(Yicai Global) June 13 — Shares of Koolearn Technology Holding doubled this morning after Chinese online education provider New Oriental Education & Technology Group, whose edtech services have been hit hard by the country’s crackdown l last year began to combine Learning English with live e-commerce.
Koolearn share price [HKG:1797] closed up 40% today at 8.72 HKD (1.11 USD). Earlier today, it hit HKD 12.50. The stock has doubled in value over the past two trading days. New Oriental’s U.S. Stocks [NYSE:EDU] jumped 10.1% yesterday to close at $16.21 each. The title was worth $200 each in February last year before the crackdown.
The sales host on Koolearn’s new livestream room on the Chinese version of TikTok, Douyin, gave 135,000 viewers English lessons while whipping up CNY301,000 ($44,670) worth of books, smart software and learning devices on June 10, two days after it opened.
And the same formula in its live-selling studio of Oriental Select agricultural products, established late last year, also performed well on the same day, transferring 15.3 million CNY (2.2 million USD). of products to an audience of 108,000 people. people.
New Oriental has been forced to look for new sources of income after Chinese authorities banned all extra classes outside the school in July last year in a bid to reduce the ‘double squeeze’ of excessive homework and the off-campus tutoring of compulsory school students. education.
The embargo forced New Oriental to discontinue its lucrative after-school K-9 tutoring services. Revenue for the third quarter of fiscal 2022 ended Feb. 28 fell 48.4% from a year earlier to $610 million, according to the company’s latest earnings report. Beijing. Education planning and services revenue fell 54.1% to $510 million.
But the company’s new business is developing with good momentum, founder and chairman Yu Minhong said in the financial report. Revenue from exam preparation services for adults and students jumped 59% during the period, while revenue from exam preparation and counseling services for those going abroad jumped 15% .
New Oriental is likely to offer more courses for adults and students and achieve strong growth in these areas, Ping An Securities said recently. The company is looking to transition to live e-commerce and, backed by Koolearn, it is doing quite well. New Oriental still has a strong brand as well as good human and material resources, he added.
Editor: Kim Taylor