generated meaningful profit in this fiscal
quarter. The non-academic tutoring business was rolled out in over
60 cities, with 477,000 enrollments in this fiscal quarter, while
the intelligent learning system and devices were adopted in around
60 cities, with 108,000 active paid users in this fiscal quarter.
With these solid financial results and positive customer feedback,
we are increasingly confident in the promising prospects of our new
businesses, as well as our ability to capture emerging
opportunities in these rapidly-growing markets."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "By the end of this fiscal quarter,
the total number of schools and learning centers remained at 708.
We focus more strategically on business opportunities in the major
markets of higher-tier cities, and proactively leverage our
existing infrastructure and education resources for both the
remaining key businesses and new educational initiatives across
cities. The continued investment in maintaining our
online-merge-offline teaching system provides flexibility and high
teaching quality to our customers amid the pandemic. Koolearn.com
has made significant progress in its private label products and
livestreaming e-commerce business, and have achieved breakthroughs
in our business operations and financial performance. While
DONG FANG ZHEN XUAN(东方甄选) has become
a well-known platform for promoting healthy, top-quality and
cost-effective products to the public, it continues to expand its
product selection and SKUs through proactive cooperation with third
parties, coupled with increase in our DONG
FANG ZHEN XUAN private label products. By focusing on
improving product capabilities and developing diverse cultural
content, DONG FANG ZHEN XUAN has
yielded millions of revenues and a loyal customer base in the first
half of this fiscal year."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "Despite the fact that the second quarter is
traditionally the slowest quarter of the year, we still managed to
generate non-GAAP operating profit of US$16.3 million for the quarter. We recorded a
positive operating cash flow of US$173.7
million and by the end of this fiscal quarter, our cash and
cash equivalents, term deposits and short-term investments totaled
approximately US$4.2 billion. We will
continue to ramp up our effort in all aspects to accelerate our
recovery and pursue profitable growth. We are confident in
delivering more value to our customers, society and shareholders in
the long term."
Share Repurchase
On July 26, 2022, the Company's
board of directors authorized a share repurchase program, under
which the Company may repurchase up to US$400 million of the Company's ADSs or common
shares during the period from July 28,
2022 through May 31, 2023. As
of January 16, 2023, the Company
repurchased an aggregate of approximately 3.1 million ADSs for
approximately US$79.0 million from
the open market under the share repurchase program.
Financial Results for the Second Fiscal Quarter Ended
November 30, 2022
Net Revenues
For the second fiscal quarter of 2023, New Oriental reported net
revenues of US$638.2 million,
representing a 3.1% decrease year over year. The decline was mainly
due to the cessation of K-9 academic after-school tutoring services
in complying with the government policies in China.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$640.7 million, representing a 55.1%
decrease year-over-year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$621.9 million, representing a
55.4% decrease year-over-year. The decrease was primarily due
to the reduction of facilities and number of staff as a result of
the downsizing in fiscal year 2022.
- Cost of revenues decreased by 31.6% year-over-year to
US$336.2 million.
- Selling and marketing expenses decreased by 15.0%
year-over-year to US$95.5
million.
- General and administrative expenses for the quarter
decreased by 74.6% year-over-year to US$209.0 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$190.9 million,
representing a 75.7% decrease year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 39.5% to
US$18.8 million in the second fiscal
quarter of 2023.
Operating Income / Loss and Operating Margin
Operating loss was US$2.5 million,
compared to the loss of US$768.1
million in the same period of the prior fiscal year.
Non-GAAP income from operations for the quarter was US$16.3 million, compared to the loss of
US$737.1 million in the same period
of the prior fiscal year.
Operating margin for the quarter was negative 0.4%, compared to
negative 116.7% in the same period of the prior fiscal year.
Non-GAAP operating margin, which excludes share-based compensation
expenses, for the quarter was 2.6%, compared to negative 112.0% in
the same period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was
US$0.7 million, compared to the loss
of US$936.5 million in the same
period of the prior fiscal year. Basic and diluted net income per
ADS attributable to New Oriental were US$0.00 and US$0.00, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter
was US$17.8 million, compared to the
loss of US$901.6 million in the same
period of the prior fiscal year. Non-GAAP basic and diluted
net income per ADS attributable to New Oriental were US$0.11 and US$0.10, respectively.
Cash Flow
Net cash flow generated from operation for the second fiscal
quarter of 2023 was approximately US$173.7
million and capital expenditures for the quarter were
US$11.4 million.
Balance Sheet
As of November 30, 2022, New
Oriental had cash and cash equivalents of US$1,029.9 million. In addition, the Company had
US$1,033.2 million in term deposits
and US$2,145.7 million in short-term
investments.
