BEIJING, Nov. 14, 2021 /PRNewswire/ -- New Oriental
Education & Technology Group Inc. ("New Oriental" or the
"Company") (NYSE: EDU and SEHK: 9901), a provider of private
educational services in China,
today provided business updates following the recent regulatory
developments relating to after-school tutoring services, including
the Opinions on Further Alleviating the Burden of Homework and
After-School Tutoring for Students in Compulsory Education,
published in July 2021 by the General
Office of the CPC Central Committee and the General Office of the
State Council (the "Opinion") and the related implementation rules,
regulations and measures promulgated by competent authorities.
In compliance with the Opinion and applicable rules, regulations
and measures, the Company plans to cease offering tutoring services
related to academic subjects to students from kindergarten through
grade nine ("K-9 Academic AST Services") at all learning centers
across China by the end of 2021.
The Company expects that the cessation will have a substantial
adverse impact on the Company's revenues for the fiscal year ending
May 31, 2022 and subsequent periods.
In the fiscal years ended May 31,
2020 and 2021, the revenues from offering K-9 Academic AST
Services accounted for approximately 50% to 60% of the Company's
total revenues for each fiscal year.
The Company remains fully dedicated to its students, teaching
staff and shareholders. The Company will shift its focus and
resources towards educational products and services that are not
related to K-9 Academic AST Services, such as its test preparation
courses, language training courses for adults and educational
materials. The Company will also continue to explore new business
opportunities and growth initiatives. With respect to the Company's
online education services, the Company's majority-owned subsidiary,
Koolearn Technology Holding Limited (SEHK: 1797), previously
announced its update on business operations on October 25, 2021, which can be accessed on The
Stock Exchange of Hong Kong Limited's website at
http://www.hkexnews.hk.
The Company will continue to seek guidance from and cooperate
with government authorities in various provinces and municipalities
in China in connection with its
efforts to comply with the policy directives of the Opinion and any
related implementation rules, regulations and measures. The Company
will further adjust its business operations as required, and update
its shareholders as appropriate.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. New Oriental may
also make written or oral forward-looking statements in its reports
filed or furnished to the U.S. Securities and Exchange Commission,
in its annual reports to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about New Oriental's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our ability to attract students without a
significant decrease in course fees; our ability to continue to
hire, train and retain qualified teachers; our ability to maintain
and enhance our "New Oriental" brand; our ability to effectively
and efficiently manage the changes of our school network and
successfully execute our strategy; the outcome of ongoing, or any
future, litigation or arbitration, including those relating to
copyright and other intellectual property rights; competition in
the private education sector in China; changes in our revenues and
certain cost or expense items as a percentage of our revenues; the
expected changes of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with
the Securities and Exchange Commission. New Oriental does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
this press release, and New Oriental undertakes no duty to update
such information, except as required under applicable law.
About New Oriental
New Oriental is a provider of private educational services in
China offering a wide range of
educational programs, services and products to a varied student
population throughout China. New
Oriental's program, service and product offerings mainly consist of
test preparation, language training for adults, education materials
and distribution, online education, and other services. New
Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK),
respectively. New Oriental's ADSs, each of which represents one
common share. The Hong Kong-listed
shares are fully fungible with the ADSs listed on NYSE.
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Contacts
For investor and media inquiries, please contact:
Ms. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
Ms. Rita Fong / Mr. Michael Luk
FTI Consulting
Tel: +852 3768 4548 / +852 3768 4569
Email: rita.fong@fticonsulting.com /
michael.luk@fticonsulting.com
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SOURCE New Oriental Education and Technology Group Inc.