New Oriental Education & Technology Group Inc (EDU) 2025 Q2 法說會逐字稿

Good evening, and thank you for standing by for New Oriental's FY 2025 second-quarter results earnings conference call.

晚上好，感謝您出席新東方2025財年第二季業績財報電話會議。

(Operator Instructions)

（操作員說明）

Today's conference is being recorded.

今天的會議正在錄製中。

If you have any objections, you may disconnect at this time.

如果您有任何異議，您可以此時斷開連接。

I would now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

現在我想把會議交給今天會議的主持人趙思思女士。

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you.

謝謝。

Hello, everyone, and welcome to New Oriental's second fiscal quarter 2025 earnings conference call.

大家好，歡迎參加新東方2025年第二財季財報電話會議。

Our financial results for the period were released earlier today and are available on the company's website as well as on Newswire services.

我們這段期間的財務表現已於今天早些時候發布，可在公司網站和新聞專線服務上查看。

Today, Stephen Yang, Executive President and Chief Financial Officer, and I will share New Oriental's latest earnings results and business updates in detail with you.

今天，我和執行總裁兼財務長楊士強將與大家詳細分享新東方最新的財報和業務動態。

After that, Stephen and I will be available to answer your questions.

之後，史蒂芬和我將回答您的問題。

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有風險和不確定性。

As such, our results may be materially different from the view expressed today.

因此，我們的結果可能與今天表達的觀點有重大不同。

A number of potential risks and uncertainties are outlined in our public filings with the SEC.

我們向美國證券交易委員會提交的公開文件中概述了許多潛在的風險和不確定性。

New Oriental does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

除適用法律要求外，新東方不承擔更新任何前瞻性聲明的義務。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

In addition, a webcast of this conference call will be available on New Oriental's Investor Relations website at investor.neworiental.org.

此外，本次電話會議的網路直播將在新東方投資者關係網站investor.neworiental.org上播出。

I will now first turn the call over to Mr. Yang.

我現在先把電話轉給楊先生。

Stephen, please go ahead.

史蒂芬，請繼續。

Thank you, Sisi.

謝謝你，茜茜。

Hello, everyone, and thank you for joining us on the call.

大家好，感謝您加入我們的通話。

We're pleased to inform you that New Oriental has achieved a healthy growth in this quarter's financial performance, which has surpassed our expectations.

我們很高興地通知您，新東方本季的財務表現實現了健康成長，超出了我們的預期。

Revenue grew 19.4% year over year, and total net revenues, excluding revenues generated from East Buy's private label products and live streaming business increased by 31.3% year over year.

營收年增19.4%，剔除東買自有品牌產品和直播業務的總淨收入年增31.3%。

We're encouraged by the continued growth of our new ventures, which have bolstered company's revenue.

我們對新企業的持續成長感到鼓舞，這增加了公司的收入。

We believe they will further progress positively moving forward.

我們相信他們將進一步積極向前邁進。

New Oriental's bottom-line performance for our Core Education business has also shown solid returns.

新東方核心教育業務的底線表現也顯示出可觀的回報。

To better reflect New Oriental's Core Education business, we have excluded the operating margins generated from East Buy for this quarter.

為了更能反映新東方的核心教育業務，我們剔除了東買本季產生的營業利潤。

Our operating margin and non-GAAP operating margin reached 2.8% and 3.2%, respectively.

我們的營業利潤率和非 GAAP 營業利潤率分別達到 2.8% 和 3.2%。

Results from these substantial efforts investing in our offerings and platforms that have been shown effective.

這些對我們的產品和平台進行大量投資的結果已被證明是有效的。

Our commitment to sustaining healthy profitability and market share remains strong as we continue to aim for long-term value creation for our customers and shareholders.

我們對保持健康的獲利能力和市場份額的承諾仍然堅定，因為我們繼續致力於為客戶和股東創造長期價值。

Now I'd like to spend some time to talk about the quarter's performance across our remaining business lines and new initiatives to you in detail.

現在我想花一些時間向大家詳細介紹一下我們剩餘業務線的本季業績以及新舉措。

Our key remaining business have showcased a promising trend in adjacent to positive momentum across our new businesses.

我們主要的剩餘業務在我們的新業務中展現出積極的勢頭，呈現出有希望的趨勢。

Breaking it down, the Overseas Test Prep business recorded an increase of 21% year over year for the second fiscal quarter of 2025.

細分來看，2025 年第二財季海外考試準備業務年增 21%。

The overseas study consulting business recorded a revenue increase of about 31% year over year for the second fiscal quarter of the 2025.

留學諮詢業務2025年第二財季營收年增約31%。

The Adults and the University Students business recorded a revenue increase of 35% year over year for this quarter.

本季成人和大學生業務營收年增 35%。

At the same time, our ongoing investment in new education business initiatives, primarily focused on facilitating students all around development have also continued to thrive with steady growth fueling the company's momentum.

