Dong Yuhui revenue before the fire was only 24.6 million, will the selection of oriental selection take New Oriental Online Old Road?

The 21st Century Business Herald reporter Wang Feng reported that on August 26, the most watched education company in 2022, New Oriental released its financial report.

As of May 31, 2022, New Oriental's online revenue (including continuous operation and termination of business business) was 899 million yuan, a year -on -year decrease of 36.7%; net loss was 534 million yuan, a year -on -year narrowing of 67.8%.

New Oriental has attracted attention online because its non -educational business -East selection. In fiscal 2022, the East selected revenue was 24.6 million yuan. It is worth noting that on June 9th, Dong Yuhui's birth was born to the East selection, and Dong Yuhui's performance after the popularity did not count the financial report.

This means that the performance of the East's selection of fiscal year may be huge different from the 2022 fiscal year. New Oriental Online Executive Director and CFO Yin Qiang said at the financial report that "Oriental selection for nearly three months GMV is around 2 billion yuan."

Oriental selection explores a unique live broadcast and cargo model, neither purchase traffic nor divided the anchor, which brings a high gross profit margin. Obviously, Oriental selection will become the most important business of New Oriental Online in the future, and contribute the most important income.

The financial report details how the New Oriental Online has been transformed in the past fiscal year. Where will the new Oriental Online go to?

K12 business, which has a serious losses

In fiscal year in 2022, New Oriental Online experienced major business adjustments. Before the "dual reduction", New Oriental online hit the K12 business to weaken the traditional university education business; after the "double reduction", the K12 business invested in heavy funds was shut down, and the weakened business had to provoke the beam.

The financial report shows that the new Oriental online revenue decreased by 36.7%from 1.419 billion yuan in fiscal 2021 to 899 million yuan in fiscal 2022.

Among them, the total revenue of continuous operations was 601 million yuan, a decrease of 3.7%year -on -year.

New Oriental's online losses have decreased by 67.8%from 1.658 billion yuan in fiscal 2021 to 534 million yuan in fiscal 2022.

Among them, the loss of 71 million yuan during the continuous operation of the business was 72%year -on -year.

Before the "double reduction", New Oriental Online was a passive participant in the online education marketing war. Yu Minhong once said, "I think online education has always been supplemented by the main business of New Oriental, and put forward two requirements for online education: first, there is no need to invest and develop without restrictions, and do not do a loss business. Second Education is profitable. "

However, under the fanatic market atmosphere, New Oriental Online ALL in K12 disciplinary training after 2020, and puts on advertising marketing. As of the fiscal year of 2021 on May 31, 2021, K12 business revenue was 787 million yuan. Although it was far from the head K12 online education company, it exceeded the revenue of college education business.

This leads to unhealthy financial models. In fiscal 2021, New Oriental Online's losses even exceeded total revenue.

In fiscal 2022, what is the termination of K12 disciplinary training performance? The financial report shows that the business revenue is 298 million yuan, and the total losses and comprehensive spending during the year are 463 million yuan. It can be said that after the "double reduction", New Oriental stops losses online.

Education business recovery

New Oriental Online's continuous operations include three items: university education, institutional customers, live e -commerce.

The financial report shows that the revenue of the university education division was 518 million yuan, a slight decrease of 31.3 million yuan from the 2021 fiscal year, mainly due to the adjustment of core products and marketing strategies. The number of paid students at the university education department has decreased slightly from 573,000 in fiscal 2021 to 546,000 in fiscal 2022.

New Oriental Online Executive Director and CFO Yin Qiang introduced at the financial report that "'double reduction' has no direct impact on the university business and overseas business, but it has a certain impact on the entire training industry. Adjust the curriculum product. "

At the same time, Yin Qiang revealed that starting from the first quarter of fiscal year in 2023, New Oriental Online ’s university business and overseas business have shown a good growth trend, especially the business of going abroad has achieved very much growth.

The postgraduate entrance examination is the most important university education business in New Oriental Online. A person in charge of a former New Oriental Online Postgraduate Business Tells the 21st Century Business Herald that the business can achieve a revenue of about 500 million yuan a few years ago, which is the head of the online postgraduate training industry. But in recent years, New Oriental's online postgraduate entrance examination business has stagnated.

