智通财经APP获悉，东方甄选(01797)早盘反弹逾5%，截至发稿，涨3.95%，报23.7港元，成交额1.46亿 港元。 2月27日上午，董宇辉的微博账号内容显示全部清空，再度引发舆论关注。有接近东方甄选人士向媒体 透露，这是个人行为。三眼查数据显示，在抖音1月直播达人带货榜上，与辉同行以单月8.89亿元的销 售额，超过了小杨哥和东方甄选，跃居第一位。 申万宏源(香港)指出，进入春节后销售淡季，东方甄选直播电商业务稳扎稳打。“小编”事件后头牌主播 董宇辉直播频道开播，GMV破亿，粉丝数破千万规模，成绩斐然，或成为公司又一增长点。看好公司 多主播，多平台直播，自营产品优先发展的思路。 ...

Core Insights - The 2023 live-streaming industry has seen significant controversies, highlighting the dual nature of traffic as both a boon and a bane for streamers [1] - Major incidents include false advertising claims against popular streamers, leading to fines and reputational damage [3][6] - The relationship between streamers and consumers is increasingly strained, with instances of arrogance from top streamers leading to backlash [8][9] Group 1: Industry Trends - The live-streaming sector has attracted numerous individuals aiming to become successful streamers, driven by the success stories of figures like "Crazy Little Yang" and "Xin Ba" [1] - The prevalence of false advertising has become a common issue, with multiple cases reported in 2023, indicating systemic problems within the industry [3][6] - The industry is evolving, with brands increasingly establishing their own live-streaming channels, reducing reliance on individual streamers [12] Group 2: Legal and Regulatory Environment - The live-streaming industry is facing heightened scrutiny and regulatory measures, focusing on advertising compliance and product quality [13] - Legal actions have been taken against streamers for false advertising, reflecting a growing emphasis on accountability within the sector [3][13] - Companies are encouraged to implement robust selection processes and training for streamers to enhance compliance awareness [13] Group 3: Consumer Relationships - The disconnect between streamers and their audience has been highlighted, with top streamers sometimes displaying a sense of superiority that alienates consumers [8][9] - Instances of streamers responding negatively to consumer feedback have led to significant backlash, resulting in loss of followers and brand trust [8][9] - The initial appeal of live-streaming as a direct consumer engagement tool is diminishing, necessitating a reevaluation of strategies to maintain consumer trust [12]

