About the company
New Oriental, founded in 1993, has established itself as a prominent player in the Chinese private education sector. With a strong emphasis on academic after-school tutoring for K-9 students, this segment used to contribute a significant portion, around 50%-60%, of New Oriental's overall revenue. However, the landscape drastically changed in 2021 with the enforcement of new regulations on the private education industry by the Chinese government. In response to the regulatory crackdown, New Oriental made the strategic decision to terminate its K-9 academic after-school tutoring business. This move was necessary to comply with the new regulations and adapt to the evolving market conditions. As a result, the company had to reimagine its business model and diversify its revenue streams. To fill the void left by the closure of the K-9 academic after-school tutoring, New Oriental has identified several new initiatives. One of these initiatives involves providing non-academic tutoring services. This expansion includes offering a wider range of subjects, such as arts, music, sports, and language courses, to cater to the diverse interests and needs of students. This shift allows New Oriental to tap into additional revenue streams and reach a broader customer base. Another area of focus for New Oriental is the development of intelligent learning systems and devices. With advancements in technology, there is an increasing demand for digital learning solutions. New Oriental aims to capitalize on this trend by creating innovative educational technologies, such as interactive learning platforms, virtual classrooms, and personalized learning tools. Through these intelligent learning systems and devices, the company aims to enhance the overall learning experience and provide students with more engaging and effective educational resources. Despite the restructuring, New Oriental still retains its high school academic after-school tutoring business. This segment continues to cater to the needs of high school students preparing for college entrance examinations, which remain an integral part of the Chinese education system. By maintaining a strong foothold in this market, New Oriental can leverage its expertise and experience to continue generating revenue. Furthermore, New Oriental has a significant stake, approximately 55.7%, in East Buy, a leading player in the livestreaming e-commerce industry. This investment provides New Oriental with exposure to the flourishing livestreaming market, which has gained immense popularity in China. With East Buy's expertise in the e-commerce sector and New Oriental's extensive network and customer base, this collaboration offers mutual benefits and the potential for further business expansion. In light of the regulatory changes and the need to diversify its revenue sources, New Oriental is exploring new avenues to pivot its business and adapt to the evolving landscape. By shifting its focus towards non-academic tutoring, investing in intelligent learning systems, retaining its high school academic after-school tutoring business, and capitalizing on its partnership with East Buy, New Oriental aims to remain a key player in the Chinese private education market. Through these strategic initiatives and partnerships, the company endeavors to provide quality educational services that cater to the changing needs of students in China and beyond.
Website: https://www.neworiental.org
Data updated: June 2, 2026
