【俞敏洪：孙东旭不会离开东方甄选】财联社12月23日电，俞敏洪12月23日在抖音评论区透露，东方小孙（孙东旭）不会离开东方甄选。俞敏洪表示，“大家放心，东方小孙不会离开东方甄选，我会努力守护爱护好东方甄选的每一位孩子！”东方甄选12月22日晚间在港交所公告，12月22日，孙东旭已辞任公司非执行董事一职，即时生效。孙东旭的辞任是鉴于最近的舆论风波，其对公司品牌及声誉管理不善。董事会认为，孙东旭的辞任，将能够更好地维护公司股东的利益。 ...

Financial Performance - Total revenue for 2023 fiscal year reached RMB 4,509.8 million, a significant increase from RMB 898.5 million in 2022[4] - Net profit for 2023 fiscal year was RMB 971.3 million, compared to a net loss of RMB 533.9 million in 2022[4] - Adjusted EBITDA for 2023 fiscal year was RMB 1,207.5 million, a substantial improvement from a loss of RMB 322.3 million in 2022[4] - Gross profit for 2023 fiscal year was RMB 1,954.8 million, up from RMB 413.5 million in 2022[5] - Operating profit for 2023 fiscal year was RMB 1,070.8 million, compared to an operating loss of RMB 579.6 million in 2022[5] - Total revenue from continuing operations increased by 651.0% from RMB 600.5 million in FY2022 to RMB 4.5 billion in FY2023, driven by strong growth in self-operated products and live e-commerce business[34] - Self-operated products and live e-commerce business generated total revenue of RMB 3.9 billion in FY2023, with self-operated products contributing over RMB 2.6 billion[35] - University education revenue increased from RMB 517.5 million in FY2022 to RMB 590.8 million in FY2023, with paid student enrollments rising from 546,000 to 581,000[36] - Revenue from institutional clients decreased by 34.7% from RMB 58.4 million in FY2022 to RMB 38.2 million in FY2023[37] - Gross profit from continuing operations increased by 400.1% from RMB 390.9 million in FY2022 to RMB 2.0 billion in FY2023, with gross margin decreasing from 65.1% to 43.3%[38] - Self-operated products and live e-commerce business gross margin improved from 37.8% in FY2022 to 38.2% in FY2023, with gross profit increasing to RMB 1.5 billion[39] - University education gross margin increased from 64.5% in FY2022 to 74.6% in FY2023, driven by strong market demand recovery and adoption of smart learning systems[40] - Net profit from continuing operations turned around from a loss of RMB 71.0 million in FY2022 to a profit of RMB 971.3 million in FY2023[48] - Adjusted profit for the year reached RMB 1,089,333 thousand, compared to RMB 109,997 thousand in the previous year[51] - Adjusted EBITDA for the year was RMB 1,207,454 thousand, up from RMB 55,567 thousand in the previous year[52] Assets and Liabilities - Total assets increased to RMB 3,852.9 million in 2023, up from RMB 2,059.4 million in 2022[8] - Equity attributable to owners of the company rose to RMB 2,803.8 million in 2023, compared to RMB 1,641.0 million in 2022[8] - Non-current assets increased to RMB 416.0 million in 2023, up from RMB 367.9 million in 2022[8] - Current assets grew to RMB 3,436.9 million in 2023, compared to RMB 1,691.5 million in 2022[8] - Total liabilities decreased to RMB 1,049.1 million in 2023, down from RMB 1,276.4 million in 2021[8] - The company's asset-liability ratio increased to 27.2% at the end of 2023, up from 20.3% in 2022[53] - Cash and cash equivalents increased to RMB 1.165 billion as of May 31, 2023, from RMB 547.4 million in the previous year[53] - Net cash generated from operating activities was RMB 1.264 billion, compared to a net cash used of RMB 918.1 million in the previous year[54] - Net cash used in investing activities was RMB 737.5 million, primarily due to the purchase of financial assets at fair value through profit or loss[56] - Net cash generated from financing activities was RMB 55.6 million, mainly from the issuance of shares upon exercise of share options[57] - Capital expenditures for property and equipment were RMB 12.8 million in 2023, down from RMB 20.3 million in 2022[58] Live E-commerce and Self-Operated Products - The company's live e-commerce business achieved a GMV of RMB 10.0 billion in FY2023, compared to RMB 4.8 billion in the six months ending November 30, 2022[13] - The number of followers on Douyin increased to 41.8 million in FY2023, up from 35.2 million in the six months ending November 30, 2022[13] - The number of paid orders on Douyin reached 136.3 million in FY2023, compared to 70.2 million in the six months ending November 30, 2022[13] - The company's total GMV reached RMB 10.0 billion in FY2023, with the majority coming from Douyin[20] - The number of self-operated products exceeded 120 in FY2023, covering categories from food and beverages to standardized daily necessities[20] - The company established a self-operated product R&D platform, the Nutrition Research Institute, to enhance long-term independent R&D capabilities and develop healthier products[26] - The company will launch live-streaming e-commerce activities on Taobao starting from August 29, 2023, aiming to reach more new consumer groups[26] - The company plans to introduce a membership card system to provide more discounts and comprehensive services to customers, enhancing user satisfaction[27] - The company expanded its live e-commerce business in 2021, establishing "Oriental Selection" as a well-known platform for high-quality agricultural products[85] - The company is positioned as a live-streaming platform focused on carefully selecting quality products, with a core focus on self-operated agricultural products under the "Oriental Selection" brand[85] Education Business - The number of paid student enrollments for university education was 581,000 in FY2023, up from 546,000 in FY2022[14] - The average spending per paid student enrollment for university education increased to RMB 1,544 in FY2023, compared to RMB 1,308 in FY2022[15] - The average spending per paying student in the domestic university entrance exam preparation business increased to RMB 1,544 during the reporting period, up from RMB 1,308 in FY2022[21] - The overseas exam preparation business achieved strong results in revenue, enrollment, and profitability, surpassing historical highs and returning to a healthy and rapid development trajectory[21] - The number of paying students in the university education division increased by 6.4% to 581,000 during the reporting period, compared to 546,000 in FY2022[21] - The company will continue to develop a smart learning system for university education, offering personalized learning plans and real-time progress tracking[28] - The company is upgrading its IT infrastructure and exploring the integration of AI with business scenarios to improve student learning experiences and efficiency[21] - The company is collaborating with China Digital Library to establish smart reading spaces and classrooms using virtual reality technology in schools and public libraries[22] - The company plans to continue investing in AI integration, improving intelligent scoring, error correction, and adaptive learning systems, and maintaining exclusive rights to IELTS and TOEFL materials in mainland China[30] Corporate Governance and Shareholder Information - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[73] - The company monitors currency exchange rate fluctuations and takes necessary measures to mitigate the impact of exchange rate risks[63] - The company's top five customers accounted for approximately 0.8% of total revenue, with the largest customer contributing about 0.6%[89] - The top five suppliers accounted for approximately 2.4% of total procurement, with the largest supplier contributing about 0.9%[89] - No director or their associates, or any shareholder with 5% or more of the company's issued share capital, had any interests in the top five customers or suppliers during the 2023 fiscal year[89] - The company's subsidiaries are listed in Note 39 of the consolidated financial statements[85] - The net proceeds from the global offering amounted to approximately HKD 1.783 billion, with the funds being utilized for sales and marketing, technology infrastructure, teacher and business-related personnel, and working capital[90] - As of the 2023 fiscal