同時，我們對新教育業務計劃的持續投資（主要致力於促進學生全面發展）也持續蓬勃發展，穩定成長推動了公司的發展動能。

Firstly, the Non-Academic Tutoring business, which we have now expanded to around 60 existing cities, focused on cultivating students' innovative ability and comprehensive quality.

首先是非學業輔導業務，目前已拓展至現有城市約60個，重點在於培養學生的創新能力及綜合素質。

We have attracted high interest with a total of approximately 994,000 student enrollments reported in this quarter.

本季共有約 994,000 名學生入學，引起了人們的高度興趣。

The top 10 cities contribute over 60% of this business.

前10名城市貢獻了該業務的60%以上。

Secondly, the intelligent learning system and device business utilizes our [path to teacher] experience data technology to provide personalized and targeted learning and exercise content, thereby improving students' learning efficiency.

其次，智慧學習系統及設備業務利用我們的【老師之路】體驗數據技術，提供個人化、有針對性的學習和練習內容，進而提升學生的學習效率。

We have tested the adoption of this new business in around 60 existing cities and are pleased to see improved scalability.

我們已經在大約 60 個現有城市測試了這項新業務的採用，很高興看到可擴展性得到改善。

The revenue contribution of this business from top 10 cities in China is around 50%.

該業務來自中國前10名城市的營收貢獻約50%。

Our Smart Education business or educational materials and digital smart study solutions have continued healthy development.

我們的智慧教育業務或教材和數位智慧學習解決方案持續健康發展。

In summary, our new education business initiatives have recorded a revenue increase of about 43% year-over-year for the second quarter.

總而言之，我們的新教育業務計劃第二季營收年增約 43%。

In addition, our newly Integrated Tourism-related business line, which includes our rooted study tour and research campuses for K-12 and university students as well as our Tourism business serving middle ages and senior audience have collectively recorded a revenue increase of 233% year over year for the second quarter.

此外，我們新推出的綜合旅遊相關業務線，包括紮根K-12和大學生的遊學和研究校園，以及服務中老年受眾的旅遊業務，今年的收入總共增長了233%第二季度與去年同期相比。

Study tour and research campuses are now operating in around 55 cities across the country, with the top 10 cities in China offering over 50% of the revenue share of this new business.

遊學研學園區目前已在全國約55個城市開展業務，其中中國前10名城市提供了這項新業務50%以上的收入份額。

We're also facilitating a number of top-notch tourism offerings to ['08] groups, including the middle-aged and elderly individuals across 30 featured provinces in China and globally.

我們也為 ['08] 群體提供一系列一流的旅遊產品，包括中國和全球 30 個特色省份的中老年人。

With regards to our OMO system, we have persisted in revamping our platform, leveraging our educational infrastructure and technology strength in order to provide advanced diversified education service to our customers of all ages.

在OMO系統方面，我們堅持對平台進行改造，利用我們的教育基礎設施和技術優勢，為各年齡層的客戶提供先進的多元化教育服務。

During this quarter, we invested $30.9 million to improve and maintain our OMO teaching platform, which enhanced users experience and supports the growth of our education offerings.

本季度，我們投資了 3090 萬美元來改進和維護我們的 OMO 教學平台，這增強了用戶體驗並支持我們教育產品的成長。

Now let me share some updates on East Buy's performance.

現在讓我分享一些東買業績的最新情況。

During the reporting period, East Buy expanded its product range from fresh food and snacks to diversified portfolio, launching 600 SKUs in private label products by November 2024.

報告期間內，東買將產品範圍從生鮮食品和零食拓展至多元化產品組合，截至2024年11月推出600個自有品牌產品SKU。

This includes healthcare foods, health food, and new Chinese-style clothing contributing to approximately 37% of total GMV for the six months ending November 2024.

其中保健食品、保健食品和新中式服裝約佔截至2024年11月六個月總GMV的37%。

We are pleased to see multi-platform strategy has expanded its consumer base and increased brand awareness to enrich the live streaming products and online shops on platforms like mini program WeChat ministore, Tmall, JD, Pinduoduo, and RedNote.

我們很高興地看到，多平台策略擴大了消費者基礎，提高了品牌知名度，豐富了小程式微信小店、天貓、京東、拼多多、紅筆記等平台的直播產品和網路商店。

This multichannel approach has driven rapid growth with product label products.

這種多通路方法推動了產品標籤產品的快速成長。

Simultaneously, East Buy has begun exploring off-line channels with vending machines in New Oriental's learning centers.

同時，東買也開始探索線下管道，在新東方學習中心設置自動販賣機。

The company's app strategy has advanced quickly offering daily necessities and high-quality products, leading to increased user contributions and strong loyalty.

公司的應用策略快速推進，提供生活必需品和高品質產品，從而提高了用戶貢獻度和強烈的忠誠度。

With regard to the company's latest financial position, I'm pleased to share that the company is in a healthy financial status with cash and cash equivalents, term deposits, and short-term investments totaling approximately $4.8 billion.

