Financial Performance - For the second quarter of fiscal year 2025, net revenue increased by 19.4% year-over-year to $1,038.6 million, with net revenue excluding certain product lines rising by 31.3% to $894.2 million[6]. - Operating profit for the second quarter decreased by 9.8% year-over-year to $19.3 million, while operating profit excluding certain product lines increased by 102.5% to $25.0 million[7]. - Net profit attributable to New Oriental shareholders rose by 6.2% year-over-year to $31.9 million[7]. - For the first half of fiscal year 2025, net revenue increased by 25.6% year-over-year to $2,474.1 million[8]. - The company reported a 41.9% year-over-year increase in net profit attributable to New Oriental shareholders for the first half, reaching $277.4 million[8]. - The company achieved a Non-GAAP operating profit of $27.6 million in the second quarter, with a GAAP operating profit margin of 2.8%, reflecting a year-over-year increase of 100 basis points[11]. - The Non-GAAP net profit attributable to New Oriental shareholders for the quarter was $35.5 million, a decrease of 29.1% year-over-year[21]. - Net revenue for the three months ended November 30, 2024, was $1,038,636, an increase of 19.5% compared to $869,600 for the same period in 2023[49]. - Operating profit for the same period was $19,255, representing a decrease of 9.8% from $21,342 in the prior year[49]. - Net profit attributable to shareholders was $31,931, up 6.2% from $30,066 in the previous year[49]. - Net revenue for the six months ended November 30, 2024, was $2,474,052, an increase from $1,969,621 in 2023, representing a growth of approximately 25.6%[60]. - Operating profit for the same period was $312,405, compared to $226,466 in 2023, reflecting a year-over-year increase of about 37.9%[60]. - Net profit attributable to shareholders was $277,361, up from $195,452 in the previous year, indicating a growth of approximately 41.9%[60]. Operational Efficiency - The company plans to continue focusing on improving operational efficiency and teaching space utilization in the second half of the fiscal year[11]. - The operating profit for the quarter was $19.3 million, a decline of 9.8% year-over-year, resulting in an operating profit margin of 1.9%[18]. - The company reported a non-GAAP operating profit margin of 2.7%, down from 5.9% in the prior year[51]. - The operating profit margin improved to 12.6% from 11.5% in the previous year, indicating enhanced operational efficiency[62]. Cash and Investments - Cash and cash equivalents, along with short-term investments, totaled approximately $4.8 billion at the end of the quarter[11]. - New Oriental's cash and cash equivalents as of November 30, 2024, amounted to $1,418.2 million, with deferred revenue increasing by 19.2% year-over-year to $1,960.6 million[23]. - Cash and cash equivalents increased to $1,418.2 million from $1,389.4 million, reflecting a growth of approximately 2.1%[44]. - Short-term investments decreased to $1,951.4 million from $2,065.6 million, a decline of about 5.5%[44]. - The ending cash and cash equivalents balance was $1,611,073, down from $2,120,746 in 2023, a decrease of approximately 24.0%[68]. Strategic Focus - The company emphasizes the importance of Non-GAAP financial metrics to provide additional insights into operational performance and liquidity[41]. - The management highlighted the ongoing risks and uncertainties in the private education sector in China, which may impact future performance[38]. - The company is focused on maintaining and enhancing the "New Oriental" brand while ensuring quality in teaching and services[38]. - Future strategies include potential market expansion and acquisitions to enhance service offerings and competitive positioning[38]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[73]. - The company is focused on enhancing its operational efficiency and exploring potential mergers and acquisitions to strengthen its market position[73]. Assets and Liabilities - As of November 30, 2024, total assets amounted to $7,634.5 million, an increase from $7,531.7 million as of May 31, 2024[44]. - Total liabilities increased to $3,652,857 as of November 30, 2024, compared to $3,482,659 as of May 31, 2024, reflecting a growth of 4.9%[46]. - Total equity decreased to $3,981,631 from $4,049,014, a decline of 1.7%[46]. - The company’s total assets were reported at $7.531673 billion, with total liabilities of $3.482659 billion[79]. - Shareholders' equity totaled $3.775934 billion, indicating a strong financial position[79]. Accounting Standards - The financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), with notable differences from IFRS[73]. - Adjustments under International Financial Reporting Standards (IFRS) showed a difference in reported figures, with significant impacts on revenue and expenses[73]. - The company recognizes compensation expenses using the graded attribution method after estimating forfeitures during the necessary service period according to international financial reporting standards[85]. - Under US GAAP, the amortization of right-of-use assets and interest expenses related to lease liabilities are recorded as lease expenses, resulting in a straight-line recognition effect in the profit and loss statement[85]. - The company applies the straight-line method for amortizing right-of-use assets, while interest expenses related to lease liabilities are measured at amortized cost according to international financial reporting standards[86].
新东方-S(09901) - 2025 - 中期财报