Cover Page
Cover Page | 12 Months Ended |
May 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | May 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. |
Entity Central Index Key | 0001372920 |
Current Fiscal Year End Date | --05-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,643,162,653 |
Document Accounting Standard | U.S. GAAP |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 6 Hai Dian Zhong Street |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100080 |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity File Number | 001-32993 |
ICFR Auditor Attestation Flag | true |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Firm ID | 1113 |
Auditor Location | Beijing, the People’s Republic of China |
Document Financial Statement Error Correction [Flag] | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | No. 6 Hai Dian Zhong Street |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100080 |
Entity Address, Country | CN |
Contact Personnel Name | Zhihui Yang |
Contact Personnel Email Address | yangzhihui@xdf.cn |
City Area Code | 86 10 |
Local Phone Number | 6090-8000 |
Common Stock [Member] | |
Document Information [Line Items] | |
Trading Symbol | 9901 |
Title of 12(b) Security | Common shares |
ADR [Member] | |
Document Information [Line Items] | |
Trading Symbol | EDU |
Title of 12(b) Security | American depositary shares, each representing ten common shares |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 1,662,982 | $ 1,148,637 |
Restricted cash, current | 110,892 | 0 |
Term deposits, current | 855,784 | 1,140,066 |
Short-term investments | 1,477,843 | 1,902,254 |
Accounts receivable, net of allowance of US$1,212 and US$1,599 as of May 31, 2022 and 2023, respectively | 33,074 | 16,430 |
Inventory, net | 52,689 | 27,925 |
Prepaid expenses and other current assets, net of allowance of US$456 and US$691 as of May 31, 2022 and 2023, respectively | 211,240 | 215,402 |
Total current assets | 4,413,887 | 4,473,959 |
Restricted cash, non-current | 31,553 | 45,890 |
Term deposits, non-current | 462,734 | 0 |
Property and equipment, net | 359,760 | 402,690 |
Land use rights, net | 3,321 | 3,627 |
Amounts due from related parties, non-current | 1,735 | 3,365 |
Long-term deposits | 26,492 | 33,409 |
Intangible assets, net | 25,179 | 2,800 |
Goodwill, net | 105,514 | 70,803 |
Long-term investments, net (including available-for-sale investment of US$173,003 and US$159,588 as of May 31, 2022 and 2023, respectively) | 399,585 | 437,919 |
Deferred tax assets, non-current, net | 55,933 | 20,038 |
Right-of-use assets | 439,535 | 531,102 |
Other non-current assets | 67,230 | 9,064 |
Total assets | 6,392,458 | 6,034,666 |
Current liabilities | ||
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to the Company of US$21,862 and US$69,102 as of May 31, 2022 and 2023, respectively) | 69,764 | 22,289 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to the Company of US$499,721 and US$553,883 as of May 31, 2022 and 2023, respectively) | 569,437 | 510,264 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to the Company of US$63,187 and US$64,890 as of May 31, 2022 and 2023, respectively) | 118,049 | 75,650 |
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to the Company of US$927,187 and US$1,308,276 as of May 31, 2022 and 2023, respectively) | 1,337,630 | 933,062 |
Operating lease liabilities, current (including operating lease liabilities, current of the consolidated variable interest entities without recourse to the Company of US$164,806 and US$149,127 as of May 31, 2022 and 2023, respectively) | 155,752 | 168,623 |
Total current liabilities | 2,250,978 | 1,710,114 |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$19,048 and US$23,602 as of May 31, 2022 and 2023, respectively) | 23,849 | 19,240 |
Unsecured senior notes (including unsecured senior notes of the consolidated variable interest entities without recourse to the Company of nil and nil as of May 31, 2022 and May 31, 2023, respectively) | 14,653 | 65,394 |
Operating lease liabilities, non-current (including operating lease liabilities, non-current of the consolidated variable interest entities without recourse to the Company of US$442,843 and US$285,667 as of May 31, 2022 and 2023, respectively) | 288,190 | 446,394 |
Total liabilities | 2,577,670 | 2,241,142 |
Commitments and contingencies (Note 20) | ||
Equity | ||
Common shares (US$0.001 par value; 3,000,000,000 shares authorized as of May 31, 2022 and 2023; 1,696,966,183 and 1,643,162,653 shares issued as of May 31, 2022 and 2023; 1,696,966,183 and 1,643,162,653 shares outstanding as of May 31, 2022 and 2023, respectively) | 1,703 | 1,697 |
Treasury stock | (59) | 0 |
Additional paid-in capital | 1,939,585 | 2,061,613 |
Statutory reserves | 464,662 | 447,820 |
Retained earnings | 1,225,861 | 1,065,362 |
Accumulated other comprehensive income/(loss) | (27,404) | 129,014 |
Total New Oriental Education & Technology Group Inc. shareholders' equity | 3,604,348 | 3,705,506 |
Non-controlling interests | 210,440 | 88,018 |
Total equity | 3,814,788 | 3,793,524 |
Total liabilities and equity | 6,392,458 | 6,034,666 |
Related Party [Member] | ||
Current assets | ||
Amounts due from related parties, current | 9,383 | 23,245 |
Current liabilities | ||
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to the Company of US$226 and US$346 as of May 31, 2022 and 2023, respectively) | $ 346 | $ 226 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,599 | $ 1,212 |
Prepaid expenses and other current assets, allowance | 691 | 456 |
Available for sale securities non current | 159,588 | 173,003 |
Accounts payable, consolidated variable interest entity without recourse | 69,102 | 21,862 |
Accrued expenses and other current liabilities, consolidated variable interest entity without recourse | 553,883 | 499,721 |
Income taxes payable, consolidated variable interest entity without recourse | 64,890 | 63,187 |
Amounts due to related parties, consolidated variable interest entity without recourse | 346 | 226 |
Deferred revenue, consolidated variable interest entity without recourse | 1,308,276 | 927,187 |
Deferred tax liabilities, non-current consolidated variable interest entity without recourse | 23,602 | 19,048 |
Operating Lease Liability-current, consolidated variable interest entity without recourse | 149,127 | 164,806 |
Unsecured senior notes non current, consolidated variable interest entities without recourse | 0 | 0 |
Operating Lease Liability non current consolidated variable interest entity without recourse | $ 285,667 | $ 442,843 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 1,643,162,653 | 1,696,966,183 |
Common stock, shares outstanding | 1,643,162,653 | 1,696,966,183 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Net revenues | ||||
Net revenues | $ 2,997,760 | $ 3,105,246 | $ 4,276,539 | |
Operating cost and expenses | ||||
Cost of revenues | (1,409,438) | (1,754,291) | (2,036,875) | |
Selling and marketing | (444,693) | (466,895) | (600,778) | |
General and administrative | (953,583) | (1,866,573) | (1,489,826) | |
Impairment loss on intangible assets and goodwill | (31,794) | |||
Total operating cost and expenses | (2,807,714) | (4,087,759) | (4,159,273) | |
Operating income/(loss) | 190,046 | (982,513) | 117,266 | |
Other income/(expense) | ||||
Interest income | 114,453 | 123,542 | 141,511 | |
Interest expense | (707) | (4,050) | (6,747) | |
Realized gain from long-term investments | 767 | 22,004 | 3,535 | |
Impairment loss from long-term investments | (8,056) | (129,350) | (40,207) | |
Loss from fair value change of investments | (860) | (14,933) | (3,824) | |
Loss on deconsolidation of subsidiaries | (79,609) | |||
Miscellaneous income, net | 12,888 | 32,411 | 103,443 | |
Income/(loss) before income taxes and loss from equity method investments | 308,531 | (1,032,498) | 314,977 | |
Provision for income taxes: | ||||
Current | (97,594) | (44,378) | (127,313) | |
Deferred | 31,528 | (91,934) | 43,725 | |
Provision for income taxes | (66,066) | (136,312) | (83,588) | |
Loss from equity method investments | (7,102) | (51,466) | (1,368) | |
Net income/(loss) | 235,363 | (1,220,276) | 230,021 | |
Less: Net (loss)/income attributable to non-controlling interests | 58,022 | (32,555) | (104,393) | |
Net income/(loss) attributable to New Oriental Education & Technology Group Inc.'s shareholders | $ 177,341 | $ (1,187,721) | $ 334,414 | |
Net income/(loss) per common share*(Note 18) | ||||
- Basic | [1] | $ 0.11 | $ (0.7) | $ 0.2 |
- Diluted | [1] | $ 0.1 | $ (0.7) | $ 0.2 |
Weighted average shares used in calculating basic and diluted net income/(loss) per common share* | ||||
- Basic | [1] | 1,678,264,547 | 1,696,419,232 | 1,645,463,440 |
- Diluted | [1] | 1,685,631,987 | 1,696,419,232 | 1,651,982,384 |
Net service revenues [Member] | ||||
Net revenues | ||||
Net revenues | $ 2,544,729 | $ 3,050,022 | $ 4,230,638 | |
Net product revenues [Member] | ||||
Net revenues | ||||
Net revenues | $ 453,031 | $ 55,224 | $ 45,901 | |
[1]Retrospectively restated for the effect of stock split. (Note 15) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ 235,363 | $ (1,220,276) | $ 230,021 |
Other comprehensive income/(loss), net of tax | |||
Foreign currency translation adjustment | (155,517) | (118,872) | 327,236 |
Purchase of non-controlling interests | 0 | 59 | |
Unrealized gain/(loss) on available-for-sale investments, net of tax effect of US$4,014, US$1,316 and US$513 for the years ended May 31, 2021, 2022 and 2023, respectively | (2,279) | (12,896) | 27,318 |
Other comprehensive income/(loss), net of tax | (157,796) | (131,768) | 354,613 |
Comprehensive income/(loss) | 77,567 | (1,352,044) | 584,634 |
Comprehensive (loss)/income attributable to non-controlling interests | 56,644 | (31,539) | (102,445) |
Comprehensive income/(loss) attributable to New Oriental Education & Technology Group Inc.'s shareholders | $ 20,923 | $ (1,320,505) | $ 687,079 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain/(loss) on available-for-sale investments, tax effect | $ 513 | $ 1,316 | $ 4,014 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated other comprehensive (loss)/income [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member] | Non-controlling Interests [Member] | |
Balance at May. 31, 2020 | $ 2,869,811 | $ 1,588 | $ 456,088 | $ (3) | $ (90,867) | $ 380,078 | $ 1,986,411 | $ 2,733,295 | $ 136,516 | |
Balance, shares at May. 31, 2020 | 1,585,400,800 | |||||||||
Issuance of treasury stock and common shares for nonvested equity shares ("NES") | $ 3 | (6) | 3 | |||||||
Issuance of treasury stock and common shares for nonvested equity shares ("NES"), Shares | 5,706,350 | |||||||||
Vested NES | $ 1 | (1) | ||||||||
Vested NES (Shares) | 1,110,000 | |||||||||
HK initial public offering, net of issuance cost | 1,482,768 | $ 98 | 1,482,670 | 1,482,768 | ||||||
HK initial public offering, net of issuance cost (Shares) | 97,865,000 | |||||||||
Share-based compensation expenses | 68,880 | 29,353 | 29,353 | 39,527 | ||||||
Exercise of share options in East Buy Holding Limited ("East Buy") | 1,929 | 1,929 | ||||||||
Transfer to statutory reserves | 67,426 | (67,426) | ||||||||
Net income/ (loss) | 230,021 | 334,414 | 334,414 | (104,393) | ||||||
Foreign currency translation adjustment | 327,236 | 325,288 | 325,288 | 1,948 | ||||||
Unrealized gain/(loss) on available-for-sale investments, net of tax effect | 27,318 | 27,318 | 27,318 | |||||||
Purchase of non-controlling interests | (19,659) | (19,092) | 59 | (19,033) | (626) | |||||
Shares issuance of East Buy | 29,872 | (128) | (128) | 30,000 | ||||||
Balance at May. 31, 2021 | 5,018,176 | $ 1,690 | 1,948,884 | $ 0 | 261,798 | 447,504 | 2,253,399 | 4,913,275 | 104,901 | |
Balance, shares at May. 31, 2021 | 1,690,082,150 | 0 | ||||||||
Vested NES | $ 7 | (7) | ||||||||
Vested NES (Shares) | 6,884,033 | |||||||||
Share-based compensation expenses | 132,968 | 118,487 | 118,487 | 14,481 | ||||||
Exercise of share options in East Buy Holding Limited ("East Buy") | 175 | 175 | ||||||||
Transfer to statutory reserves | 316 | (316) | ||||||||
Net income/ (loss) | (1,220,276) | (1,187,721) | (1,187,721) | (32,555) | ||||||
Foreign currency translation adjustment | (118,872) | (119,888) | (119,888) | 1,016 | ||||||
Unrealized gain/(loss) on available-for-sale investments, net of tax effect | (12,896) | (12,896) | (12,896) | |||||||
Loss on sales of restricted shares | (5,751) | (5,751) | (5,751) | |||||||
Balance at May. 31, 2022 | $ 3,793,524 | $ 1,697 | 2,061,613 | $ 0 | 129,014 | 447,820 | 1,065,362 | 3,705,506 | 88,018 | |
Balance, shares at May. 31, 2022 | 1,696,966,183 | 1,696,966,183 | ||||||||
Shares repurchase | $ (191,628) | (191,569) | $ (59) | (191,628) | ||||||
Shares repurchase, shares | [1] | (59,463,140) | 59,463,140 | |||||||
Vested NES | $ 6 | (6) | ||||||||
Vested NES (Shares) | 5,659,610 | |||||||||
Share-based compensation expenses | 89,788 | 69,547 | 69,547 | 20,241 | ||||||
Transfer to statutory reserves | 16,842 | (16,842) | ||||||||
Net income/ (loss) | 235,363 | 177,341 | 177,341 | 58,022 | ||||||
Foreign currency translation adjustment | (155,517) | (154,139) | (154,139) | (1,378) | ||||||
Unrealized gain/(loss) on available-for-sale investments, net of tax effect | (2,279) | (2,279) | (2,279) | |||||||
Non-controlling interests recognized through business acquisitions (Note 3) | 32,659 | 32,659 | ||||||||
Exercise of share options in East Buy | 12,878 | 12,878 | ||||||||
Balance at May. 31, 2023 | $ 3,814,788 | $ 1,703 | $ 1,939,585 | $ (59) | $ (27,404) | $ 464,662 | $ 1,225,861 | $ 3,604,348 | $ 210,440 | |
Balance, shares at May. 31, 2023 | 1,643,162,653 | 1,643,162,653 | 59,463,140 | |||||||
[1]On July 26, 2022, the Company’s board of directors authorized the repurchase of up to US$400 million of the Company’s common shares during the period from July 28, 2022 through May 31, 2023. During the year ended May 31, 2023, the Company repurchased 5,946,314 ADS on the open market for total consideration of US$191,628. The Group accounts for repurchased common shares under the par value method and includes such treasury stock as a component of the shareholders’ equity. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Unrealized gain/(loss) on available-for-sale investments, tax effect | $ 513 | $ 1,316 | $ 4,014 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Unrealized gain/(loss) on available-for-sale investments, tax effect | 513 | 1,316 | 4,014 |
Total New Oriental Education & Technology Group Inc. Shareholders' Equity [Member] | |||
Unrealized gain/(loss) on available-for-sale investments, tax effect | 513 | 1,316 | 4,014 |
Non-controlling Interests [Member] | |||
Unrealized gain/(loss) on available-for-sale investments, tax effect | $ 513 | $ 1,316 | $ 4,014 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Cash flows from operating activities | |||
Net income/(loss) | $ 235,363 | $ (1,220,276) | $ 230,021 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities | |||
Depreciation of property and equipment | 117,036 | 192,291 | 225,657 |
Amortization of intangible assets | 5,583 | 1,933 | 4,524 |
Amortization of land use rights | 84 | 205 | 262 |
Loss on disposal of property and equipment | 2,167 | 5,380 | |
Loss on deconsolidation of subsidiaries | 79,609 | ||
Goodwill impairment | 0 | 0 | 28,858 |
Impairment loss from intangible assets | 2,936 | ||
Impairment loss from long-term investments | 8,056 | 129,350 | 40,207 |
Impairment loss from other long-lived assets | 435,662 | 33,769 | |
Realized gain from disposal of long-term investments | (22,004) | (3,535) | |
Loss from fair value change of investments | 860 | 14,933 | 3,824 |
Share-based compensation expenses | 89,788 | 132,968 | 68,880 |
Allowance for doubtful accounts | 747 | (81) | 3,106 |
Loss from equity method investments | 7,102 | 51,466 | 1,368 |
Deferred income taxes | (31,528) | 89,565 | (44,644) |
Amortization of Debt Issuance Costs and Discounts | 221 | 465 | 548 |
Gain from extinguishment of debt | (2,347) | (12,579) | |
Changes in operating assets and liabilities | |||
Accounts receivable | (3,870) | (8,113) | (4,627) |
Inventory | (21,899) | 1,820 | 3,752 |
Prepaid expenses and other current assets | (17,744) | 42,144 | (15,229) |
Amounts due from related parties | 14,243 | (22,918) | (661) |
Long-term deposits | 5,006 | 23,007 | (5,020) |
Right-of-use assets | 60,474 | 1,268,055 | (252,297) |
Accounts payable | 44,048 | (15,122) | 12,809 |
Accrued expenses and other current liabilities | 83,394 | (315,830) | 122,147 |
Income taxes payable | 41,653 | 2,179 | 33,533 |
Amounts due to related parties | 138 | 3,713 | (1,667) |
Deferred revenue | 469,339 | (925,048) | 420,340 |
Operating lease liabilities | (136,906) | (1,207,847) | 215,844 |
Net cash provided by/(used in) operating activities | 971,008 | (1,280,453) | 1,130,085 |
Cash flows from investing activities | |||
Purchase of term deposits | (1,236,849) | (360,633) | (1,203,630) |
Proceeds from maturity of term deposits | 1,031,420 | 307,722 | 296,077 |
Payments for short-term investments | (2,074,896) | (540,834) | (4,253,957) |
Proceeds from maturity of short-term investments | 2,397,622 | 2,040,999 | 3,452,642 |
Purchase of property and equipment | (143,045) | (150,738) | (429,197) |
Proceeds from disposal of property and equipment | 1,323 | 5,387 | 45,392 |
Payments for long-term investments | (13,597) | (82,082) | (106,965) |
Proceeds from disposal of long-term investments | 12,350 | 24,623 | |
Business acquisitions, net of cash acquired of US$430, nil and US$5,065 for the years ended May 31, 2021, 2022 and 2023, respectively (Note 3) | 886 | (12,701) | |
Purchase of land use rights | (7,151) | ||
Proceeds from disposal of land use rights | 2,112 | 4,990 | |
Loans provided to related parties | (2,387) | (41,226) | (10,486) |
Repayment of loans provided to related parties | 6,510 | 27,714 | |
Deconsolidation of subsidiaries | (33,913) | ||
Net cash (used in)/ provided by investing activities | (37,411) | 1,168,532 | (2,177,639) |
Cash flows from financing activities | |||
Net proceeds from HK initial public offering | 1,482,768 | ||