關於公司最新的財務狀況，我很高興地告訴大家，公司財務狀況良好，現金及現金等價物、定期存款和短期投資總計約48億美元。

On August 19, 2024, New Oriental announced its Board of Directors approved a special dividend of $0.06 per common share or $0.6 per ADS to holders of common shares and ADS of record after the close of the business on September 9, 2024, Beijing and Hong Kong time and New York time, respectively.

2024年8月19日，新東方宣布，董事會批准向2024年9月9日北京和香港收盤後登記在冊的普通股和美國存託股持有人派發每股普通股0.06美元或每份美國存託股0.6美元的特別股利。

The payment date was on or around September 23, 2024 for holders of common shares in September 26, 2024, for holders of ADS.

普通股股東的付款日期為 2024 年 9 月 23 日或前後，ADS 股東的付款日期為 2024 年 9 月 26 日。

The total cash dividend distributed was approximately $100 million.

分配的現金股利總額約為1億美元。

Now I would like to take the opportunity to highlight that the company's Board of Directors approved the share repurchase program in July 2022, in which the company is authorized to purchase -- to repurchase up to [$1 million] of the company's ADS or common shares through the next 12 months.

現在我想藉此機會強調，公司董事會於 2022 年 7 月批准了股票回購計劃，該計劃授權公司購買最多 [100 萬美元] 的公司 ADS 或普通股在接下來的 12 個月裡。

The company's Board of Directors further proved to extend the effective time of the share repurchase program to May 31, 2025, and increasing the aggregate value of shares that the company is authorized to repurchase from $400 million to $700 million.

公司董事會進一步證明，將股票回購計畫的生效時間延長至2025年5月31日，並將公司授權回購的股票總價值從4億美元增加到7億美元。

As of January 20, 2025, the company repurchased an aggregate of approximately 11.2 million ADSs for approximately $542.8 million from the open market.

截至2025年1月20日，該公司以約5.428億美元的價格從公開市場回購了總計約1,120萬股美國存託股。

Now I will turn the call over to Sisi to share

現在我將把電話轉給塞西分享

(technical difficulty)

（技術難度）

(technical difficulty) Expenses for the quarter were $1,019.4 million, representing a 20.2% increase year over year.

（技術難度） 本季費用為 10.194 億美元，年增 20.2%。

Non-GAAP operating cost and expenses for the quarter, which excludes share-based compensation expenses were $1,011.1 million, representing a 23.5% increase year over year.

本季非 GAAP 營運成本和費用（不含股權激勵費用）為 10.111 億美元，較去年同期成長 23.5%。

The increase was primarily due to the cost and expenses related to the accelerated capacity expansion for Education businesses and newly Integrated Tourism-related business.

成長主要是由於教育業務和新的綜合旅遊相關業務加速產能擴張相關的成本和費用。

Cost of revenue increased by 17.9% year over year to $498.3 million.

收入成本年增 17.9% 至 4.983 億美元。

Selling and marketing expenses increased by 26.6% year over year to $196.1 million. G&A

銷售和行銷費用年增 26.6% 至 1.961 億美元。一般及行政費用

expenses for the quarter increased by 20% year over year to $324.9 million.

該季度的支出年增 20%，達到 3.249 億美元。

Non-GAAP G&A expenses, which exclude share-based compensation expenses were $319.4 million representing a 24.7% increase year over year.

非 GAAP G&A 費用（不含股權激勵費用）為 3.194 億美元，較去年同期成長 24.7%。

Total share-based compensation expenses, which were allocated to related cost expense -- operating costs and expenses decreased by 71.8% year over year, to $8.3 million in this fiscal quarter.

本財季分配給相關成本費用（營運成本和費用）的股權激勵費用總額年減 71.8%，至 830 萬美元。

Operating income was $19.3 million, representing a 9.8% decrease year over year.

營業收入為1,930萬美元，年減9.8%。

Non-GAAP income from operations for the quarter were $27.6 million, representing a 45.8% decrease year over year.

該季度非 GAAP 營運收入為 2,760 萬美元，年減 45.8%。

Net income attributable to New Oriental for the quarter was $31.9 million, representing a 6.2% increase year over year.

該季度歸屬於新東方的淨利潤為3,190萬美元，較去年同期成長6.2%。

Basic and diluted net income per ADS attributable to New Oriental were $0.20 and $0.19, respectively.

新東方每股ADS基本淨利和稀釋後淨利分別為0.20美元和0.19美元。

Non-GAAP net income attributable to New Oriental for the quarter were $35.5 million, representing a 29.1% increase year over year.

本季新東方應佔非美國通用會計準則淨利潤為 3,550 萬美元，年增 29.1%。

Non-GAAP basic and diluted net income per ADS attributable to New Oriental were $0.22 and $0.22, respectively.

非美國通用會計準則下新東方每股美國存託股基本淨利和稀釋後淨利分別為 0.22 美元和 0.22 美元。

Net cash flow generated from operations for the second fiscal quarter of 2025 was approximately $313.3 million, and capital expenditures for the quarter were $60.6 million.

