Company Profile: ★ Oriental Selection is a live broadcast platform launched by New Oriental Online, a subsidiary of New Oriental. 1993, Yu Minhong founded the New Oriental School in Beijing. In 200 1 year, New Oriental Education Technology Group was established. In 2005, New Oriental launched the online education platform New Oriental Online. In 20021year, the policy of "double reduction" was introduced, and the business of New Oriental was transformed at the end of the year, and Oriental Selection was born. In June, 2022, the Oriental selection live broadcast room exploded, and the number of fans exceeded 20 million. In 2023, the number of selected accounts in the East increased from 1 to 6, and the number of fans exceeded 30 million.

Business plate

★ In the first half fiscal year of 2023 (2022.6.1-20221130), the company achieved an operating income of 2.08 billion yuan, a year-on-year increase of 262.69%. The net profit of returning to the mother was 585 million yuan, a year-on-year increase of 207.59%.

★ Among the various businesses of the company, the revenue of self-operated and live e-commerce business is1766 million yuan, the revenue of university education is 295 million yuan, and finally the revenue of institutional services is 0.1900 million yuan.

★ The gross profit is 983 million yuan, and the gross profit of self-operated and live e-commerce business reaches 750 million yuan, accounting for 76%.

business introduction

★ First of all, let's talk about the business model. Oriental Selection is currently a live broadcast platform. The business model is to sell its own products to make profits, and at the same time sell third-party products to earn profits by extracting commissions. The sales channel is the live account room and the brand's own influence. With regard to the core data, by the half year of 2022 1 1 30th, GMV was 4.8 billion yuan, with 35.2 million fans and 70.2 million orders.

★ In terms of products, product selection ability is the core competence of retail brands. The products sold by Oriental Selection include self-operated products and third-party products, and agricultural products account for the vast majority. By the end of 2022 1 1, there were 65 kinds of self-operated products, including black pork sausage, Wuchang rice, blueberry puree, etc., and the total revenue exceeded 10 billion yuan. Plus the commission of third-party products, the total revenue of live broadcast retail business is1766 million yuan, accounting for 85% of the company's total business.

★ In terms of channels, Oriental Selection has begun to operate in a matrix. At present, * * * has six live accounts, and besides the core agricultural products, it has contributed to books, drinks, daily necessities, tourism and other categories. The total number of fans of the five new accounts has exceeded 8 million.

★ Finally, the company also has university education and institutional services. University education mainly provides examination training for college students, and the paying users are 3 1.5 million. Institutional service refers to providing technical support to institutions such as universities and public libraries.

★ In terms of brand, the reason why the selection of the East is successful is that it is not only the brand endorsement of New Oriental for many years, but also the direction of channel brand. Most of the products sold are non-standard products, and it is difficult for consumers to find high-quality good things, and Oriental Selection has assumed this role.

Core executives

Yu Minhong:/kloc-0 was born in 1962, and/kloc-0 received a bachelor's degree in English from Peking University in 1985. He is currently a non-executive director of New Oriental Online, chairman of the nomination committee and chairman of the board of directors. /kloc-founded new oriental in 0/993, and led it to be listed on the NYSE in 2006. In 20 18, led its subsidiary, New Oriental Online, to go public in Hong Kong. Oriental selection was founded in 20021year. In 2022, it ranked 789th in Hurun Report with a wealth of 8.2 billion yuan.

Sun Dongxu: Born in 1985, he obtained a bachelor's degree in engineering from Nankai University in 2007, majoring in computer science and technology. He is currently the executive director and CEO of New Oriental Online. From 2007 to 2008, he served as a teacher in the foreign examination department of New Oriental Group, assistant in charge of the foreign examination department of Hefei New Oriental School from 2008 to 2009, president of Xi 'an New Oriental School and president of Northwest China from 20 16, and assistant vice president of New Oriental China. In 20 19, he served as the vice president of New Oriental China, and in 200212002, he served as the CEO of New Oriental Online.

equity structure

★ The company's shareholding structure is clear, the largest shareholder is New Oriental Education, which lasts for about 55.68%, and the actual controller is Yu Minhong, the chairman.

