New Oriental Education & Technology Group Inc. ("New Oriental" or the "Company") (NYSE: EDU and SEHK: 9901), the largest provider of private educational services in China, released its annual report on Form 20-F for the fiscal year ended May 31, 2021. 

Income Statement

In the fiscal year of 2021, total net revenues were US$4,276.5 million, an increase of 19.5% year-over-year. Net income for FY2021 was US$230.0 million, a decrease of 35.03% year-over-year. 

New Oriental identified seven operating segments: K-12 AST, test preparation, and other courses, primary and secondary school education, online education, content development and distribution, pre-school education, overseas study consulting services, and study tour. In FY2021, the Company's net revenues from K-12 AST, test preparation, and other courses were US$3,667.2 million(85.8% of total revenues), and net revenues for online education were US$210,6 million(4.9% of total revenues). 

According to the report, in FY2021,  New Oriental had approximately 6,723,000 and 5,348,000 student enrollments, respectively, for after-school tutoring courses for middle school and high school students and children. It had approximately 390,000 student enrollments for test preparation courses, of which approximately 198,000 were in overseas test preparation courses, and 193,000 were in PRC test preparation courses. For language training courses for adults, it had approximately 5,000 student enrollments.

New Oriental admitted that their compliance with recent regulations and the implementation measures has materially and adversely affected and will materially and adversely affect their business, financial condition, results of operations and prospects. It said, "we may take further actions regarding our tutoring services on academic subjects for students in compulsory education in the near future to be in compliance, including closing of some of our learning centers and employee layoffs where necessary to maintain our continued operations. " As of May 31, 2021, New Oriental had a physical network of 122 schools and 1,547 learning centers in 108 cities across the nation and approximately 54,200 teachers, primarily full-time teachers. 

Develop Educational training programs for college students

Yu Minghong, CEO of New Oriental

On Sep.25, New Oriental held a brand repositioning press conference announcing the upgrade of the existing training business: College English Test Level 4 and Level 6(CET-4 and CET-6), postgraduate entrance exam, overseas test, teacher qualification certificate, and finance and accounting programs. In the future, the Company will step into computer rank examination and judicial examination. 

Yu Minghong, CEO of New Oriental indicated that educational training programs for college students are in a hot space. He emphasized other than transformation, the Company is making a comeback. 

Founded 28 years ago, New Oriental started providing college students with training services for overseas tests. After 2004, it expanded into K-12 curriculum-based tutoring, which became its primary revenue source. However, the Company never stopped serving college students—instead, offering training courses such as CET-4 and CET-6, postgraduate entrance examination, vocational training, and others. In 2020, New Oriental integrated the business line for college students and set up the University Business Division.