Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2015

 

 

Commission File Number: 001-32993

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

 

 

No. 6 Hai Dian Zhong Street

Haidian District

Beijing 100080, People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x             Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

New Oriental Education & Technology Group Inc.
By:  

/s/ Stephen Zhihui Yang

Name:   Stephen Zhihui Yang
Title:   Chief Financial Officer

Date: October 22, 2015


Exhibit Index

Exhibit 99.1 – Press Release

Exhibit 99.2 – Press Release

EX-99.1

Exhibit 99.1

New Oriental Announces Results for the First Fiscal Quarter Ended August 31, 2015

Quarterly Net Revenues Increased by 16.4% Year-Over-Year

Quarterly Student Enrollments Increased by 13.8% Year-Over-Year

Quarterly Operating Income Increased by 17.5% Year-Over-Year

Quarterly Net Income Attributable to New Oriental Increased by 14.4% Year-Over-Year

BEIJING Oct. 20, 2015 /PRNewswire/ — New Oriental Education and Technology Group Inc. (the “Company” or “New Oriental”) (NYSE: EDU), the largest provider of private educational services in China, today announced its unaudited financial results for the fiscal quarter ended August 31, 2015, which is the first quarter of New Oriental’s fiscal year 2016.

Financial Highlights for the First Fiscal Quarter Ended August 31, 2015

 

    Total net revenues increased by 16.4% year-over-year to US$458.5 million for the first fiscal quarter of 2016.

 

    Operating income increased by 17.5% year-over-year to US$129.8 million for the first fiscal quarter of 2016.

 

    Net income attributable to New Oriental increased by 14.4% year-over-year to US$128.5 million for the first fiscal quarter of 2016.

Key Financial Results

 

(in thousands US$, except per ADS(1) data)

   1Q FY2016      1Q FY2015      % of change  

Net revenues

     458,489         393,982         16.4

Operating income

     129,846         110,521         17.5

Non-GAAP operating income(2)(3)

     133,595         113,286         17.9

Net income attributable to New Oriental

     128,543         112,360         14.4

Non-GAAP net income attributable to New Oriental(2)(3)

     132,292         115,125         14.9

Net income per ADS attributable to New Oriental - basic

     0.82         0.71         15.2

Net income per ADS attributable to New Oriental - diluted

     0.82         0.71         15.5

Non-GAAP net income per ADS attributable to New Oriental - basic(3)(4)

     0.84         0.73         15.7

Non-GAAP net income per ADS attributable to New Oriental - diluted(3)(4)

     0.84         0.73         16.0

 

(1) Each ADS represents one common share.
(2) GAAP represents Generally Accepted Accounting Principles in the United States of America.
(3) New Oriental provides net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental on a non-GAAP basis that excludes share-based compensation expenses to provide supplemental information regarding its operating performance. For more information on these non-GAAP financial measures, please see the section captioned “About Non-GAAP Financial Measures” and the tables captioned “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” set forth at the end of this release.
(4) The Non-GAAP net income per ADS is computed using Non-GAAP net income and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.

Operating Highlights for the First Fiscal Quarter Ended August 31, 2015

 

    Total student enrollments in academic subjects tutoring and test preparation courses increased by 13.8% to 1,011,300 for the first fiscal quarter of 2016.

 

    The total number of schools and learning centers was 721 as of August 31, 2015, an increase of 10 compared to 711 as of August 31, 2014, and a decrease of 3 compared to 724 as of May 31, 2015. New Oriental added two new schools and closed a net of 5 learning centers in the quarter. The total number of schools was 62 and the total number of learning centers was 659 as of August 31, 2015.


