New Oriental, one of China’s embattled online tutoring firms, reported losses of $876 million for the six months up to November 30, 2021, compared to a net profit of $229 million over the same period in 2020, reports the Financial Times. The New York-listed education group’s losses are its first results since Beijing’s crackdown on the $100 billion-a-year private education industry.
New Oriental blamed the losses on the “substantial adverse impact” of having to halt its tutoring services for school-age pupils, following China’s crackdown last July as part of a broader government effort to reduce childcare costs and boost the country’s low birth rate.
Beijing’s clampdown on the previously highly profitable tutoring industry has seen valuations of US-listed Chinese education technology companies collapse. New Oriental’s share price has fallen more than 92% since its peak last year, while competitor Tal Education is down 96%.