2025年第二財季營運產生的淨現金流量約為3.133億美元，該季度的資本支出為6,060萬美元。

Turning to the balance sheet.

轉向資產負債表。

As of November 30, 2024, New Oriental had cash and cash equivalents of $1,418.2 million.

截至2024年11月30日，新東方擁有現金及現金等價物14.182億美元。

In addition, the company had $1,443.2 million in term deposits and $1,951.4 million in short-term investments.

此外，該公司還有14.432億美元的定期存款和19.514億美元的短期投資。

New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the service or goods are delivered at the end of the second quarter of fiscal year 2025 was $1,960.6 million, an increase of 19.2% as compared to $1,645 million at the end of the second fiscal quarter of 2024.

新東方的遞延收入為 19.606 億美元，較 1,645 美元增長 19.2%，即預先向客戶收取的現金以及將在 2025 財年第二季度末交付服務或商品時確認的相關收入到2024 年第二財季末將達到100 萬美元。

Now I will hand over to Stephen to go through our outlook and guidelines -- guidance.

現在我將請史蒂芬介紹我們的前景和指導方針——指導。

I repeated the paragraph that the Sisi mentioned of the net income.

我重複了塞西提到的淨利潤的段落。

Net income attributable to New Oriental for the quarter was $31.9 million, representing a 6.2% increase year over year.

該季度歸屬於新東方的淨利潤為3,190萬美元，較去年同期成長6.2%。

Basic and diluted net income per ADS attributable to New Oriental were $0.20 and $0.19, respectively.

新東方每股ADS基本淨利和稀釋後淨利分別為0.20美元和0.19美元。

About the outlook in fiscal year '25 Q3 guidance.

關於 25 財年第三季指引的展望。

In light of the current economic uncertainties, we remain committed to achieving steady and sustainable growth for our core educational business in the coming quarter.

鑑於當前經濟的不確定性，我們仍致力於在下一季實現核心教育業務的穩定和永續成長。

Our confidence is both by the solid performance of our diverse business lines and our extensive educational resources.

我們的信心來自於我們多​​元化業務線的穩健表現和廣泛的教育資源。

We're dedicated to diligently adhering to the latest guidance from the Chinese authorities including the recently announced the national action plan with the goal of establishing a high-quality education system and unlocking potential across our business lines and innovative efforts.

我們致力於努力遵守中國當局的最新指導，包括最近宣布的國家行動計劃，其目標是建立高品質的教育體系，釋放我們業務線和創新努力的潛力。

To balance revenue and profitability growth, we will carefully manage our capacity expansion and hiring strategies to support the development of our education business in the rest of this year.

為了平衡收入和獲利成長，我們將謹慎管理產能擴張和招聘策略，以支持今年剩餘時間教育業務的發展。

We plan to follow our [expansion] pace to increase capacity with a focus on new offerings in cities with a robust local economy.

我們計劃跟隨我們的[擴張]步伐來增加產能，重點是在當地經濟強勁的城市提供新產品。

Simultaneously, we will continue to invest in developing our emerging tourism-related ventures.

同時，我們將持續投資發展新興的旅遊相關企業。

The foundation we have established and the progress we've achieved so far strengthen our confidence in our future performance.

我們所建立的基礎和迄今為止所取得的進展增強了我們對未來績效的信心。

We expect total net revenue, excluding revenues generated from East Buy, in the coming quarter, December 1, 2024, to February 28, 2025, to be in the range of $1,007.3 million, representing a year-over-year increase in the range of 18% to 21%. [Projects] increase of the revenue in our functional currency, renminbi, is expected to be in the range of 20% to 23% for the third quarter of the fiscal year 2025.

我們預計，下一季（2024年12月1日至2025年2月28日）的總淨收入（不包括東買產生的收入）將在10.073億美元左右，年增18% 至 21%。 [專案] 2025財年第三季度，我們的功能貨幣人民幣收入預計將成長20%至23%。

To conclude, New Oriental is dedicated to delivering premium offerings to our customers while pursuing sustainable growth through a strategic blend of capabilities.

總而言之，新東方致力於為客戶提供優質產品，同時透過策略性的能力融合追求永續成長。

We'll continue investing research and applications of advanced technologies, including AI and ChatGPT to enhance our educational and product offering.

我們將繼續投資先進技術的研究和應用，包括人工智慧和 ChatGPT，以增強我們的教育和產品供應。

Our aim is to strengthen our competencies, driving growth, and operating efficiency.

我們的目標是增強我們的能力，推動成長和營運效率。

We will also continue to seek guidance from and cooperate with the government authorities, complied with the relevant policies, guidelines, and any related regulation measures and adjust our business operations as required.

我們也將繼續尋求政府部門的指導和配合，遵守相關政策、指南和任何相關監管措施，並根據需要調整我們的業務運作。

As always, we will work diligently to enhance the nation's education level to strengthen its leading position so as to unveil further potential across our business lines and realizing our vision.

我們將一如既往，努力提高國家的教育水平，鞏固領先地位，從而進一步釋放我們業務的潛力，實現我們的願景。

This is the end of our fiscal year 2025 Q2 summary.