The postgraduate entrance examination people are changing, and the proportion of higher vocational students and "World War II" candidates has increased significantly. New Oriental Online Financial Report introduced that the former even accounted for half of the number of postgraduate applicants. New Oriental has developed custom -made courses online, and even launched a special upgrade training, thereby solving the continuous solution of students' college and postgraduate needs.

The financial report shows that the total revenue received by the clients of New Oriental Online self -institution is 58.4 million yuan, a year -on -year decrease of 21.9%.

Yin Qiang said, "In the future, the B -side business (providing services to institutional customers, mainly including higher education universities, public libraries, telecommunications operators, and online streaming video suppliers) will also increase."

The financial report wrote that new Oriental Online institutional customers include JD Logistics and Hongmeng. New Oriental Online has also invested in research and development in new energy and intelligent construction projects, all -media operator projects, and plans to set up an industrial research institute in higher vocational colleges and undergraduate colleges. As of May 31, 2022, an agreement has signed an agreement with more than 10 schools to cooperate with the integration of production and education projects to cultivate skills. Where is the oriental selection?

The live broadcast e -commerce launched at the end of 2021 is the strategic focus of New Oriental Online. The financial report shows that Oriental selection revenue was 24.6 million yuan, and the gross profit margin was 37.8%.

Yin Qiang revealed at the financial report that the profit margin selected by the East is much higher than the pure live broadcast or MCN company.

"Because the business model selected by the East has no comparison model in the market, we are not a pure live broadcast company or a MCN company. First, we do not buy traffic. Compared with other live broadcast and cargo companies We saved market expenses. Second, we are not MCN companies and have not given the anchor. The cost of our two pieces is very low, or there is almost no. "Yin Qiang said.

The profit model selected by the East is a commission. For agency products, because the pits are not charged, the commission is relatively high in the industry. For self -operated products, it is equivalent to buying and re -selling by selling them. The gross profit margin will be higher. At present, Dongfang has launched nearly 30 self -operated products.

Sun Dongxu, executive director and CEO of New Oriental Online, introduced at the financial report that in the field of agricultural products and food, SKU is rich and strives to launch 5-10 self-products every month, but this itself is very flexible.

According to reports, in recent months, Oriental's selection of self -product sales revenue accounts for about 15%of the entire sales revenue, and it is expected that it will not exceed half in the future.

In the financial report, on the one hand, it will continue to live on the pilot live broadcast of Douyin, explore different innovative live broadcast modes such as bilingual live broadcast, indoor and outdoor live broadcast, etc. At the same time, through cooperation with third -party and self -employed products Selection range. On the other hand, New Oriental Online has established a high -quality supply chain management system, and also launched self -operated products in a short period of time.

At present, Oriental Selection has expanded from one account to the other three account numbers, self -operated product numbers, and beautiful living accounts. It is required to follow up quickly.

"In August, our main account exceeded 30 million daily GMVs. After the beautiful life account achieved 12 hours of live broadcast, it also exceeded 4 million and 5 million daily GMVs many times. Behind this, the supply chain was actually a rapid enhancement. We The supply chain team is divided into four parallel groups. "Sun Dongxu said.

Sun Dongxu also introduced that in the future, it is possible to promote but include but not limited to the mother and baby channel, sports channel, culture and travel channels.

Relying on low -cost traffic and famous anchor binding mode, the East selection has taken out a low -cost live broadcast e -commerce model. But if the future format competition is fierce, this model will inevitably be impacted.

This is amazingly similar to the road that New Oriental has gone through the education industry. Initially, New Oriental relied on the effect of famous teachers to gain word of mouth and achieve the expansion of the enrollment scale. However, when more and more capital enters, the word -of -mouth effect allows the advertising to be launched, and there is no longer low cost traffic; New Oriental teachers with an annual salary of hundreds of thousands of yuan are digging several times with several times high salary, and the relationship between famous teachers and education institutions has changed.

If such a scene is repeated in live e -commerce, the East selection may really face challenges.

- END -