Koolearn, a subsidiary of tutoring firm-turned-livestream e-commerce retailer New Oriental, saw its total revenue increase 590.2% from a year earlier to RMB 2.08 billion ($293.5 million) in the six months ended last November. The subsidiary also made a net profit of RMB 585 million during the period, having recorded a net loss from continuing operations of RMB 108.7 million in the same period of the prior fiscal year. Koolearn attributed the revenue spike to its private label products and new business direction, with the Hong Kong-listed company achieving a GMV of RMB 4.8 billion in livestream e-commerce business between June and November. The total number of paid orders for third-party and own-brand products on Koolearn’s Douyin account reached 0.7 billion units during the same period. On Jan. 5, Koolearn proposed changing its name to East Buy Holding Limited to better reflect its new business model. Its parent company New Oriental posted a 3.1% decrease in net revenues for the quarter ended November on the same day, saying its figures had been largely affected by being forced to suspend K-9 academic after-school tutoring services in line with Chinese regulators’ restrictions on the sector. Nevertheless, New Oriental’s Executive Chairman Michael Yu struck an optimistic note, saying “We are increasingly confident in the promising prospects of our new businesses, as well as our ability to capture emerging opportunities in these rapidly-growing markets.” [New Oriental]
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