year, the company had utilized HKD 145.8 million out of the total HKD 823.6 million net proceeds, leaving a balance of HKD 677.8 million[90] - The company did not repurchase any shares on the Hong Kong Stock Exchange during the 2023 fiscal year, nor did it purchase, sell, or redeem any listed securities[92][93] - No debt instruments were issued by the group during the 2023 fiscal year[94] - The board did not recommend the payment of a final dividend for the 2023 fiscal year[96] - The total revenue from the consolidated affiliated entities was RMB 4,509,849 thousand, accounting for 100% of the group's total revenue during the reporting period[103] - The company's directors and senior management did not receive any discretionary bonuses during the 2023 fiscal year[97] - The company's directors and senior management are eligible to participate in the 2023 plan under the pre-IPO plan and the 2019 plan[97] - The company's directors and senior management did not waive or agree to waive any remuneration during the 2023 fiscal year[97] - The company's directors and senior management did not receive any remuneration as an incentive for joining or leaving the group during the 2023 fiscal year[97] - The company's contractual arrangements involve exclusive management and business cooperation agreements, exclusive subscription option agreements, equity pledge agreements, and irrevocable power of attorney, ensuring control over its operating entities and economic benefits[106][107][108][109] - The company's operating entities, including Beijing Xuncheng and its subsidiaries, are controlled through contractual arrangements with foreign-invested enterprises (FIEs) such as Dexin Dongfang, Zhuhai Chongsheng, Xi'an Ruiying, Hainan Haiyue, and Wuhan Dongfang[105][112] - The company's contractual arrangements are designed to comply with Chinese foreign investment restrictions, which limit foreign ownership in certain sectors, such as value-added telecommunications services and radio/TV program production[114] - The company's contractual arrangements were established to maintain actual control over its operating entities and to receive economic benefits generated by its online education and live e-commerce businesses[114] - The company's contractual arrangements are considered fair, reasonable, and in the best interests of the company and its shareholders, as they were entered into on normal commercial terms or better[114] - The company faces risks related to contractual arrangements in China, including potential penalties from the Chinese government, uncertainties in the interpretation of the Foreign Investment Law, and reliance on contractual arrangements with affiliated entities for business operations[115] - The company's contractual arrangements are subject to regulatory scrutiny by Chinese tax authorities, which could result in additional tax liabilities and significantly reduce the company's consolidated net income[116] - The company's contractual arrangements with affiliated entities are considered continuing connected transactions under the Listing Rules, with a maximum applicable percentage ratio expected to exceed 5% and HKD 10 million, requiring exemptions from strict compliance[117] - The company entered into a 2022 New Oriental Framework Agreement with New Oriental Group, involving non-exempt continuing connected transactions such as advertising, marketing, and promotion services, with annual caps and actual transaction amounts provided[118] - The company's transactions with New Oriental Group in 2023 included advertising and marketing services (RMB 39.39 million cap, RMB 34.92 million actual), TPO exam material licensing (RMB 20 million cap, RMB 8.27 million actual), and procurement of goods (RMB 39.13 million cap, RMB 11.22 million actual)[119] - The company entered into a Tigerstep Framework Agreement in 2019, leasing properties for office, recording studio, and administrative use, with annual caps and actual transaction amounts provided for 2023[121] - The company's 2021 Tigerstep Framework Agreement involved leasing properties and property management services, with annual caps and actual transaction amounts provided for 2023[122] - The company has implemented internal control measures for continuous connected transactions, including regular monitoring of transaction terms and comparison with third-party terms[123] - Independent non-executive directors confirmed that all continuous connected transactions in FY2023 were conducted under normal commercial terms and were fair and reasonable[125] - The external auditor confirmed that the disclosed continuous connected transactions did not exceed the annual limits set by the company[126] - No significant contracts or management agreements were entered into with the controlling shareholder during FY2023[127] - The company's consolidated financial statements were audited by Deloitte Touche Tohmatsu, which will retire at the upcoming annual general meeting[128] - No significant events occurred between the end of the reporting period and the date of the FY2023 annual results announcement[129] - The company is committed to fulfilling social responsibilities, promoting employee welfare, protecting the environment, and achieving sustainable development[130] - The company has complied with all relevant laws and regulations that have a significant impact on the group[131] - The annual general meeting will be held on November 3, 2023, with a suspension of share transfer registration from October 31 to November 3, 2023[133] - As of the end of FY2023, directors and key executives held approximately 1.48% to 2.68% of the company's shares[136] - The total number of shares that may be issued under the Pre-IPO Plan and 2019 Plan for Mr. Sun is 8,639,000 shares, and under the 2023 Plan, 3,000,000 shares were awarded to Mr. Sun[137] - Mr. Yu holds a total of 201,788,600 shares in New Oriental, representing 11.8% of the company's equity, including shares held through Tigerstep and ADS[139] - Mr. Yu has a 100% interest in Beijing Xuncheng, valued at RMB 122,351,229, and a 99% interest in Century Friendly, valued at RMB 9,900,000[140] - New Oriental holds a 54.95% beneficial interest in the company, with 557,160,500 ordinary shares[143] - A total of 30,459,000 new shares, approximately 3.02% of the company's weighted average issued share capital, may be issued under the 2019 Plan (before termination) and the 2023 Plan[145] - The maximum number of shares available for issuance under the Pre-IPO Plan is 47,836,985 shares, with 27,084,385 shares still exercisable as of May 31, 2023[147][148] - The exercise price for the pre-IPO share option plan is HK$8.88 per share (equivalent to US$1.13 per share before listing)[151] - The pre-IPO share option plan has a remaining term of approximately 1 year and 8 months, expiring on March 27, 2025[152] - As of June 1, 2022, 16,695,285 options granted to Mr. Yu under the pre-IPO plan remained unexercised[154] - Under the 2019 plan, a total of 40,462,810 options remained unexercised as of May 31, 2023, representing approximately 3.93% of the total issued share capital[159] - During the reporting period, 4,315,008 options were exercised under the 2019 plan, while 140,000 were canceled and 1,076,275 expired[159] - The maximum number of shares that may be issued under the 2019 plan and other plans cannot exceed 10% of the total issued shares as of the listing date (91,395,910 shares)[159] - The weighted average closing price of shares immediately before the exercise date in FY2023 was HK$52.01[163] - Under the 2019 plan, 6,000,000 options granted to Mr. Yu remained unexercised as of the end of FY2023[163] - The 2019 plan was terminated on March 9, 2023, and no further options will be granted under this plan[161] - Each grantee must pay RMB 1.00 as consideration for the options granted under the 2019 plan[162] - The 2023 plan allows for the issuance of up to 101,351,871 