January 30, 2023
New Oriental Schooling & Expertise Group (EDU) Q1 2023 Earnings Name Transcript
New Oriental Schooling & Expertise Group (EDU) Q1 2023 Earnings Name Transcript

Picture supply: The Motley Idiot.

New Oriental Schooling & Expertise Group (EDU -4.62%)
Q1 2023 Earnings Name
Oct 26, 2022, 8:00 a.m. ET

Contents:

  • Ready Remarks
  • Questions and Solutions
  • Name Individuals

Ready Remarks:

Operator

Good night, and thanks for standing by for New Oriental’s FY 2023 first-quarter outcomes earnings convention name. [Operator instructions] At the moment’s convention is being recorded. In case you have any objections, you might disconnect presently. I would now like to show the assembly over to your host for at present’s convention, Ms.

Sisi Zhao.

Sisi ZhaoDirector, Investor Relations

Thanks. Hiya, everybody, and welcome to New Oriental’s first fiscal quarter 2023 earnings convention name. Our monetary outcomes for the interval had been launched earlier at present and can be found on the corporate’s web site in addition to on Newswire providers. At the moment, you’ll hear from Stephen Yang, govt president and chief monetary officer.

After his ready remarks, Stephen and I might be obtainable to reply your questions. Earlier than we proceed, please notice that this session at present will comprise forward-looking statements. made underneath the secure harbor provisions of the U.S. Personal Securities Litigation Reform Act of 1995.

Ahead-looking statements contain inherent dangers and uncertainties. As such, our outcomes could also be materially completely different from the views expressed at present. Quite a few potential dangers and uncertainties are outlined in our public filings with the SEC. New Oriental doesn’t undertake any obligation to replace any forward-looking statements, besides as required underneath relevant regulation.

As a reminder, this convention is being recorded. As well as, a webcast of this convention name might be obtainable on New Oriental’s Investor Relations web site at investor.neworiental.org. I’ll now flip the decision over to Mr. Yang.

Stephen, please go forward. 

Stephen YangGovernment Vice President and Chief Monetary Officer

Thanks, Sisi. Hiya, everybody, and thanks for becoming a member of us on the decision. This primary quarter has not solely marked a contemporary starting of our 2023 fiscal yr, but in addition a brand new web page to New Oriental. Earlier than going into element of our monetary efficiency for this quarter, I want to take this chance to increase our gratitude to those that have been believing and supporting New Oriental alongside the best way.

I am delighted to share with you that the restructuring course of has been largely accomplished, and New Oriental has efficiently derived a brand new enterprise mannequin, mixed with a sure current enterprise and a brand new revolutionary enterprise alternative. Our new enterprise ventures have been performing properly and beginning to generate optimistic outcomes to New Oriental. Moreover, it is much more encouraging to see that we’ve achieved the turnaround in profitability and better-than-we-expect margin this quarter. Our non-GAAP working margin for the quarter was 13%, and non-GAAP web margin for the quarter was 11.2%, each greater than final yr similar interval.

We consider the corporate has launched into a contemporary journey that strives to encourage general improvement of scholars and prospects and foster the betterment of the society, and on the similar time, generate revenue and fruitful returns for our shareholders. Now I want to spend a while to speak about this quarter’s efficiency throughout our remaining enterprise traces and new initiatives to you intimately. Our key remaining enterprise have proven exceptional resilience and achieved promising tendencies. Breaking it down.

The abroad take a look at facet enterprise recorded a income enhance of two% in greenback phrases yr over yr for the primary quarter 2023 fiscal yr. The grownup college college students enterprise recorded income progress of about 2% in greenback phrases yr over yr for the quarter. The abroad examine consulting enterprise recorded a income enhance of about 21% in greenback phrases year-over-year for the quarter. As for our new enterprise initiatives, as talked about previously quarter, we’ve launched a number of new initiatives, which largely revolve round facilitating college students throughout improvement.

I am glad to share with you that these new initiatives have proven optimistic momentum and have began to generate income to the group. Firstly, the non-academic tutoring enterprise, which we’ve rolled out in over 60 current cities centered on cultivating college students’ revolutionary means and complete high quality. We’re completely happy to see elevated market penetration in these markets we’ve tapped into with 297,000 enrollments within the first quarter. The highest 10 cities in China needed to contribute about 60% of the income of this enterprise.

