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Original title: Spend 25 million! Yu Minhong increased his holdings for two consecutive days, and New Oriental Online’s share price soared by 20%
Every edit: Huang Sheng
On November 23, according to the Shanghai Securities News, after announcing the donation of desks and chairs and an effort to help farmers broadcast live, Yu Minhong made another move.
Increase holdings for two consecutive days and spend 25 million
According to data from the Hong Kong Stock Exchange, Yu Minhong increased his shares in New Oriental Online for two consecutive days on November 17 and 18, involving a total of nearly 25 million Hong Kong dollars.
Specifically, Yu Minhong increased his holdings of 1.429 million shares at an average price of HK$6.947 per share on November 17, involving approximately HK$9.927 million in funds. On November 18, Yu Minhong increased his holdings of 2.143 million shares at an average price of HK$7.031 per share, involving approximately HK$15.067,000.
On November 22, New Oriental Online’s share price went higher after the opening, closing at 8.49 Hong Kong dollars, an increase of 23.04%. On the same day, New Oriental-S, the controlling shareholder of New Oriental Online, also closed up 5.77%. (In early trading on November 23, New Oriental Online (01797.HK) rose 7.42%, and New Oriental (09901.HK) rose 4.18%.)
On November 23, New Oriental Online’s share price continued to rise, opening at 8.62 Hong Kong dollars. As of press time, New Oriental Online’s share price reported 9.37 Hong Kong dollars, an increase of 10.365%.
Behind the stock price rebound, in addition to Yu Minhong’s increase in holdings, it also reflects that the market’s attitude towards New Oriental Online is changing.
All this may be due to a series of transformation measures led by Yu Minhong in the past month or so.
Shut down the K-9 subject-based off-campus training business
According to data, New Oriental Online was established in 2005 as a newOriental GroupAn independent Internet online education company under its umbrella. The company provides courses and products in 3 business divisions in various forms through different online platforms and mobile applications, namely the university education, K-12 education and preschool education divisions.
At the end of October, New Oriental Online announced that it would stop operating out-of-school training services for subjects from kindergarten to grade 9 (hereinafter referred to as K-9) in Mainland China, and the termination is expected to take effect before the end of November 2021.
According to estimates by the New Oriental Online Board of Directors, for the two fiscal years ending May 31, 2021, K-9 business accounts for approximately 58% to 73% of its K-12 education division based on total revenue contribution. As of May 31, 2021, the K-12 division of New Oriental Online’s fiscal year 2021 achieved revenue of approximately RMB 787 million, accounting for approximately 55% of the company’s overall revenue during the same period.
New Oriental-S, the controlling shareholder of New Oriental Online, also announced in mid-November that it plans to no longer provide subject-related training services to students from kindergarten to grade 9 by the end of 2021 in all learning centers across the country.
At the same time as the end of the K-9 subject-based off-campus training service, Yu Minhong announced that he would donate tens of thousands of sets of desks and chairs from New Oriental to rural schools. This move welcomed the applause of many netizens.
Facing the next stage, New Oriental Online stated in the announcement that the company will continue to operate business parts that are not related to compulsory education, and will shift its focus and resources to enhance other education products and services, and explore new business opportunities.
New Oriental-S also stated that it will shift its business focus and resources to test preparation courses, adult language training courses and textbooks, and other educational products and services that have nothing to do with K-9 subject training services. The company will also continue to explore new business opportunities and growth initiatives.
Efforts to help farmers live broadcast
Agricultural productsLive broadcast is one of Yu Minhong’s favored transformation directions.
In early November, Yu Minhong stated in the live broadcast that New Oriental plans to establish a large-scale agricultural platform in the future, and he and hundreds of teachers will bring goods through the live broadcast to help sell agricultural products and support the cause of rural revitalization.
According to the Shanghai Securities News, on October 27, Oriental Optimal (Beijing) Technology Co., Ltd. (hereinafter referred to as “Orient Optimal”), wholly-owned by Beijing New Oriental Xuncheng Network Technology Co., Ltd., was established.
Oriental Optimal has a registered capital of RMB 10 million and its legal representative is Sun Dongxu. Its business scope includes the sale of fresh meat, poultry eggs, aquatic products, fresh fruits, fresh vegetables, and edible agricultural products.
It is reported that Beijing New Oriental Xuncheng Network Technology Co., Ltd. is one of the operating entities of New Oriental Online. Sun Dongxu is the executive director and chief executive officer of New Oriental Online.
According to public reports, New Oriental Online said in an interview with the media that helping farmers live broadcast is a new business attempt. It is still in the exploratory stage and the detailed plan is under development.
“If New Oriental brings the goods live, it still has to learn from Li Jiaqi or Wei Ya.” Yu Minhong also recently responded to the issue of “helping farmers live broadcast” and admitted frankly that things may not necessarily be done, but New Oriental must work hard 100%. Go in the direction of success.
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