Introduction to Oriental Selection Company: ★Oriental Selection is a live delivery platform launched by New Oriental Online, a subsidiary of New Oriental.
In 1993, Yu Minhong founded New Oriental School in Beijing.
In 2001, New Oriental Education Technology Group was established.
In 2005, New Oriental launched the online education platform New Oriental Online.
In 2021, the "double reduction" policy was introduced. At the end of the year, New Oriental's business was transformed, and Oriental Selection was born.
In June 2022, the Oriental Selection live broadcast room exploded, with the number of fans exceeding 20 million.
In 2023, the number of Oriental Selection accounts has grown from 1 to 6, and the number of fans has exceeded 30 million.
Business Segment★ In the first half of fiscal year 2023 (2022.6.1-20221130), the company achieved operating income of 2.08 billion yuan, a year-on-year increase of 262.69%.
Net profit attributable to parent companies was 585 million yuan, a year-on-year increase of 207.59%.
★Among the company's various businesses, revenue from self-operated and live broadcast e-commerce business was 1.766 billion yuan, revenue from university education was 295 million yuan, and finally institutional service revenue was 19 million yuan.
★The total gross profit was 983 million yuan, and the gross profit of self-operated and live broadcast e-commerce business reached 750 million yuan, accounting for 76%.
Business introduction ★ Let’s talk about the business model first. Oriental Selection is currently a live broadcast platform. The business model is to gain profits from selling its own products, while selling third-party products and earning profits by drawing commissions.
The sales channel is the account’s live broadcast room and the brand’s own influence.
Regarding core data, in the half year ending on November 30, 2022, GMV was 4.8 billion yuan, the number of fans was 35.2 million, and the orders were 70.2 million.
★In terms of products, the ability to select products is the core competency of a retail brand.
The products sold by Oriental Selection include self-operated products and third-party products, with agricultural products accounting for the vast majority.
As of the end of November 2022, the number of self-operated products is 65, including black pork sausage, Wuchang rice, blueberry puree, etc., with total revenue exceeding 1 billion yuan.
Adding commissions from third-party products, the total revenue from the live broadcast retail business was 1.766 billion yuan, accounting for 85% of the company's overall business.
★In terms of channels, Oriental Selection has begun matrix operations.
Currently *** has 6 live broadcast accounts. In addition to the core agricultural products, it also focuses on books, drinks, daily necessities, travel and other categories.
The total number of fans of the five new accounts has exceeded 8 million.
★Finally, the company also has university education and institutional service businesses. University education mainly provides examination training for college students, with 315,000 paying users.
Institutional services refer to providing technical support to institutions such as universities and public libraries.
★In terms of brand, the reason why Oriental Selection has become popular is not only New Oriental’s brand endorsement over the years, but more importantly, it has taken the direction of a channel brand.
Most of the products sold are non-standard products, making it difficult for consumers to find high-quality products, and Oriental Selection plays this role.
Core executive Yu Minhong: Born in 1962, received a bachelor's degree in English from Peking University in 1985.
Currently, he is a non-executive director, chairman of the nomination committee and chairman of the board of directors of New Oriental Online.
He founded New Oriental in 1993 and led New Oriental to be listed on the New York Stock Exchange in 2006.
In 2018, he led its subsidiary New Oriental Online to go public in Hong Kong.
Founded Oriental Selection in 2021.
In 2022, he ranked 789th on the "Hurun Rich List" with a wealth of 8.2 billion yuan.
Sun Dongxu: Born in 1985, received a bachelor's degree in engineering from Nankai University in 2007, majoring in computer science and technology. He is currently the executive director and CEO of New Oriental Online.
From 2007 to 2008, he served as a teacher in the foreign examination department of New Oriental Group. From 2008 to 2009, he served as the assistant director of the foreign examination department of Hefei New Oriental School. In 2016, he served as the principal of Xi'an New Oriental School and the president of the northwest region. He also served as the assistant vice president of New Oriental China.
In 2019, he served as Vice President of New Oriental China, and in 2021, he served as CEO of New Oriental Online.
Equity Structure ★ The company’s equity structure is clear. The largest shareholder is New Oriental Education, which lasts about 55.68%. The actual controller is Chairman Yu Minhong.
★Tencent is behind the investment in Image Architecture, and Yu Minhong’s mother is behind Tigerstep.
New Oriental Online Technology Holdings Co., Ltd.: New Oriental Education Technology Group: 55.68%.
Image Architecture Investment: 9.04%.
Tigerstep Developments Limited: 2.72%.
Sun Dongxu: 0.33%.
Others: 32.23%.
Financial indicators ★The company's revenue will increase significantly in fiscal year 2023, mainly due to the better development of live streaming e-commerce.
★The company's gross profit margin has dropped slightly compared to before 2020, because the gross profit margin of live streaming e-commerce is lower than that of education business.
Profits will start to turn around in fiscal year 2023.
★The company's debt ratio in the first half of fiscal year 2023 is 27.76%, which remains at a low level.
★The company's operating cash flow will be negative until fiscal year 2022, and is expected to improve in fiscal year 2023.
Environmental Society and Governance★Building a Green Home★Emission Management: Promote online office and video conferencing.