這是我們 2025 財年第二季總結的結尾。

At this point, Sisi and I like to open the floor for questions.

在這一點上，塞西和我想開始提問。

Operator, please open the call for these.

接線員，請打開這些電話。

Thank you.

謝謝。

(Operator Instructions) Yiwen Zhang, China Renaissance.

（操作員說明） 張一文，華興資本。

Perfect.

完美的。

Thanks for taking my question.

感謝您提出我的問題。

So my question is about our Q3 revenue guidance, I think you mentioned, [RMB] is 20% to 23%.

所以我的問題是關於我們第三季的收入指導，我想你提到過，[人民幣]是20%到23%。

It seems that is decelerating.

似乎正在減速。

Can we understand which part of the business is actually driving that trend?

我們能否了解業務的哪一部分真正推動了這個趨勢？

And how should we think about the rest of the year?

我們該如何看待今年剩下的時間？

Now also, in light of this new guidance, how should we think about the learning center expansion pace as well?

現在，根據這項新的指導意見，我們該如何考慮學習中心的擴張步伐？

Thank you.

謝謝。

Thank you, Yiwen.

謝謝你，伊文。

Yeah, about the revenue guidance of Q3, yeah, we gave the guidance of the year-over-year growth in the range of 20% to 23% in RMB terms.

是的，關於第三季的收入指引，是的，我們給出了以人民幣計算的同比增長在 20% 至 23% 範圍內的指引。

I must mention that we are using the conservative method to give the guidance of Q3.

我必須提到，我們使用保守方法來給出第三季的指導。

And the reasons for a little bit of slowdown in the revenue growth in Q3 are as follows.

而導致第三季營收成長幅度略有放緩的原因如下。

Number one, the uncertainty of the macroeconomy situation has a certain negative impact on the demand of our high-end education business, such as the Overseas Test Prep and related business and some one-on-one business, which is also high in business.

第一，宏觀經濟情勢的不確定性對我們高端教育業務的需求產生了一定的負面影響，例如出國考研及相關業務以及一些一對一業務，業務量也很高。

And number two, with the rapid recovery of the Educational business in the last two to three years, I think the revenue base is gradually increasing.

第二，隨著過去兩三年教育業務的快速復甦，我認為收入基礎正在逐漸增加。

So I think the revenue growth in Q3 will be a little bit slow down.

所以我認為第三季的營收成長會稍微放緩。

And number three, I think the impact of the exchange rate is approximately around 3% point.

第三，我認為匯率的影響大約在 3% 左右。

That's why we gave the guidance in the round of 18% to 21% in dollar terms.

這就是為什麼我們給出以美元計算的 18% 至 21% 的指引。

And I think yes, even though we're facing to the uncertainty with the macro economy situation change, but I think the management will travel back to grow the revenues.

我認為是的，儘管我們面臨宏觀經濟情勢變化的不確定性，但我認為管理層會回來增加收入。

And so we expect to be at the guidance we gave to the investors in Q3.

因此，我們預計將達到第三季向投資者提供的指導。

And I think on the other hand, I think we will care more about the balance between the revenue growth and the operating efficiency at the same time for the long term.

另一方面，我認為從長遠來看，我們會更關心收入成長和營運效率之間的平衡。

As for the expansion plan, this quarter, we opened -- this quarter, the expansion -- in Q2, the expansion was 5% Q on Q in Q2.

至於擴張計劃，本季度，我們在第二季度開啟了擴張，環比擴張了 5%。

And for the whole year, we have the second half of the year left.

就全年而言，我們還剩下下半年。

And in the whole year, we plan to open 20% to 25% of the new learning centers.

全年我們計劃開設20%到25%的新學習中心。

I think we only open the New Oriental centers in the cities that the last year in top-line and bottom-line performance as well, and we allow them to open more learning centers.

我認為我們只在去年營收和利潤表現同樣好的城市開設新東方中心，我們允許他們開設更多的學習中心。

And -- but we still care more about the utilization of the new learning centers.

而且——但我們仍然更關心新學習中心的使用率。

So yes, that's why I said we care more about the top line growth and the margins.

所以，是的，這就是為什麼我說我們更關心營收成長和利潤率。

Thank you.

謝謝。

Felix Liu, UBS.

劉菲利克斯，瑞銀。

Good evening, and thank you, management, for taking my questions.

晚上好，謝謝管理層回答我的問題。

May I just follow up on one of the issues that you mentioned, which is macro impacting the higher-end business.

我可以跟進您提到的問題之一，即對高端業務的宏觀影響。

Do you see any potential risk to your more mass-market services, such as the new education businesses?

您是否認為您的大眾市場服務（例如新的教育業務）有任何潛在風險？

And can management comment on the competition landscape that you're observing on the ground across your business lines?

管理階層能否對您在各個業務領域實地觀察到的競爭格局發表評論？

Has competition played into a role in the growth deceleration?

競爭是否在成長減速中發揮了作用？

Thank you.

