Financial Data and Key Metrics - Total net revenues increased by 30.5% YoY, with core educational business revenues (excluding East Buy) growing by 33.5% YoY [3] - Operating margin and non-GAAP operating margin reached 23.7% and 24.4%, respectively, representing YoY improvements of 370 basis points and 220 basis points [4] - Net income attributable to New Oriental increased by 48.4% YoY to $245.4 million, with non-GAAP net income up 39.8% YoY to $264.7 million [12] - Net cash flow from operations was $183.2 million, with capital expenditures of $80.2 million [12] - Cash and cash equivalents, term deposits, and short-term investments totaled approximately $4.9 billion [9] Business Line Performance - Overseas test prep business revenue increased by 19% YoY, while overseas study consulting business revenue grew by 21% YoY [5] - Adults and university students business revenue increased by 30% YoY [5] - Non-academic tutoring courses recorded approximately 484,000 student enrollments, with the top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business reported 323,000 active paid users, with the top 10 cities contributing around 55% of revenue [6] - New educational business initiatives grew by 50% YoY [6] - Tourism-related business, including study tours and research camps, saw revenue growth of 221% YoY, with operations in over 55 cities [7] Market and Strategic Direction - The company invested $24.6 million in its OMO teaching platform to enhance service flexibility [8] - East Buy expanded its product offerings to 488 SKUs and diversified its sales channels, including Tmall, JD, Pinduoduo, and Xiaohongshu [8][9] - The company plans to increase capacity by 20% to 25% in FY2025, focusing on cities with strong financial performance [14] - New Oriental is committed to integrating AI and ChatGPT into its educational offerings to improve efficiency and growth [16] Management Commentary - Management expressed confidence in maintaining healthy growth for the core educational business, supported by solid educational resources [14] - The company is cautiously managing capacity expansion and hiring to balance revenue and profitability growth [14] - Management expects steady growth and satisfactory operating profit for the full fiscal year, despite Q2 being a slower season [15] Q&A Session Question: Second quarter guidance and capacity expansion [18] - Management explained that Q2 is typically a slower quarter due to seasonality but expects revenue growth to accelerate in Q3 and Q4, with full-year growth around 30% YoY [19] Question: Capacity expansion and margin improvement [21] - The company plans to increase capacity by 20% to 25% for FY2025, with margin expansion expected for the full year despite minor pressure in Q2 [22] Question: Margin improvement drivers [24] - Margin improvement was driven by positive top-line growth across business lines, increased utilization rates from learning center expansion, and cost control measures [25] Question: Cultural tourism revenue and profitability [27] - Tourism-related business contributed approximately $90 million in Q1, with profitability expected to be loss-making for the full year [29] Question: K-12 new initiatives revenue breakdown [32] - Non-academic tutoring and intelligent learning device businesses grew by over 50% YoY, with similar growth rates for both segments [33] Question: Growth breakdown for Q2 [35] - Overseas-related business is expected to grow over 20%, domestic test prep and university students business over 30%, and new businesses over 50% [35] Question: New business growth clarification [37] - Non-academic tutoring and intelligent learning device businesses grew over 55% YoY, with non-academic tutoring contributing more than half of new educational business revenue [38][39] Question: Second quarter margin pressure [45] - Q2 margin pressure is attributed to seasonality, tourism business losses, and conservative guidance, with expectations of better performance in Q3 and Q4 [46] Question: East Buy revenue and guidance [51] - East Buy's financial results will be detailed in the next quarter, with Q2 guidance excluding East Buy's revenue [52] Question: New business growth and high school business performance [55] - New educational initiatives are expected to grow around 45% to 46% in Q2, with non-academic tutoring and intelligent learning devices growing over 50% [56]

