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NEW ORIENTAL(EDU) - 2022 Q4 - Annual Report
EDUNEW ORIENTAL(EDU)2022-09-28 16:00
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Interest Rate Risk - The company has not used any derivative financial instruments to manage interest rate risk exposure, and a hypothetical one percentage point decrease in interest rates would have resulted in a decrease of approximately US52.6millionininterestincomefortheyearendedMay31,2022[766].−Thecompanyhasnotanticipatedbeingexposedtomaterialrisksduetochangesininterestrates,althoughfutureinterestincomemaybelowerthanexpected[766].ForeignExchangeRisk−Thecompany′srevenuesandmostexpensesaredenominatedinRMB,withexposuretoforeignexchangeriskprimarilyrelatedtocashandcashequivalentsinU.S.dollars[767].−Ahypothetical1052.6 million in interest income for the year ended May 31, 2022 [766]. - The company has not anticipated being exposed to material risks due to changes in interest rates, although future interest income may be lower than expected [766]. Foreign Exchange Risk - The company's revenues and most expenses are denominated in RMB, with exposure to foreign exchange risk primarily related to cash and cash equivalents in U.S. dollars [767]. - A hypothetical 10% appreciation of the RMB against the U.S. dollar would have resulted in a decrease of RMB18.84 million in the value of U.S. dollar-denominated financial assets as of May 31, 2022 [769]. - The company has not hedged exposures denominated in foreign currencies, and the value of investments in ADSs will be affected by the foreign exchange rate between U.S. dollars and RMB [767]. Investor Relations and Costs - The depositary has agreed to reimburse the company US15 million for expenses related to the investor relations program, which has been recognized in other income [778]. - Investors requesting the transfer of common shares will bear all associated costs, including a fee of HK2.50foreachtransferofcommonshares[791].−HoldersofcommonsharesandADSsmustpayuptoUS2.50 for each transfer of common shares [791]. - Holders of common shares and ADSs must pay up to US5.00 per 100 ADSs for each issuance or cancellation related to the ADS program [791]. Transaction Costs - The transaction costs for dealings in common shares on the Hong Kong Stock Exchange include a trading fee of 0.005% of the transaction consideration, charged to both buyer and seller [779]. Share Registration and Compliance - The company intends to move a portion of its issued common shares from the Cayman Islands register to the Hong Kong share register to facilitate fungibility and conversion between ADSs and common shares [783]. - The depositary may require satisfactory proof of identity and compliance with established procedures before issuing ADSs or permitting withdrawal of common shares [789]. Fees and Deductions - The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees [777]. Financial Health - There are no defaults, dividend arrearages, or delinquencies reported by the company [792].