# New Oriental Education & Technology Group Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/New Oriental Education & Technology Group Inc.). ## Overview New Oriental Education & Technology Group Inc. is a Cayman Islands holding company that operates through PRC subsidiaries and variable interest entities in China. Its business spans educational and value-added services delivered through schools, learning centers, and online platforms, with a long operating history in mainland China. ## Products & services • Academic tutoring and test preparation • OMO and online learning programs • Overseas study counseling and services • Educational products and learning materials • AI-enabled education offerings and tools - **K-12 and exam preparation** (40%) — Tutoring, test preparation, and school-age learning programs for students. - **Overseas study consulting** (15%) — Counseling and support services for students planning to study abroad. - **Adult and vocational education** (20%) — Language learning, professional education, and skills-based programs. - **Online and OMO education** (15%) — Digital and blended learning services delivered through online-offline channels. - **Educational products and other services** (10%) — Learning materials, content, and related education services. - Academic tutoring and test preparation - OMO and online learning programs - Overseas study counseling and services - Educational products and learning materials - AI-enabled education offerings and tools ## Customers The company serves students and families in China across multiple age groups, from school-age learners to adults. It also serves students seeking overseas study guidance and learners using online or blended education formats. The broad program mix is designed to support recurring enrollment and cross-selling across a student's learning journey. - **School-age students and parents** (primary) — Buy tutoring, exam prep, and enrichment programs to improve academic performance and admissions outcomes. - **Adult learners** (secondary) — Buy language, professional, and continuing education programs for career and personal development. - **Overseas study candidates** (secondary) — Buy counseling and support services for applications, testing, and placement abroad. - **Online learners** (primary) — Buy digital and blended courses for convenience, reach, and flexible scheduling. - K-12 students and parents buying tutoring and test prep - Adult learners seeking language or skills training - Students preparing for overseas study applications - Learners using online or OMO programs for flexibility - Education buyers seeking trusted branded instruction ## Geography New Oriental is structurally centered in mainland China, where its operating subsidiaries and VIEs conduct substantially all business activities. The company is incorporated in the Cayman Islands and listed in the U.S., but its revenue base and operating footprint are overwhelmingly tied to China. That geography creates exposure to PRC education regulation, licensing, and foreign investment restrictions. - **China** (99.7%) — VIE-conducted operations in mainland China accounted for 99.7% of total net revenues in FY2026. - **Outside China** (0.3%) — Residual non-China revenue implied by reported VIE contribution. - Operations are concentrated in mainland China - PRC subsidiaries and VIEs conduct the business locally - Cayman holding company structure sits above China operations - U.S. listing provides capital market access - PRC regulation and licensing shape market access ## Strategy The company focuses on broadening its education platform across age groups and course types so it can cross-sell across a student's learning lifecycle. It is also investing in OMO delivery, digital capabilities, and AI-enabled products to improve service reach and teaching efficiency. Brand strength, referrals, and multi-channel student acquisition remain central to its competitive position. - **Broaden the education portfolio** (medium-term) — A wider offering supports cross-selling and reduces dependence on any single course type. - **Invest in OMO and digital learning** (short-term) — Blended and online delivery expands reach and improves flexibility for students. - **Integrate AI into education offerings** (medium-term) — AI tools may improve teaching efficiency, personalization, and product differentiation. - **Protect brand trust and student acquisition** (short-term) — Referrals and word-of-mouth are important sources of enrollment growth in education. - Expand across multiple education categories and age groups - Use cross-selling to raise lifetime student value - Strengthen OMO and online delivery capabilities - Embed AI into education products and operations - Maintain brand trust through referrals and seminars ## Risks The business is exposed to Chinese education regulation, including restrictions on foreign investment and licensing requirements, because operations rely on PRC VIE structures. Demand can also be affected by student enrollment trends, competitive pressure, and changes in spending on tutoring, overseas study, and adult learning. Because the company uses a cross-border holding structure, investors also face structural and legal risks tied to control of the consolidated affiliated entities rather than direct ownership. - **PRC regulatory and licensing restrictions** [high] — Education businesses in China are subject to licensing and foreign investment limits that can affect operations and ownership. - **VIE structure and contractual control risk** [high] — The company does not directly own the operating VIEs and relies on contracts for control and economic benefits. - **Enrollment and consumer demand volatility** [medium] — Revenue depends on student sign-ups and renewals across multiple education categories. - **Competitive pressure in private education** [medium] — The company competes for students, brand trust, and teacher quality in a crowded market. - **Overseas study market sensitivity** [medium] — Consulting demand is tied to international student mobility and destination-country policies. - PRC education regulation can limit business scope and ownership - VIE structure creates legal and control risk for investors - Enrollment trends can swing with consumer demand and policy - Competition can pressure student acquisition and retention - Overseas-study services depend on cross-border mobility and demand ## Accounting A key accounting issue is consolidation of PRC VIEs under U.S. GAAP, since the company records the results of entities it controls contractually rather than through direct equity ownership. Investors should also watch non-GAAP adjustments, which exclude share-based compensation, acquisition-related amortization, fair-value changes, investment losses, and impairment items. These judgments affect comparability of reported performance and the amount of recurring expense reflected in earnings. - **VIE consolidation** — Affects reported revenue, assets, and control assessment - **Non-GAAP exclusions** — Affects comparability between GAAP and adjusted results - **Impairment and fair value judgments** — Can create earnings volatility and one-time charges - VIE consolidation affects reported revenue and assets - Non-GAAP adjustments remove recurring and non-recurring items - Share-based compensation affects operating profit comparability - Goodwill and investment impairment can create volatility - Fair-value changes in investments can move earnings --- *Last updated: 2026-09-28T12:13:25.699099+00:00*