Michael Minhong Yu, New Oriental’s Chairman and Chief Executive Officer, stated, “We are pleased to start fiscal 2016 with a robust top line growth of 16.4%, which exceeded the high end of our expected range. On top of this, we also experienced strong recovery of operating income which grew 17.5% and an increase in profit of 14.4% year-over-year. Also, we continued to experience burgeoning demand for New Oriental’s exceptional educational programs and service offerings despite the softening macroeconomic environment in China. Our company never ceases to improve and innovate our products and services in order to drive demand on all possible fronts. Further, it is important to note that we have found in other periods of economic downturn that education spending proves to be more resilient than most of the other consumer discretionary categories in China and this is being proven once again in the current environment. Turning to the specifics, in the first quarter, our solid revenue growth was mainly driven by total student enrollments, which were up 13.8% in the quarter. We were also encouraged by a strong increase in deferred revenue, which stood at US$511.7 million at the end of the first quarter, up over 28% year-over-year. Our key revenue driver, K-12 after-school tutoring business, had robust gross revenue growth of approximately 29% year-over-year and enrollment growth of over 23%. In particular, our revamped POP Kids program has achieved revenue growth of over 30% year-over-year for the first time since its launch in September 2014. Meanwhile, our U-Can Visible Progress Teaching system was successfully rolled out across all cities in New Oriental’s nationwide school network and the U-Can middle and high school all-subjects after-school tutoring business recorded gross revenue growth of more than 28% year-over-year and enrollment growth of approximately 24%.”

Mr. Yu continued, “In addition, as we kicked off the new fiscal year, further progress was made in executing the “Optimize the Market” strategy. We opened two new schools in the cities of Wenzhou and Quanzhou. We closed a net of 5 learning centers while expanded some existing learning centers by adding a total of approximately 11,000 square meters of additional classroom area. For the rest of fiscal 2016, we will remain fully committed to our expansion plan in existing cities and continue to look for profitable opportunities in new cities. The rollout of the online and offline integration in our key business lines, including U-Can Visible Progress Teaching system and POP Kids program, has been successful and has enabled us to capture extra growth. We also continued the investment in building our O2O integrated education ecosystem and this is progressing well. Furthermore, our pure online education platform, Koolearn.com, recorded revenue growth of approximately 32% year-over-year, with paid users up by more than 150%.”

Stephen Zhihui Yang, New Oriental’s Chief Financial Officer, commented, “While our overall top line performance rebounded this quarter, we also continued to focus on cost control across the organization. This meant that despite the heavy investment in our O2O integrated ecosystem, operating margin increased by 20 basis points from a year ago to 28.3%, which was mainly driven by the improved utilization of facilities as well as operational efficiency. Going forward, we will continue to work to deliver sustainable profitability as well as long-term shareholder value.”

Financial Results for the First Fiscal Quarter Ended August 31, 2015

Net Revenues

For the first fiscal quarter of 2016, New Oriental reported net revenues of US$458.5 million, representing a 16.4% increase year-over-year. Net revenues from educational programs and services for the first fiscal quarter were US$422.4 million, representing a 16.9% increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses and in average selling price of test preparation courses.

Total student enrollments in academic subjects tutoring and test preparation courses in the first fiscal quarter of 2016 increased to approximately 1,011,300.


Operating Costs and Expenses

Operating costs and expenses for the quarter were US$328.6 million, representing a 15.9% increase year-over-year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$324.9 million, representing a 15.7% increase year-over-year.

 

    Cost of revenues increased by 15.6% year-over-year to US$171.7 million, primarily due to increases in teachers’ compensation for more teaching hours.

 

    Selling and marketing expenses decreased by 0.3% year-over-year to US$49.4 million.

 

    General and administrative expenses increased by 25.9% year-over-year to US$107.6 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$103.9 million, representing a 25.6% increase year-over-year, primarily due to increases in R&D expenses and human resources expenses related to the development of our online and offline integrated education ecosystem.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 35.6% to US$3.7 million in the first fiscal quarter of 2016.

Operating Income and Operating Margin

Income from operations was US$129.8 million, a 17.5% increase from US$110.5 million in the same period of the prior fiscal year. Non-GAAP income from operations for the quarter was US$133.6 million, a 17.9% increase from US$113.3 million in the same period of the prior fiscal year.

Operating margin for the quarter was 28.3%, compared to 28.1% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 29.1%, compared to 28.8% in the same period of the prior fiscal year.

Net Income and EPS

Net income attributable to New Oriental for the quarter was US$128.5 million, representing a 14.4% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS attributable to New Oriental were US$0.82 and US$0.82, respectively.

