First, the double reduction policy.
At present, many training institutions have closed down, mainly because of the country's double reduction policy. I have to say that as soon as the policy comes down, how many training institutions disappear. Oriental Youbo is no exception. Fortunately, their company has sufficient funds for books, and will do a good job of refunding fees according to law and properly arrange employees' friends. In addition, Zhu Yu, vice president of New Oriental Online and CEO of Oriental Youbo, said that he plans to teach in mountainous areas for 1~2 years in the future, hoping to continue to make some contributions to educational public welfare. Among many training institutions, Dongfang Group has done a very good job. Their main business is live courses, mainly for students in K 12 stage. You know, before this, the financial report data of 20021fiscal year released by New Oriental Online showed that the number of paying students increased by 102%. In May this year, Oriental Youbo has entered 273 cities in China, and its expansion speed is very fast. Profitability is not a problem at all.
Second, the negative impact.
We know that the main business of Oriental Youbo is k 10, and when Oriental Youbo was in 202 1, I set up more than 70 branches with 3,200 insured employees, so the sudden closure of K 12 business will cause great losses to the company's main profitable business. Therefore, the share price of New Oriental Online has fallen by as much as 14.57%, and the total market value is still HK$ 4.753 billion, but the whole decline has been very large.
Third, responsible training institutions.
Compared with other institutions that put all their eggs in one basket before dying, or choose to refuse to deal with dismissed employees, the practice of New Oriental Online has been very reasonable and appropriate. Under the national policy, any organization must find ways to change its profit model.