Financial Performance - Total revenue for the six months ended November 30, 2023, was RMB 2,795,046, representing a 34.4% increase from RMB 2,080,073 in the same period of 2022[8]. - Profit before tax decreased by 49.9% to RMB 378,128 from RMB 755,294 year-on-year[8]. - Net profit for the period was RMB 249,191, down 57.4% compared to RMB 585,293 in the previous year[8]. - Basic earnings per share decreased by 56.9% to RMB 0.25 from RMB 0.58[8]. - Adjusted profit for the period was RMB 508,500, a decrease of 15.4% from RMB 600,995[8]. - Total net revenue increased by 34.4% from RMB 2.08 billion to RMB 2.8 billion for the six months ended November 30, 2023[18]. - Revenue from self-operated products and live e-commerce grew by 36.6% from RMB 1.77 billion to RMB 2.41 billion during the same period[18]. - Adjusted net profit for the reporting period was RMB 508.5 million, compared to RMB 601.0 million in the first half of the 2023 fiscal year[18]. - Gross profit increased by 11.4% from RMB 982.5 million to RMB 1.1 billion, while gross margin decreased from 47.2% to 39.1%[40]. - The net profit decreased from RMB 5,853 million to RMB 2,492 million for the six months ended November 30, 2023[53]. - The company reported a total profit of RMB 249,191,000 for the six months ended November 30, 2023, compared to RMB 585,293,000 for the same period in 2022, reflecting a decline of 57.5%[165]. Revenue Sources - Gross Merchandise Value (GMV) reached RMB 5.7 billion, up from RMB 4.8 billion in the previous year[15]. - Revenue from online education services for students was RMB 365,742 thousand, up from RMB 295,103 thousand, indicating a growth of 23.8%[148]. - The university education segment's revenue increased by 23.9% from RMB 295.1 million to RMB 365.7 million, despite a decrease in paid student numbers from 315,000 to 225,000[38]. - Revenue from institutional clients decreased by 6.2% from RMB 19.2 million to RMB 18.0 million due to business adjustments in this segment[39]. - Revenue from self-operated products and live e-commerce customers reached RMB 2,411,323 thousand, up from RMB 1,765,803 thousand, reflecting a growth of 36.5%[148]. - The majority of GMV came from Douyin, with a total of 59.6 million paid orders for third-party and self-operated products during the same period[25]. Operational Changes - The company continues to focus on enhancing its live e-commerce platform and expanding its product offerings, including self-operated agricultural products[11]. - The company aims to promote high-quality products and improve supply chain efficiency to contribute to rural revitalization in China[11]. - The company is focused on becoming a pure self-operated and live e-commerce operator following the sale of its education business, aiming to consolidate resources for further growth[26]. - The company plans to enhance supply chain management and expand product categories to meet diverse consumer needs[31]. - Future strategies include developing high-cost performance products and expanding the SKU range to adapt to conservative market trends[30]. - The company aims to improve user experience through new technology development and better quality control from raw materials to finished products[32]. - The company will implement price insurance for both self-operated and third-party products to enhance customer service experience[33]. Expenses and Costs - The total revenue cost rose by 55.0% from RMB 1.1 billion to RMB 1.7 billion, primarily due to increased inventory and transportation costs associated with business growth[40]. - Sales and marketing expenses surged by 145.6% from RMB 2,278 million to RMB 5,595 million, mainly due to increased employee costs for self-operated products and live streaming business operations[46]. - Research and development expenses increased by 56.5% from RMB 483 million to RMB 755 million, driven by investments in internet technology systems and applications for proprietary brands and live e-commerce[49]. - Administrative expenses rose by 129.6% from RMB 623 million to RMB 1,429 million, primarily due to increased share-based compensation expenses[50]. - The total revenue cost for the university education segment increased by 5.4% from RMB 776 million for the six months ended November 30, 2022, to RMB 818 million for the six months ended November 30, 2023[43]. Shareholder Information - Major shareholder New Oriental holds 557,160,500 shares, representing approximately 54.89% of the company's equity as of November 30, 2023[81]. - The ownership structure includes significant stakes held by key executives, with Yu Minhong holding approximately 12.0% of the shares through controlled entities[76]. - The company has adopted three share plans, with 30,000 new shares granted under the 2023 plan, accounting for approximately 0.00% of the company's issued share capital[82]. - The company has a maximum share issuance limit of 10% of the issued shares as of the 2023 plan adoption date, equating to 101,351,871 shares[95]. - The company did not declare an interim dividend for the reporting period, consistent with the previous year[117]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal control systems[112]. - The company plans to continue monitoring and reviewing its corporate governance practices[110]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[109]. Cash and Assets - As of November 30, 2023, the company's cash and cash equivalents amounted to RMB 1.3 billion, up from RMB 1.2 billion and RMB 793.7 million on May 31, 2023, and November 30, 2022, respectively[58]. - The company reported a cash and cash equivalents balance of RMB 1,345,039 as of November 30, 2023, compared to RMB 1,165,137 at the end of the previous reporting period[133]. - Total assets amounted to RMB 4,358,941, an increase from RMB 3,436,916 as of May 31, 2023[133]. - Inventory increased significantly to RMB 359,754,000 as of November 30, 2023, compared to RMB 140,952,000 as of May 31, 2023, an increase of 155.5%[173]. Employee Information - Total employee compensation expenses for the six months ended November 30, 2023, amounted to RMB 624.8 million, representing a year-on-year increase of 167.7% from RMB 233.4 million in the same period of 2022[65]. - The total number of full-time employees increased to 1,785 as of November 30, 2023, compared to 1,260 a year earlier, while part-time employees rose to 720 from 410[65]. Future Plans - The company plans to continue expanding its live e-commerce and online education services to enhance revenue growth and market presence[140].

