Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)

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Strategic Transformation and Financial Resilience: How New Oriental Reinvented Itself After China’s Double Reduction Policy

Authors
Qiyu Yang1, *, Lin Sun2, Hiotong Su3, Xi Chen4
1Economics and Management College, Xiamen University, Xiamen, 361005, China
2Graduate School Doctor of Business Administration, Suan Sunandha Rajabhat University, Bangkok, Thailand, 10700
3Faculty of Hospitality and Tourism Management, Macau University of Science and Technology, Macau, 511451, China
4School of Computing and Data Science, Xiamen University, Xiamen, 361005, China
*Corresponding author. Email: analpacafish@gmail.com
Corresponding Author
Qiyu Yang
Available Online 14 August 2025.
DOI
10.2991/978-94-6463-811-0_43How to use a DOI?
Keywords
Double Reduction Policy; New Oriental Education; Strategic Transformation; Financial Resilience
Abstract

This study focuses on the financial transformation of New Oriental Education & Technology Group in the context of China’s “Double Reduction” policy. Utilizing financial data from 2021 to 2024, we conducted both horizontal and vertical analyses of income statements, balance sheets, and cash flow statements, complemented by a DuPont analysis to evaluate the company’s resilience under regulatory stress. The findings reveal that, despite a significant decrease in revenue and net profit in 2022, strategic measures—such as selling under-performing assets, tightening cost controls, and expanding into high-margin sectors like live-streaming commerce and international education—enabled a return to profitability by 2024. Enhanced cash flow management, improved asset utilization, and a restructured capital framework were critical to this recovery, though challenges related to policy reliance, intensified competition, and geopolitical risks remain. These insights provide a decision-making framework for balancing immediate stability with long-term sustainable development in policy-sensitive industries, offering valuable guidance for both investors and policymakers [1][2].

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
14 August 2025
ISBN
978-94-6463-811-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-811-0_43How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qiyu Yang
AU  - Lin Sun
AU  - Hiotong Su
AU  - Xi Chen
PY  - 2025
DA  - 2025/08/14
TI  - Strategic Transformation and Financial Resilience: How New Oriental Reinvented Itself After China’s Double Reduction Policy
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 398
EP  - 412
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_43
DO  - 10.2991/978-94-6463-811-0_43
ID  - Yang2025
ER  -