New Oriental's deferred revenue balance, which is cash collected
from registered students for courses and recognized proportionally
as revenue as the instructions are delivered, at the end of the
second quarter of fiscal year 2023 was US$1,139.1 million, an increase of 6.9% as
compared to US$1,065.8 million at the
end of the second quarter of fiscal year 2022.
Financial Results for the Six Months Ended November 30, 2022
For the first six months of fiscal year 2023, New Oriental
reported net revenues of US$1,383.0
million, representing a 29.7% decrease year-over-year.
Operating income was US$75.5
million, compared to a loss of US$735.7 million in the same period of the prior
fiscal year. Non-GAAP operating income for the first six months of
fiscal year 2023 was US$113.3
million, compared to a loss of US$661.4 million in the same period of the prior
fiscal year.
Operating margin for the first six months of fiscal year 2023
was 5.5%, compared to negative 37.4% for the same period of the
prior fiscal year. Non-GAAP operating margin, which excludes
share-based compensation expenses for the first six months of
fiscal year 2023, was 8.2%, compared to negative 33.6% for the
same period of the prior fiscal year.
Net income attributable to New Oriental for the first six months
of fiscal year 2023 was US$66.7
million, compared to a loss of US$876.0 million in the same period of the prior
fiscal year. Basic and diluted net income per ADS attributable to
New Oriental for the first six months of fiscal year 2023 amounted
to US$0.39 and US$0.38, respectively.
Non-GAAP net income attributable to New Oriental for the first
six months of fiscal year 2023 was US$101.5
million, compared to a loss of US$790.4 million in the same period of the prior
fiscal year. Non-GAAP basic and diluted net income per ADS
attributable to New Oriental for the first six months of fiscal
year 2023 amounted to US$0.60 and
US$0.58, respectively.
Koolearn's Financial Highlights for the Six Months Ended
November 30, 2022
New Oriental's subsidiary, Koolearn Technology Holdings Limited
("Koolearn"), a leading online extracurricular education service
provider and a well known private label products and livestreaming
e-commerce platform in China
listed on the Hong Kong Stock Exchange, announced its financial
results under International Financial Reporting Standards ("IFRS")
for the first six months of fiscal year 2023. Koolearn's financial
information in this section is presented in accordance with
IFRS.
For the first six months ended November
30, 2022, Koolearn recorded revenues of RMB 2,080.1 million (US$293.5 million), a 590.2% increase from
revenues from continuing operations of RMB301.4 million in the same period of the prior
fiscal year, and recorded a net profit of RMB585.3 million (US$82.6
million), a 638.5% increase from net loss from continuing
operations of RMB108.7 million in the
same period of the prior fiscal year. Koolearn's gross profit was
RMB982.5 million (US$138.6 million) and gross profit margin
was 47.2% for the six months ended November
30, 2022.
The translations of RMB amounts into U.S. dollars in this
section are presented solely for the convenience of the readers.
The conversion of RMB into U.S. dollars is based on the exchange
rate set forth in the H.10 statistical release of the Board of
Governors of the Federal Reserve System as of November 30, 2022, which was RMB7.0879 to US$1.00. The percentages stated in this section
are calculated based on the RMB amounts.
Koolearn's Proposed Change of Company Name
On January 5, 2023, Koolearn
proposed a change of company name from "Koolearn Technology Holding
Limited" ("新東方在綫科技控股有限公司") to "East Buy Holding Limited"
(東方甄選控股有限公司") as part of reassessment by Koolearn's board of
directors to fully encompass the direction of Koolearn's current
business and future outlook.
Outlook for the Third Quarter of the Fiscal Year 2023
New Oriental expects total net revenues in the third quarter of
the fiscal year 2023 (December 1,
2022 to February 28, 2023) to
be in the range of US$702.8 million
to US$719.8 million, representing
year-over-year increase in the range of 14% to 17%.
The projected increase of revenue in our functional currency
Renminbi is expected to be in the range of 24% to 27% for the third
quarter of the fiscal year 2023.
This forecast reflects New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on January 17, 2023, U.S. Eastern Time (9 PM on January 17,
2023, Beijing/Hong Kong
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, and unique personal PIN.
Conference call registration link:
https://register.vevent.com/register/BI7e732066495e450bb411f6b75a1cac60.
It will automatically direct you to the registration page of "New
Oriental FY 2023 Q2 Earnings Conference Call" where you may fill in
your details for RSVP.