★ Tencent is behind the investment in image architecture, and Yu Minhong's mother is behind Tigerstep.

New Oriental Online Technology Holdings Co., Ltd.: New Oriental Education Technology Group: 55.68%. Image architecture investment: 9.04%. TigerstepDevelopments Limited：2.72%。 Sun Dongxu: 0.33%. Others: 32.23%.

financial target

★ The company's revenue increased significantly in FY 2023, mainly due to the better development of live e-commerce.

★ The gross profit margin of the company is slightly lower than that before 2020, because the gross profit margin of live e-commerce is lower than that of education business. Profits will turn losses into profits from FY 2023.

★ The company's debt ratio in the first half of fiscal year 2023 was 27.76%, which remained at a low level.

★ The operating cash flow of the company was negative before FY 2022, and it is expected to improve in FY 2023.

Environmental society and governance

★ Build a green home

★ Emission management: implement online office and video conference. Digital manpower system and examination and approval system can reduce the consumption of disposable paper cups and plastic bottles. So as to reduce that emission of greenhouse gas and wastes.

★ Resource saving: use efficient and energy-saving lamps, rationally use air conditioners, and strengthen the management of water equipment to save water and electricity.

★ In fiscal year 2022, the company's total greenhouse gas emission 1034.5 tons, total electricity consumption1780,000 kWh and total water consumption of 35.7 tons were generated.

Create social value

★ Industry: Evaluate and audit suppliers, and the number of suppliers in FY 2022 is 399. At the same time, the product differentiation strategy is adopted, such as paying attention to the production and planting process of primary agricultural products, inspecting and testing the processing food factories, and paying attention to whether the food packaging is environmentally friendly and whether the logistics and transportation process is optimal.

★ Education: release English-related knowledge through an open platform, and at the same time conduct live English broadcast and organize reading activities.

★ Rural areas: Since it was launched at the end of 20021,it has helped rural revitalization and opened the market for agricultural products in the form of live broadcast with goods.

★ Public welfare: In FY 2022, 2 16 public welfare activities were held, with 2,308 employees participating and 273 hours of employees participating in public welfare activities.

Staff management

★ Employee attraction: By the end of 2022 1 1, New Oriental Online * * * had full-time employees 1260 and part-time employees/4 10, and the salary expenses in half a year were 233 million yuan.

★ Growth and development: Establish an anchor training system, and formulate training programs and promotion paths according to different anchor styles. At the same time, establish a dual-channel development system for management and specialty.

★ Health and safety: purchase commercial medical insurance to reduce the financial burden of sick employees. Pay attention to physical and mental health, and pay benefits for weddings, newborns, birthdays and other dates.

Knowledge refining

Live e-commerce: it is a kind of shopping method, that is, buying and selling goods through live broadcast. Compared with traditional shelf e-commerce, live e-commerce belongs to interest e-commerce. Most users improvise with the purchase demand, rather than actively searching after the demand.

Gmv: the abbreviation of gross merchandise volume, that is, the total amount of commodity transactions. Generally applicable to platform enterprises. The enterprise obtains commission income through this transaction amount. If it is a self-operated product, the platform itself becomes a merchant, and this part of the amount included in GMV is all the revenue of the platform.

Commission: that is, the commission for selling goods. Most of the sales revenue of anchors or creators comes from the commission of goods, and the specific proportion depends on the category and brand.

Account matrix: refers to the establishment of multiple similar related accounts on the same platform or different platforms based on a single account, thus forming a matrix, which can greatly amplify the business effect at a relatively low cost.

Non-standard products: First of all, standard products refer to products with clear specifications and models that can be produced on a large scale, such as mobile phones and automobiles. Non-standard products naturally have the opposite meaning, such as mobile phones, cars and so on. Non-standard products naturally have the opposite meaning, such as rice, cabbage and fruit.

FY: short for Financial Year, which means fiscal year. The fiscal year of listed companies in the United States is mostly made by themselves, and the fiscal year of New Oriental is from June to the end of May of the following year.

Electronic waste: that is, electronic waste, including discarded mobile phones and computers. In fiscal year 2022, the business of New Oriental was greatly reduced, resulting in more electronic waste.