謝謝。

I think for the new business, we still guide the Q2 guidance about 40% in RMB term year-over-year growth.

我認為對於新業務，我們仍將第二季的指引以人民幣計算年增40%左右。

And so it is still very strong.

所以它仍然非常強大。

And as for the competition, yeah, we have seen some -- a little bit strong competition in the market.

至於競爭，是的，我們已經看到了一些——市場上的競爭有點激烈。

But I think we're fine.

但我想我們很好。

So we're still taking more market share from the market.

因此，我們仍在從市場上奪取更多的市場份額。

And because of the base in the Q3, we guided 40% in RMB term year-over-year growth because of the high base.

由於第三季的基數較高，我們指導人民幣年增 40%。

Lucy Yu, Bank of America Securities.

Lucy Yu，美國銀行證券公司。

Thank you.

謝謝。

So Stephen, I remember earlier, you gave the full-year guidance for 25% or 30% revenue growth, excluding East Buy.

史蒂芬，我記得早些時候，您給出了全年收入增長 25% 或 30% 的指導，不包括東買。

So given that the next quarter, you are forecasting around like 21% to 23%.

因此，考慮到下個季度，您預測約為 21% 至 23%。

So the spending in that fourth quarter, we have to accelerate our revenue expansion -- revenue growth or we are aiming for a slower growth this year?

因此，在第四季的支出中，我們必須加速我們的收入擴張——收入成長，還是我們今年的目標是放緩成長？

Thank you.

謝謝。

Yeah.

是的。

As I said, the uncertainty of the economy situation, I think we need one more quarter to see -- to give you the Q4 guidance.

正如我所說，經濟情勢的不確定性，我認為我們還需要一個季度的時間才能看到第四季的指導。

So I think for the whole year, yes, we're facing a little bit slowing down in Q3.

所以我認為全年來看，是的，我們在第三季面臨一點放緩。

But for the whole year, I think in RMB terms, we still got the top line growth of the year-over-year growth by, let's say, the 25% in RMB terms or more for the whole year guidance, Lucy.

但就全年而言，我認為以人民幣計算，我們仍然實現了同比增長，比方說，全年指導的人民幣計算增長了 25% 或更多，露西。

Timothy Zhao, Goldman Sachs.

提摩西·趙，高盛。

Thank you.

謝謝。

Hi, Stephen.

嗨，史蒂芬。

Hi, Sisi.

嗨，茜茜。

My question is regarding your new education initiative.

我的問題是關於你們的新教育計劃。

I noticed that when you report your student enrollment number, I think for this quarter, the academic tutoring, enrollment growth was around 26%.

我注意到，當您報告學生入學人數時，我認為本季的學術輔導入學人數增長約為 26%。

Just wondering, could you further elaborate on that?

只是想知道，您能進一步詳細說明嗎？

And what more normalized growth that we expect in terms of the student enrollment for the economic tutoring.

我們預期經濟輔導的學生入學人數將會出現更正常化的成長。

And also a follow-up question, I think, on the learning center ramp-up.

我認為還有一個關於學習中心升級的後續問題。

I think you mentioned that you see slightly more competition on the ground.

我想你有提到過，你看到現場的競爭稍微激烈一些。

Could you share, I think, what is the latest learning center ramp-up pace in terms of the time for breakeven time to reach a more -- like a mature stage and also the utilization rates that you see on the group?

我想，您能否分享一下學習中心最新的成長速度，即達到更成熟階段的損益平衡時間以及您在集團中看到的利用率？

Thank you.

謝謝。

Okay.

好的。

Timothy, regarding your enrollment question, actually, if you look at the full year roughly, because quarterly enrollment number will be impacted by like the registration window, et cetera.

蒂莫西，關於你的入學問題，實際上，如果你粗略地看一下全年，因為季度入學人數會受到註冊窗口等因素的影響。

So there will be some fluctuation of growth.

所以成長會出現一些波動。

And year over year, actually, the -- we are comfortable with roughly about a 40%-plus growth for new business including the non-academic tutoring.

事實上，我們對包括非學術輔導在內的新業務成長約 40% 以上感到滿意。

And this business should grow similar or even faster.

而且這項業務應該會成長類似甚至更快。

And roughly about 5%, maybe 4% to 6% of ASP increase.

大約 5%，也許 4% 到 6% 的 ASP 成長。

And if you deduct that, the rest, our volume increase, which is mostly driven by the enrollment number that you can see from our release.

如果你扣除這一點，剩下的就是我們的數量增長，這主要是由你從我們的發布中看到的註冊數量推動的。

Elsie Sheng, CLSA.

盛爾希，里昂證券。

Hi.

你好。

Thank you for taking my question.

感謝您回答我的問題。

I just want to follow up on the pressure that you mentioned on the overseas and on more premium business, the one-on-one business.

我只是想跟進您提到的海外業務以及更優質的業務（一對一業務）的壓力。

So how do you measure the magnitude of this impact from a focus on?