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s) and
personal PIN) provided in the confirmation email received at the
point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast
on-demand by registering at
https://edge.media-server.com/mmc/p/ht5qqwzg first. The replay will
be available until January 17,
2024.
About New Oriental
New Oriental is a provider of private educational services in
China offering a wide range of
educational programs, services and products to a varied student
population throughout China. New
Oriental's program, service and product offerings mainly consist of
educational services and test preparation courses, online education
and other services, overseas study consulting services, and
educational materials and distribution. New Oriental is listed on
NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's
ADSs, each of which represents ten common shares. The Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE.
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the third quarter of fiscal year 2023, quotations
from management in this announcement, as well as New Oriental's
strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our ability to attract students without a significant
increase in course fees; our ability to continue to hire, train and
retain qualified teachers; our ability to maintain and enhance our
"New Oriental" brand; our ability to effectively and efficiently
manage the expansion of our school network and successfully execute
our growth strategy; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; competition in the private
education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected
growth of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the
Securities and Exchange Commission. New Oriental does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and New Oriental undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results
presented in accordance with GAAP, New Oriental uses the following
measures defined as non-GAAP financial measures by the SEC: net
income/ (loss) excluding share-based compensation expenses and
gain/ (loss) from fair value change of investments, operating
income/ (loss) excluding share-based compensation expenses,
operating cost and expenses excluding share-based compensation
expenses, general and administrative expenses excluding share-based
compensation expenses, operating margin excluding share-based
compensation expenses, and basic and diluted net income/ (loss) per
ADS and per share excluding share-based compensation expenses and
gain / (loss) from fair value change of investments. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP measures to the
most comparable GAAP measures" set forth at the end of this
release.
New Oriental believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses and gain/ (loss) from fair value change of investments
that may not be indicative of its operating performance from a cash
perspective. New Oriental believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to New Oriental's
historical performance and liquidity. New Oriental believes these
non-GAAP financial measures are useful to investors in allowing for
greater transparency with respect to supplemental information used
by management in its financial and operational decision making. A
limitation of using these non-GAAP measures is that they exclude
share-based compensation charge and gain / (loss) from fair value
change of investments that has been and will continue to be for the
foreseeable future a significant recurring expense in our business.
Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP
measure. The accompanying tables have more details on the
reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Rita Fong
Ms. Sisi Zhao
FTI Consulting
New Oriental Education & Technology Group Inc.
Tel: +852 3768
4548
Tel: +86-10-6260-5568
Email:
rita.fong@fticonsulting.com
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of November
30
|
|
As of May
31
|
2022
|
|
2022
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,029,865
|
|
1,148,637
|
Restricted cash,
current
|
67,183
|
|
-
|
Term
deposits
|
1,033,173
|
|
1,140,066
|
Short-term
investments
|
2,145,655
|
|
1,902,254
|
Accounts receivable,
net
|
27,837
|
|
16,430
|
Inventory,
net
|
74,612
|
|
27,925
|
Prepaid expenses and
other current assets, net
|
228,591
|
|
215,402
|
Amounts due from
related parties, current
|
10,480
|
|
23,245
|
Total current
assets
|
4,617,396
|
|
4,473,959
|
|
|
|
|
Restricted cash,
non-current
|
25,776
|
|
45,890
|
Property and
equipment, net
|
345,832
|
|
402,690
|
Land use rights,
net
|
3,373
|
|
3,627
|
Amounts due from
related parties, non-current
|
1,704
|
|
3,365
|
Long-term
deposits
|
26,040
|
|
33,409
|
Intangible assets,
net
|
28,962
|
|
2,800
|
Goodwill,
net
|
105,783
|
|
70,803
|
Long-term investments,
net
|
399,149
|
|
437,919
|
Deferred tax assets,
non-current, net
|
51,323
|
|
20,038
|
Right-of-use
assets
|
413,755
|
|
531,102
|
Other non-current
assets
|
4,460
|
|
9,064
|
Total
assets
|
6,023,553
|
|
6,034,666
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
81,529
|
|
22,289
|
Accrued expenses and
other current liabilities
|
435,523
|
|
510,264
|
Income taxes
payable
|
119,484
|
|
75,650
|
Amounts due to related
parties
|
214
|
|
226
|
Deferred
revenue
|
1,139,080
|
|
933,062
|
Operating lease
liability,current
|
147,190
|
|
168,623
|
Total current
liabilities