Secondly, the clever studying system and machine enterprise is a service designed to offer a tailor-made digital studying expertise for college kids. It makes use of our previous instructing expertise, knowledge and expertise to offer personalised focused studying and train content material. Along with our academics monitoring and accessing the training curve of the scholars and the back-end system, the brand new training service not solely vastly enhance college students’ studying effectivity, but in addition domesticate college students’ proactive studying habits. We’ve got examined in adoption in round 60 current cities with 131,000 lively pay customers on this quarter and are delighted to see improved buyer retention charges and scalability of those new initiatives.

The income contribution of this enterprise from the highest 10 cities in China is over 60%. In the meantime, the examine tour and the analysis camp enterprise is an initiative that goals at providing college students of Ok-12 and college college students the chance to completely leverage their free time holidays to broaden the scope of data and domesticate topic curiosity. We’ve got performed the examine tour and analysis camp enterprise in over 50 cities throughout the nation. The income contribution of this initiative from the highest 10 cities in China is over 55%.

Final however not least, our good training enterprise, which includes good instructing, good {hardware}, sense expertise, innovation, training, and different providers serves native governments, training authorities, colleges, and kindergartens. Our academic materials and digitalized good examine answer, a self-learning system which leverages superior expertise permits college students to have full management over the tempo and the flexibleness of the training age the place distant studying turns into more and more mainstream. We additionally supply examination prep programs designed for college kids with junior faculty diplomas to acquire bachelor’s levels. The abovementioned companies have been gaining the traction and contribute the general progress of the corporate.

Our OMO system has continued to be instrumental put up our restructuring course of. We continued our efforts in revamping and sustaining the OMO instructing platform and saved leveraging our training infrastructure and expertise energy throughout key remaining enterprise and new initiatives to offer extra superior and diversified training service to our prospects in all ages. We’ve got invested $31 million within the quarter on our OMO instructing platform to make sure that we proceed to supply high-quality service and adaptability to our college students. In response to an evolving trade panorama in China, we’ve carried out structural adjustments to our pure on-line training platform, Koolearn, as beforehand talked about.

Whereas Koolearn proceed to develop its on-line training choices to adults and college college students, it has additionally actively solved enterprise alternatives in new areas. Leveraging on the expertise developed for broadcast school rooms with our current groups of abilities, Koolearn has established an e-commerce platform underneath the model identify Dongfang Zhenxuan for the sale of agriculture and different merchandise and supply premium service for tens of thousands and thousands of followers via its tight provide chain ecosystem, revolutionary stay streaming advertising and marketing, and diversify cooperation with the suppliers and producers to maximise the total potential and social values of this new enterprise. Koolearn has positioned a strategic focus to develop a high-quality and cost-effective e-commerce platform providing agriculture merchandise and knowledge requirements in order to convey higher high quality of life and promote wholesome existence to its prospects. Throughout the reporting interval, Dongfang Zhenxuan has broadened its product choice and SKUs, thereby constantly bettering procuring expertise of its prospects.

The platform doesn’t solely function alternate on-line for farmers and native firms to promote their high-quality farmed items and different merchandise to a broader buyer base, but in addition present a platform which presents a spread of topnotch merchandise with transparency in pricing to prospects. Leveraging the well-developed manufacturing capability and business infrastructure, corresponding to logistics facilities and communication networks in China, Koolearn has additionally efficiently launched its personal personal label merchandise and set up a high-quality provide chain administration system inside a brief time frame. On quite a lot of the product choice and product high quality continued to develop, Dongfang Zhenxuan has earned a outstanding place throughout the trade and gained a robust traction and model loyalty from its prospects. Trying ahead, Koolearn will strengthen its crew of abilities to constantly create optimistic, distinctive, fascinating content material to draw consumer to this platform and promote conventional Chinese language tradition.

Koolearn will even place further investments with the merchandise and expertise upgrades in order to focus on deciding on and launching top-quality merchandise from completely different origins in China via the third-party cooperation and personal labels to create worth for patrons, companions, and wider society. With reference to the corporate’s newest monetary place, I am assured to share with you that the corporate is in a wholesome monetary standing with money and money equal time period deposits and short-term investments totaling roughly $4.3 billion. On July 26, 2022, the corporate’s Board of Administrators licensed a share repurchase plan of as much as $400 million of the corporate ADS or frequent shares through the interval from July 28, 2022 via Could 31, 2023. As of the October 26, 2025, the corporate cumulatively repurchased mixture roughly 1.6 million ADS for about $39.6 million from the open market underneath the share repurchase program.

Now I’ll flip the decision over to Sisi to share with you about the important thing financials. Sisi, please go forward. 