Company Performance - New Oriental (EDU) shares dropped by 1.87% in pre-market trading, priced at $74.36 [1] - Macquarie revised its forecast for New Oriental's non-GAAP net profit for fiscal years 2025 to 2027, reducing it by 11.6% to 13.3% [1] - The revision is based on a lowered revenue prediction and non-GAAP operating profit forecast for the company [1] Business Segments - New Oriental's non-academic K-9 business remains robust [1] - An anticipated slowdown in the growth of its overseas test preparation business during the first quarter of fiscal year 2025 [1]

Core Viewpoint - New Oriental's shares experienced a decline of approximately 9.8% in pre-market trading following a downward revision of profit forecasts by Macquarie for fiscal years 2025 to 2027 [1] Financial Performance - Macquarie adjusted its forecast for New Oriental's non-GAAP net profit downward by 11.6% to 13.3% based on lowered revenue projections and operating surplus expectations [1] - The target price for New Oriental's H shares was revised from HKD 71 to HKD 63.1, maintaining a projected price-to-earnings ratio of 25 times for fiscal year 2025 [1] Business Outlook - Despite the downgrades, Macquarie maintains an "Outperform" investment rating, anticipating that the non-academic K9 business will remain robust [1] - Growth in overseas exam preparation is expected to slow down in the first quarter of fiscal year 2025 [1]

Group 1 - New Oriental Education & Technology Group Inc (EDU) shares increased by 1.83% on October 2, reaching an intraday high of $87.26 before closing at $78.60, which is 19.96% below its 52-week high of $98.20 and 37.39% above its 52-week low of $57.21 [1] - The trading volume for EDU was 3,558,206 shares, which is 162.3% of the average daily volume of 2,192,581 shares [1] Group 2 - Wall Street analysts have set an average one-year price target for EDU at $93.04, indicating an upside potential of 18.37% from the current price of $78.60 [2] - The highest price estimate from analysts is $110.81, while the lowest is $75.00 [2] - The average brokerage recommendation for EDU is 1.6, suggesting an "Outperform" status on a scale where 1 is Strong Buy and 5 is Sell [2] Group 3 - GuruFocus estimates the fair value (GF Value) for EDU at $82.31 in one year, suggesting a potential upside of 4.72% from the current price [2] - The GF Value is derived from historical trading multiples, past business growth, and future performance estimates [2]

Group 1: New Oriental Education (EDU) - New Oriental Education shares increased by 7.9% to close at $65, following a 7.5% loss over the past four weeks, indicating a notable recovery in stock performance [1] - The recent rally is attributed to optimism from a fiscal stimulus announced by the People's Bank of China, which includes interest rate cuts and additional funding opportunities, potentially boosting business activities and consumer confidence [1] - The upcoming quarterly earnings report is expected to show earnings of $1.14 per share, reflecting a year-over-year increase of 0.9%, with revenues projected at $1.4 billion, a 27.1% increase from the previous year [1] Group 2: Earnings Estimate Revisions - The consensus EPS estimate for New Oriental has been revised down by 58.7% over the last 30 days, which typically correlates with negative stock price movements [2] - Despite the recent stock price increase, the negative trend in earnings estimate revisions suggests caution regarding future price appreciation [2] - New Oriental currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [2] Group 3: Perdoceo Education (PRDO) - Perdoceo Education's consensus EPS estimate remains unchanged at $0.53, representing a 17.2% decrease from the previous year [3] - Perdoceo Education has a Zacks Rank of 4 (Sell), indicating a negative outlook compared to its peers [3]

Revenue and Financial Performance - Revenues from consolidated affiliated entities accounted for 99.6%, 99.5%, and 99.2% of total net revenues for fiscal years ended May 31, 2022, 2023, and 2024, respectively[17] - Net revenues for 2024 increased to $4,313.586 million, up from $2,997.760 million in 2023[39] - Operating income for 2024 was $350.425 million, compared to $190.046 million in 2023[39] - Net income attributable to shareholders for 2024 was $309.591 million, up from $177.341 million in 2023[39] - Third-party net revenues increased to $4,313.586 million in 2024, up from $2,997.760 million in 2023, reflecting a growth of approximately 43.9%[44][45] - Net income for 2024 was $325.218 million, compared to $235.363 million in 2023, showing a 38.2% increase[44][45] - Total operating costs and expenses rose to $3,963.161 million in 2024 from $2,807.714 million in 2023, an increase of 41.2%[44][45] - Income from subsidiaries and VIEs was $538.168 million in 2024, up from $313.226 million in 2023, a 71.8% increase[44][45] - Other income, net, rose to $143.416 million in 2024 from $118.485 million in 2023, a 21.0% increase[44][45] - Net revenues decreased from $3,105.2 million in FY2022 to $2,997.8 million in FY2023, then increased to $4,313.6 million in FY2024[86] - The company's operating margin turned positive for the fiscal year ended May 31, 2023, and continued to improve for the fiscal year ended May 31, 2024, but there is no assurance that this trend will continue[102] - The company experienced a loss from fair value change of long-term investments of US$0.9 million in the fiscal year ended May 31, 2023, but recorded a gain of US$19.0 million in the fiscal year ended May 31, 2024[113] Business Operations and Strategy - The company operates in China through PRC subsidiaries, VIEs, and their subsidiaries/schools, with contractual arrangements controlling business operations[17] - The company relies on contractual arrangements rather than direct ownership to control VIEs, which may pose risks in conflicts of interest or legal disputes[26] - The company is shifting focus towards non-K-9 educational products and services, including test preparation courses, overseas study consulting, and educational materials[68] - East Buy, the company's e-commerce platform, made notable progress in private label products and livestreaming e-commerce business in fiscal years 2023 and 2024[68] - East Buy established an e-commerce platform for agricultural and other products through livestreaming activities[68] - The company is exploring business opportunities in the culture and tourism market[68] - The company is investing in new business initiatives such as non-academic tutoring, intelligent learning systems, and study tours[68] - The company's East Buy e-commerce platform, established in fiscal year 2022, has made notable progress in private label product sales and livestreaming e-commerce business in fiscal years 2023 and 2024[115] - The company's OMO (online-merge-offline) system, developed in 2014, integrates offline and online education systems to enhance operational efficiency[122] - The company relies heavily on the popularity of celebrity livestreamers, particularly the "Time with Yuhui" brand, which gained significant traction since its inception in January 2024[118] - In August 2024, Time with Yuhui ceased to be a consolidated entity of East Buy, and its financial results are no longer included in East Buy's consolidated financial statements[118] - The company generates a significant portion of its revenues from key cities in China, including Beijing, Hangzhou, Guangzhou, and Nanjing, which are expected to remain important revenue sources[120] Regulatory and Legal Risks - The PRC government's oversight and regulations on foreign investment and overseas offerings could significantly impact the company's operations and securities value[28][30] - The company was listed as a Commission-Identified Issuer under the HFCAA in October 2022 but expects to avoid future identification due to PCAOB's updated inspection access[31] - The company faces uncertainties regarding PRC government approvals for future offshore offerings, which could result in penalties or business suspension[30] - The company faces risks related to the interpretation and implementation of PRC laws and regulations on private education[72] - The company may be required to take further actions regarding academic tutoring services for students in grade ten to twelve to comply with the Alleviating Burden Opinion[72] - The company faces risks from potential new regulations that could classify digital educational resources as after-school tutoring activities[76] - The company's historical financial results may not be indicative of future performance due to regulatory changes and new business developments[86] - The company faces risks related to cybersecurity, including potential data breaches and system disruptions, which could harm its reputation and financial performance[125][127] - The company is subject to PRC data security laws, including the PRC Data Security Law and Cybersecurity Review Measures, which may impose additional obligations if deemed a critical information infrastructure operator[130] - The company has applied for a security assessment by the Cyberspace Administration of China regarding the cross-border transfer of certain data, as required by the Measures on Security Assessment of the Cross-border Transfer of Data[133] - The company processes personal information of more than 1 million individuals, which subjects it to security assessments for cross-border data transfers[133] - The company may face penalties, fines, or suspension of services if it fails to comply with PRC advertising laws and