那麼，如何衡量這種關注所帶來的影響的大小呢？

Usually, we understand that education in nature should be more resilient than other type for consumption.

通常，我們理解自然教育應該比其他類型的消費更有彈性。

So how -- how do you see the risk going forward for this business if we assume that macro going forward continue to remain relatively in a weak status?

那麼，如果我們假設未來宏觀經濟持續保持相對疲軟的狀態，您如何看待這項業務未來的風險？

Last quarter, we gave the guidance of the overseas test prep, this has grown by less than 20%.

上個季度，我們給了海外準備考試的指導，這個成長了不到20%。

And because we have seen some parents -- some parents change their idea to send their kids to study abroad in the future because the macroeconomy situation change.

而且因為我們看到一些家長──有些家長因為宏觀經濟情勢的變化而改變了未來送孩子出國留學的想法。

So I think in the Q3, the overseas test prep business will grow by somewhere around 15%.

所以我認為第三季海外備考業務將會成長15%左右。

And so it's a little bit decelerated.

所以它有點減速。

And -- but this is the real situation.

而且——但這就是真實的情況。

And -- but simply, [Q4] business is okay.

而且——但簡單地說，[Q4] 業務還不錯。

And we give the guidance of 40% year-over-year growth, in Q3.

我們給出的第三季年增 40% 的指引。

And so let's see -- let's see, for another quarter, we will give the guidance for Q4 in next earnings call.

因此，讓我們看看，對於另一個季度，我們將在下一次財報電話會議中給出第四季度的指導。

Alice Cai, Citibank.

艾麗絲·蔡，花旗銀行。

I'm not hearing from Alice.

我沒有收到愛麗絲的訊息。

I would like to take the next question.

我想回答下一個問題。

[DS Kim], JPMorgan.

[DS Kim]，摩根大通。

Hi, Stephen.

嗨，史蒂芬。

Hi, Sisi.

嗨，茜茜。

Thanks for taking my question.

感謝您提出我的問題。

And my name is D. S. Kim.

我的名字是 D.S. Kim。

Can I follow up on the full year guidance again.

我可以再次跟進全年指導嗎？

I guess -- now as you kind of briefly remarked, we can expect over 25% growth in RMB term for the full year versus I think previously, markets or management kind of expected about 30%, so about 5-point deceleration makes a lot of sense.

我想，正如您簡要所說，我們預計全年人民幣增長率將超過 25%，而我之前認為，市場或管理層的預期約為 30%，因此大約 5 個百分點的減速會產生很大影響的意義。

But how about our OP margin, can we still expect up to about 100 bps expansion for the education full year margin core business?

但我們的營運利潤率如何，我們是否還能預期教育全年利潤率核心業務將擴大約100個基點？

And if okay, can you also help elaborate albeit on the segment growth number baked in the full year revenue guidance, especially the new business?

如果可以的話，您能否幫助詳細說明全年收入指導中的細分市場成長數字，尤其是新業務？

I think Sisi remarked, 40%-plus growth there, but just wanted to double check other segment and a little more details?

我想塞西說過，那裡的增長超過 40%，但只是想仔細檢查其他部分並了解更多細節？

D. S., yes, let's start with this quarter margin analysis in Q2.

D.S.，是的，讓我們從第二季的利潤率分析開始。

The non-GAAP OP margin for the educational business, which excluding the East Buy this quarter was expanded by 12 basis points year over year.

本季教育業務的非 GAAP 營運利潤率（不包括東買）較去年同期擴大了 12 個基點。

And I think it's mainly due to some reasons because of the top-line growth are good in this quarter, and we started to bear fruit of the learning center expansion last year, especially in the second half of last year.

我認為這主要是由於一些原因，因為本季的收入成長良好，而且我們去年開始取得學習中心擴張的成果，尤其是去年下半年。

So it's driving utilization rates up and get more operational leverage.

因此，它提高了利用率並獲得了更多的營運槓桿。

And yeah, as I said, we started to make some cost and expense control within the company.

是的，正如我所說，我們開始在公司內部進行一些成本和費用控制。

So this quarter, we get the operating leverage and drive the margin up.

因此，本季度，我們獲得了營運槓桿並提高了利潤率。

And as for the margin outlook for the second half of the year, as I said, I think the -- we are facing some slowing down of the overseas-related business.

至於下半年的利潤率前景，正如我所說，我認為我們正面臨海外相關業務的放緩。

So I think the margin drag will be [halved] in the second half of the year from the overseas-related business.

因此，我認為下半年海外相關業務對利潤率的拖累將減半。

And also, the newly Tourism business will drive the market in the second half of the year.

此外，新的旅遊業務將推動下半年的市場。

And so I think in the second half of this year, we will meet some margin pressure.

因此，我認為今年下半年，我們將面臨一些利潤壓力。

And as the margin outlook for the next year, I think we will still expect the margin expansion for the whole company.

至於明年的利潤率展望，我認為我們仍然預期整個公司的利潤率會擴大。

Because the [K1] margin will be expanded in the new year and in the second half of the year as well.