Proceeds from issuances of common shares upon exercise of share options | 12,878 | 175 | 1,929 |
Cash paid for shares repurchase | (191,628) | ||
Cash paid for employees' individual income taxes on withheld shares from exercise of NES | (2,174) | (7,956) | (16,168) |
Payments made after business acquisitions | (17,179) | (1,741) | |
Repayment of long-term debt | (120,000) | ||
Proceeds from issuance of unsecured senior notes | 297,083 | ||
Repurchase of unsecured senior notes | (48,764) | (221,997) | |
Share issuances of East Buy | 29,872 | ||
Repurchase of shares from non-controlling interests | (19,659) | ||
Other financing activities | (1,080) | ||
Net cash provided by/(used in) financing activities | (246,867) | (230,858) | 1,654,084 |
Effects of exchange rate changes | (75,830) | (94,821) | 106,173 |
Net change in cash, cash equivalents and restricted cash | 610,900 | (437,600) | 712,703 |
Cash, cash equivalents and restricted cash at beginning of year | 1,194,527 | 1,632,127 | 919,424 |
Cash, cash equivalents and restricted cash at end of year | 1,805,427 | 1,194,527 | 1,632,127 |
Supplement disclosure of cash flow information | |||
Income taxes paid | 55,195 | 53,049 | 144,377 |
Interests paid | 798 | 5,048 | 4,219 |
Non-cash investing and financing activities | |||
Payable for investments and acquisitions | 9,531 | 1,097 | 6,536 |
Payable for purchase of property and equipment | $ 27,093 | $ 27,240 | $ 79,132 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | May 31, 2021 |
Beijing Ainuo Shida Education & Technology Co., Ltd [Member] | |||
Purchase of business, cash acquired | $ 5,065 | $ 0 | $ 430 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES New Oriental Education & Technology Group Inc. (the “Company”) was incorporated in the Cayman Islands. The Company, its subsidiaries, the consolidated variable interest entities (the “VIEs”) and the VIEs’ subsidiaries and schools are collectively referred to as the “Group”. The Group provides educational services in the People’s Republic of China (the “PRC”) primarily under the “New Oriental” brand. The Group offers a wide range of educational programs, services and products, consisting primarily of educational services and test preparation courses, overseas study consulting services and educational material and distribution, as well as provision of private label products and livestreaming e-commerce On July 24, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council of the PRC jointly issued the “Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education (compulsory education includes primary school education of six years and middle school education of three years, together as the “Compulsory Stage Education”)” (the “Opinion”). The key provisions of the Opinion include, but are not limited to: (i) institutions providing after-school tutoring (the “AST”) services on academic subjects in relation to the Compulsory Stage Education (“Academic AST Institutions”) are required to be registered as non-profit On September 7, 2021, to implement the Opinion, the Chinese Ministry of Education (the “MOE”) published on its website that the MOE, together with two other government authorities, issued a circular requiring all Academic AST Institutions to complete registration as non-profit In compliance with the Opinion and applicable rules, regulations and measures, the Company decided in November 2021 to cease offering services relating to academic subjects to students from kindergarten through grade nine (“K-9 K-9 K-9 non-academic K-9 On April 7, 2021, the State Council promulgated the Amended Implementation Rules for the Private Education Law, which became effective on September 1, 2021, or the Amended Implementation Rules. Under the Amended Implementation Rules, the private schools providing compulsory education are prohibited from being controlled through contractual arrangement and conducting transactions with its related parties. As a result, the master exclusive service agreement was further amended and effective from September 1, 2021, to exclude Beijing Changping New Oriental Bilingual School (“Changping School”) and Beijing New Oriental Yangzhou Foreign Language School (“Yangzhou School”) from such agreement. On August 31, 2021, the Company ceased its ability to use its power under the contractual arrangements to direct the relevant activities that would most significantly affect the economic performance of the Company’s private schools due to implications of the Amended Implementation Rules. Accordingly, the Company deconsolidated Changping School and Yangzhou School, two private schools that provided compulsory education, in September 2021 in compliance with the Amended Implementation Rules. A deconsolidation loss of US$79,609, the carrying amount of the net assets of the schools, was recognized in “Loss on deconsolidation of subsidiaries” on its consolidated financial statements for the year ended May 31, 2022. The deconsolidation of Changping School and Yangzhou School did not meet the definition of a discontinued operation per ASC Subtopic 205-20, Presentation of Financial Statements-Discontinued Operations As of May 31, 2023, details of the Company’s major subsidiaries, the consolidated VIEs and the VIEs’ major subsidiaries and schools were as follows: Name Date of Place of Legal Principal activity Major subsidiaries of the Company: Beijing Decision Education & Consulting April 20, 2005 PRC 100% Educational technology management services Beijing Hewstone Technology Company Limited (“Beijing Hewstone”) April 20, 2005 PRC 100% Educational software development Elite Concept Holdings Limited (“Elite Concept”) December 3, 2007 Hong Kong 100% Educational consulting Winner Park Limited (“Winner Park”) December 9, 2008 Hong Kong 100% Educational consulting Smart Shine International Limited (“Smart Shine”) December 9, 2008 Hong Kong 100% Educational consulting Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software development Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting software development East Buy (Formerly known as “Koolearn Technology Holding Limited”) February 7, 2018 Cayman 54.95% Investment holding New Oriental Xuncheng Technology (HK) Limited (“Koolearn Tech”) March 2, 2018 Hong Kong 54.95% Investment holding Beijing Dexin Dongfang Network Technology Co., Ltd. (“Dexin Dongfang”) March 21, 2018 PRC 54.95% Software and technology VIEs of the Company: New Oriental Education & Technology Group Co., Ltd (“New Oriental China”) August 2, 2001 PRC N/A Education consulting, Beijing New Oriental Xuncheng Network Technology Co., Ltd. (“Xuncheng”) March 11, 2005 PRC N/A Online education Major subsidiaries and schools of the VIEs: Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”) October 5, 1993 PRC N/A Language training and preparation Hangzhou New Oriental Advanced Study School July 21, 2005 PRC N/A Language training and test preparation Guangzhou Haizhu District Privately-Funded New Oriental Training School November 5, 2000 PRC N/A Language training and test preparation Nanjing Gulou New Oriental Advanced Study School November 28, 2002 PRC N/A Language training and test preparation Beijing New Oriental Dogwood Cultural Communications Co., Ltd. (“Dogwood”) May 16, 2003 PRC N/A Educational material and distribution Beijing New Oriental Vision Overseas Consultancy Co., Ltd. February 19, 2004 PRC N/A Oversea study consulting service Dongfang Optimization (Beijing) Technology Co., Ltd. (“Oriental Optimization”) October 27, 2021 PRC N/A Private label products e-commerce Oriental Selection (Beijing) Technology Co., Ltd. (“Oriental Selection”) December 7, 2021 PRC N/A Private label products e-commerce The VIE arrangements The PRC laws and regulations currently require any foreign entity that invests in the education business in China to be an educational institution with relevant experience in providing educational services outside of China. The Company’s offshore holding companies are not educational institutions and do not provide educational services outside of China. In addition, in the PRC, foreign ownership of high schools for students in grades ten to twelve is restricted and foreign ownership of primary and middle schools for students in grades one to nine is prohibited. Accordingly, the Company’s offshore holding companies are not allowed to directly own and operate schools in China. The Company conducts substantially all of its education business in China through contractual arrangements with the consolidated VIEs, New Oriental China and its subsidiaries and schools and Xuncheng and its subsidiaries. Since the education business operations of New Oriental China and its subsidiaries and schools and Xuncheng and its subsidiaries are closely interrelated and almost indistinguishable from one another, the risks and rewards associated with their operations are substantially the same. In addition, the Company consolidates New Oriental China, its subsidiaries and schools, Xuncheng and its subsidiaries as disclosed. Therefore, the Company aggregates the disclosures related to New Oriental China, its subsidiaries and schools, and Xuncheng and its subsidiaries as the VIEs in the Company’s consolidated financial statements. The VIEs hold the requisite licenses and permits necessary to conduct the Company’s education business and e-commerce business. In addition, the VIEs hold leases and other assets necessary to operate the Company’s schools and learning centers, employ teachers and generate substantially all of the Company’s revenues of education businesses. VIE Arrangements between New Oriental China and the Company’s PRC subsidiaries The Company and its wholly owned subsidiaries in China (the “WFOEs”) entered into the following contractual arrangements with New Oriental China, New Oriental China’s subsidiaries and schools and New Oriental China’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, (2) receive substantially all of the economic benefits of the VIEs that could be significant to the VIEs and (3) have an exclusive option to purchase all or part of the equity interests in New Oriental China, when and to the extent permitted by the PRC law, or request the existing shareholder of New Oriental China to transfer all or part of the equity interest in New Oriental China to another PRC person or entity designated by the Company at any time in the Company’s discretion. Accordingly, the Company is considered the primary beneficiary of the VIE and has consolidated the VIE’s financial results of operations, assets and liabilities in the Company’s consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIE, the Company believes the Company’s rights under the terms of the exclusive option agreement provide it with the substantive kick-out A simple majority vote of the Company’s board of directors is required to pass a resolution to exercise the Company’s rights under the exclusive option agreement, for which Mr. Michael Minhong Yu (“Mr. Yu”)’s consent is not required. The Company’s rights under the exclusive option agreement give the Company the power to control the shareholders of New Oriental China and thus the power to direct the activities that most significantly impact the schools’ economic performance given that New Oriental China has the power to direct the activities of the schools via its sponsorship interest. In addition, the Company’s rights under the power of attorney also reinforce the Company’s abilities to direct the activities that most significantly impact the VIE’s economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements and pay service fees to the Company. By charging service fees in whatever amounts the Company deems fit, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the rights to receive substantially all of the economic benefits from the VIE. Service agreements. (i) Trademark license agreements. Pursuant to the trademark license agreement dated May 13, 2006 between the Company as the licensor and New Oriental China as the licensee, the Company has licensed the trademarks to New Oriental China for its use in China. The Company has also allowed New Oriental China to enter into sub-license (ii) New enrollment system development service agreements. Beijing Decision has entered into new enrollment system development service agreements with the schools of New Oriental China, under which Beijing Decision agreed to provide new enrollment system development and regular maintenance services to those schools of New Oriental China for a fee equal to the applicable fee rate multiplied by the number of new student enrollments. These agreements can be renewed by both parties to the agreements. (iii) Other operating service agreements. Pursuant to operating service agreements between certain WFOEs and the subsidiaries or schools of New Oriental China, the WFOEs have agreed to provide certain operating services to the subsidiaries or schools of New Oriental China for fees that are calculated based on a percentage, ranging from 2.0% to 6.0%, of respective revenues of each of the subsidiaries and schools. A majority of these agreements provide unlimited two-year (iv) Sale of educational software agreements. The WFOEs entered into agreements whereby the WFOEs sell various self-developed educational software to the subsidiaries or schools of New Oriental China. Master exclusive service agreement. 30-day As discussed in the preceding paragraphs, the Group further amended its master exclusive service agreement on September 1, 2021 to exclude two compulsory-education schools from such agreement. As a result, the wholly-owned subsidiaries in China stopped providing any exclusive services to or receive any fees from those two schools. Equity pledge agreements In January 2012, ten former shareholders of New Oriental China completed the transfer, for no consideration, of all of their equity interests in New Oriental China to Beijing Century Friendship Education Investment Co., Ltd. (“Century Friendship”), a PRC domestic enterprise controlled by the Company’s founder and chairman, Mr. Yu. Prior to the transfer, Century Friendship had held 53% of the equity interests in New Oriental China while the ten former shareholders of New Oriental China held the remaining equity interests. In connection to the transfer, five new equity pledge agreements dated April 23, 2012 were entered into among New Oriental China, Century Friendship and five WFOEs, whereby Century Friendship has agreed to pledge all of its equity interests in New Oriental China to the WFOEs to secure the VIEs’ performance of their obligations under the trademark license agreements, new enrollment system development service agreements, other operating service agreements and sale of educational software agreements. Century Friendship has agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on its equity interests in New Oriental China without the prior written consents of the WFOEs. The terms of the April 2012 equity pledge agreements are substantially the same as the 2006 equity pledge agreements. In February 2017, as part of efforts to streamline the corporate structure, the Group removed Shanghai Smart Words Software Technology Co., Ltd. (“Shanghai Smart Words”) as a party to the contractual arrangements with New Oriental China and its subsidiaries and schools and the shareholders. The rights and obligations of Shanghai Smart Words under these contractual arrangements have been assumed by Beijing Decision. The April 2012 equity pledge agreements have been amended to reflect the foregoing change while the terms of these agreements remain unchanged. The equity pledges of Century Friendship under the amended agreements have been registered with the Haidian District, Beijing branch of the State Administration of Market Regulation (the “SAMR”). Exclusive option agreements On February 16, 2017, Beijing Decision entered into a new option agreement with Century Friendship and New Oriental China, replacing the previous option agreement dated April 23, 2012. Pursuant to the current option agreement, Century Friendship is obligated to sell to Beijing Decision, and Beijing Decision has an exclusive, irrevocable and unconditional rights to purchase from Century Friendship, in its sole discretion, part or of all of Century Friendship’s equity interests in New Oriental China when and to the extent that applicable PRC law permits it to own part or all of the equity interest in New Oriental China. In addition, Beijing Decision has an exclusive option to require Century Friendship to transfer all or part of Century Friendship’s equity interest in New Oriental China to another PRC person or entity designated by Beijing Decision at any time in its discretion. The purchase price to be paid by Beijing Decision will be the minimum amount of consideration permitted by the applicable PRC law at the time when such share transfer occurs. Power of Attorney. attorney-in-fact attorney-in-fact VIE Arrangements between Dexin Dongfang and Xuncheng On May 10, 2018, Dexin Dongfang, a wholly-owned subsidiary of East Buy, entered into certain contractual arrangements (the “Contractual Arrangements”) with Xuncheng and the shareholders of Xuncheng, which enable East Buy to obtain control over Xuncheng and its subsidiaries (together the “Xuncheng VIE entities”). The Contractual Arrangements include an Exclusive Management Consultancy and Business Cooperation Agreement, an Exclusive Call Option Agreement, an Equity Pledge Agreement, a Powers of Attorney and Dispute resolution and Letters of undertaking. The terms of these contractual agreements between Dexin Dongfang and Xuncheng are substantially similar to those agreements of New Oriental China described in the preceding paragraphs. Through these Contractual Agreements, Dexin Dongfang has the ability to (1) expose, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over Xuncheng VIE entities; (2) exercise equity holders’ controlling voting rights of Xuncheng VIE entities; (3) receive substantially all of the economic benefits of Xuncheng VIE entities in consideration for the business support, technical and consulting services provided by Dexin