Non-GAAP Net Income and Non-GAAP EPS

Non-GAAP net income attributable to New Oriental for the quarter was US$132.3 million, representing a 14.9% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted earnings per ADS attributable to New Oriental were US$0.84 and US$0.84, respectively.

Cash Flow

Net operating cash flow for the first fiscal quarter of 2016 was approximately US$179.8 million. Capital expenditures for the quarter were US$17.8 million, which were primarily attributable to the opening of 34 new learning centers and renovations at existing learning centers.

Balance Sheet

As of August 31, 2015, New Oriental had cash and cash equivalents of US$525.4 million, as compared to US$531.3 million as of May 31, 2015. In addition, the Company had US$69.0 million in term deposits, US$721.6 million in short-term investment and US$244.3 million in long-term held-to-maturity investments consisting of trusts guaranteed by a bank with the maturity date more than one year from the date of purchase as of August 31, 2015.


New Oriental’s deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the first quarter of fiscal year 2016 was US$511.7 million, an increase of 28.3% as compared to US$398.9 million at the end of the first quarter of fiscal year 2015.

Outlook for Second Quarter of Fiscal Year 2016

New Oriental expects total net revenues in the second quarter of fiscal year 2016 (from September 1, 2015 to December 30, 2015) to be in the range of US$267.0 million to US$276.4 million, representing year-over-year growth in the range of 13% to 17%.

If not including the impact from the recent depreciation of Renminbi against the U.S. Dollar, the projected revenue growth rate is expected to be in the range of 17% to 21% for the second quarter of fiscal year 2016.

This forecast reflects New Oriental’s current and preliminary view, which is subject to change.

Conference Call Information

New Oriental’s management will host an earnings conference call at 8 AM on October 20, 2015, U.S. Eastern Time (8 PM on October 20, 2015, Beijing/Hong Kong Time).

Dial-in details for the earnings conference call are as follows:

 

US:    +1-845-675-0437
Hong Kong:    +852-3018-6771
UK:    +44-20-3059-8139

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “New Oriental Earnings Call.”

A replay of the conference call may be accessed by phone at the following number until October 28, 2015:

 

International:    +61-2-8199-0299
Passcode:    35437013

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental’s ADSs, each of which represents one common share, currently trade on the New York Stock Exchange under the symbol “EDU.”


For more information about New Oriental, please visit http://english.neworiental.org.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the second quarter of fiscal year 2016, quotations from management in this announcement, as well as New Oriental’s strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our “New Oriental” brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental’s consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS and per share excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to New Oriental’s historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.


Contacts

For investor and media inquiries, please contact:

In China:

Ms. Cara O’Brien

FTI Consulting

Tel: +852-3768-4537

Email: cara.obrien@fticonsulting.com

Ms. Sisi Zhao

New Oriental Education and Technology Group Inc.

Tel: +86-10-6260-5568

Email: zhaosisi@xdf.cn


NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     As of August 31
2015
     As of May 31
2015
 
   (Unaudited)      (Unaudited)  
     USD      USD  

ASSETS:

     

Current assets:

     

Cash and cash equivalents

     525,449         531,298   

Restricted cash, current

     3,977         944   

Term deposits

     68,952         69,091   

Short term investments

     721,616         599,935   

Accounts receivable, net

     3,262         4,222   

Inventory

     25,974         23,983   

Deferred tax assets, current

     13,515         17,988   

Prepaid expenses and other current assets

     100,297         97,833   

Amounts due from related parties, current

     2,404         3,586   
  

 

 

    

 

 

 

Total current assets

     1,465,446         1,348,880   

Property, plant and equipment, net

     231,328         231,463   

Land use rights, net

     4,115         4,262   

Amounts due from related parties, non-current

     946         1,497   

Deferred tax assets, non-current

     6,094         5,040   

Long term deposit

     15,774         15,268   

Long term prepaid rent

     433         424   

Restricted cash, non-current

     2,410         2,481   

Intangible assets

     3,537         3,919   

Goodwill

     10,882         11,194   

Long term investments

     336,318         325,991   

Other non-current assets

     2,948         1,118   
  

 

 

    

 

 

 

Total assets

     2,080,231         1,951,537   
  

 