因為[K1]利潤率在新的一年和下半年都會擴大。

And in second half of this year as well.

今年下半年也是如此。

And we will started to cut the cost and expenses of the overseas-related business.

我們將開始削減海外相關業務的成本和費用。

And we expect the margin profile of the tourist business next year will be better than this year.

我們預計明年旅遊業務的利潤狀況將比今年好。

So this is the margin analysis that we can

這就是我們可以進行的利潤分析

(technical difficulty).

（技術難度）。

Alice Cai, Citi.

愛麗絲蔡，花旗銀行。

(technical difficulty)

（技術難度）

Alice, there is some echo in your side.

愛麗絲，你身邊有一些迴音。

So we cannot hear you clearly.

所以我們無法清楚地聽到你的聲音。

Thank you, management, for the opportunity to ask questions.

謝謝管理層給我提問的機會。

I have two questions today.

我今天有兩個問題。

The first one is I noticed that you are considering a regular dividend policy which is quite interesting given the current strong market demand, right?

第一個是我注意到你們正在考慮定期股息政策，考慮到目前強勁的市場需求，這很有趣，對吧？

In this regard, I'd like to ask, does it have anticipated softening in demand and therefore, a planned more duration in CapEx spending going forward?

在這方面，我想問的是，它是否預計需求會疲軟，因此計劃未來資本支出支出的持續時間更長？

Additionally, do you have an estimated timeline for when this dividend policy might be declared?

此外，您是否有宣布該股利政策的預計時間表？

Furthermore, how do you view this balance between business expansion and shareholder returns?

此外，您如何看待業務擴張和股東回報之間的平衡？

Just regarding the reported improvement in breakeven timeline for recent opened -- recently opened learning centers, I would like to know, shall we expect similar efficiency levels for future new learning centers?

就最近開設的學習中心的損益平衡時間表的報告改善而言，我想知道，我們是否可以期望未來新的學習中心達到類似的效率水平？

Second question answer first.

先回答第二個問題。

I think the -- typically, we will spend six months to get the breakeven point of the new learning centers.

我認為，通常情況下，我們將花費六個月的時間來實現新學習中心的收支平衡點。

So the ramp-up pace has not changed.

因此，成長速度沒有改變。

And as for the shareholders' capital allocation, we announced $700 million share buybacks.

至於股東資本配置，我們宣布回購 7 億美元的股票。

And now, we finished $542.8 million.

現在，我們完成了 5.428 億美元。

And I think we'll keep buying the share buyback and in the open market.

我認為我們將繼續在公開市場上回購股票。

And as for the special dividend, yeah, we have paid [$100 million] in September as the special dividend.

至於特別股息，是的，我們在 9 月支付了 [1 億美元] 作為特別股息。

Typically, the Board of Directors will discuss the new year capital allocation policy in July.

通常情況下，董事會將在七月討論新年資本分配政策。

But anyway, it depends on the market cap, the stock price.

但無論如何，這取決於市值、股價。

And -- but we -- I think the management will aim to create more value to the shareholders as the capital return.

而且 - 但我們 - 我認為管理階層的目標是為股東創造更多價值作為資本回報。

[Yin Boching], ION Group.

[尹伯慶]，ION集團。

Yes.

是的。

Thank you.

謝謝。

So my question is about how do you perceive the regulatory landscape on your core and non-core businesses, such as the Tourism business.

所以我的問題是，您如何看待核心和非核心業務（例如旅遊業務）的監管環境。

Do you see there -- are there any heightened or lessen regulatory risks in those business areas?

您是否看到這些業務領域的監管風險是否增加或減少？

Thank you.

謝謝。

On the regulation side, there is no change now.

在監管方面，目前沒有變化。

And I think we're okay to open the new learning centers to get the license from the local government.

我認為我們可以開設新的學習中心以獲得當地政府的許可。

And so that's why we want to change our expansion plan of this year.

這就是為什麼我們要改變今年的擴張計畫。

And on front, on the regulation side, our attitude is neutral to positive.

而在前面，在監管方面，我們的態度是中性到正面的。

I think as a list will apply for the requirement of the government things three years ago, the policy change.

我認為作為一個清單將申請三年前政府事情的要求，政策的變化。

Now the situation has no change in the result.

現在的情況，結果並沒有改變。

So that's it.

就是這樣。

Thank you.

謝謝。

Thank you for the questions.

謝謝你的提問。

We are now approaching the end of the conference call.

我們現在電話會議即將結束。

I will now turn the call over to New Oriental's Executive President and CFO, Mr. Stephen Yang, for his closing remarks.

現在我請新東方執行總裁兼財務長楊志偉先生致閉幕詞。

Again, thank you for joining us today.

再次感謝您今天加入我們。

If you have any further questions, please do not hesitate to contact me or any of our Investor Relations, the representatives.

如果您有任何其他問題，請隨時與我或我們的任何投資者關係代表聯繫。

Thank you.

謝謝。

That does conclude today's conference call.

今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路。