Dongfang; (4) obtain an irrevocable and exclusive right to purchase all or part of equity interests in Xuncheng VIE entities from the respective equity holders at nil consideration or a minimum purchase price permitted under the PRC Laws; (5) obtain a pledge over the entire equity interest of Xuncheng from their equity holders as collateral security for all of Xuncheng VIE entities’ payments. Risks in relation to the VIE structure The Company believes that the contractual arrangements with the consolidated VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable as of May 31, 2023. However, the uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Company’s PRC subsidiaries and the VIEs; • confiscate any of income of the Company that it deems to be obtained through illegal operations; • discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and the VIEs; • restrict right of the Company to collect revenues or limit the Company’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries and the VIEs may not be able to comply; • require the Company or the Company’s PRC subsidiaries or the VIEs to restructure the relevant ownership structure or operations; • restrict or prohibit the Company’s use of the proceeds of the further offering to finance the Group’s business and operations in China; or • take other regulatory or enforcement actions against the Group that could be harmful to its business. The Company’s ability to conduct its education business may be negatively affected if the PRC government were to carry out of any the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries or the VIEs. Mr. Yu is the controlling shareholder of Century Friendship, which owns all of the equity interests in New Oriental China, which in turn owns all of the equity interests in Xuncheng, and Mr. Yu is also a beneficial owner of the Company. The interests of Mr. Yu as the beneficial owner of the VIEs may differ from the interests of the Company as a whole, since Mr. Yu is one of the beneficial shareholders of the Company, holding 12.3% of the total common shares outstanding as of May 31, 2023. The Company cannot assure that when conflicts of interest arise, Mr. Yu will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest Mr. Yu may encounter in his capacity as a beneficial owner and director of the VIEs, on the one hand, and as a beneficial owner and director of the Company, on the other hand. The Company believes Mr. Yu will not act contrary to any of the contractual arrangements and the exclusive option agreement provides the Company with a mechanism to remove Mr. Yu as a beneficial shareholder of the VIEs should he act to the detriment of the Company. The Company relies on Mr. Yu, as a director and the chairman of the Company, to fulfill his fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and Mr. Yu, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. In addition, the current shareholders of New Oriental China and Xuncheng are also beneficial owners of the Company and therefore, have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that the shareholders of New Oriental China may act contrary to the contractual arrangements, the Company, through Beijing Pioneer, entered into an irrevocable power of attorney with Century Friendship on December 3, 2012, which replaces the powers of attorney executed by Century Friendship on April 23, 2012. Through the power of attorney, Century Friendship entrusted Beijing Pioneer as its proxy to exercise its rights as the shareholder of New Oriental China with respect to an aggregate of 100% of the equity interests in New Oriental China. The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the offshore companies, WFOEs and the VIEs in the Group: As of May 31 2022 2023 US$ US$ Total current assets 1,909,663 2,366,136 Total non-current 1,221,847 1,218,363 Total assets 3,131,510 3,584,499 Total current liabilities 1,676,989 2,145,624 Total non-current 461,891 309,269 Total liabilities 2,138,880 2,454,893 For the years ended May 31, 2021 2022 2023 US$ US$ US$ Net revenues 4,270,169 3,093,340 2,982,945 Net income/(loss) 663,099 (1,116,151 ) 593,183 The following are cashflows of the VIEs and VIEs’ subsidiaries for the years ended May 31, 2021, 2022 and 2023: For the years ended May 31 2021 2022 2023 US$ US$ US$ Net cash provided by/(used in) operating activities 1,046,695 (1,517,697 ) 652,523 Net cash (used in)/provided by investing activities (789,120 ) 1,174,720 294,911 Net cash (used in)/provided by financing activities (16,658 ) 155,451 (19,353 ) For the years ended May 31, 2021, 2022 and 2023, for all of the VIEs and VIEs’ subsidiaries, excluding inter-company transactions: (1) the cash provided by operating activities was US$1,420,383 , the cash used in operating activities was and the cash provided by operating activities was (2) the cash used in investing activities was US$789,120 , the cash provided by investing activities was and , respectively; (3) the cash used in financing activities was US$16,658, nil and The VIEs contributed an aggregate of 99.9%, 99.6% and 99.5% of the consolidated net revenues for the years ended May 31, 2021, 2022 and 2023, respectively. The Company’s operations not conducted through contractual arrangements with the VIEs primarily consist of the lease of its commercial property. As of May 31, 2022 and 2023, the VIEs accounted for an aggregate of 51.9% and 56.1%, respectively, of the consolidated total assets, and 95.4%, and 95.2%, respectively, of the consolidated total liabilities. The assets not associated with the VIEs primarily consist of cash and cash equivalents, prepaid expenses, short-term investments and long-term investments. There are no consolidated VIEs’ assets that are collateralized for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Company or any of its consolidated subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 2 4 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and the VIEs’ subsidiaries and schools. The Company and its WFOEs have entered into contractual arrangements with the VIEs and its shareholders, which enable the Company to (1) have power to direct activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. The consolidated financial statements include the financial statements of the Company, its subsidiaries, which are accounted for under the voting interest model, and the consolidated VIEs, VIEs’ subsidiaries and schools consolidated under the variable interest entity consolidation model. All inter-company transactions and balances have been eliminated upon consolidation. See “Note 1 Organization and Principal Activities-The Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenues and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include the purchase price allocation relating to business acquisitions, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, intangible assets, long-lived assets and long-term investments, fair value assessment of long-term investments, refund liability, discount rate for leases, allowance for credit losses and the consolidation of the VIEs. Actual results could differ from those estimates. Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Consideration transferred in a business combinations is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post- acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the Group remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. Restricted cash Restricted cash represents Renminbi (“RMB”) deposit in bank accounts as deposits required by the PRC government authorities related to educational programs and services and establishment of new subsidiaries. Restricted cash is classified as either current or non-current Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months. Term deposit is classified as either current if the maturities are within one year, or as non-current if the maturities are over one year. Short-term investments The Group’s short-term investments include wealth management products with variable interest rates where principal is unsecured and maturities range from one month to less than one year and trading securities. Starting from June 1, 2022, the Group elects the fair value option to record wealth management products in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the are reflected in the consolidated statements of operations. The Group’s trading securities are comprised of money market funds that are acquired and held principally for the purpose of selling them in the near term. The fair value change gains or losses are recorded in the consolidated statements of operations. Allowance for doubtful accounts Accounts receivable represents amounts due from corporate customers of the Group’s various subsidiaries and schools. The allowance for doubtful accounts is the Group’s best estimates of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group provides allowance for doubtful accounts based on historical credit loss experience and a review of the current status and reasonable and supportable forecasts of future events and economic conditions. Accounts receivable and other receivables are presented net of allowance for doubtful accounts. Inventory, net Inventory, consisting of publications and private label products, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight line basis over the following estimated useful lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated useful life Property and equipment also consist of construction in progress as the Group constructs certain of its property and equipment. Construction in progress represents the costs incurred in connection with the construction of property and equipment. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and in the condition necessary for its intended use. Construction in progress is transferred to specific property and equipment and depreciation of these assets commences when the assets are ready for their intended use. Land use rights, net Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificates, from 38.5 years to 50 years. Intangible assets, net Intangible assets with an indefinite life are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired. Intangible assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets. Acquired intangible assets from business combination are recognized and measured at fair value at the time of acquisition. Those assets represent assets with finite lives and are further amortized on a straight-line basis over the estimated economic useful lives of the respective assets. The estimated useful lives of intangible assets are as follows: Trademark 5-10 years License 20 years Student base 1.75 years Favorable lease 8.67 years Courseware 3-5 years Copyright 5 years Distribution channel 5 years Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss calculated as an amount by which the carrying value of the cost exceed its fair value. Goodwill, net Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group’s goodwill as of May 31, 2022 and 2023 relates to its acquisitions of certain companies and schools. Goodwill is not amortized but tested for impairment at the reporting unit level on an annual basis (May 31 for the Group) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal and regulatory factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Group first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount. If as a result of the qualitative assessment, it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value of the reporting unit and its carrying amount will be recorded. Long-term investments, net The Group’s long-term investments include equity securities without readily determinable fair values, equity securities with readily determinable fair values, equity method investments and available-for-sale (a) Equity securities • Equity securities with readily determinable fair values Equity securities with readily determinable fair values are measured at fair value and any changes in fair value are recognized in the consolidated statements of operations. • Equity securities without readily determinable fair values The Group elects measurement alternative to the fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with the fair value change recorded in the consolidated statements of operations. The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and the fair value in the consolidated statements of operations. (b) Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. (c) Available-for-sale For investments in investee’s shares which are determined to be debt securities, the Group accounts for them as available-for-sale held-to-maturity Available-for-sale The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income or loss. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit losses and corresponding reduction in the allowance for credit losses. Any decline in fair value that is non-credit Unsecured senior notes Unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums and debt issuance costs. Debt discounts or premiums and debt issuance costs are recorded as a reduction of the principal amount and the related accretion is recorded as interest expense in the consolidated statements of operations over the maturities of the notes using the effective interest method. Non-controlling The Group’s consolidated financial statements include entities in which the Company has a controlling financial interest. Earnings or losses attributable to non-controlling “non-controlling Value added tax (“VAT”) Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3% of the gross sales for small scale VAT payer and 13 % of the gross sales for general VAT payer. Most of the subsidiaries of the Company are considered as general VAT payers for the sales of products, guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at The new enrollment system development services and other operating services are subject to VAT at the rate of 6% of revenues. The non-academic In accordance with Cai Shui [2020] No. 8, due to the Novel coronavirus (“COVID-19”) Revenue recognition Revenues are recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. As the Group’s private label products sales increased significantly, the Group changed its presentation of revenues in the consolidated statement of operations to separately disclose service revenues and product revenues, and retrospectively applied the presentation change for all periods presented. The primary sources of the Group’s revenues are as follows: (a) Net service revenues The Group provides educational services and test preparation courses, online education and other services. Each contract of educational programs and services is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to students if they decide within the trial period that they no longer want to take the course. After the trial period, if a student withdraws from a class, usually only those unearned portion of the fee is available to be returned. Historically, the Group has not had material refunds. The Group provides consulting services to students regarding overseas studies. Revenues are recognized when promised services are delivered to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. Each contract includes certain milestones and each of the milestones is considered a single performance obligation which is satisfied at the point of time when each of the milestone is reached. The Group estimates the variable consideration to be earned and recognizes revenues related to each milestone when the related milestone is achieved. When the Group, as a promoter, provides promotion services about the specified goods for the merchants in the form of livestream on the e-commerce e-commence e-commerce e-commence For the year ended May 31, 2023, US$1,825,212, US$267,818, US$354,764 and US$96,935 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. For the year ended May 31, 2022, US$2,535,318, US$134,175, US$325,901 and US$54,628 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. For the year ended May 31, 2021, US$3,667,270, US$210,591, US$278,594 and US$74,183 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. (b) Net product revenues The Group recognizes revenues from the sales of private label products and sales of books or other educational materials developed or licensed by the Group either through its own distribution channels or through third party distributors. Revenues are recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. For the year ended May 31, 2023, US$379,343 and US$73,688 of product revenues were derived from private label products and livestreaming e-commerce and other services, and other segments, respectively. For the year ended May 31, 2022, US$2,530 and US$52,694 of product revenues were derived from private label products and livestreaming e-commerce and other services, and other segments, respectively. For the year ended May 31, 2021, all product revenues were derived from other segments. The Group’s contract assets consist of accounts receivable. The balance of contract assets amounted to US$16,430 and US$33,074 as of May 31, 2022 and 2023, respectively. The Group’s contract liabilities mainly consist of prepayments from customers (deferred revenue), with a balance of US$933,062 and US$1,337,630 as of May 31, 2022 and 2023, respectively. Substantially all contract liabilities at the beginning of the year ended May 31, 2022 were recognized as revenues during the year ended May 31, 2023 and substantially all contract liabilities as of May 31, 2023 are expected to be realized in the following year. The difference between the opening and closing balances of the Group’s contract liabilities primarily results from the timing difference between the Group’s satisfaction of performance obligation and the customer’s payment. Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the courses. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. As of May 31, 2022 and 2023, refund liability amounted to US$95,398 and US$138,549, respectively, and are included in accrued expenses and other current liabilities. Operating leases The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheets as right-of-use non-lease right-of-use As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated using a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses are recorded on a straight-line basis over the lease term. Advertising costs The Group expenses advertising costs as they are incurred. Total advertising expenses were US$77,704, US$43,520 and US$49,365 for the years ended May 31, 2021, 2022 and 2023, respectively, and have been included as part of selling and marketing expenses. Government subsidies The government subsidies provided by the local government mainly included funding to support the growth of the Group. Foreign currency translation The Company’s functional and reporting currency is the United States dollars (“US dollars”). The financial records of the Company’s subsidiaries, the VIEs, the VIEs’ subsidiaries and schools located in the PRC are maintained in Renminbi (“RMB”), which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in US dollars, which is the functional currency of these entities. The financial records of the Company’s subsidiaries located overseas are maintained in their local currencies. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. For translating to the functional currency of the Company, assets and liabilities are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gain and loss are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and the consolidated statements of comprehensive income/ (loss). Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$956,476 and US$2,012,511 as of May 31, 2022 and 2023, respectively. Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposit, short-term investments, accounts receivable, amounts due from/to related parties, available-for-sale available-for-sale , , wealth management products and trading securities Net income/ (loss) per share Basic net income or loss per share is computed by dividing net income or loss attributable to the holders of common shares by the weighted average number of common shares outstanding during the year. Diluted net income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income or loss per share in years when their effect would be anti-dilutive. The Group has share options and NES which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted net income or loss per share, the effect of the share options and NES is computed using the treasury stock method. Income taxes The Group accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income/ (loss) Comprehensive income/ (loss) includes net income/ (loss), unrealized gain/ (loss) on available-for-sale Share-based compensation Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expenses net of forfeitures as they occur using graded vesting method over the requisite service period, with a corresponding addition to the additional paid-in non-constant The amount of compensation expenses recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. Forfeitures are recognized as they occur. Compensation expenses related to modified stock options are measured based on the fair value for the awards as of the modification date. The incremental share-based compensations for the vested portion is recognized immediately and the incremental portion of share-based for the unvested portion is recognized over the remaining vesting period of the awards. Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term investments and accounts receivable. As of May 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, term deposits, restricted cash and short-term investments were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in the fiscal years 2022 and 2023, respectively. Recent accounting pronouncements adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. The new guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The Company adopted this new standard beginning June 1, 2022 with no material impact on its consolidated financial statements. Recently issued accounting pronouncements not yet adopted In October 2021, the FASB issued ASU 2021-08, |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
May 31, 2023 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. BUSINESS ACQUISITIONS Business acquisition in the fiscal year 2021: In , in which US$13,131, nil and US$ US$430, and Pro forma financial information is not presented for the business acquisition in the fiscal year 2021 as it is immaterial to the reported results. No business acquisition occurred in the fiscal year 2022. Business acquisition in the fiscal year 2023: Tibet Tianli Education Technology Co., Ltd. (“Tibet Tianli”) Prior to September 2022, the Group held equity interests in Tibet Tianli which was accounted for as equity securities without readily determinable fair value as Tibet Tianli is as private company. In September 2022, the Group subscribed with (“Sellers”) with The acquisition of 42.4% equity interest resulted in previously According to the acquisition agreement of Tibet Tianli, under profit commitment arrangement for the time period September 2022 to August 2025, the Sellers are to return part of the consideration or transfer additional Tibet Tianli’s shares or the Company is to deliver cash to the founders of Tibet Tianli, if certain contingency is met. The Company records the contingent considerations at fair value on the acquisition date. The fair value is remeasured at each reporting date and changes in fair value are recorded in the consolidated statements of operations. After this transaction, the Group holds 59.8% equity interests of Tibet Tianli. The acquisition was recorded using the acquisition method of accounting , US$ Amortization Cash and cash equivalents 4,568 Other current assets 33,906 Property and equipment 218 1-5 years Intangible assets Trademark 8,108 5 years Copyright 2,317 5 years Distribution channel 17,230 5 years Goodwill 26,216 Other non-current 317 Other current liabilities (13,411 ) Deferred tax liabilities (2,489 ) Fair value of the 17.4% equity interests previously held (13,395 ) Non-controlling (31,007 ) Total 32,578 Other acquisition During the year ended May 31, 2023, the Group also made other business acquisition. The cash consideration of the other business acquisition amounted to US$9,556, which had been fully paid during the year ended May 31, 2023. The cash and cash equivalents, intangible assets, goodwill and non-controlling Pro forma financial information is not presented for the business acquisition in the fiscal year 2023 as it is immaterial to the reported results. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
May 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | 4. SHORT-TERM INVESTMENTS Short-term investments consisted of the following: As of May 31, 2022 2023 US$ US$ Wealth management products measured at fair value 1,831,652 1,404,830 Trading securities 70,602 73,013 1,902,254 1,477,843 Short-term investments mainly consist of wealth management products with variable interest rates where principal is unsecured and maturities range from one month to less than one year and trading securities. Starting from June 1, 2022, the Group elects the fair value option to record wealth management products in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the consolidated statements of operations. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets, Net | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets, Net | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepaid expenses and other current assets, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Receivable from third party payment platform 40,620 64,962 Advances to suppliers 60,018 63,473 VAT recoverable 12,174 21,887 Rental deposits 17,921 18,399 Prepaid advertising fees 5,155 10,336 Interest receivables 33,459 8,154 Prepaid rents (a) 14,785 8,004 Staff advances (b) 17,564 5,042 Deposits of advertising and decoration 1,719 555 Others (c) 12,443 11,119 215,858 211,931 Less: allowance for prepaid expenses and other current assets (456 ) (691 ) 215,402 211,240 (a) Prepaid rents represent the prepayment of rent related to less than 12 months leases. (b) Staff advances were provided to staff for travelling and business related use and are expensed as incurred. (c) Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Buildings 166,238 156,017 Transportation equipment 6,127 6,366 Furniture and education equipment 144,342 118,936 Computer equipment and software 111,471 129,119 Leasehold improvements 341,019 293,236 Construction in progress 37,607 48,216 806,804 751,890 Less: accumulated depreciation (379,445 ) (401,687 ) Less: accumulated impairment loss (9,385 ) (14 ) Exchange differences (15,284 ) 9,571 402,690 359,760 Depreciation expenses for the years ended May 31, 2021, 2022 and 2023 were US$225,657, US$192,291 and US$117,036, respectively. For the year ended May 31, 2022, US$368,602 impairment loss was recorded for certain property and equipment. Additionally, leasehold improvements of certain learning centers and offices accumulated impairment amounting to US$388,758 was written off along with the underlying property and equipment and leasehold improvements which were disposed or fully impaired during fiscal year 202 2 was K-9 |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Land Use Rights, Net | 7. LAND USE RIGHTS, NET Land use rights, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Land use rights 4,083 3,831 Less: accumulated amortization (474 ) (558 ) Exchange differences 18 48 Land use rights, net 3,627 3,321 Amortization expenses for land use rights for the years ended May 31, 2021, 2022 and 2023 were US$262, US$205 and US$84, respectively. The Group expects to recognize US$84 in amortization expense for each of the next five years and US$2,901 thereafter. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 8. INTANGIBLE ASSETS, NET Intangible assets, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Intangible assets with indefinite lives: Trademark 245 230 Intangible assets with finite lives: Trademark 8,760 16,221 Courseware 124 1,214 Student base 12,824 12,059 Favorable lease 703 660 License 415 415 Copyright — 2,250 Distribution channel — 16,737 23,071 49,786 Less: accumulated amortization (19,972 ) (25,555 ) Exchange differences (299 ) 948 2,800 25,179 Amortization expenses for the intangible assets for the years ended May 31, 20 The Group recorded an impairment |
Goodwill, Net
Goodwill, Net | 12 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Net | 9. GOODWILL, NET Goodwill, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Beginning balance 109,039 106,588 Acquisition — 38,992 Exchange differences (2,451 ) (4,281 ) Ending balance 106,588 141,299 Accumulated impairment (35,785 ) (35,785 ) Goodwill, net 70,803 105,514 The Group performed its annual goodwill impairment testing at the end of each reporting period or more frequently if events or changes in circumstances indicate that it might be impaired. In its goodwill impairment assessment, the Group concluded that the carrying amounts of certain reporting units exceeded their implied fair values and recorded the impairment losses of US$28,858, nil and nil for the years ended May 31, 2021, 2022 and 2023, respectively. The Group determined the fair value of the reporting units by using the income approach with significant unobservable inputs. |
Long-Term Investments, Net
Long-Term Investments, Net | 12 Months Ended |
May 31, 2023 | |
Schedule of Investments [Abstract] | |
Long-Term Investments | 10. LONG-TERM INVESTMENTS, NET Long-term investments, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Equity securities with readily determinable fair value: Sunlands Online Education Group (“Sunlands”) (a) 5,472 3,588 Other investments 2,089 2,703 Subtotal 7,561 6,291 Equity securities without readily determinable fair value: Tibet Tianli (b) 16,217 — G-Net (“G-Net”) 14,989 14,065 EEO Education Technology Co., Ltd. (“EEO”) (d) 9,312 9,312 Other investments (e) 12,787 14,758 Subtotal 53,305 38,135 Equity method investments: New Oriental Education and Culture Industry Fund (Zhangjiagang) Partnership (Limited Partnership) (“Education Industry Fund”) (f) 74,530 76,369 VM EDU Fund I, L.P.(g) 67,324 66,331 Other investments (h) 62,196 52,871 Subtotal 204,050 195,571 Available-for-sale Shanghai Golden Education & Training Co., Ltd. (“Golden Finance”) (i) 82,972 76,115 Happy_seed (Cayman) Ltd. (“Happy Seed”) (j) 20,515 20,183 Tianjin Uhozz Internet Technology Co., Ltd. (“Uhozz”) (k) 17,510 17,890 Other available-for-sale 52,006 45,400 Subtotal 173,003 159,588 437,919 399,585 (a) As of May 31, 2023, the Group held equity interests in Sunlands. For the years ended May 31, 2021, 2022 and 2023, the stock price of Sunlands declined, and losses of , US$ and US$ were recorded in loss from fair value change of investments on the Group’s consolidated statements of operations, respectively. (b) In December 2018, the Group invested 5% equity interests in Tibet Tianli, a company engaged in developing educational products. In In September 2022, the Group as an equity security without readily determinable fair value, the Group measure d , and 3, (c) In August 2020, the Group acquired 3% equity interests in G-Net, G-Net (d) In April 2017, the Group acquired 10% equity interests in EEO, a company engaged in the business of developing on-line (e) The Group holds several insignificant investments in third-party private companies and has no ability to exercise significant influence over the investees. Those investments were accounted for (f) In July 2018, Education Industry Fund was established with the total committed capital of US$224,000. There are two general partners in the fund, which include an entity invested by Mr. Yu and an unrelated third party. The Group participates in Education Industry Fund as a limited partner and invested US$76,369 in Education Industry Fund as of May 31, 2023. The Group accounts for the investment under the equity method in accordance with ASC 323, Equity Method of Accounting (“ASC 323”) because the Group is a limited partner and owns 36.3% interest in Education Industry Fund. (g) In June 2019, VM EDU Fund I, LP ., . . 49.69 (h) The Group holds from 6.9% to 50.0% equity interests in other 1 2 in-substance as of May 31, 2023 (i) In April 2015, the Group invested 9.8% equity interests in Golden Finance, a company engaged in training program business associated with finance and business management. In November 2015, the Group further subscribed 9.8% equity interests. In available-for-sale (j) In August 2019, the Group invested 6.4% equity interests in Happy Seed, a company engaged in cultivating logical thinking skill. In equity interests. The Group accounts for the investment as (k) In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for a 10% equity interests with redemption and liquidation preferences. In March 2018, the Group further subscribed to 15.2% series B preferred shares. The Group accounted for the investment as available-for-sale (l) Other available-for-sale available-for-sale The Group recognized impairment losses from long-term investments amounting to US$40,207, US$129,350 and US$8,056 for the years ended May 31, 2021, 2022 and 2023, respectively, as the Group believes the carrying value of these investments were no longer recoverable. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 11. FAIR VALUE MEASUREMENT Assets and liabilities measured at fair value on a recurring basis The Group measures available-for-sale available-for-sale As of May 31, 2022 and 2023, information about inputs for the fair value measurements of the Group’s assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: As of May 31, 2022 Description Quoted Significant Significant Total US$ US$ US$ US$ Short-term investments: Trading securities (a) 70,602 — — 70,602 Long-term investments: Equity securities with readily determinable fair values (b) 7,561 — — 7,561 Available-for-sale — 10,029 162,974 173,003 Total 78,163 10,029 162,974 251,166 As of May 31, 2023 Description Quoted Prices Significant Significant Total US$ US$ US$ US$ Short-term investments: Wealth management products measured at fair value (a) — 1,404,830 — 1,404,830 Trading securities (a) 73,013 — — 73,013 Long-term investments: Equity securities with readily determinable fair values (b) 6,291 — — 6,291 Available-for-sale — 17,890 141,698 159,588 Total 79,304 1,422,720 141,698 1,643,722 (a) The short-term investments of wealth management products us e trading securities financial institutions (b) The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investees in the active market and has classified it as Level 1 measurement. (c) As of May 31, 2023, the fair value of available-for-sale available-for-sale The Company measured the fair value of its investment in convertible note and Assets Management Plan based on the respective principal and expected returns issued by financial institutions and has classified those as Level 2 measurement. For redeemable preferred shares that do not have a quoted market rate, when recent transactions are available, the Company measured their fair value based on recent transactions. Recent transactions include the purchase price agreed by an independent third party for a similar investment and have been classified as Level 2 measurement. When no recent transactions are available, the Company has classified those as Level 3 measurement and a market approach or income approach will be used by the Company to measure fair value. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning, discount of lack of marketability, investee’s time to initial public offering as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flow of the investee as well as an appropriate discount rate. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on fair values. As of May 31, 2023, the fair values of available-for-sale investments classified as Level 3 were measured using the market or income approaches with significant unobservable inputs were based on the following assumptions: (1) expected volatility ranging from The Group did not have any transfers neither between Level 1 and Level 2 nor between Level 1 and Level 3 fair value measurements during the periods presented. The following table provides additional information about the reconciliation of the fair value measurements of assets using significant unobservable inputs (Level 3). Level 3 US$ Balance as of June 1, 2021 65,232 Transfer from Level 2 133,030 Transfer to Level 2 (15,705 ) Unrealized gain 2,015 Impairment (15,632 ) Foreign exchange difference (5,966 ) Balance as of May 31, 2022 162,974 Transfer from Level 2 10,028 Transfer to Level 2 (17,510 ) Unrealized loss (3,172 ) Impairment (2,901 ) Foreign exchange difference (7,721 ) Balance as of May 31, 2023 141,698 Assets and liabilities measured at fair value on a nonrecurring basis Goodwill and acquired intangible assets are measured at fair value on a non-recurring The Group measures goodwill at fair value annually or whenever events or changes in circumstances indicate that the carrying amount of a reporting unit exceeds its fair value. The fair value of goodwill is determined using discounted cash flows, and an impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Refer to Note 9 for the goodwill impairment loss recognized for the years ended May 31, 2021, 2022 and 2023. The Group measures acquired intangible assets using the income approach, when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. For equity securities without readily determinable fair values, the fair value was determined using directly or indirectly observable inputs in the market place (Level 2 inputs). Whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable, the fair value of aforementioned long-term investments was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