Sisi ZhaoDirector, Investor Relations

Now I would prefer to stroll you thru the opposite key monetary particulars for this quarter. Working value and bills for the quarter had been $666.8 million representing a 47.8% lower year-over-year. Non-GAAP working prices and bills for the quarter, which excludes share-based compensation bills, had been $647.8 million representing a 47.5% lower year-over-year. The lower was primarily because of the discount of services and numbers of workers because of the restructuring in fiscal yr ’22.

Value of revenues decreased by 51.4% yr over yr to $312.1 million. Promoting and advertising and marketing bills decreased by 40.2% yr over yr to $98.7 million. G&A bills for the quarter decreased by 45.4% year-over-year to $256 million. Non-GAAP G&A bills, which excludes share-based compensation bills, had been $237.4 million representing a 44.5% lower yr over yr.

Whole share-based compensation bills, which had been allotted to associated working prices and bills, decreased by 55.9% to $19.1 million within the fiscal — first fiscal quarter of 2023. Working earnings had been $78 million representing a 14.5% enhance yr over yr. Non-GAAP earnings from operations for the quarter was $97 million representing a 28.3% enhance yr over yr. Web earnings attributable to New Oriental for the quarter had been $66 million representing a 9% enhance yr over yr.

Primary and diluted web earnings per ADS attributable to New Oriental had been $0.39 and $0.38, respectively. Non-GAAP web earnings attributable to New Oriental for the quarter was $83.7 million representing a 24.7% lower yr over yr. Non-GAAP fundamental and diluted web loss per ADS attributable to New Oriental — web earnings attributable to New Oriental had been $0.49 and $0.48, respectively. Web working money circulate for the primary fiscal quarter of 2023 was roughly $185.2 million, and capital expenditure for the quarter had been $14 million.

Turning to the stability sheet. As of August 31, 2022, New Oriental has money and money equivalents of $1,103.9 million. As well as, the corporate had $1,054.7 million in time period deposits and $2,092.3 million in short-term investments. New Oriental’s deferred income stability, which is primarily money collected from registered college students for programs and acknowledged proportionally as income because the directions are delivered on the finish of the primary quarter of fiscal yr 2023 was $1,012.5 million, a lower of 30.3% as in comparison with $1,453.3 million on the finish of the primary quarter of fiscal yr 2022.

The lower is primarily because of the succession of Ok-9 tutorial after-school tutoring providers in compliance with the federal government’s insurance policies in China. Now I am going to hand over again to Stephen to undergo our outlook and steerage.

Stephen YangGovernment Vice President and Chief Monetary Officer

Thanks, Sisi. Trying into the second quarter of fiscal yr 2023. With the restructuring course of now largely accomplished, we anticipate that our faculty community and geographic protection to develop into stabilized. The corporate has now entered a stage of beginning a contemporary web page, exploring new alternative with larger flexibility and robust money flows.

We’re assured within the sustainable profitability of all our remaining key enterprise in addition to the expansion and prospects of our new initiatives. For our new companies, as we noticed on this quarter, the encouraging efficiency that these companies have achieved proof that we’re heading towards the best route, and we’re assured that the enterprise will be capable of contribute significant income to the corporate this fiscal yr 2023. As for the continued pandemic improvement in China, due to our OMO system, we consider that general impression that may value to our enterprise and monetary might be restricted. We’ve got — even have measures in place to regulate and deal with lockdown conditions ought to it could come up.

Nonetheless, because of the seasonality of a few of our enterprise, corresponding to take a look at worth programs and abroad examine consulting providers, new Oriental usually recorded decrease income within the second quarter of the fiscal yr with the income usually beneath these of the primary quarter. Therefore, we anticipate whole web income within the second quarter of the fiscal yr 2023, September 1, 2022 to November 30, 2022, to be within the vary of $601.4 million to $619.2 million representing a year-over-year decline within the vary of 9% to six%. The venture enhance of the income in our practical foreign money, RMB, is anticipated to be within the vary of 1% to 4%. That is the rise for the second quarter of the fiscal yr 2023.

Backside line-wise, we’re assured that we are going to obtain working revenue within the full yr of fiscal yr ’23. To conclude, we are actually taking every kind of operational actions to advertise our key remaining enterprise whereas we cautiously put money into new initiatives, which might be new progress engines that accelerates our restoration and pursue the worthwhile progress sooner or later. On the similar time, we’ll proceed to hunt steerage on the protection from and cooperate with authorities authorities in varied provinces in China in alignment with the efforts to adjust to the related insurance policies, pointers, and relative implementations, laws, and measures, in addition to to additional regulate our enterprise operation as required. I would prefer to say that this forecast displays our concerns of newest regulatory measure, in addition to our present and preliminary view, which is topic to alter.