regulations, which prohibit misleading content and superlative wording in advertisements[134] - The company's overseas test preparation and English language training courses could be adversely affected by geopolitical tensions, particularly between the U.S. and China, potentially leading to declines in student enrollments[136] - The company is currently defending against a putative shareholder class action lawsuit, the outcome of which could have a material adverse effect on its business, financial condition, and reputation[138] - The company may face penalties or suspension of operations if it fails to comply with PRC regulations governing internet access and information dissemination[208] - The company is required to obtain various operating licenses and permits in China, and failure to comply may result in fines, confiscation of gains, or suspension of operations[210] - PRC regulations on offshore special purpose companies may limit the company's ability to inject capital into its PRC subsidiaries or distribute profits[211] - Regulatory measures in China require PRC individuals participating in overseas share incentive plans to file applications with SAFE and remit foreign exchange income into a collective foreign currency account[213] - The company is in the process of making SAFE applications for PRC individuals participating in its share incentive plans, but cannot guarantee success, potentially leading to fines, legal sanctions, and restrictions on stock option exercises[214] - Offshore listings may require CSRC approval under PRC law, and failure to obtain or delays in obtaining such approval could result in fines, restrictions on dividend payments, and other sanctions[215] - PRC domestic companies listed overseas by March 31, 2023, are required to complete CSRC filing procedures for future securities offerings and listings outside mainland China[216] - PRC domestic enterprises seeking overseas securities offerings must establish confidentiality and archives systems and complete approval and filing procedures with competent authorities[218] - Future regulatory changes may impose additional requirements on the company's offshore offerings, potentially leading to fines, restrictions on dividend payments, and other adverse effects[219] Corporate Structure and Contractual Arrangements - The contractual arrangements include equity pledge agreements, exclusive option agreements, powers of attorney, and service agreements to secure economic benefits[18][19][20] - The company's founder and executive chairman, Michael Minhong Yu, owns 99% of Beijing Century Friendship Education Investment Co., Ltd[24] - The company's financial results include consolidated VIEs, with detailed financial data available in the annual report[34] - The company relies on contractual arrangements with variable interest entities (VIEs) for its education business, which may not provide as effective control as direct ownership[171] - The equity pledge agreements with VIEs' shareholders are registered, but PRC courts may limit the enforceability of these agreements[174] - The registered equity interests pledged to the company's subsidiaries for New Oriental China total RMB 50,000,000, representing 100% of its registered capital[175] - Potential conflicts of interest may arise between the company and the controlling shareholder of Century Friendship, which owns New Oriental China[177] - The company uses corporate chops, contract chops, and finance chops for executing legal documents, with approvals required from relevant departments[179] - The company's reliance on chops for legal documents may be subject to risks if custodians or authorized users fail to fulfill their responsibilities[178] - The company faces risks related to the misuse of corporate chops and seals by designated legal representatives, which could disrupt normal business operations and require significant time and resources to resolve[180] - The company's contractual arrangements with VIEs in China could be deemed non-compliant with PRC laws, risking severe penalties or loss of control[159][161] - Foreign ownership in entities providing value-added telecommunication services is restricted to 50% under PRC laws[161] - East Buy's online livestreaming business operates through contractual arrangements with Beijing Xuncheng to comply with PRC regulations[161] - The Alleviating Burden Opinion prohibits foreign capital from controlling or participating in Academic AST Institutions through VIEs[161] - PRC legal counsel confirms that the company's corporate structure and contractual arrangements comply with existing PRC laws and regulations[163] - Non-state capital is