shares, representing 10% of the company's issued shares as of the plan's adoption date[169] - 30,459,000 share rewards were granted under the 2023 plan between March 9, 2023, and May 31, 2023, with 61,000 share rewards canceled and 84,000 share rewards forfeited during the same period[170] - The 2023 plan has a service provider sub-limit of 2,027,037 shares, which is 2% of the total plan authorization[169] - The 2023 plan has a validity period of 10 years, from March 9, 2023, to March 8, 2033[175] - The vesting period for share rewards under the 2023 plan is at least 12 months, with exceptions for certain limited circumstances[174] - The exercise price for share options under the 2023 plan cannot be lower than the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[172] - The 2023 plan allows for the issuance of share rewards or share options, with the total number of shares available for issuance under the plan being 101,290,871 as of May 31, 2023[169] - The 2023 plan includes a performance-based vesting condition, where a portion of the share rewards will vest if the participant meets the performance evaluation criteria in the year preceding the vesting date[177] - The 2023 plan provides flexibility in determining the exercise period for share options, with a maximum exercise period of 10 years from the grant date[173] - The 2023 plan aims to align the interests of eligible participants with those of the company and its shareholders by offering them the opportunity to acquire equity in the company[166] - The company was registered as an exempted company in the Cayman Islands on February 7, 2018, and its shares were listed on the Main Board of the Stock Exchange on March

Financial Highlights [Financial Highlights](index=1&type=section&id=Financial%20Highlights) FY2023 saw a significant turnaround, with total revenue reaching **RMB 4.51 billion** and net profit of **RMB 0.971 billion**, swinging from a prior-year loss Key Financial Data for FY2023 (Consolidated Statements) | Metric | FY2023 (RMB in thousands) | FY2022 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 4,509,849 | 898,535 | +401.9% | | **Profit/(Loss) for the Year** | 971,286 | (533,964) | Swung to Profit | | **Profit/(Loss) Attributable to Owners of the Company** | 971,286 | (533,954) | Swung to Profit | | **Basic Earnings/(Loss) Per Share (RMB)** | 0.97 | (0.53) | Swung to Profit | | **Adjusted Profit (Non-IFRS)** | 1,089,333 | (363,725) | Swung to Profit | | **Adjusted EBITDA (Non-IFRS)** | 1,207,454 | (322,279) | Swung to Profit | Financial Performance of Continuing Operations | Metric | FY2023 (RMB in thousands) | FY2022 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 4,509,849 | 600,526 | +651.0% | | **Profit/(Loss) for the Year** | 971,286 | (70,994) | Swung to Profit | Business Overview and Outlook [Business Overview](index=2&type=section&id=Our%20Business) The company transformed into a live e-commerce and self-operated product platform, with "Dongfang Zhenxuan" achieving **RMB 10 billion** GMV in FY2023 - The company positions itself as a live streaming platform for selecting quality products, a product technology company centered on "Dongfang Zhenxuan" self-operated agricultural products, and a cultural dissemination company providing enjoyable experiences[5](index=5&type=chunk) Key Operating Metrics for Live E-commerce Business (FY2023) | Metric | Value | | :--- | :--- | | Gross Merchandise Volume (GMV) | RMB 10 billion | | Followers on Douyin | 41.8 million | | Paid Orders on Douyin | 136.3 million orders | Operating Metrics for University Education Business | Metric | FY2023 | FY2022 | Change | | :--- | :--- | :--- | :--- | | Number of Paying Students (in thousands) | 581 | 546 | +6.4% | | Average Spending Per Paying Student (RMB) | 1,544 | 1,308 | +18.0% | - The company has terminated its pre-school and K-12 education businesses to focus on continuing operations[7](index=7&type=chunk) [Future Outlook](index=6&type=section&id=Future%20Outlook) The company plans to deepen self-operated products and live e-commerce through R&D, multi-channel expansion, and a membership system, while university education will integrate AI - Self-operated products and live e-commerce businesses are the Group's long-term primary growth drivers[14](index=14&type=chunk) - The company will adopt a multi-channel strategy, having launched live e-commerce activities on Taobao on August 29, 2023, to reach a broader user base[16](index=16&type=chunk) - Plans are underway to launch a membership card, offering customers more favorable products and comprehensive member services[16](index=16&type=chunk) - The university education business will continue to develop smart learning systems and actively explore the integration of AI with business scenarios to enhance learning efficiency and experience[18](index=18&type=chunk)[19](index=19&type=chunk) Management Discussion and Analysis [Financial Performance Analysis](index=9&type=section&id=Financial%20Performance%20Analysis) FY2023 continuing operations revenue grew **651.0%** to **RMB 4.5 billion**, primarily from self-operated products and live e-commerce, achieving a net profit of **RMB 0.971 billion** Revenue by Business Segment (Continuing Operations) | Business Segment | FY2023 (RMB in millions) | FY2022 (RMB in millions) | Change | | :--- | :--- | :--- | :--- | | Self-operated Products and Live E-commerce | 3,900 | 24.6 | +15766.5% | | University Education | 590.8 | 517.5 | +14.2% | | Institutional Clients | 38.2 | 58.4 | -34.7% | | **Total** | **4,500** | **600.5** | **+651.0%** | Gross Profit and Gross Margin (Continuing Operations) | Metric | FY2023 | FY2022 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB in billions) | 2.0 | 0.391 | +400.1% | | Gross Margin | 43.3% | 65.1% | -21.8pp | - The gross margin for the self-operated products and live e-commerce segment slightly increased from **37.8%** to **38.2%**, while the university education segment's gross margin significantly improved from **64.5%** to **74.6%** due to demand recovery and smart learning system adoption[26](index=26&type=chunk)[27](index=27&type=chunk) Key Expense Items (Continuing Operations) | Expense Item | FY2023 (RMB in millions) | FY2022 (RMB in millions) | Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 620.3 | 270.1 | +129.6% | | Research and Development Expenses | 109.5 | 64.4 | +69.9% | | Administrative Expenses | 154.2 | 214.1 | -28.0% | [Liquidity, Capital Resources, and Cash Flow](index=13&type=section&id=Liquidity%20and%20Capital%20Resources) As of May 31, 2023, the company maintained a strong financial position with **RMB 1.2 billion** in cash and equivalents, and operating cash flow swinging to a **RMB 1.26 billion** net inflow Cash Flow Summary | Item | FY2023 (RMB in thousands) | FY2022 (RMB in thousands) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 1,264,430 | (918,068) | | Net Cash Used in Investing Activities | (737,546) | (26,370) | | Net Cash Generated from Financing Activities | 55,644 | (45,398) | | **Cash and Cash Equivalents at End of Period** | **1,165,137** | **547,445** | - As of May 31, 2023, cash and cash equivalents totaled **RMB 1.2 billion**, time deposits were **RMB 0.8 billion**, and current financial assets at fair value through profit or loss (wealth management products) were **RMB 1 billion**[39](index=39&type=chunk) - The asset-liability ratio increased from **20.3%** at the end of FY2022 to **27.2%** at the end of FY2023[39](index=39&type=chunk) [Other Operating Information](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of May 31, 2023, the Group's full-time employees increased to **1,479**, with total remuneration expenses for continuing operations reaching **RMB 0.736 billion** - As of May 31, 2023, the Group had **1,479** full-time employees and **486** part-time employees, an increase from the prior year[44](index=44&type=chunk) - Total remuneration expenses for continuing