|
1,923,020
|
|
1,710,114
|
|
|
|
|
Deferred tax
liabilities, non-current
|
17,608
|
|
19,240
|
Unsecured senior
notes
|
15,103
|
|
65,394
|
Operating lease
liabilities, non-current
|
324,736
|
|
446,394
|
Total long-term
liabilities
|
357,447
|
|
531,028
|
|
|
|
|
Total
liabilities
|
2,280,467
|
|
2,241,142
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
3,607,181
|
|
3,705,506
|
Non-controlling
interests
|
135,905
|
|
88,018
|
Total
equity
|
3,743,086
|
|
3,793,524
|
|
|
|
|
Total liabilities
and equity
|
6,023,553
|
|
6,034,666
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
|
For the Three Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
638,214
|
|
658,321
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
336,196
|
|
491,676
|
Selling and
marketing
|
95,525
|
|
112,378
|
General and
administrative
|
208,981
|
|
822,370
|
Total operating cost
and expenses
|
640,702
|
|
1,426,424
|
Operating
loss
|
(2,488)
|
|
(768,103)
|
Gain/(loss) from fair
value change of investments
|
271
|
|
(5,746)
|
Other income/(loss),
net
|
26,320
|
|
(46,283)
|
Provision for income
taxes
|
(3,942)
|
|
(94,852)
|
Loss from equity method
investments
|
(3,575)
|
|
(35,618)
|
Net
income/(loss)
|
16,586
|
|
(950,602)
|
|
|
|
|
Add: Net (gain)/loss
attributable to non-controlling interests
|
(15,854)
|
|
14,092
|
Net income/(loss)
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
732
|
|
(936,510)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Basic (note 2)
|
0.00
|
|
(0.55)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Diluted (note 2)
|
0.00
|
|
(0.55)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Basic
(note 2)
|
0.00
|
|
(5.52)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-
Diluted (note 2)
|
0.00
|
|
(5.52)
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATIONS OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
For the Three Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
208,981
|
|
822,370
|
Less: Share-based
compensation expenses in
general and administrative expenses
|
18,114
|
|
36,340
|
Non-GAAP general and
administrative expenses
|
190,867
|
|
786,030
|
|
|
|
|
Total operating cost
and expenses
|
640,702
|
|
1,426,424
|
Less: Share-based
compensation expenses
|
18,791
|
|
31,045
|
Non-GAAP operating cost
and expenses
|
621,911
|
|
1,395,379
|
|
|
|
|
Operating
loss
|
(2,488)
|
|
(768,103)
|
Add: Share-based
compensation expenses
|
18,791
|
|
31,045
|
Non-GAAP operating
income/(loss)
|
16,303
|
|
(737,058)
|
|
|
|
|
Operating
margin
|
-0.4 %
|
|
-116.7 %
|
Non-GAAP operating
margin
|
2.6 %
|
|
-112.0 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
732
|
|
(936,510)
|
Add: Share-based
compensation expenses
|
17,289
|
|
29,139
|
Less: Gain/(loss) from
fair value change of
investments
|
271
|
|
(5,746)
|
Non-GAAP net
income/(loss) attributable to New
Oriental
|
17,750
|
|
(901,625)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New
Oriental- Basic (note 2)
|
0.00
|
|
(5.52)
|
Net income/(loss) per
ADS attributable to New
Oriental- Diluted (note 2)
|
0.00
|
|
(5.52)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Basic (note 2)
|
0.11
|
|
(5.31)
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Diluted (note 2)
|
0.10
|
|
(5.31)
|
|
|
|
|
Weighted average shares
used in calculating basic
net income/(loss) per ADS (note 2)
|
1,689,218,254
|
|
1,696,966,183
|
Weighted average shares
used in calculating diluted
net income/(loss) per ADS (note 2)
|
1,689,994,459
|
|
1,696,966,183
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.01
|
|
(0.53)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.01
|
|
(0.53)
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as
follows:
|
|
|
|
|
|
For the Three Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
116
|
|
(1,379)
|
Selling and
marketing
|
561
|
|
(3,916)
|
General and
administrative
|
18,114
|
|
36,340
|
Total
|
18,791
|
|
31,045
|
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Three Months
Ended November 30
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by/
(used in) operating activities
|
173,670
|
|
(628,322)
|
|
Net cash (used in )/
provided by investing activities
|
(54,203)
|
|
474,055
|
|
Net cash used in
financing activities
|
(97,758)
|
|
(112,178)
|
|
Effect of exchange rate
changes
|
(35,997)
|
|
(32,765)
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(14,288)
|
|
(299,210)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,137,112
|
|
1,349,340
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,122,824
|
|
1,050,130
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
|
For the Six Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
1,383,036
|
|
1,967,132
|
|
|
|
|
Operating costs and
expenses (note 1):
|
|
|
|
Cost of
revenues
|
648,263
|
|
1,133,717
|
Selling and
marketing
|
194,269
|
|
277,403
|
General and
administrative
|
465,003
|
|
1,291,682
|
Total operating
costs and expenses
|
1,307,535
|
|
2,702,802
|
Operating
income/(loss)
|
75,501
|
|
(735,670)
|
Loss from fair value
change of investments
|
(47)
|
|
(14,323)
|
Other income/(loss),
net
|
58,218
|
|
(2,358)
|
Provision for income
taxes
|
(27,285)
|
|
(113,831)
|
Loss from equity method
investments
|
(5,220)
|
|
(41,778)
|
Net
income/(loss)
|
101,167
|
|
(907,960)
|
|
|
|
|
Add: Net (gain)/loss
attributable to non-controlling interests
|
(34,433)
|
|
31,980
|
Net income/(loss)
attributable to New Oriental Education
& Technology Group Inc.
