Exhibit 99.1
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of November 30 | As of May 31 | |||||||
2021 | 2021 | |||||||
(Unaudited) USD | (Audited) USD | |||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,026,912 | 1,612,211 | ||||||
Restricted cash | 1,218 | — | ||||||
Term deposits | 1,145,500 | 1,214,025 | ||||||
Short-term investments | 2,632,398 | 3,434,726 | ||||||
Accounts receivable, net | 12,908 | 8,667 | ||||||
Inventory, net | 34,430 | 31,175 | ||||||
Prepaid expenses and other current assets, net | 280,163 | 269,233 | ||||||
Amounts due from related parties, current | 21,434 | 4,118 | ||||||
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Total current assets | 5,154,963 | 6,574,155 | ||||||
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Restricted cash, non-current | 22,000 | 19,916 | ||||||
Property and equipment, net | 590,815 | 865,030 | ||||||
Land use rights, net | 3,848 | 13,989 | ||||||
Amounts due from related parties, non-current | 3,350 | 4,157 | ||||||
Long-term deposits | 34,930 | 74,796 | ||||||
Intangible assets, net | 3,655 | 4,836 | ||||||
Goodwill, net | 73,283 | 73,254 | ||||||
Long-term investments, net | 522,997 | 537,749 | ||||||
Deferred tax assets, non-current, net | 6,463 | 103,587 | ||||||
Right-of-use assets | 1,183,869 | 1,857,533 | ||||||
Other non-current assets | 14,139 | 22,051 | ||||||
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Total assets | 7,614,312 | 10,151,053 | ||||||
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LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to New Oriental of US$36,032 and US$33,051 as of May 31, 2021 and November 30, 2021, respectively) | 33,486 | 38,441 | ||||||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to New Oriental of US$900,877 and US$777,334 as of May 31, 2021 and November 30, 2021, respectively) | 804,323 | 908,231 | ||||||
Income taxes payable (including income tax payable of the consolidated variable interest entities without recourse to New Oriental of US$46,248 and US$53,178 as of May 31, 2021 and November 30, 2021, respectively) | 62,860 | 84,321 | ||||||
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to New Oriental of US$33 and US$257 as of May 31, 2021 and November 30, 2021, respectively) | 257 | 33 | ||||||
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to New Oriental of US$1,923,007 and US$1,062,150 as of May 31, 2021 and November 30, 2021, respectively) | 1,065,823 | 1,926,386 | ||||||
Operating lease liability-current (including operating lease liabilities-current of the consolidated variable interest entities without recourse to New Oriental of US$501,049 and US$275,456 as of May 31, 2021 and November 30, 2021, respectively) | 280,196 | 514,033 | ||||||
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Total current liabilities | 2,246,945 | 3,471,445 | ||||||
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Deferred tax liabilities, non-current (including deferred tax liabilities of the consolidated variable interest entities without recourse to New Oriental of US$12,924 and US$10,367 as of May 31, 2021 and November 30, 2021, respectively) | 10,614 | 13,172 | ||||||
Unsecured senior notes (including unsecured senior notes of the consolidated variable interest entities without recourse to the New Oriental of nil and nil as of May 31, 2021 and November 30, 2021, respectively) | 179,364 | 297,631 | ||||||
Operating lease liabilities (including operating lease liabilities of the consolidated variable interest entities without recourse to New Oriental of US$1,333,961 and US$990,912 as of May 31, 2021 and November 30, 2021, respectively) | 996,838 | 1,350,629 | ||||||
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Total long-term liabilities | 1,186,816 | 1,661,432 | ||||||
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Total liabilities | 3,433,761 | 5,132,877 | ||||||
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Equity | ||||||||
New Oriental Education & Technology Group Inc. shareholders’ equity | 4,104,578 | 4,913,275 | ||||||
Non-controlling interests | 75,973 | 104,901 | ||||||
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Total equity | 4,180,551 | 5,018,176 | ||||||
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Total liabilities and equity | 7,614,312 | 10,151,053 | ||||||
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NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Six Months Ended November 30 | ||||||||
2021 | 2020 | |||||||
(Unaudited) USD | (Unaudited) USD | |||||||
Net revenues | 1,967,132 | 1,874,055 | ||||||
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Operating costs and expenses (note 1): | ||||||||
Cost of revenues | 1,133,717 | 918,529 | ||||||
Selling and marketing | 277,403 | 250,471 | ||||||
General and administrative | 1,291,682 | 586,897 | ||||||
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Total operating costs and expenses | 2,702,802 | 1,755,897 | ||||||
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Operating (loss)/income | (735,670 | ) | 118,158 | |||||
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Loss from fair value change of investments | (14,323 | ) | (2,154 | ) | ||||
Other (loss)/income, net | (2,358 | ) | 127,501 | |||||
Provision for income taxes | (113,831 | ) | (65,939 | ) | ||||
(Loss)/gain from equity method investments | (41,778 | ) | 1,047 | |||||
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Net (loss)/income | (907,960 | ) | 178,613 | |||||
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Add: Net loss attributable to non-controlling interests | 31,980 | 49,941 | ||||||
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Net (loss)/income attributable to New Oriental Education & Technology Group Inc. | (875,980 | ) | 228,554 | |||||
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Net (loss)/income per share attributable to New Oriental-Basic (note 2) | (0.52 | ) | 0.14 | |||||
Net (loss)/income per share attributable to New Oriental-Diluted (note 2) | (0.52 | ) | 0.14 | |||||
Net (loss)/income per ADS attributable to New Oriental-Basic (note 2) (note 3) | (0.52 | ) | 0.14 | |||||
Net (loss)/income per ADS attributable to New Oriental-Diluted (note 2) (note 3) | (0.52 | ) | 0.14 |
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows:
For the Six Months Ended November 30 | ||||||||
2021 | 2020 | |||||||
(Unaudited) | (Unaudited) | |||||||
USD | USD | |||||||
Cost of revenues | (205 | ) | 3,836 | |||||
Selling and marketing | (3,049 | ) | 5,930 | |||||
General and administrative | 77,476 | 24,547 | ||||||
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Total | 74,222 | 34,313 | ||||||
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Note 2: For the six months ended November 30, 2020, the earnings per share have been retrospectively adjusted to reflect the 1-for-10 share split that became effective on March 10, 2121.
Note 3: Each ADS represents one common share.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Six Months Ended November 30 | ||||||||
2021 | 2020 | |||||||
(Unaudited) | (Unaudited) | |||||||
USD | USD | |||||||
Net cash (used in)/provided by operating activities | (1,074,835 | ) | 802,276 | |||||
Net cash provided by/(used in) investing activities | 653,374 | (796,800 | ) | |||||
Net cash (used in)/provided by financing activities | (113,259 | ) | 1,641,471 | |||||
Effect of exchange rate changes | (47,277 | ) | 81,753 | |||||
Net change in cash, cash equivalents and restricted cash | (581,997 | ) | 1,728,700 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 1,632,127 | 919,424 | ||||||
Cash, cash equivalents and restricted cash at end of period | 1,050,130 | 2,648,124 |