New Oriental
| Company type | Public |
|---|---|
| Industry | Education |
| Founded | November 16, 1993 in Beijing, China |
| Founder | Yu Minhong |
| Headquarters | Haidian District, Beijing , China |
Area served | China |
Key people | Yu Minhong (Chairman), Louis Hsieh (former CFO and president) |
| Products | Education services including early childhood education, test preparation, digital learning platforms, overseas study consulting, textbook publishing |
Number of employees | Approximately 60,000 (before reduction in 2022) |
| Website | www |
New Oriental Education & Technology Group Inc. (, , ), widely known as New Oriental (), stands as the foremost private education service provider in China by breadth of programs, number of enrolled students, and regional coverage. Based in Haidian District, Beijing, its operations cover early childhood education, comprehensive courses for various age groups, digital learning platforms, overseas study consulting services, and textbook publishing.
Established in 1993, New Oriental was the pioneer Chinese education firm to be publicly traded on the New York Stock Exchange through its initial public offering in 2006. By 2016, its network included 67 short-term language schools, 20 bookstores, 771 learning centers, and more than 5,000 affiliated bookstores spanning 56 cities throughout China. The organization has served upwards of 26.6 million learners, with over 1.3 million enrollments recorded in the first quarter of 2017 alone. Its market value reached nearly US$14 billion.
Since 2015, New Oriental has notably increased its focus on online education investments to meet the rising demand for digital learning solutions.
History
The inception of Beijing New Oriental School took place on November 16, 1993, founded by Yu Minhong (Michael Yu), an alumnus of Peking University with a background in English instruction. Initially concentrating on TOEFL and GRE test preparation, the institution broadened its curriculum to encompass a variety of test prep and educational programs. On September 7, 2006, New Oriental made its debut on the New York Stock Exchange.
The company
As of 2016, New Oriental managed a total of 67 educational establishments including schools, learning centers, vocational training facilities, and administrative offices across Mainland China. The company’s main income derives from its Overseas Tests Department, which specializes in coaching for exams such as TOEFL, SAT, ACT, GRE, GMAT, IELTS, and LSAT. Other offerings encompass Domestic Tests preparation, Adult English classes, foreign language courses (including Japanese, Spanish, and French), as well as seasonal training programs.
Key people
Yu Minhong (born October 15, 1962), also known as Michael Yu, held the position of CEO between 2001 and 2016 and has been serving as chairman since 2001. Prior to founding New Oriental, he was an English instructor at Peking University from 1985 until 1991. Yu is additionally a Standing Committee Member of the Central Committee of the China Democratic League.
Louis Hsieh fulfilled the role of CFO from 2005 through 2015 and served as president from 2009 to 2016.
Legal conflicts with ETS
In 2001, the US-based Educational Testing Service (ETS) issued warnings to universities regarding GRE scores from Chinese applicants amid allegations that New Oriental incorporated unauthorized past test questions into their teaching materials. That year also saw ETS initiate legal action against New Oriental for illicit reproduction, publication, and sale of exam questions dating back to 1997.
On September 27, 2003, Beijing’s First Intermediate People’s Court mandated that New Oriental compensate ETS with damages exceeding 10 million yuan (roughly $1.2 million). This verdict was later affirmed by the Higher People’s Court but with a reduction in damages to approximately 3.74 million yuan ($450,624) plus legal costs.
Transformation
In July 2016, New Oriental extended its online tutoring services to smaller cities categorized as third- and fourth-tier via its Koolearn platform. By May 31, 2021, Koolearn had expanded operations to cover 273 cities across 27 provinces. Koolearn went public on the Hong Kong Stock Exchange (stock code: 01797) on March 28, 2019.
Following the government’s September 2021 prohibition on profit-driven tutoring for school subjects, New Oriental experienced considerable challenges. By January 2022, the company had reduced its workforce by approximately 60,000 employees and witnessed an operating income decline of about 80%, illustrating the severe repercussions of regulatory constraints on China’s private education industry.
On December 28, 2021, New Oriental launched "Oriental Select," a live-streaming e-commerce channel hosted on Douyin (China’s TikTok), marking a strategic shift toward agricultural product sales. Concurrently, Koolearn Technology Holding rebranded itself as East Buy and transitioned from educational services to online retail by capitalizing on former educators’ communication skills and presentation abilities—highlighted by prominent streamer Dong Yuhui.
Growth and Development
East Buy experienced swift expansion by leveraging former educators as livestream presenters. The firm aimed to broaden its live streaming presence to Alibaba's Taobao platform, along with other outlets such as Douyin and its proprietary mobile application. For the 2023 fiscal year, East Buy's live commerce was anticipated to surpass CNY 10 billion (around USD 1.4 billion) in gross merchandise volume.
Controversy and Resolution Surrounding Dong Yuhui
Between December 5 and 18, 2023, a dispute emerged after East Buy disclosed that the promotional scripts used by prominent streamer Dong Yuhui were developed collaboratively, challenging fans' prior assumption that Dong was the sole author. This revelation triggered backlash, resulting in an apology from founder Yu Minhong and former CEO Sun Dongxu for management errors that led to a decline in followers and a drop in stock value. Supporters boycotted Oriental Select, redirecting their allegiance to rival Gaotu amid allegations of misappropriated credit.
Sun Dongxu refuted claims of mistreatment toward Dong and criticized the intense fan culture; meanwhile, Dong acknowledged the collaborative nature of the scripts. Despite these clarifications, the loss of followers and stock depreciation persisted, culminating in Sun Dongxu's removal and Yu Minhong's temporary return as CEO.
During a livestream with Yu Minhong, Dong Yuhui affirmed his continued collaboration with East Buy. The company announced his comeback to live streaming on December 18 as a senior partner. Furthermore, Dong received appointments as assistant to the chairman for cultural affairs and vice-president at New Oriental Culture and Tourism Group. Following these developments, East Buy's shares experienced a surge exceeding 21% in trading activity.
See also
- American Dreams in China, a motion picture portraying the company
- Andrew Left
- Dong Yuhui, prominent figure at New Oriental
- Yu Minhong, founder