Core Points - Yu Minhong, the founder of New Oriental, confirmed the departure of Sun Dongxu, emphasizing his contributions to the development of Dongfang Zhenxuan [1] - Sun Dongxu left due to personal reasons, despite encouragement from Yu Minhong to stay [1] - The communication between Yu Minhong and Sun Dongxu remains positive, with no conflicts reported [1] Group 1 - Sun Dongxu was previously removed from his positions as Executive Director and CEO of Dongfang Zhenxuan due to a controversy related to content creation [2] - Despite his departure, Sun Dongxu did not leave the New Oriental system and made a return to the Dongfang Zhenxuan live stream in November 2024 [2]

Core Points - The confirmation of Sun Dongxu's departure from Dongfang Zhenxuan was made by Yu Minhong on November 6, 2023 [1] - Yu Minhong acknowledged Sun Dongxu's contributions as a co-founder and expressed hope for his return in the future, despite Sun's decision to leave for personal reasons [2] - The communication between Yu Minhong and Sun Dongxu remains positive, with no conflicts reported [3] Summary of Events - In August 2023, rumors about Sun Dongxu's potential departure surfaced, leading to public speculation [5] - Initially, it was reported that Sun Dongxu was on vacation and had no plans to leave the company [5] - Sun Dongxu had previously faced controversy related to the "small essay" incident, which resulted in his removal as CEO and resignation from the non-executive director position [5][8]

Core Insights - The founder of New Oriental, Yu Minhong, confirmed that Sun Dongxu, co-founder of Oriental Selection, has decided to leave the company for personal reasons, despite encouragement to stay [1][4] - Yu emphasized the importance of Sun's contributions to the company's development and expressed hope for his return in the future [1] - The communication between Yu and Sun remains positive, with no conflicts reported [1] Company Developments - Sun Dongxu had been on a leave of absence since August, with media speculating about his potential departure [4] - His social media activity has been inactive for six months, with the last update in February [4] - In February 2023, Sun sold 386,000 shares over two days, cashing out over 200 million HKD, indicating a significant financial move [6] Leadership Context - Sun Dongxu, a key executive with a technical background, has been with New Oriental for 16 years and was appointed co-CEO at a young age of 33 [6] - His departure marks a notable change in the leadership structure of Oriental Selection, which may impact the company's future direction [1][6]

Core Viewpoint - The article discusses the departure of Sun Dongxu from Dongfang Zhenxuan, as confirmed by New Oriental Education Group's chairman, Yu Minhong, highlighting personal reasons for the decision [2]. Group 1 - Yu Minhong stated that both he and Sun Dongxu are the founders of Dongfang Zhenxuan [2]. - Sun Dongxu expressed a desire to leave the company after careful consideration, despite encouragement from Yu Minhong to stay [2]. - Yu Minhong ultimately agreed to Sun Dongxu's departure, indicating that he will no longer participate in the company's operations [2].

Group 1 - The core point of the article is the confirmation of Sun Dongxu's departure from New Oriental and Dongfang Zhenxuan by founder Yu Minhong [1] Group 2 - Yu Minhong made the announcement on November 6, 2025 [3]

11月6日，新东方教育集团有限公司董事长俞敏洪发文确认孙东旭从东方甄选离职。 （文章来源：第一财经） ...

Core Insights - The company reported a 6% year-on-year revenue increase to $1.523 billion for Q1 of FY2026, exceeding expectations by 1% [1] - Adjusted operating profit was approximately $336 million, with an operating margin of 22%, reflecting a 1 percentage point year-on-year expansion [1] - Adjusted net profit attributable to shareholders was $258 million, corresponding to a net profit margin of 17% [1] Performance Highlights - The study abroad-related business performed better than expected, with preparatory and consulting revenues increasing by 1% and 2% year-on-year, compared to a previous forecast of -5% [1] - The college/adult education segment maintained a robust growth rate, with a 14% year-on-year revenue increase [1] - The K9 new business segment saw a 15% year-on-year revenue growth, with learning machines outperforming non-subject areas [1] - Non-subject training enrollment increased by 10% year-on-year to 530,000, while paid users of the intelligent learning system and devices rose by 40% year-on-year to 452,000 [1] - The number of teaching points reached 1,347, an increase of 29 points or 2% from the previous quarter, within the company's expansion pace [1] - The company announced a cash dividend of $190 million and a $300 million share repurchase plan, which is better than previous expectations [1] FY2026 Outlook - Management maintains the FY2026 group revenue guidance, expecting a year-on-year growth rate of 5-10%, with Q2 revenue growth projected between 9-12%, compared to a previous expectation of 9% [2] - Concerns regarding business growth are alleviated by improved retention rates in K12 business and product quality enhancements, which are expected to stabilize revenue growth [2] - The study abroad-related business may remain under pressure, but is expected to benefit from a projected over 25% year-on-year increase in youth language training revenue and expansion in non-English-speaking countries' consulting services [2] - Overall revenue growth for FY2026/27/28 is anticipated to exceed 10%, with a continued trend of profit margin expansion [2] Valuation - The company remains optimistic about the demand and growth prospects for K12 education-related businesses, with steady revenue growth and potential for profit margin optimization [2] - Despite recent impacts on the study abroad-related business, it continues to lead the industry [2] - Using the SOTP valuation method, the company assigns a 15x P/E ratio for K12 business and an 8x P/E ratio for study abroad business, with corresponding profit growth rates of +25% and -7% [2] - The target price has been raised to HKD 55 / USD 71 (EDU US/Buy) from HKD 46 / USD 59, maintaining a buy rating [2]