operations in FY2023 were **RMB 0.736 billion**, a **62.4%** year-on-year increase[44](index=44&type=chunk) - The Board does not recommend a final dividend for FY2023[51](index=51&type=chunk) Utilization of Net Proceeds from Share Subscription (FY2023) | Purpose | Unutilized Amount as of June 1, 2022 (HKD in millions) | Utilized in FY2023 (HKD in millions) | Balance (HKD in millions) | | :--- | :--- | :--- | :--- | | Sales and Marketing | 272.1 | 17.3 | 254.8 | | Technology Infrastructure | 76.4 | 72.5 | 3.9 | | Teachers and Other Business-Related Personnel | 225.7 | 9.2 | 216.5 | | Working Capital | 249.4 | 46.8 | 202.6 | | **Total** | **823.6** | **145.8** | **677.8** | Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended May 31, 2023, continuing operations achieved total revenue of **RMB 4.51 billion** and a profit of **RMB 0.971 billion** Consolidated Statement of Profit or Loss Summary (Continuing Operations) | Item | 2023 (RMB in thousands) | 2022 (RMB in thousands) | | :--- | :--- | :--- | | Total Revenue | 4,509,849 | 600,526 | | Gross Profit | 1,954,769 | 390,852 | | Profit/(Loss) Before Tax | 1,172,714 | (89,299) | | **Profit/(Loss) for the Year** | **971,286** | **(70,994)** | Earnings Per Share (Continuing Operations) | Item | 2023 (RMB) | 2022 (RMB) | | :--- | :--- | :--- | | Basic | 0.97 | (0.07) | | Diluted | 0.91 | (0.07) | [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of May 31, 2023, total assets were **RMB 3.85 billion**, total liabilities **RMB 1.05 billion**, and total equity **RMB 2.80 billion** Consolidated Statement of Financial Position Summary | Item | May 31, 2023 (RMB in thousands) | May 31, 2022 (RMB in thousands) | | :--- | :--- | :--- | | **Total Assets** | **3,852,938** | **2,059,393** | | Non-current Assets | 416,022 | 367,912 | | Current Assets | 3,436,916 | 1,691,481 | | **Total Liabilities** | **1,049,130** | **418,385** | | Current Liabilities | 1,028,829 | 393,327 | | Non-current Liabilities | 20,301 | 25,058 | | **Total Equity** | **2,803,808** | **1,641,008** | - Inventory significantly increased from **RMB 4.63 million** in the prior year to **RMB 0.141 billion**, reflecting the rapid expansion of the self-operated products business[59](index=59&type=chunk)[81](index=81&type=chunk) - Trade payables significantly increased from **RMB 23.6 million** in the prior year to **RMB 0.335 billion**, primarily due to the development of self-operated products and live e-commerce businesses[59](index=59&type=chunk)[86](index=86&type=chunk)

Financial Performance - Total revenue for the six months ended November 30, 2022, was RMB 2,080,073,000, a significant increase from RMB 573,509,000 for the same period in 2021[9]. - The adjusted profit for the period was RMB 600,995,000, compared to a loss of RMB 418,955,000 in the previous year[9]. - The adjusted EBITDA for the period was RMB 686,246,000, compared to a loss of RMB 348,363,000 in the previous year[9]. - The net profit from continuing and discontinued operations turned from a net loss of RMB 544.0 million for the six months ended November 30, 2021, to a net profit of RMB 585.3 million for the same period in 2022, representing an increase of 207.6%[20]. - The company reported a profit before tax of RMB 755,294,000, a turnaround from a loss of RMB 106,835,000 in the prior year[131]. - Net profit for the period was RMB 585,293,000, compared to a loss of RMB 108,689,000 in the same period last year[131]. - The gross profit for the same period was RMB 982,473,000, compared to RMB 180,005,000 in the previous year, reflecting a substantial growth[131]. - The company reported a total comprehensive income attributable to owners of RMB 585,293 thousand for the six months ended November 30, 2022, compared to a loss of RMB 543,997 thousand in the same period of 2021[133]. Revenue Breakdown - The company's GMV (Gross Merchandise Volume) reached RMB 4.8 billion for the six months ended November 30, 2022[15]. - Revenue from self-operated products and live e-commerce reached RMB 1,765.8 million, with self-operated products exceeding RMB 1 billion[47]. - The university education segment's revenue increased by 10.3% to RMB 295.1 million, with paid student numbers rising from 275,000 to 315,000[48]. - Revenue from continuing operations rose by 590.2% to RMB 2,080.1 million for the six months ended November 30, 2022, from RMB 301.4 million in the prior year[46]. - Revenue from institutional clients decreased by 43.2% to RMB 19.2 million, down from RMB 33.7 million[49]. Operational Highlights - The number of followers on Douyin (TikTok) increased to 35.2 million, with 70.2 million paid orders placed during the same period[15]. - The company continues to focus on high-quality agricultural products and has established a strong presence in the live-streaming e-commerce sector[11]. - The company has established deep cooperation with logistics companies to enhance delivery quality and cold chain delivery range[24]. - The self-operated products and live e-commerce business have become a major long-term growth driver for the company, with a strong performance noted during the reporting period[33]. - The company has initiated collaborations with local governments to promote specialty agricultural products and cultural tourism since July 2022[27]. Cost and Expenses - Sales and marketing expenses decreased by 33.2% to RMB 227.8 million, attributed to the termination of K-12 business[59]. - Research and development expenses decreased by 69.2% to RMB 48.3 million, mainly due to the termination of K-12 business[60]. - Administrative expenses reduced by 72.6% to RMB 62.3 million, primarily due to decreased share-based compensation expenses[61]. - The total cost of revenue for the six months was RMB 1,097,600 thousand, leading to a net loss of RMB 112 thousand after accounting for various expenses[159]. Student Enrollment and Education Services - The average spending per paying student in university education increased to RMB 1,545 for the six months ended November 30, 2022, from RMB 1,249 in the previous year[19]. - The number of paid students in university education increased to 315, while K-12 education was discontinued, resulting in a total of 315 paid students compared to 2,142 in the previous year[16]. - The paid student total for the graduate entrance examination courses saw a significant increase during the 2022 exam season, indicating strong product potential[39]. - The average spending per paid student in the domestic university preparatory course business remained stable at RMB 1,025 during the reporting period, compared to RMB 1,023 for the six months ending November 30, 2021[31]. Cash Flow and Financial Position - Cash and cash equivalents as of November 30, 2022, were RMB 793.7 million, up from RMB 626.6 million as of November 30, 2021[72]. - The net cash generated from operating activities was RMB 537,580 thousand, compared to a cash outflow of RMB 191,908 thousand in the same period last year[142]. - The total equity of the company rose to RMB 2,291,195 thousand, up from RMB 1,641,008 thousand as of May 31, 2022[137]. - The company has not incurred any bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[80]. Shareholder and Governance Information - The company has a total of 1,005,789,456 shares issued, with major shareholders holding significant stakes, including 55.40% by New Oriental[93]. - Key executives hold various equity interests, with Yu Minhong owning approximately 12.1% of the company through controlled entities[88]. - The company has adopted and complied with the new corporate governance code effective from January 1, 2022, ensuring high standards of corporate governance practices[109]. - The company proposed to change its English name from "Koolearn Technology Holding Limited" to "East Buy Holding Limited" to better reflect its business direction and future prospects, which was approved by shareholders on January 31, 2023[107].