智通财经APP获悉，东方甄选(01797)午后涨超6%，截至发稿，涨5.57%，报24.65港元，成交额7974.62万港元。 华安证券指出，东方甄选持续扩宽产品种类，自营产品的数量为264个，FY24H1公司实现GMV 57亿元；同时，公司积极探索出海路线，2024年1月公司发布TikTok海外店铺运营等岗位，有望打开长期成长空间。此外，公司拟将旗下教育业务以15亿元人民币对价出售给控股股东新东方。出售完成后，东方甄选不再营运在线教育业务，将成为纯粹的自营及直播电商运营商，在线线下融合教育由母公司专注运营。出售教育业务后，东方甄选在手现金将进一步充实，为公司电商业务的持续增长提供坚实的资金保障。 中信建投表示，展望后续，24财年上半年，公司加大自营品促销力度且董宇辉旗下的“与辉同行”抖音直播间从24年1月9日单独直播以来带货表现突出，有望支撑营收增长；预计12月开始的自营品折扣力度加大或将拖累24财年第三季度利润率，“与辉同行”抖音直播间有望贡献业绩增量；中长期看，围绕流量和产品双引擎发力，APP会员制有望深化自营品战略。 ...

Core Viewpoint - The live e-commerce industry in 2023 has faced significant turmoil, with top streamers experiencing a series of controversies and public backlash, indicating a challenging environment for both platforms and influencers [1][2]. Group 1: Issues Faced by Top Streamers - Li Jiaqi, a leading figure in live commerce, faced severe backlash after controversial comments during a live stream, leading to a significant decline in his reputation [3][5]. - Other prominent streamers like Xinba and Crazy Little Yang have also encountered controversies, including negative remarks and product quality issues, contributing to a tumultuous year for the industry [1][12]. - Xinba has been involved in multiple scandals, including being banned from Douyin and making controversial statements about pre-packaged food for children, which have drawn public ire [2][12]. Group 2: Industry Dynamics and Conflicts - The live commerce sector is characterized by complex relationships and conflicts among top streamers, platforms, and brands, making it difficult for the industry to stabilize [17][25]. - Platforms are wary of the dominance of super streamers, as it undermines their control and bargaining power, leading to a push for a more balanced ecosystem [19][25]. - Despite the push for "de-headification," the industry continues to see the emergence of new conflicts, with brands often caught in the middle of disputes between streamers and platforms [25][26]. Group 3: Financial Performance and Market Trends - In 2023, top streamers like Crazy Little Yang and Xinba reported annual incomes of 3.2123 billion and 3.0553 billion yuan respectively, highlighting the lucrative nature of the industry despite ongoing controversies [26][27]. - The emergence of new influencers and the potential for international expansion, particularly into markets like TikTok, suggests that the competition will remain fierce in the coming years [28][32]. - The industry is witnessing a shift towards marketing and advertising revenue, with some companies focusing on training for overseas markets rather than direct sales [32].

Group 1: Movie Promotion and Reception - The movie "Red Carpet Mr." directed by Ning Hao and starring Andy Lau will be released on February 10, coinciding with the Lunar New Year [1] - During a live stream, 300,000 tickets for the movie were sold out within 10 minutes, indicating strong demand [1] - The film portrays the absurdities of the entertainment industry through the story of a Hong Kong superstar trying to win an award [1] Group 2: Controversy Over Plagiarism - On the same day, a controversy arose regarding the "With Hui Together" live stream being accused of large-scale plagiarism by a popular Douyin influencer [2] - The influencer claimed that the content presented by the live stream host was similar to their own previous work, leading to significant public discussion [2] - The host responded by stating that any similarities were unintentional and invited communication regarding the issue [2] Group 3: Insights on Short Video Impact - During the live stream, discussions included the impact of short videos on public discourse, highlighting issues like misinformation and the overwhelming noise in online discussions [3] - This commentary was perceived as a subtle response to the plagiarism allegations, emphasizing the challenges of maintaining factual integrity in the digital age [3] Group 4: Financial Developments of Oriental Selection - On January 31, Oriental Selection and New Oriental announced a commitment to purchase a total of HKD 700 million worth of shares in Oriental Selection [4] - New Oriental will buy shares worth HKD 660 million, while founder Yu Minhong will purchase HKD 40 million worth of shares, enhancing liquidity for existing shareholders [4] - The board believes that the current share price does not accurately reflect the company's value, especially after a recent sale of its education business for RMB 1.5 billion [4] Group 5: Stock Performance - As of January 31, Oriental Selection's stock closed at HKD 23 per share, marking a 6.24% increase, and opened higher the following day [5] - Despite the recent recovery, the stock has declined nearly two-thirds from its peak of HKD 65 per share a year ago [5]