|
66,734
|
|
(875,980)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Basic (note 2)
|
0.04
|
|
(0.52)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Diluted (note 2)
|
0.04
|
|
(0.52)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-
Basic (note 2)
|
0.39
|
|
(5.17)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-
Diluted (note 2)
|
0.38
|
|
(5.17)
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
For the Six Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
465,003
|
|
1,291,682
|
Less: Share-based
compensation expenses in general
and administrative expenses
|
36,699
|
|
77,476
|
Non-GAAP general and
administrative expenses
|
428,304
|
|
1,214,206
|
|
|
|
|
Total operating costs
and expenses
|
1,307,535
|
|
2,702,802
|
Less: Share-based
compensation expenses
|
37,846
|
|
74,222
|
Non-GAAP operating
costs and expenses
|
1,269,689
|
|
2,628,580
|
|
|
|
|
Operating
income/(loss)
|
75,501
|
|
(735,670)
|
Add: Share-based
compensation expenses
|
37,846
|
|
74,222
|
Non-GAAP operating
income/(loss)
|
113,347
|
|
(661,448)
|
|
|
|
|
Operating
margin
|
5.5 %
|
|
-37.4 %
|
Non-GAAP operating
margin
|
8.2 %
|
|
-33.6 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
66,734
|
|
(875,980)
|
Add: Share-based
compensation expenses
|
34,675
|
|
71,261
|
Less: Loss from fair
value change of investments
|
(47)
|
|
(14,323)
|
Non-GAAP net
income/(loss) attributable to New Oriental
|
101,456
|
|
(790,396)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New Oriental- Basic (note 2)
|
0.39
|
|
(5.17)
|
Net income/(loss) per
ADS attributable to New Oriental- Diluted (note 2)
|
0.38
|
|
(5.17)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to New Oriental -
Basic (note 2)
|
0.60
|
|
(4.66)
|
Non-GAAP net
income/(loss) per ADS attributable to New Oriental -
Diluted (note 2)
|
0.58
|
|
(4.66)
|
|
|
|
|
Weighted average shares
used in calculating basic net
income/(loss) per ADS (note 2)
|
1,695,055,767
|
|
1,695,875,271
|
Weighted average shares
used in calculating diluted net
income/(loss) per ADS (note 2)
|
1,696,196,397
|
|
1,695,875,271
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.06
|
|
(0.47)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.06
|
|
(0.47)
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
costs and expenses as
follows:
|
|
|
|
|
|
For the Six Months
Ended November 30
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
6
|
|
(205)
|
Selling and
marketing
|
1,141
|
|
(3,049)
|
General and
administrative
|
36,699
|
|
77,476
|
Total
|
37,846
|
|
74,222
|
|
|
|
|
Note 2: Each ADS
represents ten common shares. For the three and six months ended
November 30, 2021, the
weighted average number of ADS and earnings per ADS have been
retrospectively adjusted to reflect the ADS ratio
change from one ADS representing one common share to one ADS
representing ten common shares, which became
effective on April 8, 2022.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Six Months
Ended November 30
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by/
(used in) operating activities
|
358,917
|
|
(1,074,835)
|
|
Net cash (used in )/
provided by investing activities
|
(249,499)
|
|
653,374
|
|
Net cash used in
financing activities
|
(117,751)
|
|
(113,259)
|
|
Effect of exchange rate
changes
|
(63,370)
|
|
(47,277)
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(71,703)
|
|
(581,997)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,194,527
|
|
1,632,127
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,122,824
|
|
1,050,130
|
|
View original
content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-second-fiscal-quarter-ended-november-30-2022-301723254.html
SOURCE New Oriental Education and Technology Group Inc.