May 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of May 31, 2022 2023 US$ US$ Accrued payroll 229,041 277,020 Refund liability (a) 95,398 138,549 Payable for purchase of property and equipment 27,240 27,093 Advance payment from students (b) 22,481 19,323 Amounts reimbursable to employees (c) 14,425 15,437 Accrued advertising fees 10,632 14,426 VAT payable 8,907 12,300 Payable for investments and acquisitions 1,097 9,531 Welfare payable 8,156 9,294 Royalty fees payable (d) 10,166 7,568 Rent payable 33,829 6,124 Refundable deposits (e) 8,418 5,825 Other taxes payable 4,897 5,095 Accrued professional service fees 6,015 2,824 Others (f) 29,562 19,028 Total 510,264 569,437 (a) The refund liability is recognized for variable amount of the considerations received from the customers and recorded as refund liability as described in Note 2. (b) Advance payment from students represent (1) the miscellaneous expenses other than tuition fee prepaid by students which will be paid out on their behalf; and (2) advance payment prepaid by students for class enrollment. (c) Amounts reimbursable to employees include travelling and business related expenses. (d) Royalty fees payable relate to payments to content providers for on-line (e) Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour. (f) Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable. |
Lease
Lease | 12 Months Ended |
May 31, 2023 | |
Lessee Disclosure [Abstract] | |
Lease | 13. LEASE The Group has operating leases for learning centers, service centers and office spaces. Certain leases include renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate. Operating lease costs for the years ended May 31, 2021, 2022 and 2023 were US$518,798, US$368,058 , leases As of May 31, 2022 and 2023, the weighted average remaining lease term was 3.9 years and 3.6 years, respectively, and the weighted average discount rate was 4.5% and 4.4% for the Group’s operating leases, respectively. Supplemental cash flow information related to the operating leases is as follows: For the years ended May 31, 2022 2023 US$ US$ Cash payments for the operating leases 355,284 180,157 Right-of-use assets obtained in exchange for the new operating lease liabilities 157,455 231,887 A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of May 31, 2023 is as follows: As of US$ Fiscal year ending May 31, 2024 181,970 May 31, 2025 123,599 May 31, 2026 83,218 May 31, 2027 44,463 May 31, 2028 26,182 Thereafter 21,409 Total future lease payments 480,841 Less: Imputed interest (36,899 ) Present value of operating lease liabilities 443,942 As of May 31, 2023, the Group has lease contracts that have been entered into but not yet commenced amounting to US$33,523, and these contracts will commence in the fiscal year 2024. For the years ended May 31, 2021, 2022 and 2023, US$4,228, US$19,580 and nil impairment loss was recorded in general and administrative expenses mainly related to right-of-use |
Unsecured Senior Notes
Unsecured Senior Notes | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Unsecured Senior Notes | 14. UNSECURED SENIOR NOTES In July 2020, the Company issued unsecured senior notes for a principal amount of US$300,000 which are listed in the Stock Exchange of Hong Kong Limited. The notes bear fixed interest rate at 2.125% with interest payable semiannually in arrears on January 2 and July 2 of each calendar year, commencing on January 2, 2021. For the year ended May 31, 202 2 2 For the year ended May 31, 2023, the Company repurchased unsecured senior notes with a total principal amount of US$50,962 at a repurchase price of US$48,764. The repurchased unsecured senior notes were derecognized from the Group’s consolidated balance sheets, and the relevant repurchase gains amounting to US$2,347 were recognized in the Group’s consolidated statements of operations for the year ended May 31, 2023. A summary of the unsecured senior notes as of May 31, 2023 is as follows: As of May 31, Effective 2022 2023 US$ US$ Carrying amount of the unsecured senior 65,394 14,653 2.35 % Unamortized debt discounts, accrued interest expenses and debt issuance costs 221 — Total principal amount of the unsecured senior notes 65,615 14,653 The unsecured senior notes were issued at a discount amount of US$299,181. Debt issuance costs of US$2,098 were directly deducted from the principal amount of the unsecured senior notes. The effective interest rates for the unsecured senior notes include the interest charged on the notes as well as amortization of the debt discounts and debt issuance costs. The unsecured senior notes contain covenants including, among others, negative pledge, consolidation, merger and sale all or substantially all of the Company’s assets. The notes will rank senior in rights of payment to all of the Company’s existing and future obligations expressly subordinated in rights of payment to the notes and rank at least equal in rights of payment with all of the Company’s existing and future unsecured and unsubordinated obligations (subject to any priority rights pursuant to applicable law). |
Common Shares and Treasury Stoc
Common Shares and Treasury Stock | 12 Months Ended |
May 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Common Shares and Treasury Stock | 15. COMMON SHARES AND TREASURY STOCK On March 8, 2021, the Board of Directors adopted an ordinary resolution effective as of March 10, 2021 whereas each common share (whether issued or unissued) of par value of US$0.01 each in the share capital of the Company was divided into ten common shares. The Company has retroactively restated all shares and per share data for all the periods presented pursuant to ASC 260, Earnings per Share. As of May 31, 2022 and 2023, the Company had 3,000,000,000 common shares authorized with par value of US$0.001. The movements of the outstanding common shares and treasury stock are as follows, taking into the consideration of 1 to 10 stock split on March 10, 2021. Number of Number of Shares outstanding as of May 31, 2021 1,690,082,150 — Issuance of common share for NES 6,884,033 — Shares outstanding as of May 31, 2022 1,696,966,183 — Issuance of common share for NES 5,659,610 — Shares repurchase (a) (59,463,140 ) 59,463,140 Shares outstanding as of May 31, 2023 1,643,162,653 59,463,140 (a) On July 26, 2022, the Company’s board of directors authorized the repurchase of up to US$400 million of the Company’s common shares during the period from July 28, 2022 through May 31, 2023. During the year ended May 31, 2023, the Company repurchased 5,946,314 ADS on the open market for total consideration of US$191,628. The Group accounts for repurchased common shares under the par value method and includes such treasury stock as a component of the shareholders’ equity. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
May 31, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 16. SHARE-BASED COMPENSATION 2016 Share Incentive Plan The Company adopted 2016 Share Incentive Plan (“2016 Share Incentive Plan”) in January 2016 to provide incentives to employees and directors after the expiration of the previous 2006 Share Incentive Plan. Under the 2016 Share Incentive Plan, the Company is authorized to issue up to 100,000,000 common shares pursuant to awards (including options) granted to its employees, directors and consultants. The 2016 Share Incentive Plan is effective upon its adoption by the board of directors and continue in effect for a term of ten years unless terminated sooner. Since the adoption of the 2016 Share Incentive Plan, the Company has granted a total of 71,681,298 NES, among which 19,595,518, nil and 20,759,130 were granted for the years ended May 31, 2021, 2022 and 2023, respectively. 428,228, 1,536,112 and 1,324,092 shares were forfeited for the years ended May 31, 2021, 2022 and 2023, respectively. The Company’s board of directors may at any time amend, suspend or terminate the 2016 Share Incentive Plan. The following amendments to the 2016 Share Incentive Plan require approval from the shareholders (i) increase of the number of shares available under the 2016 Share Incentive Plan, (ii) extension of the term of the 2016 Share Incentive Plan, (iii) extension of the exercise period of an option beyond ten years, and (iv) any other amendments about which shareholders’ approval are necessary and desirable under applicable laws or stock exchange rules. The 2016 Share Incentive Plan is effective upon its adoption by the board and continue in effect for a term of ten years unless sooner terminated. As of May 31, 2019, all options were fully vested and exercised. NES For the year ended May 31, 2023, nil treasury stock had been issued to employees and directors upon the vesting of their NES. As of May 31, 2023, 68,111,823 common shares out of 182,560,000 common shares held by the depositary bank had been issued to employees and directors upon the vesting of their NES, and 39,412,570 shares out of 121,446,630 treasury stock had been reissued to employees and directors upon the vesting of their NES. The NES activities under the 2016 Share Incentive Plan for the year ended May 31, 2023 are summarized as follows: Number of NES Weighted-average NES outstanding as of May 31, 2022 16,495,845 11.51 Granted 20,759,130 2.60 Vested (5,659,610 ) 11.51 Forfeited (1,324,092 ) 8.90 NES outstanding as of May 31, 2023 30,271,273 5.52 NES expect to vest as of May 31, 2023 30,271,273 The total fair value of NES vested for the years ended May 31, 2021, 2022 and 2023 were US$53,335, US$50,821 and US$65,142, respectively. The weighted average grant date fair value of NES granted for the years ended May 31, 2021, 2022 and 2023 were US$11.51, nil and US$ The total compensation expenses of NES are recognized using graded vesting method East Buy Pre-IPO On July 13, 2018, the board of directors of East Buy approved an employee’s share option plan (the “Pre-IPO Pre-IPO On March 7, 2019, pursuant to the list of grantees and respective numbers of options approved by the board of directors of East Buy, East Buy granted a total of 47,836,985 options to 144 grantees, including the directors, senior management of East Buy, contractors and other employees of East Buy each The movements of share options under the Pre-IPO Number of share Weighted average Outstanding as of May 31, 2021 36,902,985 1.13 Forfeited (837,500 ) 1.13 Exercised (153,500 ) 1.13 Outstanding as of May 31, 2022 35,911,985 1.13 Exercised (8,827,600 ) 1.13 Outstanding as of May 31, 2023 27,084,385 1.13 Options vested and expected to vest as of May 31, 2023 27,084,385 1.13 The Group used the discounted cash flow method to determine the fair value of underlying common shares of East Buy with the assistance of an independent valuation specialist. Based on the fair value of the underlying common shares of East Buy, the Group used the binomial option-pricing model to determine the fair value of the share option as of the grant date. Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options. East Buy recorded the related compensation expenses of US$1,298 and nil for the years ended May 31, 2022 and 2023, respectively, in relation to the share options issued under the Pre-IPO East Buy Post-IPO On January 30, 2019, the board of directors of East Buy approved an employee’s share option plan (the “Post-IPO East Buy Post-IPO On January 29, 2020, pursuant to the list of grantees and respective numbers of options approved by the board of directors of East Buy, East Buy granted a total of 40,000,000 options to grantees, including the directors, senior management and other employees of East Buy (“East Buy Post-IPO The movements of share options under the East Buy Post-IPO Number of share Weighted average Outstanding as of May 31, 2021 29,541,815 3.26 Forfeited (10,088,192 ) 3.26 Cancelled (7,971,290 ) 3.26 Cancelled and replaced by East Buy Post-IPO (11,482,333 ) 0.67 Outstanding as of May 31, 2022 and 2023 — — Options vested and expected to vest as of May 31, 2023 — — (a) Those options were cancelled and replaced as disclosed below. East Buy has used the closing price of the shares as stated in the daily quotation sheet issued by the Stock Exchange of Hong Kong Limited on the grant date as the fair value of underlying common shares of East Buy. Based on the fair value of the underlying common shares of East Buy, East Buy has used binomial option-pricing model to determine the fair value of the share option as of the grant date with the assistance of an independent valuation specialist. Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options. East Buy Post-IPO On August 25, 2020, pursuant to the list of grantees and respective numbers of options approved by the board of directors of East Buy, East Buy East Buy (“East Buy Post-IPO each The movements of share options under the East Buy Post-IPO Number of share Weighted average Outstanding as of May 31, 2021 20,848,000 4.39 Forfeited (6,445,000 ) 4.39 Cancelled (6,311,000 ) 4.39 Cancelled and replaced by East Buy Post-IPO (8,092,000 ) 0.67 Outstanding as of May 31, 2022 and 2023 — — Options vested and expected to vest as of May 31, 2023 — — (a) Those options were cancelled and replaced as disclosed below. The assumptions used to estimate the fair value of the share options granted under East Buy Post-IPO Share Option II, are as follows: August 25, Weighted average share price US$ 4.52 Exercise price US$ 4.39 Expected volatility 49.5 % Expected life 10 years Risk-free rate 0.44 % Expected dividend yield 0.00 % East Buy has used the closing price of the shares as stated in the daily quotation sheet issued by the Stock Exchange of Hong Kong Limited on the grant date as the fair value of underlying common shares of East Buy. Based on the fair value of the underlying common shares of East Buy, East Buy has used binomial option-pricing model to determine the fair value of the share option as of the grant date with the assistance of an independent valuation specialist. Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options. On November 15, 2021, the Company’s board of directors cancelled 14,282,290 Post-IPO Post-IPO East Buy Post-IPO On November 15, 2021, the Company’s board of directors granted a total of 24,986,000 options to employees of East Buy (“ East Buy Post-IPO each On that same day, the Company’s board of directors also approved the modification of options previously granted as “Post-IPO common 2 remaining The movements of share options under the East Buy Post-IPO Number of share Weighted Granted on November 15, 2021 24,986,000 0.67 Forfeited (2,447,497 ) 0.67 Granted to replace cancelled options 23,455,590 0.67 Outstanding as of May 31, 2022 45,994,093 0.67 Forfeited (1,216,275 ) 0.67 Exercised (4,315,008 ) 0.67 Outstanding as of May 31, 2023 40,462,810 0.67 Options vested and expected to vest as of May 31, 2023 40,462,810 0.67 November 15, Weighted average share price US$ 0.67 Exercise price US$ 0.67 Expected volatility 61 % Expected life 10 years Risk-free rate 1.63 % Expected dividend yield 0.00 % East Buy has used the closing price of the shares as stated in the daily quotation sheet issued by the Stock Exchange of Hong Kong Limited on the grant date as the fair value of underlying common shares of East Buy. Based on the fair value of the underlying common shares of East Buy, East Buy has used binomial option-pricing model to determine the fair value of the share option as of the grant date with the assistance of an independent valuation specialist. Option valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying shares, and changes in the subjective input assumptions can materially affect the fair value estimate of share options. East Buy recognized the total compensation expenses of US$13,183 and US$10,897 for the years ended May 31, 2022 and 2023, respectively, in relation to the Post-IPO East Buy 2023 Scheme On February 20, 2023, the board of directors of East Buy approved a new post-IPO On April 11, 2023, pursuant to the list of grantees and respective numbers of options approved by the board of directors of East Buy, East Buy granted a total of 30,459,000 share awards to grantees, including the directors, senior management and other employees of East Buy. Each grant has a total vesting period of between 20 50 annually within vesting period . The movements of share awards under the East Buy 2023 Scheme for the year ended May 31, 2023 are summarized as follows: Number of Weighted-average Granted on April 11, 2023 30,459,000 3.69 Vested — — Forfeited (145,000 ) 3.69 Outstanding as of May 31, 2023 30,314,000 3.69 Vested and expect to vest as of May 31, 2023 30,314,000 East Buy recognized the total compensation expenses of US$9,344 for the year ended May 31, 2023 in relation to the East Buy 2023 Scheme. As of May 31, 2023, the total unrecognized compensation expenses for NES of US$102,647 are expected to be recognized over a weighted average period of 1.9 years. At the end of each reporting period, the Group revises its estimates of the number of share awards that are expected to vest based on all relevant non-market loss |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. INCOME TAXES Cayman Islands & the British Virgin Islands (“BVI”) The Company and East Buy are tax-exempted The Company’s subsidiary, Abundant State Limited, is incorporated in BVI and is not subject to income tax. United States (“US”) Walkite International Academy (U.S.A.) Co., Ltd. and Blingabc Limited are incorporated in the US and are subject to federal income tax and state income tax at 21% and 8.8%, respectively. United Kingdom (“UK”) Walkite International Academy Co., Ltd. and New Oriental Vision Overseas Consulting (U.K.) Ltd are incorporated in the UK and are subject to income tax rate at 19%. Australia New Oriental Vision Overseas Consulting Australia Pty Ltd. is incorporated in Australia and is subject to income tax rate at 30%. Canada Walkite International Academy (Canada) Co., Ltd and New Oriental Vision Overseas Consulting Canada Inc. are incorporated in Canada and are subject to income tax rate at 15% in federal and 11.5% in provincial. Japan New Oriental Vision Overseas (JPN) Co., Ltd were established in Japan and subject to the Japan profit tax rate at 23.2%. Hong Kong Smart Shine, Winner Park, Elite Concept, One World Limited, Garden House Limited, Koolearn Tech, Asia Pacific Montessori Education Co., Ltd. (“Asia Pacific”), New Oriental Wuyou Online (HK) Education & Technology Co., Limited (“Wuyou Online”) and Dongfang Youbo (HK) Education Limited (“Dongfang Youbo (HK) ”) are incorporated in Hong Kong. Under the current Hong Kong Inland Revenue Ordinance, from the year of assessment 2018/2019 onwards, the subsidiaries in Hong Kong are subject to profits tax at the rate of 8.25% on assessable profits up to HK$2 million; and 16.5% on any part of assessable profits over HK$2 million. No provision in Smart Shine, Winner Park, Elite Concept , PRC The Company’s PRC subsidiaries, the VIEs, the VIEs’ Significant components of provision for income taxes for the years ended May 31, 2021, 2022 and 2023 were as follows: For the years ended May 31, 2021 2022 2023 US$ US$ US$ Current: PRC 127,313 44,378 97,594 Deferred: PRC (43,725 ) 91,934 (31,528 ) Total provision for income taxes 83,588 136,312 66,066 Enterprises that qualify as a high and new technology enterprise (“HNTE”) are subject to a tax rate of Although Xuncheng’s HNTE certificate is expected to expire on October 21, 2023, Beijing Hewstone, Beijing Decision, Dexin Dongfang and Beijing Be-linked Online Education Company Limited’s HNTE certificates are expected to expire on December 2, 2023, these enterprises are not subject to a tax rate of 15% staring form January 1, 2023, if they choose not to renew their certificates. Currently, these enterprises are in process of renewing their qualification of HNTE. Once their renewals are completed, these enterprises will be eligible for 15% tax rate starting January 1, 2023 again. Beijing Jinghong Software Technology Company Ltd., Beijing Shenghe Technology Company Ltd., Beijing Pioneer, Beijing Smart Wood, Beijing SFK Education Consulting Co., Ltd., Beijing Bright Future Education&Technology Company Limited and Dongfang Huijiao (Beijing) Technology Co., Ltd. continued to qualify as HNTE and were subject to a tax rate of Hainan Dongfang Zhixin Technology Company Limited, Zhuhai Zekai Software Technology Company Limited, Zhuhai Chongshengheli Network Technology Co., Ltd and Tibet Tianli enjoyed the EIT tax rate of 15% because of the preferential corporate income tax policies for local tax concessions. Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. Beijing Zhiyuan Hangcheng Software Technology Company Limited and Beijing Chuangying Oriental Technology Co., Ltd are qualified as NESE and enjoy the EIT tax benefit from January 2019 to December 2023. After expiration, the tax rate will return to 25%. Since its establishment through May 31, 2023, Beijing Haidian School was not required by the governing tax bureau to pay any EIT. If Beijing Haidian School is required to pay EIT in the future, this could have material impact to the Group’s consolidated financial statements. However, the Group believes that it is more likely than not that any change to the tax treatment of Beijing Haidian School shall be prospectively applied. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax assets and liabilities were as follows: As of May 31, 2022 2023 US$ US$ Deferred tax assets Allowance for doubtful accounts 41,806 37,424 Accrued expenses 53,069 56,716 Net operating loss carry-forward 321,258 324,355 Tax impact from the long-term investments disposed to a related party 1,521 1,521 Total deferred tax assets 417,654 420,016 Less: valuation allowance (397,616 ) (364,083 ) Total deferred tax assets, net 20,038 55,933 Deferred tax liabilities Acquired assets 1,788 4,523 Tax impact from the unrealized gain on available-for-sale 17,452 19,326 Total deferred tax liabilities 19,240 23,849 The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ earnings within the Group. The Group determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe it will ultimately be realized, was US$90,087, US$397,616 and US$364,083 as of May 31, 2021, 2022 and 2023, respectively. As of May 31, 2023, the Group had net operating loss carried-forwards of US$127,708 from the Company’s PRC subsidiaries, the VIEs, the VIEs’ during the period 2023 2028 3 3 A reconciliation of the provision for income taxes computed by applying the EIT rates of 25% for the years ended May 31, 2021, 2022 and 2023 to income/(loss) before provision for income tax and the actual provision for income tax is as follows: For the years ended May 31, 2021 2022 2023 US$ US$ US$ Income/(loss) before income taxes 314,977 (1,032,498 ) 308,531 PRC statutory income tax rate 25 % 25 % 25 % Income tax at statutory income tax rate 78,744 (258,125 ) 77,133 Effect of non-deductible (5,174 ) 106,903 40,577 Effect of income tax exemptions and preferential tax rates (38,795 ) (19,570 ) (12,927 ) Effect of income tax rate difference in other jurisdictions (181 ) (424 ) (5,184 ) Changes in valuation allowance 48,994 307,528 (33,533 ) Provision for income taxes 83,588 136,312 66,066 If the WFOE and certain subsidiaries and schools of the VIEs did not enjoy income tax exemptions and preferential tax rates, tax expense would have increased by US$33,847, US$5,453 and US$25,420 for the years ended May 31, 2021, 2022 and 2023, respectively. The decrease in basic net income per common US$0.20 common , decrease income common common common , decrease income common Under the New Income Tax Law effective from January 1, 2008, the rules for determining whether an entity is resident in the PRC for tax purposes have changed and the determination of residence depends among other things on the “place of actual management”. If the Group, or its non-PRC If the Company were to be a non-resident Aggregate undistributed earnings of the Company’s PRC subsidiaries , , the VIEs’ subsidiaries and schools PRC subsidiaries, the VIEs, the VIEs’ schools The Group did not identify any significant unrecognized tax benefits for the years ended May 31, 2021, 2022 and 2023. The Group did not incur any significant interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods. According to the PRC Tax Administration and Collection Law, the tax authority may require the taxpayer or the withholding agent to make delinquent tax payment within three years if the underpayment of taxes is resulted from the tax authority’s act or error. No late payment surcharge will be assessed under such circumstances. The statute of limitation will be three years if the underpayment of taxes is due to the computational errors made by the taxpayer or the withholding agent. Late payment surcharge will be assessed in such case. The statute of limitation will be extended to five years under special circumstances which are not clearly defined (but an underpayment of tax liability exceeding US$16 (RMB100) is specifically listed as a “special circumstance”). The statute of limitation for transfer pricing related issue is ten years. There is no statute of limitation in the case of tax evasion. Therefore, the Group’s PRC domiciled entities are subject to examination by the PRC tax authorities based on the above. |
Net Income_(Loss) Per Share
Net Income/(Loss) Per Share | 12 Months Ended |
May 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income/(Loss) Per Share | 18. NET INCOME/(LOSS) PER SHARE The computation of basic and diluted net income/(loss) per common share for the years ended May 31, 2021, 2022 and 2023 is as follows: For the years ended May 31, 2021 2022 2023 Numerator: Net income/(loss) attributable to New Oriental Education & Technology Group Inc.’s shareholders - basic (US$ in thousands) 334,414 (1,187,721 ) 177,341 Net income/(loss) attributable to New Oriental Education & Technology Group Inc.’s shareholders - diluted (US$ in thousands) 334,414 (1,187,721 ) 173,732 Denominator* Weighted average common shares outstanding-basic 1,645,463,440 1,696,419,232 1,678,264,547 Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method 6,518,944 — 7,367,440 Weighted average common shares outstanding-diluted 1,651,982,384 1,696,419,232 1,685,631,987 Net income/(loss) per common share* - Basic (US$) 0.20 (0.70 ) 0.11 - Diluted (US$) 0.20 (0.70 ) 0.10 * Retrospectively adjusted for effect of stock split |
Related-Parties Transactions
Related-Parties Transactions | 12 Months Ended |
May 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Parties Transactions | 19. RELATED-PARTIES TRANSACTIONS The Group had the following significant balances and transactions with major related parties: (a) Amount due from/to related parties: Amounts due from Amounts due to related Notes Relationship 2022 2023 2022 2023 US$ US$ US$ US$ Metropolis Holding China Limited (“Metropolis”) (1) Company controlled by Mr. Yu 998 2,435 27 236 Beijing Edutainment World Education Technology Co., Ltd (“Edutainment World”) (2) Equity method investee 2,016 4,086 — 18 Beijing Dianshi Jingwei Technology Co., Ltd (“Dianshi Jingwei”) ( 3 Equity method investee 20,181 — — — Others 50 2,862 199 92 Total 23,245 9,383 226 346 Amounts due from non-current Notes Relationship 2022 2023 US$ US$ Metropolis (1) Company controlled by Mr. Yu 2,770 1,398 Others 595 337 Total 3,365 1,735 (b) Transactions: Rental expenses 2021 2022 2023 US$ US$ US$ Metropolis (1) Company controlled by Mr. Yu 11,653 11,590 8,387 Revenues 2021 2022 2023 US$ US$ US$ Edutainment World (2) Equity method investee 1,096 — 2,098 Others 18 41 — Total 1,114 41 2,098 Loans provided to related parties 2021 2022 2023 US$ US$ US$ Dianshi Jingwei ( 3 Equity method investee — 3,096 — Beijing MaxEn International Education Consulting Company Limited (“Beijing MaxEn”) ( 4 Equity method investee 10,486 38,130 — Others — — 2,387 Total 10,486 41,226 2,387 Cost 2021 2022 2023 US$ US$ US$ Dianshi Jingwei (3) Equity method investee — 52,380 — Beijing Dongfang Heli Investment and Development Ltd Equity method investee 1,915 1,415 513 Edutainment World (2) Equity method investee 175 186 1,253 Others — 714 — Total 2,090 54,695 1,766 (1) As of May 31, 2022 and 2023, the current amounts due from Metropolis, which is a n entity non-current the right-of-use assets related to the leases rented from Metropolis were (2) Prior to April 2022, the Group’s investment in Edutainment World’s preferred shares were accounted for accounted for ( 3 In April 2016, the Group sold 51% of its equity interest in Dianshi Jingwei which became an equity method investee of the Group. In October 2021, the Group entered into a purchase agreement with Dianshi Jingwei for the purchase of learning devices of which $52,380 was further recorded as cost. In November 2022, the Company transferred all its equity interest in Dianshi Jingwei to the founder of Dianshi Jingwei and ceased the business cooperation aforementioned. ( 4 For the year ended May 31, 2022, the Group provided the loans in aggregate of US$38,130 to Beijing MaxEn, an equity method investee of the Group. As of May 31, 2022, the outstanding balance of the loans was US$40,197, which was fully impaired . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. COMMITMENTS AND CONTINGENCIES Capital commitments As of May 31, 2023, the future minimum capital commitments were as follows: US$ Capital commitment for the purchase of property and equipment 801 Capital commitment for leasehold improvements 16,692 Total 17,493 Contingent liabilities The Group has been named in a number of lawsuits arising in its ordinary course of business. Although the outcome of those lawsuits are uncertain, the Group does not believe the possibility of a material loss is probable. The Group is unable to estimate a range of loss, if any, that could result if there would be an adverse decision, as such, the Group has not accrued any liabilities. |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 21. SEGMENT INFORMATION The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. For the year ended May 31, 2021, the Group previously identified operating segments, including (i) K-12 AST, test preparation, and other courses, % quantitative threshold and as a result, was included in others below. The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC. The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating cost and expenses, and operating income. Net revenues, operating cost and expenses, operating income, and total assets by segment are as follows: For the year ended May 31, 2021 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 3,667,270 210,591 278,594 120,084 4,276,539 Operating cost and expenses: Cost of revenues (1,680,779 ) (145,428 ) (127,841 ) (82,827 ) (2,036,875 ) Selling and marketing (326,708 ) (175,092 ) (61,259 ) (25,346 ) (588,405 ) General and administrative (955,211 ) (124,897 ) (60,580 ) (69,524 ) (1,210,212 ) Unallocated corporate expenses — — — — (323,781 ) Total operating cost and expenses (2,962,698 ) (445,417 ) (249,680 ) (177,697 ) (4,159,273 ) Operating income/(loss) 704,572 (234,826 ) 28,914 (57,613 ) 117,266 Segment assets 4,380,247 516,488 477,568 281,579 5,655,882 Unallocated corporate assets — — — — 4,495,171 Total assets 4,380,247 516,488 477,568 281,579 10,151,053 For the year ended May 31, 2022 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 2,535,318 136,705 325,901 107,322 3,105,246 Operating cost and expenses: Cost of revenues (1,442,156 ) (68,732 ) (165,673 ) (77,730 ) (1,754,291 ) Selling and marketing (273,344 ) (79,428 ) (72,847 ) (30,494 ) (456,113 ) General and administrative (1,308,742 ) (72,361 ) (61,258 ) (63,859 ) (1,506,220 ) Unallocated corporate expenses — — — — (371,135 ) Total operating cost and expenses (3,024,242 ) (220,521 ) (299,778 ) (172,083 ) (4,087,759 ) Operating (loss)/income (488,924 ) (83,816 ) 26,123 (64,761 ) (982,513 ) Segment assets 2,227,184 313,258 177,821 4,381 2,722,644 Unallocated corporate assets — — — — 3,312,022 Total assets 2,227,184 313,258 177,821 4,381 6,034,666 For the year ended May 31, 2023 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 1,825,212 647,161 354,764 170,623 2,997,760 Operating cost and expenses: Cost of revenues (773,989 ) (364,645 ) (179,284 ) (91,520 ) (1,409,438 ) Selling and marketing (217,915 ) (89,302 ) (80,528 ) (45,657 ) (433,402 ) General and administrative (503,345 ) (50,658 ) (61,861 ) (65,725 ) (681,589 ) Unallocated corporate expenses — — — — (283,285 ) Total operating cost and expenses (1,495,249 ) (504,605 ) (321,673 ) (202,902 ) (2,807,714 ) Operating income/(loss) 329,963 142,556 33,091 (32,279 ) 190,046 Segment assets 1,703,762 307,167 109,422 149,017 2,269,368 Unallocated corporate assets — — — — 4,123,090 Total assets 1,703,762 307,167 109,422 149,017 6,392,458 |
Mainland China Contribution Pla
Mainland China Contribution Plan | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Mainland China Contribution Plan | 2 2 MAINLAND CHINA CONTRIBUTION PLAN The Group’s full time employees in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total contributions for such employee benefits were US$257,542, US$272,433 and US$196,042 for the years ended May 31, 2021, 2022 and 2023, respectively. |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Statutory Reserves | 2 3 STATUTORY RESERVES Prior to payment of dividends, pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company’s subsidiaries and the VIEs in the PRC must make appropriations from after-tax non-distributable Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax year-end The PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax In the case of a for-profit private school, this amount shall be no less than 10% of the audited annual net income of the school, while in the case of a non-profit private school, this amount shall be equal to no less than 10% of the audited annual increase in the unrestricted net assets of the school, if any. reversed made These reserves are included as statutory reserves in the consolidated statements of changes in equity . |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
May 31, 2023 | |
Receivables [Abstract] | |
Restricted Net Assets | 2 4 RESTRICTED NET ASSETS Relevant PRC laws and regulations restrict the WFOEs and the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends, except in the event of liquidation. The balance of restricted net assets was US$724,854, US$918,190 and US$935,032 of which US$681,309, US$519,388 and US$535,700 were attributed to the paid-in paid-in paid-in paid-in |
Subsequent Events
Subsequent Events | 12 Months Ended |