prohibited from controlling non-profit kindergartens through contractual arrangements, and community-affiliated kindergartens can only be registered as non-profit kindergartens[165] - The contribution of kindergartens to the company's total net revenues was less than 1% for fiscal years 2022, 2023, and 2024[166] - The company did not invest in or acquire for-profit kindergartens using capital market funds or stock/cash consideration after the promulgation of the Preschool Opinions[166] - The consolidated affiliated entities contributed 99.6%, 99.5%, and 99.2% of the company's total net revenues for fiscal years 2022, 2023, and 2024, respectively[173] Financial Position and Cash Flow - Total assets as of May 31, 2024, were $7,531.673 million, compared to $6,392.458 million in 2023[42] - Cash and cash equivalents as of May 31, 2024, were $1,389.359 million, down from $1,662.982 million in 2023[42] - Total liabilities as of May 31, 2024, increased to $3,482.659 million from $2,577.670 million in 2023[42] - Share-based compensation expenses for 2024 totaled $122.458 million, up from $89.788 million in 2023[39] - Cash and cash equivalents stood at $1,389.359 million as of May 31, 2024, compared to $940.643 million in 2023, a 47.7% increase[46][47] - Total current assets grew to $5,388.878 million in 2024 from $3,024.121 million in 2023, a 78.2% increase[46][47] - Deferred revenue increased to $1,780.063 million in 2024 from $1,775.131 million in 2023, a slight growth of 0.3%[46][47] - Total liabilities rose to $3,482.659 million in 2024 from $3,100.512 million in 2023, an increase of 12.3%[46][47] - Total equity increased to $4,049.014 million in 2024 from $1,125.023 million in 2023, a significant growth of 260.0%[46][47] - Total current assets for the Consolidated Affiliated Entities amounted to $2,396,815 thousand[48] - Total non-current assets for the Consolidated Affiliated Entities reached $1,218,899 thousand[48] - Total liabilities for the Consolidated Affiliated Entities stood at $2,742,334 thousand[48] - Net cash provided by operating activities for the Consolidated Affiliated Entities was $1,013,621 thousand[50] - Net cash used in investing activities for the Consolidated Affiliated Entities was $1,234,725 thousand[50] - Net cash used in financing activities for the Consolidated Affiliated Entities was $16,721 thousand[50] - Net cash provided by operating activities for the Consolidated Affiliated Entities in the previous year was $652,523 thousand[51] - Net cash used in investing activities for the Consolidated Affiliated Entities in the previous year was $294,911 thousand[51] - Net cash used in financing activities for the Consolidated Affiliated Entities in the previous year was $19,353 thousand[52] - Net cash used in operating activities was $1,280,453 thousand for the year ended May 31, 2022[54] - The company's deferred revenue recognition is subject to future performance obligations, and any failure to fulfill these obligations could adversely impact liquidity and results of operations[112] - The company's long-term and short-term investments are subject to fair value changes, with significant unobservable inputs that may lead to uncertainty and volatility in valuation[114] - The company's cash flow and liquidity could be adversely affected if it fails to comply with the restrictions and covenants in the trust deed related to its $300 million 2025 Notes[143] Tax and Dividend Policies - The company's PRC subsidiaries and VIEs may face a maximum statutory tax rate of 25% on earnings, with a 10% withholding tax on distributions[36] - If VIEs' accumulated earnings exceed fees paid to PRC subsidiaries, non-deductible transfers could reduce after-tax income[37] - The company does not have a dividend policy or cash management policies for fund transfers between entities[35] - PRC regulations require subsidiaries to set aside at least 10% of after-tax profits annually for statutory reserves, limiting the company's ability to distribute dividends[183] - The company's reliance on dividends from PRC subsidiaries for cash requirements may be limited by PRC regulations, affecting its ability to grow and make investments[183] - PRC government controls on currency conversion may restrict the company's ability to remit foreign currency for dividends or other payments, potentially limiting access to funds outside China[224] Competition and Market Risks - The company faces significant competition in the private education sector, particularly from online educational service providers using advanced technologies like live broadcasting, which may force the company to reduce course fees or increase spending