Financial Performance - For the second quarter of fiscal year 2021, net revenue increased by 13.1% to $887.7 million compared to the same period last year[5]. - The company reported an operating loss of $32.1 million for the second quarter, compared to an operating profit of $25.3 million in the same quarter last year[5]. - Net profit attributable to New Oriental shareholders was $53.9 million, reflecting a year-on-year increase of 0.9%[5]. - The company’s total net revenue for the first half of fiscal year 2021 was $1.87 billion, a slight increase of 0.9% from the previous year[7]. - The operating profit for the first half of fiscal year 2021 decreased by 56.5% to $118.2 million compared to $271.5 million in the previous year[7]. - Basic earnings per ADS for the second quarter was $0.33, a decrease of 0.9% from $0.34 in the same quarter last year[6]. - Non-GAAP net profit for the quarter was $69.1 million, a year-over-year increase of 21.3%[16]. - The company reported a net income excluding stock-based compensation and fair value changes, which is considered a key performance metric for evaluating operational efficiency[30]. - The company reported a net profit of $178,613,000 for the six months ended November 30, 2020, down from $252,811,000 in the same period of 2019[43]. - Non-GAAP net profit for the six months ended November 30, 2020, was $253,666,000, compared to $287,149,000 in the same period of 2019[46]. Student Enrollment and Business Growth - The number of student enrollments for the second quarter rose by 10.4% to approximately 4,183,100[9]. - Total number of schools and learning centers reached 1,518, an increase of 214 from 1,304 a year ago[9]. - The K-12 after-school education business saw significant revenue growth of approximately 26%, with middle school business up 27% and children's business up about 24% year-over-year[10]. - Total student enrollments for tutoring and exam preparation courses increased by 10.4% to approximately 4,183,100 in the second quarter[11]. - Revenue from K-12 after-school education business grew by 162.9% year-over-year, with paid student enrollments increasing by approximately 143.4%[20]. - The number of enrollments for DFUB courses and Koolearn K-12 courses increased by 170.3% and 134.4% year-over-year, respectively[20]. Operating Costs and Expenses - Operating costs and expenses for the quarter were $919.8 million, a year-over-year increase of 21.0%[12]. - Total operating expenses for the three months ended November 30, 2020, were $919,836,000, up 21.0% from $759,912,000 in the same period of 2019[37]. - General and administrative expenses for the six months ended November 30, 2020, were $24.55 million, compared to $21.61 million in 2019, marking an increase of about 14%[48]. - Sales and marketing expenses for the six months ended November 30, 2020, were $5.93 million, a significant increase from $0.57 million in 2019, indicating a rise of approximately 938%[48]. Cash and Liquidity - The cash and cash equivalents as of November 30, 2020, were $2,643.2 million, up from $915.1 million as of May 31, 2020[17]. - Cash and cash equivalents increased to $2,648,124,000 as of November 30, 2020, from $1,051,365,000 as of November 30, 2019[42]. - The ending cash, cash equivalents, and restricted cash balance as of November 30, 2020, was $2.65 billion, up from $1.05 billion in 2019, indicating a significant increase of approximately 152%[49]. - Net cash provided by operating activities for the six months ended November 30, 2020, was $802.28 million, an increase from $656.33 million in 2019, reflecting a growth of about 22%[49]. Future Outlook and Strategy - The company plans to focus more resources on its OMO strategy to expand service coverage to more cities and students[10]. - New Oriental Online plans to invest more resources in K-12 education business expansion, including content development, teacher recruitment and training, marketing, and R&D[20]. - The company expects net revenue for the third quarter of fiscal year 2021 to be between USD 1,098.6 million and USD 1,144.8 million, reflecting a year-over-year growth rate of 19% to 24%[23]. Stock Market and Corporate Actions - New Oriental successfully listed on the Hong Kong Stock Exchange on November 9, 2020, raising approximately HKD 11,493.2 million (USD 1,482.8 million) from the global offering[22]. - New Oriental's management will hold an earnings conference call on January 22, 2021, to discuss the financial results and future outlook[24]. Financial Position - Total current assets reached $6,364,220 thousand as of November 30, 2020, compared to $3,756,420 thousand as of May 31, 2020, indicating an increase of about 69%[32]. - Total liabilities amounted to $4,661,432 thousand as of November 30, 2020, up from $3,687,074 thousand as of May 31, 2020, reflecting a rise of approximately 26%[34]. - The company's total equity was $4,816,528 thousand as of November 30, 2020, compared to $2,869,811 thousand as of May 31, 2020, showing an increase of around 68%[35]. - The total assets of the company reached $9,477,960 thousand as of November 30, 2020, compared to $6,556,885 thousand as of May 31, 2020, indicating a growth of approximately 44%[32]. Non-GAAP Financial Metrics - Non-GAAP financial indicators are used to provide additional insights into operational performance by excluding stock-based compensation expenses and fair value changes of long-term investments[30]. - The company believes that Non-GAAP financial indicators are more helpful for management and investors in assessing performance and making future plans[30]. - The company has emphasized the importance of transparency in financial and operational decision-making through the use of Non-GAAP financial indicators[30]. - New Oriental's non-GAAP basic and diluted net profit per ADS for the six months ended November 30, 2020, was $1.58, down from $1.81 in 2019, reflecting a decrease of approximately 13%[47].
新东方-S(09901) - 2021 - 中期财报