May 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25. SUBSEQUENT EVENTS Share repurchase program On June 6, 2023, the Company announced that its board of directors has authorized the Company to extend its share repurchase program, over the next twelve months through May 31, 2024. As of September 15, 2023, an aggregate of 5,969,314 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and the VIEs’ subsidiaries and schools. The Company and its WFOEs have entered into contractual arrangements with the VIEs and its shareholders, which enable the Company to (1) have power to direct activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. The consolidated financial statements include the financial statements of the Company, its subsidiaries, which are accounted for under the voting interest model, and the consolidated VIEs, VIEs’ subsidiaries and schools consolidated under the variable interest entity consolidation model. All inter-company transactions and balances have been eliminated upon consolidation. See “Note 1 Organization and Principal Activities-The |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenues and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include the purchase price allocation relating to business acquisitions, the valuation allowance for deferred tax assets, economic lives and impairment of property and equipment, impairment of goodwill, intangible assets, long-lived assets and long-term investments, fair value assessment of long-term investments, refund liability, discount rate for leases, allowance for credit losses and the consolidation of the VIEs. Actual results could differ from those estimates. |
Business combinations | Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Consideration transferred in a business combinations is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post- acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the Group remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Restricted cash | Restricted cash Restricted cash represents Renminbi (“RMB”) deposit in bank accounts as deposits required by the PRC government authorities related to educational programs and services and establishment of new subsidiaries. Restricted cash is classified as either current or non-current |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three months. Term deposit is classified as either current if the maturities are within one year, or as non-current if the maturities are over one year. |
Short-term investments | Short-term investments The Group’s short-term investments include wealth management products with variable interest rates where principal is unsecured and maturities range from one month to less than one year and trading securities. Starting from June 1, 2022, the Group elects the fair value option to record wealth management products in accordance with ASC 825 Financial Instruments. Changes in the fair value are reflected in the are reflected in the consolidated statements of operations. The Group’s trading securities are comprised of money market funds that are acquired and held principally for the purpose of selling them in the near term. The fair value change gains or losses are recorded in the consolidated statements of operations. |
Allowance for doubtful accounts | Allowance for doubtful accounts Accounts receivable represents amounts due from corporate customers of the Group’s various subsidiaries and schools. The allowance for doubtful accounts is the Group’s best estimates of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group provides allowance for doubtful accounts based on historical credit loss experience and a review of the current status and reasonable and supportable forecasts of future events and economic conditions. Accounts receivable and other receivables are presented net of allowance for doubtful accounts. |
Inventory, net | Inventory, net Inventory, consisting of publications and private label products, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight line basis over the following estimated useful lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated useful life |
Property and equipment also consists of construction in progress | Property and equipment also consist of construction in progress as the Group constructs certain of its property and equipment. Construction in progress represents the costs incurred in connection with the construction of property and equipment. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and in the condition necessary for its intended use. Construction in progress is transferred to specific property and equipment and depreciation of these assets commences when the assets are ready for their intended use. |
Land use rights, net | Land use rights, net Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificates, from 38.5 years to 50 years. |
Intangible assets, net | Intangible assets, net Intangible assets with an indefinite life are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired. Intangible assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets. Acquired intangible assets from business combination are recognized and measured at fair value at the time of acquisition. Those assets represent assets with finite lives and are further amortized on a straight-line basis over the estimated economic useful lives of the respective assets. The estimated useful lives of intangible assets are as follows: Trademark 5-10 years License 20 years Student base 1.75 years Favorable lease 8.67 years Courseware 3-5 years Copyright 5 years Distribution channel 5 years |
Impairment of long-lived assets | Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss calculated as an amount by which the carrying value of the cost exceed its fair value. |
Goodwill, net | Goodwill, net Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group’s goodwill as of May 31, 2022 and 2023 relates to its acquisitions of certain companies and schools. Goodwill is not amortized but tested for impairment at the reporting unit level on an annual basis (May 31 for the Group) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal and regulatory factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Group first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount. If as a result of the qualitative assessment, it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value of the reporting unit and its carrying amount will be recorded. |
Cost Method Investments | Long-term investments, net The Group’s long-term investments include equity securities without readily determinable fair values, equity securities with readily determinable fair values, equity method investments and available-for-sale |
Equity securities | (a) Equity securities • Equity securities with readily determinable fair values Equity securities with readily determinable fair values are measured at fair value and any changes in fair value are recognized in the consolidated statements of operations. • Equity securities without readily determinable fair values The Group elects measurement alternative to the fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with the fair value change recorded in the consolidated statements of operations. |
Equity securities with readily determinable fair values | (a) Equity securities • Equity securities with readily determinable fair values Equity securities with readily determinable fair values are measured at fair value and any changes in fair value are recognized in the consolidated statements of operations. |
Equity securities without readily determinable fair values | The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and the fair value in the consolidated statements of operations. |
Equity Method Investments | (b) Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. |
Available-for-sale Investments | (c) Available-for-sale For investments in investee’s shares which are determined to be debt securities, the Group accounts for them as available-for-sale held-to-maturity Available-for-sale The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income or loss. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit losses and corresponding reduction in the allowance for credit losses. Any decline in fair value that is non-credit |
Unsecured senior notes | Unsecured senior notes Unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums and debt issuance costs. Debt discounts or premiums and debt issuance costs are recorded as a reduction of the principal amount and the related accretion is recorded as interest expense in the consolidated statements of operations over the maturities of the notes using the effective interest method. |
Non-controlling interests | Non-controlling The Group’s consolidated financial statements include entities in which the Company has a controlling financial interest. Earnings or losses attributable to non-controlling “non-controlling |
Value added tax ("VAT") | Value added tax (“VAT”) Pursuant to the PRC tax laws, in case of any product sales, generally the VAT rate is 3% of the gross sales for small scale VAT payer and 13 % of the gross sales for general VAT payer. Most of the subsidiaries of the Company are considered as general VAT payers for the sales of products, guidance materials and the intercompany sales of self-developed software. For general VAT payer, VAT on sales is calculated at The new enrollment system development services and other operating services are subject to VAT at the rate of 6% of revenues. The non-academic In accordance with Cai Shui [2020] No. 8, due to the Novel coronavirus (“COVID-19”) |
Revenue recognition | Revenue recognition Revenues are recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. As the Group’s private label products sales increased significantly, the Group changed its presentation of revenues in the consolidated statement of operations to separately disclose service revenues and product revenues, and retrospectively applied the presentation change for all periods presented. |
Disaggregation of revenue | The primary sources of the Group’s revenues are as follows: (a) Net service revenues The Group provides educational services and test preparation courses, online education and other services. Each contract of educational programs and services is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to students if they decide within the trial period that they no longer want to take the course. After the trial period, if a student withdraws from a class, usually only those unearned portion of the fee is available to be returned. Historically, the Group has not had material refunds. The Group provides consulting services to students regarding overseas studies. Revenues are recognized when promised services are delivered to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. Each contract includes certain milestones and each of the milestones is considered a single performance obligation which is satisfied at the point of time when each of the milestone is reached. The Group estimates the variable consideration to be earned and recognizes revenues related to each milestone when the related milestone is achieved. When the Group, as a promoter, provides promotion services about the specified goods for the merchants in the form of livestream on the e-commerce e-commence e-commerce e-commence For the year ended May 31, 2023, US$1,825,212, US$267,818, US$354,764 and US$96,935 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. For the year ended May 31, 2022, US$2,535,318, US$134,175, US$325,901 and US$54,628 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. For the year ended May 31, 2021, US$3,667,270, US$210,591, US$278,594 and US$74,183 of service revenues were derived from educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services and other segments, respectively. (b) Net product revenues The Group recognizes revenues from the sales of private label products and sales of books or other educational materials developed or licensed by the Group either through its own distribution channels or through third party distributors. Revenues are recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. For the year ended May 31, 2023, US$379,343 and US$73,688 of product revenues were derived from private label products and livestreaming e-commerce and other services, and other segments, respectively. For the year ended May 31, 2022, US$2,530 and US$52,694 of product revenues were derived from private label products and livestreaming e-commerce and other services, and other segments, respectively. For the year ended May 31, 2021, all product revenues were derived from other segments. The Group’s contract assets consist of accounts receivable. The balance of contract assets amounted to US$16,430 and US$33,074 as of May 31, 2022 and 2023, respectively. The Group’s contract liabilities mainly consist of prepayments from customers (deferred revenue), with a balance of US$933,062 and US$1,337,630 as of May 31, 2022 and 2023, respectively. Substantially all contract liabilities at the beginning of the year ended May 31, 2022 were recognized as revenues during the year ended May 31, 2023 and substantially all contract liabilities as of May 31, 2023 are expected to be realized in the following year. The difference between the opening and closing balances of the Group’s contract liabilities primarily results from the timing difference between the Group’s satisfaction of performance obligation and the customer’s payment. Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the courses. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. As of May 31, 2022 and 2023, refund liability amounted to US$95,398 and US$138,549, respectively, and are included in accrued expenses and other current liabilities. |
Operating leases | Operating leases The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheets as right-of-use non-lease right-of-use As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated using a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses are recorded on a straight-line basis over the lease term. |
Advertising costs | Advertising costs The Group expenses advertising costs as they are incurred. Total advertising expenses were US$77,704, US$43,520 and US$49,365 for the years ended May 31, 2021, 2022 and 2023, respectively, and have been included as part of selling and marketing expenses. |
Government subsidies | Government subsidies The government subsidies provided by the local government mainly included funding to support the growth of the Group. |
Foreign currency translation | Foreign currency translation The Company’s functional and reporting currency is the United States dollars (“US dollars”). The financial records of the Company’s subsidiaries, the VIEs, the VIEs’ subsidiaries and schools located in the PRC are maintained in Renminbi (“RMB”), which is the functional currency of these entities. The financial records of the Company’s subsidiaries located in Hong Kong are maintained in US dollars, which is the functional currency of these entities. The financial records of the Company’s subsidiaries located overseas are maintained in their local currencies. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. For translating to the functional currency of the Company, assets and liabilities are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gain and loss are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and the consolidated statements of comprehensive income/ (loss). |
Foreign currency risk | Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents, restricted cash, and term deposits denominated in RMB amounted to US$956,476 and US$2,012,511 as of May 31, 2022 and 2023, respectively. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Net income/ (loss) per share | Net income/ (loss) per share Basic net income or loss per share is computed by dividing net income or loss attributable to the holders of common shares by the weighted average number of common shares outstanding during the year. Diluted net income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised into common shares. Common share equivalents are excluded from the computation of the diluted net income or loss per share in years when their effect would be anti-dilutive. The Group has share options and NES which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted net income or loss per share, the effect of the share options and NES is computed using the treasury stock method. |
Fair value of financial instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, term deposit, short-term investments, accounts receivable, amounts due from/to related parties, available-for-sale available-for-sale , , wealth management products and trading securities |
Income taxes | Income taxes The Group accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. |
Comprehensive income/ (loss) | Comprehensive income/ (loss) Comprehensive income/ (loss) includes net income/ (loss), unrealized gain/ (loss) on available-for-sale |
Share-based compensation | Share-based compensation Share-based payments to employees and directors are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expenses net of forfeitures as they occur using graded vesting method over the requisite service period, with a corresponding addition to the additional paid-in non-constant The amount of compensation expenses recognized at any date is at least equal to the portion of the fair value of the awards that are vested as of that date. Forfeitures are recognized as they occur. Compensation expenses related to modified stock options are measured based on the fair value for the awards as of the modification date. The incremental share-based compensations for the vested portion is recognized immediately and the incremental portion of share-based for the unvested portion is recognized over the remaining vesting period of the awards. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term investments and accounts receivable. As of May 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, term deposits, restricted cash and short-term investments were deposited with financial institutions with high-credit ratings and quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The Group performs periodic credit evaluations and provides an allowance for doubtful accounts to reduce the accounts receivable balance to its net realizable value. The Group did not have any customers constituting 10% or more of the consolidated net revenues and accounts receivable in the fiscal years 2022 and 2023, respectively. |