Financial Performance - Total revenue for the fiscal year 2022 was RMB 898,535 thousand, a decrease of 36.7% from RMB 1,418,655 thousand in fiscal year 2021[9]. - The net loss for the fiscal year 2022 was RMB 533,964 thousand, compared to a net loss of RMB 1,658,392 thousand in fiscal year 2021, showing an improvement[11]. - Adjusted net loss for the fiscal year 2022 was RMB 363,725 thousand, significantly better than the adjusted net loss of RMB 1,322,557 thousand in fiscal year 2021[11]. - Basic and diluted loss per share for fiscal year 2022 was RMB 0.07, compared to RMB 0.46 in fiscal year 2021[9]. - Total revenue from continuing and discontinued operations decreased by 36.7% to RMB 898.5 million in fiscal year 2022 from RMB 1,418.7 million in fiscal year 2021[20]. - The net loss from continuing and discontinued operations decreased by 67.8% to RMB 534.0 million in fiscal year 2022 from RMB 1,658.4 million in fiscal year 2021[20]. - Revenue from continuing operations decreased by 3.7% from RMB 623.6 million in FY2021 to RMB 600.5 million in FY2022[31]. - The total revenue of the university education segment decreased from RMB 548.8 million in FY2021 to RMB 517.5 million in FY2022, primarily due to adjustments in core products and marketing strategies[32]. - The K-12 education segment's total revenue dropped by 62.4% from RMB 787.2 million in FY2021 to RMB 296.1 million in FY2022, as the group terminated its K-12 business during the reporting period[33]. - The preschool education segment's total revenue fell by 76.1% from RMB 7.9 million in FY2021 to RMB 1.9 million in FY2022, mainly due to regulatory impacts[33]. - Total revenue from institutional clients decreased by 21.9% from RMB 74.8 million in FY2021 to RMB 58.4 million in FY2022[34]. - The live e-commerce segment generated total revenue of RMB 24.6 million in FY2022, marking it as a new growth business initiated in December 2021[34]. Assets and Liabilities - Total assets decreased to RMB 2,059,393 thousand in fiscal year 2022 from RMB 3,285,318 thousand in fiscal year 2021, reflecting a decline of 37.2%[12]. - Total equity attributable to owners was RMB 1,641,008 thousand in fiscal year 2022, down from RMB 2,008,872 thousand in fiscal year 2021, a decrease of 18.3%[12]. - Non-current assets decreased to RMB 367,912 thousand in fiscal year 2022 from RMB 738,572 thousand in fiscal year 2021, a decline of 50.2%[12]. - Current liabilities were RMB 393,327 thousand in fiscal year 2022, down from RMB 1,042,842 thousand in fiscal year 2021, indicating a reduction of 62.3%[12]. - The company's total liabilities to total assets ratio improved to 20.3% at the end of fiscal year 2022, compared to 38.9% at the end of fiscal year 2021[51]. Operational Focus and Strategy - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[9]. - The company has shifted its strategic focus to new business segments, including live e-commerce, smart learning products, STEAM education, and vocational education[20]. - The company aims to create a high-quality, cost-effective e-commerce platform centered on agricultural products to enhance customer lifestyles[20]. - The live e-commerce business is expected to become a major growth driver for the company, with plans to enhance the live streaming team and create engaging content[28]. - The company continues to explore new market opportunities while developing existing businesses to increase and solidify its market share[29]. Student Enrollment and Spending - In the fiscal year 2022, the total number of paid students decreased by 38.0% to 2,410,000 from 3,892,000 in fiscal year 2021[16]. - The average spending per paid student in the university education segment remained stable at RMB 1,308 in fiscal year 2022, compared to RMB 1,303 in fiscal year 2021[21]. - The number of paid students in the university education segment stabilized at 546,000 in fiscal year 2022, down from 573,000 in the previous period[21]. - The average spending per paid student in the K-12 education segment was RMB 172, reflecting the impact of new regulations and the termination of related services[17]. Cost and Expenses - The total cost of revenue decreased by 51.8% from RMB 1 billion in FY2021 to RMB 500 million in FY2022, mainly due to the termination of the K-12 business[36]. - The gross profit margin for continuing and discontinued operations increased from 29.1% in FY2021 to 46.0% in FY2022, attributed to the cessation of K-12 operations[36]. - Research and development expenses for continuing operations decreased by 47.1% from RMB 121.8 million in FY2021 to RMB 64.4 million in FY2022[42]. - Administrative expenses for continuing operations increased by 44.2% from RMB 148.5 million in FY2021 to RMB 214.1 million in FY2022, primarily due to changes in strategic focus[45]. Cash Flow and Capital Management - As of May 31, 2022, the company's cash and cash equivalents amounted to RMB 547.4 million, a decrease from RMB 1.626 billion on November 30, 2021[51]. - Net cash used in operating activities for fiscal year 2022 was RMB 918.07 million, slightly higher than RMB 913.68 million in fiscal year 2021[52]. - Cash used in investing activities for fiscal year 2022 was RMB 26.37 million, a significant decrease from cash generated of RMB 659.11 million in fiscal year 2021[52]. - Cash used in financing activities for fiscal year 2022 was RMB 45.4 million, primarily due to lease liability repayments[55]. - Capital expenditures for fiscal year 2022 were RMB 20.33 million, a decrease from RMB 118.13 million in fiscal year 2021[56]. - The company had no bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[60]. Corporate Governance - The board of directors consists of seven members, including two executive directors and three independent non-executive directors[64]. - The company has established a compensation committee to formulate the remuneration policy for directors and senior management[86]. - The company adopted the new corporate governance code effective January 1, 2022, enhancing internal control measures and accountability to shareholders[154]. - The audit committee is composed of three independent non-executive directors, ensuring independence from the external auditor[164]. - The company has implemented a diversity policy to enhance the diversity of the board members[168]. Risk Management - The company faces risks related to compliance with Chinese laws, which could significantly impact its business operations and financial performance[105]. - Regulatory and compliance risks are significant due to strict regulations in the internet and education sectors in China, with ongoing developments in relevant laws creating uncertainty[176]. - The company identified several significant risks in its risk management system for the fiscal year 2022, including market competition and innovation risks in the highly fragmented and rapidly developing online education sector[173]. ESG and Stakeholder Engagement - The board of directors is responsible for the overall ESG strategy, performance, and reporting, ensuring compliance with the Hong Kong Stock Exchange guidelines[194]. - The company is committed to identifying and addressing ESG risks and regularly reviews its ESG objectives[194]. - The company prioritizes energy conservation and emission reduction as part of its environmental commitments[198]. - Regular communication channels are established with stakeholders, including periodic reports and investor meetings to ensure transparency[198]. - The company conducts satisfaction surveys to ensure high-quality products and services for customers[198].

