4.8 billion in goods in half a year! The report card of Oriental Selection is here. The stock price has increased 14 times and its market capitalization exceeds that of the parent company.

On January 17, New Oriental Online (1797.HK), which will be renamed "Oriental Selection", officially announced its results for the first half of fiscal year 2023 (June 1 to November 30, 2022).

Since this performance period basically covers the most popular months of live streaming after Dongfang Selection was selected last year, it has attracted much attention from the market.

The financial report shows that New Oriental Online’s total revenue in the first half of fiscal year 2023 reached 2.08 billion yuan, an increase of 262.7% from 573 million yuan in the same period of fiscal year 2022, and its pre-tax profit reached 760 million yuan.

From June to November 2022, New Oriental’s online gross merchandise volume (GMV) reached 4.8 billion yuan, with 35.2 million followers on Douyin and 70.2 million paid orders on the Douyin platform.

4.8 billion yuan in goods in the first half of the year

Interim results show that New Oriental Online’s total revenue from June to November 2022 reached 2.08 billion yuan, compared with 573 million yuan in the same period of fiscal year 2022 An increase of 262.7. Net profit from continuing operations and discontinued operations increased by 20.76 billion yuan from a loss of 544 million yuan to 585 million yuan.

New Oriental Online stated that the company’s rapid growth during the reporting period was mainly due to the company’s significant progress in its strategic transformation from focusing on online education to self-operated products and live broadcast e-commerce.

In June 2022, Oriental Selection, the live streaming delivery business operated by New Oriental Online, suddenly became popular. The interim results released this time can basically reflect the sales situation of Oriental Selection during the peak period of last year.

The announcement released three core data. From June to November 2022, New Oriental's online gross merchandise volume (GMV) reached 4.8 billion yuan, with 35.2 million followers on Douyin and 70.2 million paid orders on the Douyin platform.

New Oriental Online stated that since 2021, the company has expanded its live broadcast e-commerce business and established Oriental Selection. During the reporting period, the company's self-operated products and live broadcast e-commerce business made significant progress, and self-operated products and live broadcast e-commerce business have become the company's main long-term growth drivers.

Yu Minhong, chairman of New Oriental Online, also said that the development of Oriental Selection has undoubtedly brought more optimism and firmer development confidence to the company.

“We are also very grateful for the love and support from all parties who gave us this opportunity. Today’s results are only the first step in a long journey of thousands of miles. There are still too many things to do in the future to provide customers and society with Create more value and promote our continued development and growth in innovative and sustainable ways," said Yu Minhong.

Income from self-operated products exceeds 1 billion yuan

According to a previous review by Securities Times e Company reporters, an obvious change in Oriental Selection in the past six months is the self-operated products in the live broadcast The proportion increased significantly. Currently, most of the top ten products sold in its live broadcast are self-operated products.

The announcement also shows that Oriental Selection is continuously broadening and enriching product selections and SKUs. As of the end of November 2022, Oriental Selection has provided 65 self-operated products. Including different flavors of black pork sausage, Wuchang rice, blueberry and other popular products. From June to November 2022, the total revenue of its self-operated products exceeded 1 billion yuan.

New Oriental Online stated that the company has realized the huge potential of self-operated products and will continue to build and strengthen a team of product managers dedicated to providing high-quality products.

In order to optimize the service experience of self-operated products, Oriental Selection has established in-depth cooperation with SF Express and JD Logistics to improve the delivery quality and cold chain delivery scope.

Another change in Oriental Selection in the past six months is that the live broadcast matrix is ??gradually being improved. The report also shows that Dongfang Selection has opened 6 live broadcast accounts on Douyin. The fans of Dongfang Selection Books, Dongfang Selection Beautiful Life and other accounts have exceeded 7 million, forming a live broadcast matrix.

At present, Oriental Selection is basically only broadcast live on the Douyin platform. GMVs from Douyin account for the vast majority of Oriental Selection. In August last year, there were rumors that Oriental Selection was being restricted by Douyin, and the company's stock price fell by nearly 10%.

This report shows that because the interests and brands of Oriental Selection and Douyin are highly consistent, the two parties have established a long-term and in-depth cooperation. The company said that with its cooperation with Douyin, Oriental Selection will benefit from the comprehensive support provided by the Douyin platform.

The number of students in university education has increased

In addition to live streaming, New Oriental Online currently still has some education business. It mainly provides university examination preparation and overseas examination preparation courses, targeting university students and working professionals who are taking postgraduate entrance examinations and who want to improve their English proficiency.

During the reporting period, the number of paying students in the education part of New Oriental Online University reached 315,000, an increase of 145,000 from 275,000 in the same period in 2021. The average expenditure per paying student is 1,025 yuan, which is basically the same as the 1,023 yuan in the same period in 2021.

From June to November 2021, the number of paying students in New Oriental Online’s K12 education business reached 1.867 million. At the end of 2021, New Oriental Online has terminated its preschool and K12 business. In this report, the number of students in this part is zero.

Although the live streaming business is booming, judging from the announcement, New Oriental Online has not given up on education-related businesses. The company said that the total number of paid students has increased significantly during the 2022 exam season, indicating that the product has great potential. The company will continue to focus on developing customized courses for vocational students, re-examination students, and expand its product range to include high-end English learning products.

Leveraging its experience in live streaming to bring goods, New Oriental Online has also created education business accounts on Douyin and Xiaohongshu, attracting new users through live broadcasts, holding events, etc., and bringing new growth points.

The stock price has increased 14 times, and the market value exceeds that of the parent company

New Oriental Online has made remarkable achievements in transformation. Since June last year, the company’s stock price has also risen. Data shows that from June 9, 2022 to January 17, 2023, New Oriental Online increased by 1,440.

As of January 17, New Oriental Online's share price was HK$67.3, and its total market value had climbed to approximately HK$67.8 billion, not only far higher than before the "double reduction", but also surpassed its parent company New Oriental.

From June 9 last year to January 17 this year, New Oriental’s Hong Kong stock price also rose by 188, but as of January 17, New Oriental’s market value was approximately HK$57.9 billion, which was nearly 10 billion lower than New Oriental Online. Hong Kong dollar.

The 2022 annual report shows that New Oriental directly holds 55.68 shares of New Oriental Online.

In an announcement on the evening of the 17th, New Oriental Online stated that Oriental Selection has benefited from the brand awareness accumulated by parent company New Oriental for 29 years. Relying on New Oriental Group's brand, Oriental Selection can reduce brand and marketing costs, thereby investing more resources to enhance its core competitiveness.

New Oriental Online also stated that the company uses New Oriental Group's corporate culture and various forms of recruitment incentives to attract and cultivate outstanding and long-term stable talents, and provide talent support for the continued growth of Oriental Selection.