That is the top of our fiscal yr 2023 Q1 abstract. At this level, I want to open the ground for questions. Operator, please open the decision for this. 

Questions & Solutions:

Operator

Thanks. [Operator instructions] Our first query comes from the road of Mark Li from Citi. Please ask your query.

Mark LiCiti — Analyst

Hello, Stephen. Congratulations on the worthwhile standing for this quarter. Could I ask — I observed that we’ve disclosed the 297,000 non-academic enrollment. I feel it is the primary time we disclosed.

Could I understand how was the quantity for final quarter or for final monetary yr? And do you could have any goal for this new monetary yr for the enrollment? 

Stephen YangGovernment Vice President and Chief Monetary Officer

Thanks, Mark. So we simply launched the non-academic programs. This can be a pure new product because the second quarter of final yr. So the final yr’s numbers was very small, very small.

So which means this quarter, our non-academic course enterprise carried out very properly. And the income progress, it was neat. So — and we anticipate the non-academic programs enterprise will develop on the — very quick sooner or later. Mark? 

Operator

Mark, are you able to press star one one once more? Go forward, Mark.

Mark LiCiti — Analyst

Are you able to you hear me?

Operator

Sure, we are able to.

Mark LiCiti — Analyst

I simply need to observe up for the Q1 quantity. Like would we’ve any seasonality for the total yr? Like can we simply multiply the numbers for the Q1 for the total yr for the non-academic enrollment? Or might you share a bit extra coloration on this yr? Thanks.

Sisi ZhaoDirector, Investor Relations

Yeah. For non-academic programs, particularly, truly, the seasonality shouldn’t be very obvious. It isn’t like different companies like abroad take a look at prep and home take a look at prep enterprise, which is sort of seasonal. So I feel this might be just like different Ok-9, Ok-12 enterprise, so it ought to be fairly clean all through the entire yr.

However truly now, this yr is the start of this new initiatives, so we must always begin to see every quarter begin to contribute an increasing number of income, general income from these new companies. 

Operator

All proper. Thanks. Our subsequent query comes from the road of Felix Liu from UBS. Felix, please ask your query. 

Felix LiuUBS — Analyst

Hello. Good night, administration. Thanks for taking my query, and congratulations for the very sturdy outcomes. And it is very spectacular in opposition to macro weak spot and contemplating the magnitude of the restructuring that you’ve simply accomplished.

So my query is on margins. We observed that the GP margin of this quarter could be very sturdy. Could I do know the driving force behind? Is it attributable to combine or any explicit value financial savings that we’ve achieved? And is there any margin seasonality that we must always take into accout for the remainder of this yr? Thanks.

Stephen YangGovernment Vice President and Chief Monetary Officer

Okay. Thanks, Felix. As for the margins, yeah, as you noticed on this quarter, the gross margin working margin has elevated each. The rise was primarily pushed by 4 causes.

Primary, the downsizing of the training facilities and the worker layoff led to the decrease mounted value. We did numerous the training heart closed down and the worker layoff final fiscal yr. And it makes the — it drives the margin up for studying facilities and the entire group. So that is the primary purpose.

Secondly, the income from the Koolearn from the Dongfang Zhenxuan grew since this quarter, after which it helps the margin up for the entire group. And lastly, we did not do the summer season promotion courses this quarter. In final yr, the summer season quarter, we did among the summer season promotion. And this yr, we did not try this.

So it helps the margin up. And so these abovementioned three causes drive the entire margin up. And as I stated, we’ve entered the stage of beginning a contemporary tempo of New Oriental. And in order for the remaining enterprise, we maintain it there and to maintain the profitability of that.

And as for the brand new initiatives, as I stated, we’ll make investments very pricey. So the excellent news for us is the brand new enterprise is grown very quick and might be worthwhile in a short time. And so going ahead, I feel the margin — I suppose margin-wise, the underside line-wise, we’re assured that we are going to be worthwhile within the full yr of the 2023. I need to give the steerage of the subsequent quarter Q2 steerage on the margins.

Felix. 

Operator

Thanks. Our subsequent query comes from Tian Hou from T.H. Capital. Please ask your query, Tian. 

Tian HouT.H. Capital — Analyst

Hello, Stephen, Sisi. Congratulations. So every one of many enterprise progress is value almost optimistic. What is the outlook for every line of the enterprise to develop — the expansion outlook for every line of the enterprise going ahead? So that’s primary.