Financial Performance - Total revenue decreased by 15.3% to RMB 573.5 million for the six months ended November 30, 2021, compared to RMB 676.8 million for the same period in 2020[6]. - The company reported a loss before tax of RMB 542.1 million, a reduction of 18.8% from RMB 667.4 million in the previous year[6]. - Adjusted loss for the period was RMB 409.8 million, a decrease of 38.0% from RMB 661.4 million in the previous year[6]. - The company reported a basic and diluted loss per share of RMB 0.54, down from RMB 0.72 in the previous year, reflecting a 25.0% decrease[6]. - The net loss for the period decreased by 19.3% to RMB 544.0 million for the six months ended November 30, 2021, from RMB 674.4 million for the same period in 2020[37]. - For the six months ended November 30, 2021, the company reported a net loss of RMB 543.997 million, an improvement from a net loss of RMB 674.426 million for the same period in 2020, representing a reduction of approximately 19.3%[40]. - Gross profit increased by 13.0% to RMB 173.0 million for the six months ended November 30, 2021, compared to RMB 153.1 million for the same period in 2020, with a gross margin increase from 22.6% to 30.2%[26]. - Total revenue cost decreased by 23.5% to RMB 400.5 million for the six months ended November 30, 2021, from RMB 523.6 million for the same period in 2020[26]. Student Enrollment and Revenue Segments - The number of paid students remained stable at 2.1 million, with K-12 education contributing 1,867 thousand students[8]. - The university education segment's total revenue decreased by 8.5% from RMB 292.4 million for the six months ended November 30, 2020, to RMB 267.6 million for the six months ended November 30, 2021[22]. - The number of paid students in the university education segment decreased from 299,000 to 275,000 during the same period[22]. - K-12 education segment's net revenue decreased by 19.7%, while the number of paid students increased by 1.6%[13]. - K-12 education segment total revenue decreased by 19.7% to RMB 270.5 million for the six months ended November 30, 2021, compared to RMB 336.9 million for the same period in 2020[23]. - The number of paid students in the K-12 education segment increased by 1.6% to 1.9 million for the six months ended November 30, 2021, from 1.8 million for the same period in 2020[23]. - The total revenue for the preschool education segment decreased by 62.2% to RMB 1.7 million for the six months ended November 30, 2021, from RMB 4.4 million for the same period in 2020[24]. - Total revenue from institutional clients decreased by 21.6% to RMB 33.7 million for the six months ended November 30, 2021, compared to RMB 43.0 million for the same period in 2020[25]. Strategic Adjustments and Focus Areas - The company is shifting its focus towards innovative, quality-based online education products and services in response to regulatory changes in the education sector[11]. - The company has terminated its K-9 business line as part of its strategic adjustments[8]. - The company is investing in new learning products and services, as well as integrating online and offline sales channels in the higher education segment[11]. - The company aims to improve rural education through partnerships, such as the collaboration with Tianjin University for teaching support initiatives[11]. - The company plans to expand its product offerings for adult student training and introduce new courses targeting students preparing for postgraduate entrance exams[18]. - The company is actively exploring new market opportunities, including live commerce for agricultural products and the development of innovative educational hardware[16]. - The company aims to strengthen collaborations with higher education institutions and actively explore vocational education development[18]. - The company has stopped investing in certain preschool education programs in compliance with new regulations[14]. Cost Management and Operational Efficiency - Total administrative expenses increased by 77.3% to RMB 227.1 million for the six months ended November 30, 2021, from RMB 128.1 million for the same period in 2020[34]. - Sales and marketing expenses decreased to RMB 340.8 million from RMB 515.3 million, a reduction of about 34%[79]. - Research and development expenses were RMB 156.8 million, down from RMB 234.1 million, representing a decrease of approximately 33%[79]. - The total salary expenses, including share-based payment expenses, for the six months ended November 30, 2021, were RMB 732.5 million, a decrease of 25% compared to the previous year[196]. - The company’s financial report indicates a strategic focus on cost management and operational efficiency amid regulatory changes in the education sector[150]. Cash Position and Financial Health - As of November 30, 2021, the company's cash and cash equivalents amounted to RMB 626.6 million, down from RMB 1.5 billion as of May 31, 2021, and RMB 1.9 billion as of November 30, 2020[42]. - Capital expenditures for the six months ended November 30, 2021, were RMB 18.742 million, significantly lower than RMB 59.714 million for the same period in 2020, reflecting a decrease of approximately 68.7%[43]. - The company had no bank loans or other borrowings during the reporting period, indicating a strong cash position to support operations and expansion[47]. - As of November 30, 2021, the company had no off-balance sheet transactions or significant contingent liabilities[44][48]. Employee and Corporate Governance - The company employed 1,224 full-time employees and 679 part-time employees as of November 30, 2021, a significant reduction from 7,588 full-time and 5,756 part-time employees in the previous year[45]. - The company is committed to maintaining strict corporate governance and has adhered to the applicable code provisions of the Corporate Governance Code during the reporting period[64]. - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended November 30, 2021[67]. - The company has established a Nomination Committee and a Remuneration Committee in addition to the Audit Committee[68].

