Is New Oriental going to be listed in Hong Kong? Yu Minhong shares 13percent and net profit declines by more than 70percent

 Is New Oriental going to be listed in Hong Kong? Yu Minhong shares 13percent and net profit declines by more than 70percent

Yu Minhong shares 13%

It is reported that the history of New Oriental can be traced back to 1993. In 2006, the company successfully landed in NYSE by issuing ads with the stock code of edu.

According to public information, the company is the largest private education service institution in China. At present, its main source of income comes from the education projects and services business (providing courses and services through schools, learning centers and bookstores), including K12 and studying abroad business, which accounts for more than 80% of its total income.

According to wind data, as of the end of 2019, Yu Minhong, the founder of the company, held 13.43% of the shares and Davis selected advisors, the second largest shareholder, held 6.49%. The reporter learned from public information that Davis selected advisors is an investment management company headquartered in Arizona, USA.

In terms of shareholding ratio, Yu Minhong holds the market value of New Oriental nearly 3 billion US dollars. According to the Hurun global rich list in 2020, Yu Minhong is worth 25 billion yuan, ranking 762.

In March 2019, New Oriental spin off subsidiary New Oriental online went to Hong Kong for listing. It is reported that New Oriental online, established in 2018, is an online education service provider. So, what is the rationality of the New Oriental, which has just split up its subsidiary, to be listed in Hong Kong for the second time?

Li Daxiao, chief economist of Yingda securities, told the IPO daily, in recent years, there are many returns of China General stocks, such as Ali, Netease, Jingdong, etc., so new Oriental may go to Hong Kong for secondary listing, and this is a quite good choice at present. The reason is that there is a certain uncertainty in the external environment. Although there may be more procedures to be handled, there are multiple channels to achieve the goal of advancing, attacking and retreating.

As for the Hong Kong stock market, Dong Yizhi, an investment finance lawyer, told the IPO daily that there are some reasons why more Chinese capital stocks have chosen Hong Kong stocks recently. For example, the Hong Kong stock market is not only closely connected with the international market, but also connected with the A-share market.

Net profit fell by nearly 70%

By the end of May 2020, the total number of schools and learning centers established by the company was 1465, an increase of 211 compared with the same period before, including 104 schools; 26.3% new students were added in the whole fiscal year.

According to the disclosure, New Orientals net income in the fourth quarter of 2020 was $798 million, a year-on-year decrease of 5.3%; at the same time, the companys net profit was 13.2 million US dollars, a sharp decline of 69.5% year-on-year. Among them, the companys revenue and cost increased by 5.3 percentage points to 391 million US dollars, mainly due to the increase of teachers salary and housing rental expenses; the marketing and marketing expenses increased by 11.4% year-on-year.

In this regard, Yu Minhong, founder of New Oriental, said that the new crown epidemic has brought continuous pressure on the companys business, facing challenges in consumer development, and many delays in summer courses. Among them, the overseas business, one of the companys core businesses, fell by about 52% in the fourth quarter due to the postponement of overseas examinations and studying abroad.

The financial report also pointed out that in view of the uncertainties brought about by the new epidemic, the company conservatively predicted that the net income of the first quarter of 2021 (from June 1, 2020 to August 31, 2020) would be between us $911 million and US $954 million, with a year-on-year decrease of 11-15 percentage points.

Once short

In addition, wind shows that New Oriental has refinanced only in February 2007, when it issued 7 million shares and raised $291 million.

However, on the contrary, after the New Oriental, there was not a lot of foreign investment.

According to Tianyan information, there are 77 investment events related to New Oriental, including 10 in 2019, namely micro language, Xingji school, Marco Polo learning, Dole bear, ahaschool, science team leader, Shengtong shares, SZTV, Tianli education and micro language. Eight of these 10 items are education and training, and the other two are manufacturing and entertainment media. In addition, in terms of regions, 7 of the 10 items are in Beijing, 1 in Shanghai, 1 in Jiangsu and 1 in the United States.

Investment event information source: tianyancha

In addition, since the beginning of this year, more and more companies may seek to be listed in Hong Kong with the increase of the threshold for US stocks to list in Hong Kong. The HKEx will benefit directly from this return tide.

Reporter Yang Ziwei Zou Xuchen

Editor Wu Mingzhou

Sun Xiao, editor in charge