And in addition, I am undecided I do know the composition of your income. With every line of the enterprise, how a lot ought to it contribute to the full income? Is it attainable, Stephen, so that you can give some element on that half? That is the query. 

Stephen YangGovernment Vice President and Chief Monetary Officer

Yeah. Trying on the — wanting forward within the second quarter and even the quarters after the Q3 and This autumn. And I feel as I stated, this restructuring course of, now largely accomplished. And going ahead, I feel the remaining enterprise, such because the overseas-related enterprise and home take a look at prep, faculty college students enterprise, will develop, particularly for the overseas-related enterprise will develop quicker.

And since on this quarter, we’ve seen the sturdy enrollment progress for the overseas-related enterprise. And the brand new enterprise, like the training machine and just like the summer season camp additionally and the opposite new companies is rising very quick. We began the enterprise the final yr. However this yr, we’ll begin to bear fruit of this enterprise.

So the expansion might be extraordinarily excessive within the — on this — the entire yr. And the Koolearn, Dongfang Zhenxuan, I am afraid I can not share the numbers of the Koolearn. However I can say is Dongfang Zhenxuan has developed an revolutionary plan like a broadcasting mannequin of the data sharing and the promoting agriculture and different merchandise. And this quarter, Dongfang Zhenxuan achieved exceptional the official outcomes and begin to contribute notable income and revenue to the group.

And going ahead, I feel Dongfang Zhenxuan will do higher as a result of have a look at the development and the superb response from the shoppers. And yeah, that is the tendencies of the completely different enterprise traces. As for the income contribution for the entire yr — for the brand new yr, the — I imply there would be the income contribution, I feel the overseas-related enterprise will contribute 30% of the full income. And Ok-12 embody the normal enterprise, and the brand new enterprise will contribute 45% of whole income.

And the school college students, the take a look at prep enterprise will contribute 5% of the income. And all of the others, together with the Koolearn and the others, will contribute be greater than 30% of whole income as a result of Koolearn grows very quick, and the opposite small enterprise develop is OK. So that is the breakdown of income contribution of the — from completely different enterprise traces. Yeah.

Operator

[Operator instructions] All proper. So let me inform subsequent query from Candis Chan from Daiwa. Please ask your query.

Candis ChanDaiwa Capital Markets — Analyst

Hiya? Hello, Stephen and Sisi. Thanks for taking my query, and congratulations on the very sturdy set of outcomes. My query is expounded to the brand new enterprise intelligence studying system and gadgets. And will I do know who’re our goal prospects? And the 130,000 lively customers, are they primarily charged by subscription? And I simply need to see whether or not this a part of income might be recurring.

And the way vital will the income contribution may very well be for this new enterprise? Thanks.

Sisi ZhaoDirector, Investor Relations

Yeah. The clever studying machine system truly is one thing new after we adjust to the federal government coverage terminated the tutorial coaching for Ok-9 college students. However we realized that we nonetheless obtained some college students have the demand for finding out the tutorial topics. So we use — truly, we’ve the content material energy and focused these college students who’ve the demand for educational examine, and we use our expertise and content material energy to embed our current, like, digitalized content material into the {hardware} and hand over to college students and let college students to make use of the examine machine to do the self-study.

And it may truly assist college students to boost their tutorial outcomes and in addition to assist them to drive them to boost their proactive examine habits. So that is one thing — it is a new enterprise mannequin. And these days, we’re largely utilizing the hire the machine to college students and let prospects subscribe the content material from the platform. And we consider that this income — this enterprise ought to be — generate recurring income as a result of in the event that they suppose the machine is useful they usually can use it to do the environment friendly self-study, then they’ll resubscribe, proceed to subscribe new content material from the platform.

Yeah. 

Stephen YangGovernment Vice President and Chief Monetary Officer

Yeah. And sorry, let me make clear the income contribution for the brand new yr. So the opposite — the income from others will contribute 20% of the full income. So yeah, sorry.

Operator

Thanks. Our subsequent query comes from the road of Hongi Tau from CICC. Please ask your query, Hongi.

Unknown speaker

Thanks. Good night, Stephen and Sisi. Thanks for taking my questions. First, congratulations on the sturdy efficiency for the primary quarter.

So I’ll — I’ve a follow-up query. You talked about the income breakdown earlier than. And I ponder, are you able to share the quantity contributed by the non-academic tutoring? Possibly might you share extra coloration on what sort of programs you see it has essentially the most sturdy efficiency? Thanks.