Market Overview - The three major U.S. stock indices closed higher, indicating a recovery in market sentiment [1][3] - The Dow Jones increased by 0.48% to 47,311.0 points, the S&P 500 rose by 0.37% to 6,796.29 points, and the Nasdaq gained 0.65% to 23,499.8 points [4] Technology Sector Performance - Major tech stocks mostly rose, with Google increasing over 2% to reach a historical closing high [5] - Notable gains were seen in Tesla, which rose over 4%, and Intel, which increased by more than 3% [7] Storage Sector Surge - The storage sector experienced significant growth, with Micron Technology rising nearly 9%, Seagate Technology up over 10%, SanDisk increasing over 11%, and Western Digital gaining over 5% [8] Qualcomm Financial Results - Qualcomm reported adjusted revenue of $11.27 billion for Q4, a 10% year-over-year increase, surpassing market expectations [12] - Despite the revenue growth, Qualcomm recorded a net loss of $3.12 billion, compared to a net profit of $2.92 billion in the same quarter last year [13][14] Market Expectations on Federal Reserve - The market maintains a dominant expectation for a 25 basis point rate cut in December, with a probability of 61.5% [16] - Federal Reserve Governor Milan stated that further rate cuts remain reasonable, indicating that current policies may pose risks [18] Employment Data Insights - The ADP report indicated an increase of 42,000 jobs in October, exceeding market expectations, although the overall job growth remains weak [19]

Core Viewpoint - The U.S. stock market saw a collective rise in the three major indices, indicating positive investor sentiment and market performance [1] Group 1: Major Indices Performance - The Nasdaq increased by 0.65% [1] - The Dow Jones rose by 0.48% [1] - The S&P 500 index gained 0.37% [1] Group 2: Notable Stock Movements - Tesla's stock surged over 4% [1] - Intel's shares increased by more than 3% [1] - Google's stock rose by over 2% [1] Group 3: Chinese Concept Stocks - The Nasdaq Golden Dragon China Index saw a slight increase of 0.15% [1] - Futu Holdings experienced a rise of over 4% [1] - New Oriental and Xpeng Motors both fell by more than 3% [1]

Core Insights - New Oriental Education & Technology Group Inc. reported a 6.1% year-over-year revenue increase to $1.52 billion for the first quarter of its fiscal year, with operating profit rising 6% to $310 million, but net profit declined by 1.9% to $240 million, disappointing investors [2][3][4] Financial Performance - Revenue from overseas test preparation and overseas study consulting grew by only 1% and 2% year-over-year, respectively, while domestic exam prep for adults and university students increased by 14.4% and new educational initiatives grew by 15.3% [3][10] - The company’s revenue for the fiscal year through May is projected to reach up to $5.4 billion, with current quarter revenue guidance between $1.13 billion and $1.16 billion, indicating 9% to 12% year-over-year growth [8][13] Market Reaction - Following the profit decline, New Oriental's U.S.-listed shares fell over 9% intraday, closing down 3.4% at $58.56, while Hong Kong shares also dropped [4][5] - Despite the selloff, the stock is trading over 20% higher than its six-month lows, indicating some investor confidence remains [5] Strategic Focus - In light of limited revenue growth potential, the company is prioritizing cost optimization and operational efficiency to improve profits, as stated by CFO Yang Zhihui [11][12] - New Oriental aims to maintain discipline in cost management across all business lines for sustainable growth [12] Growth Challenges - The growth of overseas test preparation and study consulting services has significantly slowed, with expectations of flat revenue for overseas study consulting and only 5% to 10% growth for overseas test preparation in the current fiscal year [9][16] - Ongoing U.S.-China tensions and protectionist policies are creating uncertainty for the overseas study business, which is a major revenue source for New Oriental [9][15] Valuation and Leadership - The current stock price gives New Oriental a forward P/E ratio of 25, reflecting steady operations but lacking immediate growth catalysts [17] - CEO Yu Minhong's leadership is highlighted as a key asset, with a strong track record in navigating regulatory challenges, positioning the company for future opportunities [18]