In the second half of this year, it was the second time for the company to make short bets in August.
market participants said that with the improvement of the regulatory threshold for China capital stock companies by US stocks, more and more China capital stock companies will seek secondary listing in Hong Kong, and the return tide of China capital stocks will become more and more intensive.
less than four months after Ruixing incident, Netease and Jingdong have been listed in Hong Kong for the second time. The news also said that century Internet, Wanguo data and Yum! China will soon log into the Hong Kong Stock Exchange Center again.
CICC published a research report, saying that the Hong Kong Stock Exchange (HKEx) has gone through a faster than expected process of listing in Hong Kong, with Alibaba as the representative. After the company’s secondary listing of Hong Kong shares, the company’s stocks are still in continuous conversion. At the same time, with the further expansion of trading volume in the local market, it is expected to help stimulate the profitability of the HKEx. Therefore, the target price of the HKEx was raised by 15% to HK $446.
and this is the second education enterprise that has been rumored to seek secondary listing in Hong Kong after tal (parent company of XRS) was reported to be going back to Hong Kong for secondary listing.
in fact, this is not the first time that New Oriental and tal have been passed back to Hong Kong for listing. As early as June 2020, it was revealed that the two education companies were discussing with some investment banks the possibility of re listing in Hong Kong, which was later denied by the two companies.
according to the financial report released by New Oriental on July 28, the company’s performance is not satisfactory. In the fourth quarter of fiscal year 2020 (from March 1, 2020 to May 31, 2020), the company’s revenue and net profit decreased.
during the reporting period, the company’s revenue was $799 million, a year-on-year decrease of 5.3%, and the net profit attributable to New Oriental was $13.2 million, down 69.5% year-on-year.
during the reporting period, the company’s revenue from VIP personalized courses decreased by 36% in US dollars. Among them, as some students chose to postpone the 1-to-1 learning plan, New Oriental’s yoneng VIP business decreased by 21% year-on-year.
tal achieved revenue of US $911 million in the first quarter of fiscal year 2021 (March 1, 2020 to May 31, 2020), with a year-on-year increase of 35.2%. The net profit attributable to common shareholders was $81.7 million, and the net loss of the same period last year was $16.2 million, turning losses into profits.
if the decline of New Oriental’s fourth quarter is mainly due to the lack of power in offline business, the suck of good future performance can be attributed to the development of online business.
according to the financial report, the growth of XRS online business in the first quarter exceeded 100%; the revenue of XRS online school accounted for 25% of the total revenue, the enrollment rate increased by 143%, and the income growth reached 133%; the number of long-term regular course students of the company was 2.956 million, an increase of 72.1% year-on-year.
all along, New Oriental has been relatively conservative. Recently, due to the impact of the epidemic, the pace of online education industry has accelerated. In the future, New Oriental may need some courage.