Stephen YangGovernment Vice President and Chief Monetary Officer

The numbers — I feel Sisi gives you the numbers of the non-academic programs. You ask the income contribution for Q1 or the total yr?

Unknown speaker

For Q1.

Stephen YangGovernment Vice President and Chief Monetary Officer

For Q1.

Sisi ZhaoDirector, Investor Relations

All the brand new enterprise collectively are contributing roughly about — yeah. For — sorry, let me verify the detailed numbers. For all new enterprise collectively are contributing roughly about 16% of whole income. And all the brand new companies, non-academic tutoring is the largest one, has the largest contribution, and subsequent to it’s the studying machine enterprise.

Stephen YangGovernment Vice President and Chief Monetary Officer

Yeah. And I feel the non-academic tutoring give attention to the assistance the scholars to enhance their revolutionary means and complete high quality, and we do have numerous topic just like the studying, programming or robotic design, presentation ability, arts, or sports activities. Now the studying and programming contribute just a little bit extra income throughout the all merchandise.

Unknown speaker

Okay. Thanks.

Stephen YangGovernment Vice President and Chief Monetary Officer

Thanks.

Operator

Our subsequent query will come from the road of Lucy Yu from Financial institution of America. Please ask your query, Lucy.

Lucy YuFinancial institution of America Merrill Lynch — Analyst

Thanks, Stephen. Thanks, Sisi, for taking my query. Two questions. First is the primary quarter income breakdown.

You simply talked about the brand new enterprise is 16%. How about the remaining, like take a look at prep, consulting, and many others? Second query is on the second quarter income steerage. What’s the breakdown of various enterprise within the second quarter? Thanks.

Sisi ZhaoDirector, Investor Relations

Yeah. For Q1, I can provide you a tough contribution. So for overseas-related enterprise, like take a look at prep and consulting collectively, contributing roughly about 24%, 25% of whole income. And we’ve a brand new enterprise roughly about 16%, and all of the grownup college college students enterprise, tutoring, and new enterprise collectively contributing roughly like 55%, 55%, 57% of whole income.

And the remaining others largely the net platform and another companies like ebook, content material, and many others. Okay. 

Lucy YuFinancial institution of America Merrill Lynch — Analyst

And in addition…

Stephen YangGovernment Vice President and Chief Monetary Officer

Okay. The Q2, our Q2 income steerage breakdown. The overseas-related enterprise will contribute 20% of whole income. And faculty and college college students enterprise contributed 6% of whole income.

And the Ok-12, and the normal, and new companies will contribute 40% of the income. Others, 30 — roughly 25%, 30% of whole income, included the Koolearn and Dongfang Zhenxuan.

Lucy YuFinancial institution of America Merrill Lynch — Analyst

Others?

Stephen YangGovernment Vice President and Chief Monetary Officer

Others.

Operator

Proper. Thanks. Subsequent follow-up query comes from the road of Tian Hou from TH Capital. Please ask your query, Tian.

Tian HouT.H. Capital — Analyst

Hello, Stephen. Simply one other query. So for the — is the enterprise actually completely new? So what’s to your completely different traces seasonality? Have they got a distinct seasonality?

Stephen YangGovernment Vice President and Chief Monetary Officer

Many of the new enterprise do not have the seasonality impression. However I feel the one one new enterprise, the summer season camp and the analysis camp enterprise do have the seasonality. Summer time and winter, the income contributed extra. However as you understand, whereas launching some weekends, the examine camp through the weekend, so the seasonality impression turns into lower than earlier than.

Sure.

Tian HouT.H. Capital — Analyst

Obtained it. That is it. Thanks. 

Operator

We are actually approaching the top of the convention name. I’ll now flip the decision over to New Oriental’s govt president and CFO, Mr. Stephen Yang, for his closing remarks. 

Stephen YangGovernment Vice President and Chief Monetary Officer

Once more, thanks for becoming a member of us at present. In case you have any additional questions, please don’t hesitate to contact me or any of our Investor Relations representatives. Thanks. [Operator signoff]

Length: 0 minutes

Name members:

Sisi ZhaoDirector, Investor Relations

Stephen YangGovernment Vice President and Chief Monetary Officer

Mark LiCiti — Analyst

Felix LiuUBS — Analyst

Tian HouT.H. Capital — Analyst

Candis ChanDaiwa Capital Markets — Analyst

Unknown speaker

Lucy YuFinancial institution of America Merrill Lynch — Analyst

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