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Oriental selection
Oriental selection

Company Profile: ★ Oriental Select is a live broadcast platform launched by New Oriental Online, a subsidiary of New Oriental. From 65438 to 0993, Yu founded the New Oriental School in Beijing. 200 1, new oriental education science and technology group was established. In 2005, New Oriental launched the online education platform New Oriental Online. In 20021year, the "double drop" policy was introduced, and the business of New Oriental was transformed at the end of the year, and Oriental Select was born. In June, 2022, the live broadcast room of Oriental Select was bursting, and the number of fans exceeded 20 million. In 2023, the number of selected accounts in the east increased from 1 to 6, with more than 30 million fans.

Commercial license plate

★ In the first half 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 income from self-operated and live e-commerce business is 65.438+76.6 million yuan, the income from university education is 295 million yuan, and the income from institutional services is 65.438+90 million yuan.

★ 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 talk about the business model. Oriental Select is currently a live broadcast platform. The business model is to sell your own products for profit, while selling third-party products to earn profits by extracting commissions. The sales channel is the influence of the live broadcast room and the brand itself. In terms of core data, as of 20221October 30th 165438+ half a year, GMV was 4.8 billion, 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 selected and sold by Dongfang include self-operated products and third-party products, and agricultural products account for the vast majority. By the end of 2022 1 1, there will be 65 kinds of self-operated commodities, including black pork sausage, Wuchang rice and blueberry puree. The total income exceeded 654.38 billion yuan. Together with the commission of third-party products, the total revenue of live broadcast retail business is 65.438+76.6 million yuan, accounting for 85% of the company's overall business.

★ In terms of channels, Oriental Select has started matrix operation. At present, * * * has six live accounts, in addition to the core agricultural products, it also contributes 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, with 310.5 million paying users. Institutional service refers to providing technical support for universities, public libraries and other institutions.

★ In terms of brand, the success of Dongfang 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 Select has assumed this role.

Core executives

Yu: Born in 1962, received a bachelor's degree in English major in Peking University in 1985. He is currently a non-executive director, chairman of the nomination Committee and chairman of the board of directors of New Oriental Online. 1993 founded new oriental, and in 2006 led new oriental to be listed on the NYSE. 20 18, led the subsidiary New Oriental Online to go public in Hong Kong. Oriental Select was founded on 202 1. In 2022, it ranked 789th on the Hurun Report with a wealth of 8.2 billion yuan.

Sun: 1985 was born. He graduated from Nankai University with a bachelor's degree in computer science and technology in 2007. He is currently the executive director and CEO of New Oriental Online. In 2007-2008, he served as a teacher in the foreign examination department of New Oriental Group, as an assistant in charge of the foreign examination department of Hefu New Oriental School in 2008-2009, as the principal of An New Oriental School and the president of Northwest China on October 6, and as an assistant vice president of New Oriental China District. 20 19 served as vice president of new oriental China, and 202 1 served as CEO of new oriental online.

equity structure

★ The company's shareholding structure is clear. The largest shareholder is New Oriental Education, holding about 55.68% of the shares. The actual controller is Yu Hongmin, the chairman.

★ Behind the investment in image architecture is Tencent, and behind Tigerstep is Yu Mama.

New Oriental Online Technology Holdings Co., Ltd.: New Oriental Education Technology Group: 55.68%. Investment in image structure: 9.04%. Tiger development co., ltd: 2.72%. Sun: 0.33%. Others: 32.23%.

financial target

★ The company's revenue in fiscal year 2023 increased substantially, 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.

★ Before FY22, the company's operating cash flow was negative, and it is expected to improve in FY23.

Environmental society and governance

★ Build a green home

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

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

★ In fiscal year 2022, the company emitted 65,438+0,034.5 tons of greenhouse gases, generated 35.7 tons of electronic waste, used 654.38+0.78 million kWh of electricity and used 7,773 tons of water.

Create social value

★ Industry: Evaluate and audit suppliers, and the number of suppliers in FY22 is 399. At the same time, product differentiation strategies are adopted, such as paying attention to the production and planting process of primary agricultural products, inspecting and testing processed food factories, paying attention to whether food packaging is environmentally friendly and whether the logistics and transportation process is optimal.

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

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

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

Staff management

★ Employee attraction: By the end of 2022 10, New Oriental Online had full-time employees 1260 and part-time employees10, with a half-year salary expenditure of 233 million yuan.

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

★ 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 on wedding, newborn, birthday and other dates.

Knowledge refining

Live e-commerce: it is a way of shopping, 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 purchase requirements rather than actively search for them.

Gmv: the abbreviation of the total amount of commodities, 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 by GMV is the total income of the platform.

Commission: that is, the commission for selling goods. Most of the sales revenue of anchors or creators comes from commodity commissions, 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 mass-produced, such as mobile phones and automobiles. Non-standard products naturally have opposite meanings, such as mobile phones and cars. Non-standard products naturally have opposite meanings, such as rice, cabbage and fruit.

FY: short for fiscal year, which means fiscal year. Most of the fiscal years of American listed companies are made by themselves, and the fiscal year of New Oriental is from June to the end of May of the following year.

E-waste: e-waste, including discarded mobile phones and computers. In fiscal year 2022, the business of New Oriental decreased significantly, resulting in an increase in e-waste.