to retain students[97] - The company's brand reputation is critical to its success, and any negative publicity could harm its business and operating results[82] - The company depends on maintaining consistent teaching quality and retaining qualified teachers, which could be impacted by regulatory requirements[84] - The company faces risks from intellectual property infringement claims, which could result in substantial damages and operational disruptions[90] - The company's trademarks and trade name are at risk of infringement by third parties, which could damage its reputation and brand, despite efforts to protect intellectual property rights[95] - The company's business is subject to seasonal fluctuations, with the highest revenue typically in the first fiscal quarter (June 1 to August 31) due to summer vacation enrollments[104] - The company faces risks related to health epidemics, such as COVID-19, which could lead to reduced attendance or temporary closure of schools and learning centers, adversely affecting liquidity and financial condition[101] - The company may experience a decrease in demand for its services if colleges and universities reduce reliance on admissions and assessment tests, particularly in China and the United States[110][111] - The Chinese economy's growth rate has gradually slowed since 2010, with COVID-19 having an adverse impact in 2022, potentially reducing demand for the company's products and services[196] - The global macroeconomic environment faces challenges, including geopolitical tensions and rising interest rates, which may negatively impact the company's business and financial condition[197] Operational and Compliance Risks - The company ceased offering K-9 Academic AST Services in China at the end of 2021, which had a substantial adverse impact on financial performance[66] - Company ceased K-9 Academic AST Services in all schools and learning centers in China by the end of 2021, leading to significant costs from lease terminations and employee layoffs[75] - Company incurred considerable costs and expenses in FY2022 due to regulatory compliance actions, including termination of leases and employee dismissals[75] - Company's ability to attract students without significant fee reductions is critical to maintaining profitability[78] - Company's net revenues are subject to fluctuations due to regulatory changes, economic conditions, and consumer spending patterns[86] - The total number of schools and learning centers decreased from 1,669 as of May 31, 2021 to 1,025 as of May 31, 2024[66] - The company has experienced several computer attacks in the past, though none have materially affected its operations[127] - The company does not have liability or business disruption insurance in some teaching facilities, which could lead to financial and reputational risks in case of accidents[124] - The company's internal control over financial reporting was deemed effective as of May 31, 2024, but future failures could adversely affect investor confidence and share prices[123] - The company may incur significant costs to protect against security breaches or comply with evolving data protection regulations, potentially impacting financial conditions[128][130] - The company has not been involved in any cybersecurity investigations or received any sanctions related to data security and personal data protection as of the date of the annual report[133] - The company may require additional capital to finance future developments, including new business initiatives, investments, or acquisitions, and may seek to sell additional equity or debt securities if necessary[140] - The company's ability to obtain additional capital is subject to uncertainties, including investor perception, market conditions, and PRC governmental regulations[141] - The company may face challenges in controlling rental costs and

Core Viewpoint - New Oriental Education & Technology Group Inc. (NYSE: EDU) stock is rated as a Buy, with appealing valuations based on its P/E metric compared to expected earnings growth rate [1]. Group 1: Investment Strategy - The research service Asia Value & Moat Stocks focuses on value investors looking for Asia-listed stocks with significant price and intrinsic value gaps, emphasizing deep value balance sheet bargains and wide moat stocks [1]. - The service provides a range of watch lists with monthly updates, targeting deep value balance sheet bargains and high-quality businesses [1]. Group 2: Market Focus - The investment group particularly emphasizes opportunities in the Hong Kong market, seeking stocks that are undervalued or have strong competitive advantages [1].