Financial Performance - Total revenue for the fiscal year 2021 was RMB 1,418,655,000, representing a 31.3% increase from RMB 1,080,587,000 in fiscal year 2020[7]. - The net loss for the fiscal year 2021 was RMB (1,658,392,000), which is a 118.7% increase compared to RMB (758,239,000) in fiscal year 2020[7]. - Adjusted net loss for the fiscal year 2021, calculated under non-IFRS measures, was RMB (1,322,557,000), up 101.0% from RMB (658,022,000) in fiscal year 2020[9]. - Basic and diluted loss per share for fiscal year 2021 was RMB (1.72), compared to RMB (0.79) in fiscal year 2020, reflecting a 117.7% increase[7]. - The company reported a gross profit of RMB 412,208,000 for fiscal year 2021, down from RMB 493,086,000 in fiscal year 2020[9]. - Total revenue increased by 31.3% from RMB 1,080.6 million in FY2020 to RMB 1,418.7 million in FY2021[22]. - K-12 education segment revenue surged by 166.7% from RMB 295.1 million in FY2020 to RMB 787.2 million in FY2021, with paid student numbers rising from 1.856 million to 3.315 million[23]. - University education segment revenue decreased by 14.5% from RMB 641.7 million in FY2020 to RMB 548.8 million in FY2021, with paid student numbers dropping from 942,000 to 573,000[22]. - Gross profit decreased by 16.4% from RMB 493.1 million in FY2020 to RMB 412.2 million in FY2021, with gross margin declining from 45.6% to 29.1%[26]. - Total cost of revenue increased by 71.3% from RMB 587.5 million in FY2020 to RMB 1 billion in FY2021, primarily due to increased teaching staff and course research personnel costs[26]. Student Enrollment and Segments - Total paid student numbers increased to 3.89 million, a year-on-year growth of 36.5%[16]. - K-12 education segment saw a net total revenue increase of 166.7% and paid student numbers increased by 78.6%[16]. - Average spending per paid student in university education increased from RMB 1,222 in FY2020 to RMB 1,303 in the reporting period[17]. - Paid student numbers in the university segment decreased to 573,000 from 942,000 in the previous fiscal year[17]. - K-12 course paid student numbers increased by 66.8% for New Oriental Online and 102.0% for DFUB courses[18]. - The preschool education segment experienced a decrease in student enrollment due to adjustments in the product line[19]. Strategic Initiatives and Future Plans - The company aims to enhance its core competitiveness in online extracurricular education services and expand its offerings across various educational segments[12]. - Future strategy includes expanding product offerings and enhancing online and offline integrated teaching (OMO) models[20]. - The company aims to provide a "one-stop" service for overseas exam preparation, enhancing collaboration with international exam providers[21]. - Continued investment in advanced educational technology to improve user experience and course engagement[21]. Financial Position and Cash Flow - Total assets as of fiscal year 2021 were RMB 3,285,318,000, an increase from RMB 3,049,244,000 in fiscal year 2020[11]. - The total equity attributable to the owners of the company was RMB 2,008,872,000 in fiscal year 2021, compared to RMB 1,863,700,000 in fiscal year 2020[11]. - Cash and cash equivalents as of May 31, 2021, were RMB 1.5 billion, down from RMB 1.9 billion on November 30, 2020, and RMB 480.3 million on May 31, 2020[44]. - The net cash used in operating activities for fiscal year 2021 was RMB (913.7) million, compared to RMB (521.4) million in fiscal year 2020, indicating increased cash outflow[45]. - The net cash generated from investing activities was RMB 659.1 million in fiscal year 2021, primarily due to the withdrawal of RMB 1.7 billion from time deposits[47]. - The cash flow from financing activities for fiscal year 2021 was RMB 1.4 billion, a significant increase compared to RMB (135.5) million in fiscal year 2020[45]. - The company’s net cash and cash equivalents increased by RMB 1.16 billion during fiscal year 2021, compared to a decrease of RMB 2.09 billion in fiscal year 2020[45]. Governance and Compliance - The board of directors consists of nine members, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[55]. - The company has received annual independence confirmations from its independent non-executive directors, ensuring compliance with listing rules[65]. - The company has established a dedicated task force to monitor and analyze the legal and regulatory developments in China's online education sector, hiring external compliance consultants to oversee daily operations compliance[170]. - The company has implemented strict internal control measures to enhance transparency and accountability to shareholders[148]. - The audit committee, composed of three non-executive directors, has reviewed the group's financial reporting procedures and internal control systems during the fiscal year 2021[157]. Risks and Challenges - The company is facing significant adverse impacts on its K-12 business due to the new regulations requiring tutoring institutions in China's compulsory education system to register as non-profit organizations[118]. - Foreign investment in subject-based training institutions is prohibited, which may necessitate restructuring existing contractual arrangements and ownership structures, potentially harming overall business operations and financial performance[119]. - The "double reduction" policy may impose strict requirements on licensing and approval for subject-based training institutions, adversely affecting the types and numbers of students served[119]. - The company has identified several significant risks in fiscal year 2021, including market competition and innovation risks, necessitating continuous improvement of online course products and services to maintain competitive advantage[167]. Environmental, Social, and Governance (ESG) - The company has committed to fulfilling social responsibilities and promoting sustainable development, as detailed in its environmental, social, and governance report[120]. - The ESG report indicates that the company has established an ESG management system to assess risks and opportunities related to ESG[190]. - The company focuses on online education and adheres to environmental laws, resulting in no significant violations related to environmental and ecological issues during the reporting period[198]. - The company promotes energy conservation and emission reduction as part of its commitment to green sustainable development[198]. - The company has identified 21 key ESG issues based on stakeholder importance and business relevance, forming a substantial issues matrix for ESG disclosure[194].

Revenue and Growth - Total revenue for the six months ended November 30, 2020, was RMB 676.8 million, representing a 19.2% increase from RMB 567.6 million for the same period in 2019[17]. - The total number of paid students increased to 2.1 million, a year-on-year growth of 62.5%[23]. - K-12 education segment revenue and paid student numbers increased by 162.9% and 143.4% respectively[23]. - Revenue for the K-12 education segment rose by 162.9% to RMB 336.9 million, driven by the expansion of online K-12 and DFUB courses[36]. - K-12 education segment's paid student count increased by 143.4% year-over-year, reaching 1.8 million students[36]. - Revenue from student customers was RMB 633,726,000, representing 93.6% of total revenue, while revenue from institutional customers was RMB 43,029,000[127]. - The online live course services for students generated RMB 381,302,000, a significant increase from RMB 140,007,000 in the previous year[127]. Financial Performance - The adjusted loss for the period was RMB 661.4 million, compared to RMB 56.3 million in the previous year, marking a 1,075.8% increase[17]. - The company reported a net loss of RMB 674.4 million for the period, compared to RMB 87.5 million in the previous year, reflecting a 670.6% increase[17]. - The gross profit for the six-month period ended November 30, 2020, was RMB 153,134 thousand, down from RMB 317,106 thousand in the previous year, indicating a decline of approximately 51.8%[105]. - The company reported a loss before tax of RMB 667,402,000 for the six months ended November 30, 2020, compared to a loss of RMB 94,863,000 in the same period of 2019[129]. - The net loss for the period increased by 670.6% from RMB 87.5 million to RMB 674.4 million, reflecting the overall financial challenges faced[53]. Expenses and Costs - Total revenue cost increased by 109.0% from RMB 250.5 million for the six months ended November 30, 2019, to RMB 523.6 million for the six months ended November 30, 2020, primarily due to increased teaching staff and course research personnel costs[39]. - Gross profit decreased by 51.7% from RMB 317.1 million to RMB 153.1 million, with a gross margin decline from 55.9% to 22.6% during the same periods, mainly due to strong development in the K-12 segment[39]. - K-12 education segment total revenue cost surged by 281.2% from RMB 111.8 million to RMB 426.0 million, resulting in a gross loss of RMB 89.1 million compared to a gross profit of RMB 16.4 million in the previous period[42]. - Sales and marketing expenses rose by 76.7% from RMB 291.6 million to RMB 515.3 million, driven by the