New Oriental, China’s largest private education provider, released its unaudited financial results for the second fiscal quarter of 2020, revealing a 31.5% increase in quarterly net revenue year-on-year.
With a 63.3% increase in quarterly student enrolments over 2019 – during which it also saw growth attributed to its K-12 sector – the number of students hit 3,789,200 across 1,304 schools and learning centres.
“During this quarter, we added a net of 41 learning centres in existing cities”
“We are very pleased to report a set of solid financial results in the second fiscal quarter of this year, delivering both accelerated top-line growth and continued operating margin expansion,” said New Oriental executive chairman, Michael Yu Minhong.
“The K-12 after-school tutoring business continued its strong momentum, and achieved a year-over-year revenue growth of approximately 46%, or 49% if measured in renminbi.”
The company also reported growth in after school tutoring for middle and high schools subjects and its POP Kids program.
It has also been expanding its existing presence in cities where it sees “potential for rapid growth and strong profitability”.
“During this quarter, we added a net of 41 learning centres in existing cities, opened a new training school in the city of Huizhou, and launched a dual-teacher model in a school in the city of Chengde,” Zhou Chenggang, New Oriental’s chief executive officer, said.
“We are very encouraged to have received positive feedback from our customers, and see sustained improvement in customer retention rate.
“We also continued to make strategic investments into our dual-teacher model classes as well as new initiatives in K-12 tutoring on our pure online education platform, Koolearn.com, to leverage our advanced teaching resources in lower tiers cities and remote areas.”
For the third quarter, which ends on February 29, the company expects total net revenues between US$983.0 million and $1,006.4 million, a year-on-year growth of 23% to 26%.
New Oriental was established in 1993 in Beijing and has since developed to provide a range of services including language tutoring, study abroad consulting, test preparation and vocational training.
