New Oriental Education & Technology Group Inc.

What they do

New Oriental provides educational services and holds a portfolio of equity investments in education, technology, tourism and consumer businesses. The filings describe investments in companies such as Thaiwoo Management (real estate and ski resort operation), Golden Finance, Happy Seed, Uhozz, Mobvoi, Songtsam, EEO, and funds including Education Industry Fund and VM EDU Fund I.

Revenue drivers

• Educational services — The company's primary operations are in education and technology, though the provided excerpts do not give a segment-level revenue breakdown for fiscal 2025.
• Investment portfolio gains/losses — The company holds available-for-sale investments with a fair value of US$130,539 as of May 31, 2025, and equity method investments including Thaiwoo Management (35.0% interest) and Education Industry Fund (36.3% interest).
• Equity securities with readily determinable fair value — Mobvoi Inc. completed an IPO in April 2024; for fiscal 2025 a loss of US$14,508 was recorded from fair value changes on this investment.

Recent performance

For fiscal 2025 (ended May 31, 2025), New Oriental reported revenue of $4.90B, net income of $371.7M, and operating cash flow of $896.6M. This compares to fiscal 2024 revenue of $4.31B, net income of $309.6M, and operating cash flow of $1.12B. The company repurchased 7,811,753 ADSs for US$445.5M during fiscal 2025 under a US$700M share repurchase program that expired May 31, 2025. Total assets were $7.81B, total liabilities $3.85B, and shareholder equity $3.66B as of May 31, 2025. Cash and equivalents were $1.61B at fiscal year-end.

Strategy

The company continues to invest in a range of education and technology businesses, including equity method investments in Thaiwoo Management, Education Industry Fund, and VM EDU Fund I. It also holds available-for-sale investments in private companies such as Golden Finance, Happy Seed, and Uhozz. In fiscal 2025, the company provided loans of US$6,371 to Thaiwoo Management. The board authorized a US$700M share repurchase program that was fully utilized by May 31, 2025. The company also holds a 12.4% equity interest in Songtsam, increased by an additional 6.0% in November 2024.

Risks

• Investment concentration and volatility — The company holds significant equity investments, including a US$14,508 fair value loss on Mobvoi in fiscal 2025 and a US$1,772 loss on Sunlands, exposing results to market fluctuations.
• Impairment risk on investments — The company recorded impairment losses of US$4,412 on available-for-sale investments and US$803 on other investments in fiscal 2025.
• Related-party transactions — The company leases properties from Metropolis, an entity acquired by a company wholly-owned by chairman Mr. Yu, with right-of-use assets of US$17,350 and lease liabilities of US$17,193 as of May 31, 2025.
• Dependence on key personnel and chairman — Mr. Yu, the chairman, has interests in entities such as Metropolis and Education Industry Fund, creating potential conflicts of interest.

Outlook

The provided excerpts do not include forward-looking guidance or management outlook statements for fiscal 2026. The company's recent investments and share repurchases indicate a continued focus on portfolio management and capital return. However, no specific revenue or earnings projections are disclosed in the source material.