Financial Performance - Total revenue for the six months ended November 30, 2023, was RMB 2,795,046, representing a 34.4% increase compared to RMB 2,080,073 for the same period in 2022[5]. - Profit before tax decreased by 49.9% to RMB 378,128 from RMB 755,294 year-on-year[5]. - The company reported a net profit of RMB 249,191, down 57.4% from RMB 585,293 in the previous year[5]. - The adjusted profit for the period was RMB 508,500, a decrease of 15.4% from RMB 600,995 in the same period last year[5]. - Total revenue increased by 34.4% from RMB 2.08 billion for the six months ended November 30, 2022, to RMB 2.8 billion for the six months ended November 30, 2023[26]. - Net profit decreased from RMB 585.3 million for the six months ended November 30, 2022, to RMB 249.2 million for the six months ended November 30, 2023[40]. - Basic earnings per share decreased to RMB 0.25 from RMB 0.58, indicating a decline of 56.9%[1]. Revenue Breakdown - Revenue from self-operated products and live e-commerce rose by 36.6% from RMB 1.77 billion to RMB 2.41 billion during the same period[11]. - University education segment revenue rose by 23.9% from RMB 295.1 million to RMB 365.7 million, despite a decrease in paid student numbers from 315,000 to 225,000[28]. - Revenue from institutional clients decreased by 6.2% from RMB 19.2 million to RMB 18.0 million due to business adjustments[29]. - Revenue from self-operated products and live e-commerce customers was RMB 2,411,323 thousand, up from RMB 1,765,803 thousand, showing a growth of 36.5%[83]. Cost and Expenses - Total revenue cost increased by 55.0% from RMB 1.1 billion to RMB 1.7 billion, primarily due to increased inventory and transportation costs[30]. - Gross profit rose by 11.4% from RMB 982.5 million to RMB 1.1 billion, while gross margin decreased from 47.2% to 39.1%[30]. - Sales and marketing expenses surged by 145.6% from RMB 227.8 million to RMB 559.5 million, driven by increased staffing costs for self-operated products and live e-commerce operations[35]. - R&D expenses increased by 56.5% from RMB 48.3 million for the six months ended November 30, 2022, to RMB 75.5 million for the six months ended November 30, 2023, primarily due to investments in internet technology systems and applications for proprietary brands and live e-commerce[36]. - Administrative expenses rose by 129.6% from RMB 62.3 million for the six months ended November 30, 2022, to RMB 142.9 million for the six months ended November 30, 2023, mainly due to increased share-based payment expenses[37]. Operational Highlights - The Gross Merchandise Volume (GMV) reached RMB 5.7 billion, up from RMB 4.8 billion year-on-year[8]. - The number of followers on Douyin increased to 45.8 million, compared to 35.2 million in the previous year[8]. - The number of paid orders on Douyin decreased to 59.6 million from 70.2 million year-on-year[8]. - The average spending per paid student in the university education segment increased from RMB 1,058 to RMB 1,944, despite a decrease in the number of paid students from 315,000 to 225,000[9]. - The company continues to focus on expanding its live e-commerce platform and enhancing customer experience through innovative live streaming activities[6]. Strategic Initiatives - The company announced plans to sell its education business, which is expected to be approved at a special shareholder meeting on January 18, 2024[9]. - The company announced plans to sell its entire education business to its parent company, New Oriental, to focus on self-operated and live e-commerce operations[18]. - The company plans to enhance its supply chain management and expand its product offerings, with over 264 self-operated products currently available[17]. - The company has established a membership program to improve customer service and increase customer retention[15]. - The company is focusing on a multi-platform strategy to broaden its user base and enhance brand awareness[19]. Financial Position - Cash and cash equivalents amounted to RMB 1.3 billion as of November 30, 2023, up from RMB 793.7 million as of November 30, 2022[45]. - The debt-to-asset ratio was 30.3% as of November 30, 2023, compared to 27.8% as of November 30, 2022[46]. - Total current assets as of November 30, 2023, were RMB 4,358,941 thousand, compared to RMB 3,436,916 thousand as of May 31, 2023, indicating a growth of 26.8%[75]. - Total equity increased to RMB 3,305,059 thousand from RMB 2,803,808 thousand, reflecting a growth of 17.8%[76]. - The company reported a significant increase in inventory, which rose to RMB 359,754 thousand from RMB 140,952 thousand, a growth of 155.5%[75]. Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended November 30, 2023[60]. - The company has complied with all applicable corporate governance code provisions during the reporting period[58]. - The company has established a nomination committee and a remuneration committee in addition to the audit committee[61].

【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)