establishment of a multi-channel marketing team and increased personnel costs[47]. - Research and development expenses increased by 81.6% from RMB 128.9 million to RMB 234.1 million, reflecting the need for more qualified personnel to support business expansion[48]. - Administrative expenses grew by 62.6% from RMB 78.8 million to RMB 128.1 million, primarily due to increased personnel costs and share-based compensation[49]. Student and Course Metrics - The average spending per paid student in the university education segment rose from RMB 1,128 to RMB 1,282[24]. - The average spending per paid student in K-12 education decreased from RMB 1,040 to RMB 892[21]. - The number of paid students in the university education segment decreased to 299,000 from 526,000 in the previous year[24]. - DFUB course paid student count surged by 170.3% year-over-year, reflecting strong demand and operational optimization[36]. Strategic Initiatives - The company continues to focus on enhancing its product offerings and marketing strategies to adapt to consumer needs[24]. - The company is expanding its K-12 interactive classes in lower-tier cities in China, contributing to growth in this segment[23]. - The company plans to enhance its teaching quality and operational efficiency through significant investments in talent and technology[32]. - The focus on customer-centric approaches aims to improve product offerings and meet evolving consumer demands[29]. - The integration of advanced technology in course design is expected to enhance learning outcomes and student engagement[31]. - The company plans to continue expanding its online education services and enhancing its technology offerings to improve customer engagement and retention[127]. Cash and Capital Resources - The company's cash and cash equivalents were RMB 1.9 billion as of November 30, 2020, down from RMB 4.8 billion on May 31, 2020[59]. - The asset-liability ratio increased to 66.0% as of November 30, 2020, compared to 38.9% on May 31, 2020[59]. - The company did not incur any bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[65]. - The company has no off-balance sheet transactions or significant contingent liabilities as of November 30, 2020[66]. Shareholder and Equity Information - The company has a total of 505,480,500 shares, representing approximately 53.76% of the total issued shares as of November 30, 2020[77]. - The employee stock option plan allows for the potential issuance of 28,145,285 shares, equivalent to about 3.0% of the company's issued share capital[81]. - The company has issued 90,416,181 shares to Tencent, representing 9.62% of the total equity[77]. - The company has a total of 16,695,285 shares potentially issuable to Mr. Yu under the employee stock option plan[3]. - The company completed a share subscription agreement with New Oriental and Tigerstep on December 24, 2020, with further details provided in announcements dated September 8, September 28, and October 14, 2020[87]. Corporate Governance and Compliance - The company has established an audit committee to review and supervise the financial reporting process and internal control systems[91]. - The company has complied with the corporate governance code as per the listing rules during the reporting period[89]. - The company had no significant litigation or arbitration as of November 30, 2020[93]. - The company did not declare an interim dividend for the reporting period, consistent with the previous period where no dividend was declared[93]. Related Party Transactions - The company reported trade purchases from Tencent Holdings Limited amounting to RMB 10,760,000, an increase from RMB 5,044,000 in the prior year[183]. - The company incurred interest expenses of RMB 627,000 related to lease liabilities with a related party, significantly up from RMB 121,000 in the previous period[183]. - The company had trade receivables from related parties of RMB 3,871,000 as of November 30, 2020, compared to no balance as of May 31, 2020[184].

Financial Performance - Total revenue increased by 17.6% from RMB 918.9 million in FY2019 to RMB 1.1 billion in FY2020[17] - The company reported a net loss of RMB (758,239) thousand for the fiscal year 2020, a significant increase from RMB (64,109) thousand in 2019, marking a 1,082.7% change[26] - The adjusted loss for the fiscal year 2020, according to non-IFRS measures, was RMB (658,022) thousand, compared to RMB (289) thousand in 2019, indicating a significant increase[26] - Gross profit decreased by 2.6% from RMB 506.4 million in FY2019 to RMB 493.1 million in FY2020, with the gross margin declining from 55.1% to 45.6%[44] - The net loss for the year increased by 1,082.7% from RMB 641 million in FY2019 to RMB 7,582 million in FY2020[56] Student Enrollment and Revenue Segments - Total student enrollments rose by 30.9% from 2.2 million in FY2019 to 2.9 million in FY2020[17] - K-12 education segment revenue surged by 85.4% to RMB 295.1 million, accounting for 27.3% of total revenue[18] - The number of paid students in the K-12 segment increased by 224.5% year-on-year, reaching 1.856 million from 572,000[41] - The university education segment revenue increased by 1.6% from RMB 631.4 million in FY2019 to RMB 641.7 million in FY2020, primarily due to growth in university and overseas exam preparation[40] - The total revenue of the preschool education segment decreased by 10.1% from RMB 334 million in FY2019 to RMB 300 million in FY2020, primarily due to the optimization of the Duona English app and the termination of live English classes[42] Operational Strategies and Investments - Investment in internet technology will focus on improving user experience, including server upgrades and expanding network coverage[20] - The company plans to enhance its proprietary live streaming platform, transitioning K-12 classes from third-party platforms[20] - New strategies include optimizing core teaching tools and implementing a comprehensive service model for students[20] - The company aims to increase customer acquisition through effective advertising strategies to ensure healthy user growth[20] - The company plans to integrate internal resources and upgrade existing product structures to enhance competitiveness in the higher education segment[21] Financial Position and Cash Flow - The company's cash and cash equivalents decreased to RMB 480.3 million as of May 31, 2020, down from RMB 2.5 billion at the beginning of the fiscal year[61] - Operating cash outflow for the fiscal year was RMB 521.4 million, compared to RMB 24.7 million in the previous year[61] - The company's asset-liability ratio increased to 38.9% at the end of fiscal year 2020, up from 21.4% at the end of fiscal year 2019[60] - The company plans to support future cash flow needs through internally generated cash and net proceeds from global offerings[60] - The company did not incur any bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[70] Governance and Management - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors, ensuring diverse governance[72] - The executive director and CEO, Mr. Sun Dongxu, has been with the company since August 16, 2019, bringing extensive experience in the education sector[74] - The company has established a compensation committee to determine the remuneration policy for directors and senior management[95] - The company has adopted a board diversity policy to enhance the diversity of board members[171] - The company confirmed that its risk management and internal control systems are effective and sufficient, with the Audit Committee conducting two reviews in the fiscal year 2020[175] Compliance and Regulatory Risks - The company is subject to potential scrutiny from Chinese tax authorities regarding its contractual arrangements, which could significantly reduce its net income and investment value[117] - Regulatory and compliance risks are significant due to strict regulations in China's internet and education sectors, necessitating continuous monitoring and compliance reviews[178] - The interpretation and implementation of the Foreign Investment Law in China present significant uncertainties that could impact the company's existing structure and operations[117] - The company has established a whistleblowing procedure for reporting fraud or bribery incidents, with the Audit Committee responsible for investigating such reports[175] - The company has a significant focus on maintaining compliance with Chinese legal requirements regarding foreign investment in its operations[114] Market Expansion and Future Plans - The company aims to expand its geographic footprint in China, targeting lower-tier cities for growth opportunities[39] - The company plans to enhance its online platforms and introduce new educational technologies to improve the learning experience[39] - The company plans to gradually utilize the remaining net proceeds based on actual business needs over the next five to ten years[93] - The company is actively working to meet qualification requirements for foreign investors in the value-added telecommunications sector in China[115] - The company has established an ESG working group to oversee and implement sustainability initiatives across all departments[200]