News and Research on New Oriental Education & Technology Group, Inc. (EDU)
Business Description
New Oriental Education & Technology Group, Inc. provides private educational services in China. The company offers a range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.
The company provides educational services under its ‘New Oriental’ brand. As of May 31, 2006, the company had approximately 872,000 student enrollments, including approximately 497,000 student enrollments in its language training programs and approximately 375,000 student enrollments in its test preparation courses. The company delivers its educational programs, services and products to students through an extensive physical network of 25 schools, 111 learning centers and 13 bookstores operated by it as of May 31, 2006, approximately 5,000 third-party bookstores and approximately 1,700 teachers in 24 cities, as well as through its virtual online network, which has approximately two million registered users.
In November, 2006, the company has formed the Beijing New Oriental North Star Training School. The new school is the first step in New Oriental's expansion into the professional certification preparation field, which includes preparation for the PRC bar, Certified Public Accountant (CPA) and civil service exams.
Programs, Services and Products
The company provides various educational services and products intended to address the needs of its students. It delivers education to its students primarily in traditional classroom settings and also through online instruction. With the exception of the full-time primary and secondary school in Yangzhou and a school that provides post-secondary education, its classroom-based courses are generally designed to be completed in 2 to 16 weeks.
The company’s program, service and product offerings are generally divided into six areas: language training; test preparation; primary and secondary school; educational content, software and other technology development and distribution; online education; and other services and products.
Language Training Courses
The company’s language training courses primarily consist of various types of English language training courses. It also provides training courses for other foreign languages, including German, Japanese, French, Korean and Spanish. As of May 31, 2006, the company had approximately 497,000 student enrollments in its language training courses.
The company offers English to students of all age groups and with various motivations for learning English. It categorizes its English language training courses into various areas: English for adults; English for children, including ‘Pop Kids’ English program; English for middle school and high schools students; and ‘Elite English’ for high-income adults and children of high-income families.
English for Adults: The company’s English for adults program offers courses designed to teach and improve college and other adult students’ English writing, reading, listening and speaking skills. Its schools and learning centers also have language labs at which its students can listen to and recite spoken passages on CDs and audio tapes to improve their listening and speaking skills. It also offers more intensive and condensed versions of its courses, in particular during the summer months when many academic institutions are on summer break. As of May 31, 2006, the company had approximately 238,000 student enrollments in its English for adults courses.
English for Children: The company established its English for children program for children in kindergarten through grade six. The company designed its English for children program based upon various principles: the company uses localized materials originally published by international education content providers and publishers while taking into account the local public schools’ curricula, the skills and abilities of the individual child and adapting to particular needs; the company assists students in mastering the basics of the language in various fun ways, including interactive games, activities and cultural studies; and the company gives children a passion for learning the language and guide and inspire them to develop their self-learning abilities. The company tests its students to measure their progress and make sure they are progressing as needed to advance to the next book and class level without jeopardizing the fundamentals that would allow them to excel in the future. As of May 31, 2006, the company had approximately 95,000 student enrollments in its English for children program.
English for Middle School and High School Students: English proficiency is tested as a major subject of entrance exams for admission into China’s high schools, colleges and universities. Its English language training courses for middle school and high school students are designed to supplement students’ regular school curricula and help students achieve better scores on English exams for admission into high schools or higher education institutions. As of May 31, 2006, the company had approximately 145,000 student enrollments in its English language training courses for middle school and high school students.
‘Elite English’ for High-Income Adults and Children of High-Income Families: The company started its ‘Elite English’ programs for high-income adults and children of high income families. As of May 31, 2006, the company had approximately 3,200 students in its ‘Elite English’ program at its four ‘Elite English’ centers in Beijing.
Test Preparation Courses
The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the PRC and Commonwealth countries. As of May 31, 2006, the company had approximately 375,000 student enrollments in its test preparation courses, of which approximately 121,000 were in overseas test preparation courses and 254,000 were in PRC test preparation courses.
The company offers test preparation courses for various major overseas exams: TOEFL, TSE, SAT, ACT, IELTS, GRE, GMAT, LSAT, BEC and TOEIC. In addition, the company offers test preparation classes for major PRC admissions tests: CET 4, CET 6, National English Test for Entrance into Master’s Degree Programs, National Math Test for Entrance of Master’s Degree Programs, Professional Title English Test and Public English Test System.
Primary and Secondary School
New Oriental China established the full-time private primary and secondary school in Yangzhou. This is a private boarding school for students in grades 1 to 12 seeking a full curriculum taught in both Chinese and English, with a strong emphasis on English language training. The company targets parents who desire to provide their children with a global vision and an understanding and appreciation of both traditional Chinese culture and the modern world. The Yangzhou private school has a capacity of up to 4,000 students.
Educational Content, Software and Other Technology Development and Distribution
The company develops and edits content for educational materials for language training and test preparation, such as books, software, CD-ROMs, magazines and other periodicals, as well as self-help, know-how and inspirational books for its students and other readers. It distributes these materials through various distribution channels, consisting of its own classrooms and bookstores as well as third-party distributors, including approximately 5,000 bookstores in China. As of May 31, 2006, the company developed and edited approximately 80 titles and distributed approximately four million books authored or licensed by it in China.
The company has arrangements with Pearson Education, The McGraw-Hill Companies and Cambridge University Press to develop and distribute localized versions of selected educational materials in China bearing both its logo and the original publisher’s logo.
Online Education
The company offers online education programs on its Web site www.koolearn.com. As of May 31, 2006, approximately two million users had registered accounts with it, giving them access to free informational content on its Web site.
The company offers approximately 300 online courses in language training courses, test preparation courses, professional certification courses, and business knowledge and skills training courses in the areas of accounting, legal, management and others.
The company operates the Beidouxing Training School that would engage in training of Chinese in Beijing. New Oriental would have four main sectors, including foreign language training, Chinese training, higher vocational education and elementary education in the future.
Other Services
Overseas Studies Consulting: The company’s consultants help students through the application and admission process for overseas educational institutions and provide useful college, graduate and career counseling advice to help students to make informed decisions. It also counsels students with the immigration process for overseas studies, such as obtaining visas and student and off-campus housing.
Post-Secondary Education: The company provides post-secondary educational programs to help students seek career opportunities requiring English proficiency, such as interpreters for international trade organizations.
Competition
The company’s competitors include Wall Street Institute, English First, The Princeton Review, Inc. and Kaplan, Inc.
History
New Oriental Education & Technology Group, Inc. was founded by Michael Minhong Yu in 1993.
