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NEW ORIENTAL(EDU) - 2024 Q2 - Quarterly Report
EDUNEW ORIENTAL(EDU)2024-01-23 16:00
Transcript

Financial Performance - Total net revenues for the second fiscal quarter of 2024 increased by 36.3% year over year to US869.6million[2]−OperatingincomewasUS869.6 million[2] - Operating income was US21.3 million, compared to a loss of US2.5millioninthesameperiodofthepriorfiscalyear,representinga957.82.5 million in the same period of the prior fiscal year, representing a 957.8% increase[3] - Net income attributable to New Oriental surged by 4,007.4% year over year to US30.1 million for the second fiscal quarter of 2024[3] - Non-GAAP net income attributable to New Oriental for the quarter was US50.2million,representinga182.650.2 million, representing a 182.6% increase year over year[13] - New Oriental's net income for the three months ended November 30, 2023, was RMB30,066 (US4.2 million), compared to RMB732 (US0.1million)inthesameperiodoftheprioryear[30]−Non−GAAPnetincomeattributabletoNewOrientalforthethreemonthsendedNovember30,2023,was0.1 million) in the same period of the prior year[30] - Non-GAAP net income attributable to New Oriental for the three months ended November 30, 2023, was 50,158 thousand, compared to 17,750thousandintheprioryear,representinganincreaseof18217,750 thousand in the prior year, representing an increase of 182%[32] - For the six months ended November 30, 2023, net revenues were 1,969,621 thousand, a 42.3% increase from 1,383,036thousandinthesameperiodof2022[38]−Thecompanyreportedanetincomeof1,383,036 thousand in the same period of 2022[38] - The company reported a net income of 214.866 million for the six months ended November 30, 2023, compared to 101.167millionforthesameperiodin2022,reflectingayear−over−yearincreaseofapproximately112.3101.167 million for the same period in 2022, reflecting a year-over-year increase of approximately 112.3%[52] Business Growth - The total number of schools and learning centers reached 843, an increase of 50 compared to the previous quarter[5] - The overseas test preparation and overseas study consulting businesses grew by approximately 46.5% and 31.7% year over year, respectively[5] - New educational business initiatives achieved 68.3% revenue growth year over year, with approximately 786,000 student enrollments in non-academic tutoring courses[6] - For the first six months ended November 30, 2023, East Buy recorded total revenue of RMB2,795.0 million (US386.3 million), a 34.4% increase from RMB2,080.1 million in the same period of the prior fiscal year[19] - East Buy's net profit for the same period was RMB249.2 million (US34.4million),a57.434.4 million), a 57.4% decrease from RMB585.3 million in the prior fiscal year[19] Cash Flow and Assets - Operating cash flow for the quarter was approximately US300.6 million, with cash and cash equivalents totaling around US4.8billion[6]−NewOriental′stotalcurrentassetsincreasedtoRMB4,976.9million(US4.8 billion[6] - New Oriental's total current assets increased to RMB4,976.9 million (US688.5 million) as of November 30, 2023, from RMB4,413.9 million (US610.5million)asofMay31,2023[29]−NewOriental′scashandcashequivalentsincreasedtoRMB1,942.6million(US610.5 million) as of May 31, 2023[29] - New Oriental's cash and cash equivalents increased to RMB1,942.6 million (US268.5 million) as of November 30, 2023, from RMB1,663.0 million (US230.5million)asofMay31,2023[29]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodonNovember30,2023,totaled230.5 million) as of May 31, 2023[29] - Cash, cash equivalents, and restricted cash at the end of the period on November 30, 2023, totaled 2,120,746 thousand, up from 1,122,824thousandayearearlier,markinganincreaseof88.91,122,824 thousand a year earlier, marking an increase of 88.9%[36] Liabilities and Equity - Total liabilities for New Oriental increased to RMB3,035.7 million (US420.5 million) as of November 30, 2023, compared to RMB2,577.7 million (US360.5million)asofMay31,2023[29]−ThetotalliabilitiesasofNovember30,2023,were360.5 million) as of May 31, 2023[29] - The total liabilities as of November 30, 2023, were 3.036 billion, which is consistent with the previous reporting period[53] - The company’s total equity as of November 30, 2023, was 4.075billion,aslightdecreasefrom4.075 billion, a slight decrease from 4.096 billion as of May 31, 2023[53] Future Outlook - New Oriental expects total net revenues in the third quarter of fiscal year 2024 to be in the range of US1,070.9milliontoUS1,070.9 million to US1,093.5 million, representing a year-over-year increase of 42% to 45%[20] Operating Costs - Total operating costs and expenses for the three months ended November 30, 2023, were 848,258thousand,upfrom848,258 thousand, up from 640,702 thousand in the same period of 2022, reflecting a 32.4% increase[32] - The cost of revenues for the six months ended November 30, 2023, was 860.411million,upfrom860.411 million, up from 638.174 million for the same period in 2022, representing an increase of approximately 34.7%[51] Tax and Fair Value Changes - The provision for income taxes for the six months ended November 30, 2023, was 74.231million,comparedto74.231 million, compared to 26.912 million for the same period in 2022, indicating an increase of approximately 175.5%[52] - The company recognized a gain from fair value change of investments amounting to 18.166millionforthesixmonthsendedNovember30,2023,comparedtoalossof18.166 million for the six months ended November 30, 2023, compared to a loss of 1.539 million for the same period in 2022[52] Accounting Policies - The adjustments made in the reconciliation of financial results under IFRSs reflect the different accounting treatments according to the Group's accounting policies, ensuring compliance with both US GAAP and IFRSs[49]