Investment Rating - The report assigns an "Outperform" rating to New Oriental (EDU N) for the first time [2][3] Core Views - New Oriental maintains its leading position in the education industry with strong brand recognition and sustained growth momentum in FY24Q4, achieving revenue of $1 14 billion, a 32 1% YoY increase Full-year revenue reached $4 31 billion, up 43 9% YoY [2] - The education business shows robust growth, with adult and college exam preparation revenue increasing by 16 4% YoY and new education business revenue surging by 50 3% YoY in FY24Q4 The company expanded its offline presence, adding 114 new schools and learning centers in the quarter, bringing the total to 1,025, a 27% YoY increase [2] - Overseas study preparation and consulting businesses continue to grow strongly, with YoY increases of 17 7% and 17 3% respectively in FY24Q4 Post-pandemic recovery is expected to drive significant rebound in overseas study demand [2] - East Buy (formerly New Oriental Online) faces profit pressure due to personnel changes, with its contribution to New Oriental's revenue expected to gradually weaken [2] Financial Forecasts and Valuation - Revenue for FY2025 and FY2026 is projected at $5 34 billion and $6 50 billion respectively, with Non-GAAP net income attributable to shareholders estimated at $500 million and $640 million [3] - The company's PE ratio for FY2025 and FY2026 is forecasted at 22X and 18X respectively, compared to an average PE of 15X and 11X for peer companies [3] - Gross margin is expected to remain stable, ranging between 53 0% and 53 8% from FY2025 to FY2027 [4] - ROE is projected to improve from 10 09% in FY2024 to 13 67% in FY2026 before slightly declining to 11 79% in FY2027 [4] Business Performance - The company's total assets stood at $7 53 billion as of May 31, 2024, with net assets of $4 05 billion and net asset per share of $2 28 [1] - Operating cash flow is expected to remain strong, with projections of $561 million, $643 million, and $784 million for FY2025 to FY2027 respectively [5] - Capital expenditures are forecasted at $170 million annually from FY2025 to FY2027 [5] Market Position - New Oriental's market capitalization is $11 3 billion as of August 22, 2024, with a PB ratio of 3 0 [1] - The company's active paying users reached 188,000 in FY24Q4, with its smart learning systems and devices adopted in approximately 60 cities [2]

Core Viewpoint - New Oriental Education & Technology Group Inc. has announced a special cash dividend of 6 cents per share, totaling approximately $100 million, reflecting its strong financial performance and commitment to returning value to shareholders [1] Group 1: Dividend Announcement - The board approved a special cash dividend of 6 cents per share or 60 cents per ADS, payable to shareholders of record as of September 9, 2024 [1] - Payments are expected to be made on or around September 23 for common shareholders and September 26 for ADS holders [1] - Following the announcement, the stock dropped 2% during the trading session on August 19, 2024 [1] Group 2: Business Performance - The company’s shares have surged 32.8% in the past year, outperforming the Zacks Schools industry's growth of 27% [2] - Increased demand for test preparation and overseas study consulting services has driven growth, with the overseas test-prep business reporting an 18% year-over-year revenue increase [2] - New educational initiatives, including non-academic tutoring and intelligent learning systems, have contributed to growth, with new initiatives reporting a 50% year-over-year revenue increase [3] Group 3: Future Outlook - New Oriental expects healthy growth in its educational business for fiscal 2025, supported by strong demand and established resources [3] - The company aims for margin expansion across most areas, excluding East Buy, and to achieve satisfactory operating profit for the fiscal year [3] - Significant investment in a new tourism-related business is anticipated to generate meaningful revenues in the upcoming fiscal year [4]

Core Viewpoint - New Oriental Education & Technology Group Inc. has announced an increase in its share repurchase program from US$400 million to US$700 million, extending the program through May 31, 2025 [1][2]. Group 1: Share Repurchase Program - The initial share repurchase program authorized the company to repurchase up to US$400 million of its ADSs and/or common shares from July 28, 2022, to May 31, 2023 [1]. - The program has been extended for an additional two years, now effective through May 31, 2025 [1]. - As of the announcement date, the company had repurchased approximately US$330.3 million worth of its ADSs under the original program [1]. - The new aggregate value for the share repurchase program is now set at US$700 million [2]. - Repurchases may occur through various means, including open market transactions and block trades, depending on market conditions [2]. Group 2: Company Overview - New Oriental is a provider of private educational services in China, offering a diverse range of educational programs, services, and products [3]. - The company's offerings include educational services, test preparation courses, overseas study consulting, and livestreaming e-commerce [3]. - New Oriental is listed on both NYSE (NYSE: EDU) and SEHK (9901.SEHK), with its ADSs representing ten common shares [3].