According to the latest report, New Oriental online has recently submitted a prospectus to the Hong Kong stock exchange, which was disclosed yesterday evening (July 17). What's the matter with New Oriental submitting the prospectus?
New Oriental online is a professional online education website under New Oriental Education Technology Group (NYSE: EDU), which is one of the first online education websites in China. Based on years of teaching experience of New Oriental Group, New Oriental online mainly provides three types of courses: University, K12 and preschool education.
University Education
Launched in 2005, in the nine months ended February 28, 2018, the number of paid students in the branch was 852000, accounting for 59.1% of the total number of paid students. New Oriental online accounts for a large proportion of the market for college exam preparation in China, with the data presented in the prospectus of 8.2%. K12 education
Launched in 2015, in the nine months ended February 28, 2018, the number of paid students distributed was 129000, accounting for 9% of the total number of paid students
preschool education
Launched in 2012, the number of paid students distributed in the nine months ended February 28, 2018 was 460000, accounting for 31.9% of the total number of paid students.
During the previous performance record period, the total number of New Oriental online paid students was about 3.1 million. As of February 28, 2018, the total number of New Oriental online paid students was about 1.4 million.
In addition, New Oriental online also provides content packages to universities, public libraries, telecom operators, online video providers and other school and institutional customers through online education module.
The prospectus shows that New Oriental online's performance increased significantly during the previous record period. In fiscal year 2016 (as of May 31, 2016), New Oriental online's total revenue was RMB 334 million, which increased to RMB 446 million in fiscal year 2017 (as of May 31, 2017); in the nine months ended February 28, 2017, its total revenue was RMB 327 million, while in the nine months ended February 28, 2018, its total revenue increased to RMB 485 million. During the same period, the number of paid students of New Oriental online increased from 653000 to 1 million, from 702000 to 1.4 million; the net profit increased from 59.6 million yuan to 92.2 million yuan, from 68.6 million yuan to 80.8 million yuan.
Since its establishment, New Oriental online has obtained three rounds of financing, totaling $164 million. Tencent invested US $50.8786 million in the first round, dragon cloud and China city capital invested US $73.4532 million and US $19.2464 million respectively in the second round, and Yu Minhong's investment company invested US $20.6687 million in the third round.
In terms of equity structure, New Oriental is the largest shareholder, holding 66.72%; Tencent is the second largest shareholder, with its subsidiary image frame accounting for 12.06%; auspicious is the third largest shareholder, holding 7.11%; and tiger step, the holding company invested by Yu Minhong, accounting for 1.85%.
The prospectus shows that as of May 31, 2018, it has 62 full-time teachers and 957 part-time teachers, 53 full-time and 1525 part-time tutors. Among them, the vast majority of teachers (full-time or part-time) hold bachelor's degree, and more than one third hold master's degree or above.
At the same time, in terms of risk factors, the prospectus also mentions that the success of New Oriental business mainly depends on the number of paid students who study new Oriental online, coollearn English, Oriental Youbo and Dona online courses and the willingness of students to pay for the course fee finance of the platform. Therefore, if New Oriental online fails to continuously attract students to study new Oriental online courses and increase the consumption on the platform, the business and The operating results will have a significant adverse impact.
For the next development plan, New Oriental online said it will achieve the goal through four strategies: expanding the content supply to improve the learning experience of students, further increasing the number of paid students, systematically attracting and training teaching personnel, and seeking to establish strategic partnership and investment with technology enterprises and education content providers.