 

    

 

 

 

LIABILITIES AND EQUITY

     

Current liabilities:

     

Accounts payable (including accounts payable of the consolidated VIEs without recourse to New Oriental of US$17,809 and US$20,279 as of May 31, 2015 and August 31, 2015, respectively)

     20,336         17,888   

Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to New Oriental of US$157,466 and US$162,590 as of May 31, 2015 and August 31, 2015, respectively)

     184,674         178,803   

Dividend payable (including dividend payable of the consolidated VIEs without recourse to New Oriental of nil and nil as of May 31, 2015 and August 31, 2015, respectively)

     62,668         —     

Income taxes payable (including income tax payable of the consolidated VIEs without recourse to New Oriental of US$25,028 and US$34,772 as of May 31, 2015 and August 31, 2015, respectively)

     36,610         25,376   

Amounts due to related party (including amounts due to related parties of the consolidated VIEs without recourse to New Oriental of US$1,995 and US$152 as of May 31, 2015 and August 31, 2015, respectively)

     165         1,995   

Deferred revenue (including deferred revenue of the consolidated VIEs without recourse to New Oriental of US$470,903 and US$509,024 as of May 31, 2015 and August 31, 2015, respectively)

     511,728         501,170   
  

 

 

    

 

 

 

Total current liabilities

     816,181         725,232   

Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE without recourse to New Oriental of US$1,600 and US$1,536 as of May 31, 2015 and August 31, 2015, respectively)

     2,306         2,461   
  

 

 

    

 

 

 

Total long-term liabilities

     2,306         2,461   

Total liabilities

     818,487         727,693   
  

 

 

    

 

 

 

Noncontrolling interests

     1,394         3,496   

Total New Oriental Education & Technology Group Inc. shareholders’ equity

     1,260,350         1,220,348   
  

 

 

    

 

 

 

Total shareholder’s equity

     1,261,744         1,223,844   

Total liabilities and shareholder’s equity

     2,080,231         1,951,537   
  

 

 

    

 

 

 


NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share and per ADS amounts)

 

     For the Three Months Ended August 31  
     2015     2014  
     (Unaudited)     (Unaudited)  
     USD     USD  

Net Revenues:

    

Educational programs and services

     422,351        361,371   

Books and others

     36,138        32,611   
  

 

 

   

 

 

 

Total net revenues

     458,489        393,982   
  

 

 

   

 

 

 

Operating costs and expenses (note 1):

    

Cost of revenues

     171,651        148,476   

Selling and marketing

     49,377        49,532   

General and administrative

     107,615        85,453   
  

 

 

   

 

 

 

Total operating costs and expenses

     328,643        283,461   
  

 

 

   

 

 

 

Operating income

     129,846        110,521   
  

 

 

   

 

 

 

Other income, net

     17,675        16,092   

Provision for income taxes

     (17,939     (14,193

Loss from equity method investment

     (998     (60
  

 

 

   

 

 

 

Net income

     128,584        112,360   

Net gain attributable to the noncontrolling interests

     (41     —     
  

 

 

   

 

 

 

Net income attributable to New Oriental Education & Technology Group Inc.

     128,543        112,360   
  

 

 

   

 

 

 

Net income per share attributable to New Oriental-Basic

     0.82        0.71   

Net income per share attributable to New Oriental-Diluted

     0.82        0.71   

Net income per ADS attributable to New Oriental-Basic (note 2)

     0.82        0.71   

Net income per ADS attributable to New Oriental-Diluted (note 2)

     0.82        0.71   

Other comprehensive income, net of tax

     (33,930     26,600   
  

 

 

   

 

 

 

Comprehensive income

     94,654        138,960   
  

 

 

   

 

 

 

Comprehensive income attributable to New Oriental Education & Technology Group Inc.

     94,613        138,960   
  

 

 

   

 

 

 

Notes:

Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows:

 

     For the Three Months Ended August 31  
     2015      2014  
     (Unaudited)      (Unaudited)  
     USD      USD  

General and administrative

     3,749         2,765   
  

 

 

    

 

 

 

Total

     3,749         2,765   
  

 

 

    

 

 

 

Note 2: Each ADS represents one common share.


NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)

 

     For the Three Months Ended August 31  
     2015     2014  
     (Unaudited)     (Unaudited)  
     USD     USD  

General and administrative expenses

     107,615        85,453   

Share-based compensation expense in general and administrative expenses

     3,749        2,765   
  

 

 

   

 

 

 

Non-GAAP general and administrative expenses

     103,866        82,688   

Total operating costs and expenses

     328,643        283,461   

Share-based compensation expenses

     3,749        2,765   
  

 

 

   

 

 

 

Non-GAAP operating costs and expenses

     324,894        280,696   

Operating income

     129,846        110,521   

Share-based compensation expenses

     3,749        2,765   
  

 

 

   

 

 

 

Non-GAAP operating income

     133,595        113,286   

Operating margin

     28.3     28.1

Non-GAAP operating margin

     29.1     28.8

Net income attributable to New Oriental

     128,543        112,360   

Share-based compensation expenses

     3,749        2,765   
  

 

 

   

 

 

 

Non-GAAP net income

     132,292        115,125   

Net income per ADS attributable to New Oriental- Basic (note 1)

     0.82        0.71   

Net income per ADS attributable to New Oriental- Diluted (note 1)

     0.82        0.71   

Non-GAAP net income per ADS attributable to New Oriental - Basic (note 1)

     0.84        0.73   

Non-GAAP net income per ADS attributable to New Oriental - Diluted (note 1)

     0.84        0.73   

Weighted average shares used in calculating basic net income per ADS (note 1)

     156,562,405        157,683,856   

Weighted average shares used in calculating diluted net income per ADS (note 1)

     157,010,006        158,557,580   

Non-GAAP income per share - basic

     0.84        0.73   

Non-GAAP income per share - diluted

     0.84        0.73   

Note 1: Each ADS represents one common share.

EX-99.2

Exhibit 99.2

New Oriental Announces Management Change

BEIJING, Oct. 20, 2015 /PRNewswire/ — New Oriental Education and Technology Group Inc. (the “Company” or “New Oriental”)(NYSE: EDU), the largest provider of private educational services in China, today announced the promotion of Mr. Chenggang Zhou to the position of President, effective January 5, 2016. At the same time, Mr. Louis T. Hsieh will step down as President of New Oriental, but will remain on the Board of Directors of the Company and will serve as a non-executive Senior Adviser to the Company.

Mr. Zhou joined New Oriental in 2000 and has held multiple positions in the Company since then, including Executive President for Domestic Business, Executive Vice President, Vice President and President of Beijing and Shanghai New Oriental Schools. As President, Mr. Zhou will focus on corporate strategy and oversee overall business development of the Company.

Mr. Michael Minhong Yu, New Oriental’s Chairman and Chief Executive Officer, commented, “Chenggang has been a key member of our management team, and we are thankful for his efforts and commitment to providing high-quality education services. He has brought to us with his vision, wealth of experience, industry insight as well as extensive knowledge of all aspects of our business, which will help ensure that we will be able to continue to build on the success and reputation we have already achieved in the China market. We look forward to working with him in his new role.”

“Louis has made a tremendous contribution to shaping and managing our rapidly expanding business across China for the past decade, first as our Chief Financial Officer where he led our highly successful IPO on the New York Stock Exchange in 2006, and then as our President since 2009. I am pleased that Louis has agreed to remain on our board of directors and to serve as Senior Advisor to New Oriental. We thank Louis for his decade-long contribution to the Company and wish him all the best in his future endeavors.”

Separately, New Oriental announced its results for the first quarter of fiscal year 2016 today.

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental’s ADSs, each of which represents one common share, currently trade on the New York Stock Exchange under the symbol “EDU.”


For more information about New Oriental, please visit http://english.neworiental.org.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confidence” and similar statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

Contacts

For investor and media inquiries, please contact:

In China:

Ms. Cara O’Brien

FTI Consulting

Tel: +852-3768-4537

Email: cara.obrien@fticonsulting.com

Ms. Sisi Zhao

New Oriental Education and Technology Group Inc.

Tel: +86-10-6260-5568

Email: zhaosisi@xdf.cn