Recent accounting pronouncements adopted | Recent accounting pronouncements adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. The new guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The Company adopted this new standard beginning June 1, 2022 with no material impact on its consolidated financial statements. |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In October 2021, the FASB issued ASU 2021-08, |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Company's Major Subsidiaries and VIEs and Its Major Subsidiaries | As of May 31, 2023, details of the Company’s major subsidiaries, the consolidated VIEs and the VIEs’ major subsidiaries and schools were as follows: Name Date of Place of Legal Principal activity Major subsidiaries of the Company: Beijing Decision Education & Consulting April 20, 2005 PRC 100% Educational technology management services Beijing Hewstone Technology Company Limited (“Beijing Hewstone”) April 20, 2005 PRC 100% Educational software development Elite Concept Holdings Limited (“Elite Concept”) December 3, 2007 Hong Kong 100% Educational consulting Winner Park Limited (“Winner Park”) December 9, 2008 Hong Kong 100% Educational consulting Smart Shine International Limited (“Smart Shine”) December 9, 2008 Hong Kong 100% Educational consulting Beijing Pioneer Technology Company Limited (“Beijing Pioneer”) January 8, 2009 PRC 100% Educational software development Beijing Smart Wood Software Technology Company Limited (“Beijing Smart Wood”) December 21, 2011 PRC 100% Educational consulting software development East Buy (Formerly known as “Koolearn Technology Holding Limited”) February 7, 2018 Cayman 54.95% Investment holding New Oriental Xuncheng Technology (HK) Limited (“Koolearn Tech”) March 2, 2018 Hong Kong 54.95% Investment holding Beijing Dexin Dongfang Network Technology Co., Ltd. (“Dexin Dongfang”) March 21, 2018 PRC 54.95% Software and technology VIEs of the Company: New Oriental Education & Technology Group Co., Ltd (“New Oriental China”) August 2, 2001 PRC N/A Education consulting, Beijing New Oriental Xuncheng Network Technology Co., Ltd. (“Xuncheng”) March 11, 2005 PRC N/A Online education Major subsidiaries and schools of the VIEs: Beijing Haidian District Privately-Funded New Oriental School (“Beijing Haidian School”) October 5, 1993 PRC N/A Language training and preparation Hangzhou New Oriental Advanced Study School July 21, 2005 PRC N/A Language training and test preparation Guangzhou Haizhu District Privately-Funded New Oriental Training School November 5, 2000 PRC N/A Language training and test preparation Nanjing Gulou New Oriental Advanced Study School November 28, 2002 PRC N/A Language training and test preparation Beijing New Oriental Dogwood Cultural Communications Co., Ltd. (“Dogwood”) May 16, 2003 PRC N/A Educational material and distribution Beijing New Oriental Vision Overseas Consultancy Co., Ltd. February 19, 2004 PRC N/A Oversea study consulting service Dongfang Optimization (Beijing) Technology Co., Ltd. (“Oriental Optimization”) October 27, 2021 PRC N/A Private label products e-commerce Oriental Selection (Beijing) Technology Co., Ltd. (“Oriental Selection”) December 7, 2021 PRC N/A Private label products e-commerce |
Balances and Amounts of Company's WFOEs and VIEs | The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the offshore companies, WFOEs and the VIEs in the Group: As of May 31 2022 2023 US$ US$ Total current assets 1,909,663 2,366,136 Total non-current 1,221,847 1,218,363 Total assets 3,131,510 3,584,499 Total current liabilities 1,676,989 2,145,624 Total non-current 461,891 309,269 Total liabilities 2,138,880 2,454,893 For the years ended May 31, 2021 2022 2023 US$ US$ US$ Net revenues 4,270,169 3,093,340 2,982,945 Net income/(loss) 663,099 (1,116,151 ) 593,183 The following are cashflows of the VIEs and VIEs’ subsidiaries for the years ended May 31, 2021, 2022 and 2023: For the years ended May 31 2021 2022 2023 US$ US$ US$ Net cash provided by/(used in) operating activities 1,046,695 (1,517,697 ) 652,523 Net cash (used in)/provided by investing activities (789,120 ) 1,174,720 294,911 Net cash (used in)/provided by financing activities (16,658 ) 155,451 (19,353 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Depreciation and amortization are calculated on a straight line basis over the following estimated useful lives: Buildings 20-50 Transportation equipment 10 years Furniture and education equipment 5 years Computer equipment and software 3 years Leasehold improvements Shorter of the lease term or estimated useful life |
Summary of Estimated Useful Lives of Intangible Assets | The estimated useful lives of intangible assets are as follows: Trademark 5-10 years License 20 years Student base 1.75 years Favorable lease 8.67 years Courseware 3-5 years Copyright 5 years Distribution channel 5 years |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
May 31, 2023 | |
Tibet Tianli Education Technology Co Ltd [Member] | |
Purchase Price Allocation | The purchase price was allocated on the date of acquisition as follows: US$ Amortization Cash and cash equivalents 4,568 Other current assets 33,906 Property and equipment 218 1-5 years Intangible assets Trademark 8,108 5 years Copyright 2,317 5 years Distribution channel 17,230 5 years Goodwill 26,216 Other non-current 317 Other current liabilities (13,411 ) Deferred tax liabilities (2,489 ) Fair value of the 17.4% equity interests previously held (13,395 ) Non-controlling (31,007 ) Total 32,578 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
May 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-Term Investments | Short-term investments consisted of the following: As of May 31, 2022 2023 US$ US$ Wealth management products measured at fair value 1,831,652 1,404,830 Trading securities 70,602 73,013 1,902,254 1,477,843 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Components of Prepaid Expenses and Other Current Assets, Net | Prepaid expenses and other current assets, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Receivable from third party payment platform 40,620 64,962 Advances to suppliers 60,018 63,473 VAT recoverable 12,174 21,887 Rental deposits 17,921 18,399 Prepaid advertising fees 5,155 10,336 Interest receivables 33,459 8,154 Prepaid rents (a) 14,785 8,004 Staff advances (b) 17,564 5,042 Deposits of advertising and decoration 1,719 555 Others (c) 12,443 11,119 215,858 211,931 Less: allowance for prepaid expenses and other current assets (456 ) (691 ) 215,402 211,240 (a) Prepaid rents represent the prepayment of rent related to less than 12 months leases. (b) Staff advances were provided to staff for travelling and business related use and are expensed as incurred. (c) Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Buildings 166,238 156,017 Transportation equipment 6,127 6,366 Furniture and education equipment 144,342 118,936 Computer equipment and software 111,471 129,119 Leasehold improvements 341,019 293,236 Construction in progress 37,607 48,216 806,804 751,890 Less: accumulated depreciation (379,445 ) (401,687 ) Less: accumulated impairment loss (9,385 ) (14 ) Exchange differences (15,284 ) 9,571 402,690 359,760 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Text Block [Abstract] | |
Land Use Rights, Net | Land use rights, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Land use rights 4,083 3,831 Less: accumulated amortization (474 ) (558 ) Exchange differences 18 48 Land use rights, net 3,627 3,321 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Intangible assets with indefinite lives: Trademark 245 230 Intangible assets with finite lives: Trademark 8,760 16,221 Courseware 124 1,214 Student base 12,824 12,059 Favorable lease 703 660 License 415 415 Copyright — 2,250 Distribution channel — 16,737 23,071 49,786 Less: accumulated amortization (19,972 ) (25,555 ) Exchange differences (299 ) 948 2,800 25,179 |
Goodwill, Net (Tables)
Goodwill, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill, Net | Goodwill, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Beginning balance 109,039 106,588 Acquisition — 38,992 Exchange differences (2,451 ) (4,281 ) Ending balance 106,588 141,299 Accumulated impairment (35,785 ) (35,785 ) Goodwill, net 70,803 105,514 |
Long-Term Investments, Net (Tab
Long-Term Investments, Net (Tables) | 12 Months Ended |
May 31, 2023 | |
Schedule of Investments [Abstract] | |
Long-Term Investments | Long-term investments, net, consisted of the following: As of May 31, 2022 2023 US$ US$ Equity securities with readily determinable fair value: Sunlands Online Education Group (“Sunlands”) (a) 5,472 3,588 Other investments 2,089 2,703 Subtotal 7,561 6,291 Equity securities without readily determinable fair value: Tibet Tianli (b) 16,217 — G-Net (“G-Net”) 14,989 14,065 EEO Education Technology Co., Ltd. (“EEO”) (d) 9,312 9,312 Other investments (e) 12,787 14,758 Subtotal 53,305 38,135 Equity method investments: New Oriental Education and Culture Industry Fund (Zhangjiagang) Partnership (Limited Partnership) (“Education Industry Fund”) (f) 74,530 76,369 VM EDU Fund I, L.P.(g) 67,324 66,331 Other investments (h) 62,196 52,871 Subtotal 204,050 195,571 Available-for-sale Shanghai Golden Education & Training Co., Ltd. (“Golden Finance”) (i) 82,972 76,115 Happy_seed (Cayman) Ltd. (“Happy Seed”) (j) 20,515 20,183 Tianjin Uhozz Internet Technology Co., Ltd. (“Uhozz”) (k) 17,510 17,890 Other available-for-sale 52,006 45,400 Subtotal 173,003 159,588 437,919 399,585 (a) As of May 31, 2023, the Group held equity interests in Sunlands. For the years ended May 31, 2021, 2022 and 2023, the stock price of Sunlands declined, and losses of , US$ and US$ were recorded in loss from fair value change of investments on the Group’s consolidated statements of operations, respectively. (b) In December 2018, the Group invested 5% equity interests in Tibet Tianli, a company engaged in developing educational products. In In September 2022, the Group as an equity security without readily determinable fair value, the Group measure d , and 3, (c) In August 2020, the Group acquired 3% equity interests in G-Net, G-Net (d) In April 2017, the Group acquired 10% equity interests in EEO, a company engaged in the business of developing on-line (e) The Group holds several insignificant investments in third-party private companies and has no ability to exercise significant influence over the investees. Those investments were accounted for (f) In July 2018, Education Industry Fund was established with the total committed capital of US$224,000. There are two general partners in the fund, which include an entity invested by Mr. Yu and an unrelated third party. The Group participates in Education Industry Fund as a limited partner and invested US$76,369 in Education Industry Fund as of May 31, 2023. The Group accounts for the investment under the equity method in accordance with ASC 323, Equity Method of Accounting (“ASC 323”) because the Group is a limited partner and owns 36.3% interest in Education Industry Fund. (g) In June 2019, VM EDU Fund I, LP ., . . 49.69 (h) The Group holds from 6.9% to 50.0% equity interests in other 1 2 in-substance as of May 31, 2023 (i) In April 2015, the Group invested 9.8% equity interests in Golden Finance, a company engaged in training program business associated with finance and business management. In November 2015, the Group further subscribed 9.8% equity interests. In available-for-sale (j) In August 2019, the Group invested 6.4% equity interests in Happy Seed, a company engaged in cultivating logical thinking skill. In equity interests. The Group accounts for the investment as (k) In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for a 10% equity interests with redemption and liquidation preferences. In March 2018, the Group further subscribed to 15.2% series B preferred shares. The Group accounted for the investment as available-for-sale (l) Other available-for-sale available-for-sale |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-Sale Securities Recorded in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis | As of May 31, 2022 Description Quoted Significant Significant Total US$ US$ US$ US$ Short-term investments: Trading securities (a) 70,602 — — 70,602 Long-term investments: Equity securities with readily determinable fair values (b) 7,561 — — 7,561 Available-for-sale — 10,029 162,974 173,003 Total 78,163 10,029 162,974 251,166 As of May 31, 2023 Description Quoted Prices Significant Significant Total US$ US$ US$ US$ Short-term investments: Wealth management products measured at fair value (a) — 1,404,830 — 1,404,830 Trading securities (a) 73,013 — — 73,013 Long-term investments: Equity securities with readily determinable fair values (b) 6,291 — — 6,291 Available-for-sale — 17,890 141,698 159,588 Total 79,304 1,422,720 141,698 1,643,722 (a) The short-term investments of wealth management products us e trading securities financial institutions (b) The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investees in the active market and has classified it as Level 1 measurement. (c) As of May 31, 2023, the fair value of available-for-sale available-for-sale |
Reconciliation of the fair value measurements of assets and liabilities using significant unobservable inputs | The following table provides additional information about the reconciliation of the fair value measurements of assets using significant unobservable inputs (Level 3). Level 3 US$ Balance as of June 1, 2021 65,232 Transfer from Level 2 133,030 Transfer to Level 2 (15,705 ) Unrealized gain 2,015 Impairment (15,632 ) Foreign exchange difference (5,966 ) Balance as of May 31, 2022 162,974 Transfer from Level 2 10,028 Transfer to Level 2 (17,510 ) Unrealized loss (3,172 ) Impairment (2,901 ) Foreign exchange difference (7,721 ) Balance as of May 31, 2023 141,698 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
May 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of May 31, 2022 2023 US$ US$ Accrued payroll 229,041 277,020 Refund liability (a) 95,398 138,549 Payable for purchase of property and equipment 27,240 27,093 Advance payment from students (b) 22,481 19,323 Amounts reimbursable to employees (c) 14,425 15,437 Accrued advertising fees 10,632 14,426 VAT payable 8,907 12,300 Payable for investments and acquisitions 1,097 9,531 Welfare payable 8,156 9,294 Royalty fees payable (d) 10,166 7,568 Rent payable 33,829 6,124 Refundable deposits (e) 8,418 5,825 Other taxes payable 4,897 5,095 Accrued professional service fees 6,015 2,824 Others (f) 29,562 19,028 Total 510,264 569,437 (a) The refund liability is recognized for variable amount of the considerations received from the customers and recorded as refund liability as described in Note 2. (b) Advance payment from students represent (1) the miscellaneous expenses other than tuition fee prepaid by students which will be paid out on their behalf; and (2) advance payment prepaid by students for class enrollment. (c) Amounts reimbursable to employees include travelling and business related expenses. (d) Royalty fees payable relate to payments to content providers for on-line (e) Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour. (f) Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable. |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
May 31, 2023 | |
Lessee Disclosure [Abstract] | |
Summary of supplemental cash flow information of the leases | Supplemental cash flow information related to the operating leases is as follows: For the years ended May 31, 2022 2023 US$ US$ Cash payments for the operating leases 355,284 180,157 Right-of-use assets obtained in exchange for the new operating lease liabilities 157,455 231,887 |
Summary of annual undiscounted cash flows for lease liabilities | A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of May 31, 2023 is as follows: As of US$ Fiscal year ending May 31, 2024 181,970 May 31, 2025 123,599 May 31, 2026 83,218 May 31, 2027 44,463 May 31, 2028 26,182 Thereafter 21,409 Total future lease payments 480,841 Less: Imputed interest (36,899 ) Present value of operating lease liabilities 443,942 |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 12 Months Ended |
May 31, 2023 | |
Debt Instruments [Abstract] | |
Summary of unsecured senior notes | A summary of the unsecured senior notes as of May 31, 2023 is as follows: As of May 31, Effective 2022 2023 US$ US$ Carrying amount of the unsecured senior 65,394 14,653 2.35 % Unamortized debt discounts, accrued interest expenses and debt issuance costs 221 — Total principal amount of the unsecured senior notes 65,615 14,653 |
Common Shares and Treasury St_2
Common Shares and Treasury Stock (Tables) | 12 Months Ended |
May 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Movement of the outstanding common shares and treasury stock | The movements of the outstanding common shares and treasury stock are as follows, taking into the consideration of 1 to 10 stock split on March 10, 2021. Number of Number of Shares outstanding as of May 31, 2021 1,690,082,150 — Issuance of common share for NES 6,884,033 — Shares outstanding as of May 31, 2022 1,696,966,183 — Issuance of common share for NES 5,659,610 — Shares repurchase (a) (59,463,140 ) 59,463,140 Shares outstanding as of May 31, 2023 1,643,162,653 59,463,140 (a) On July 26, 2022, the Company’s board of directors authorized the repurchase of up to US$400 million of the Company’s common shares during the period from July 28, 2022 through May 31, 2023. During the year ended May 31, 2023, the Company repurchased 5,946,314 ADS on the open market for total consideration of US$191,628. The Group accounts for repurchased common shares under the par value method and includes such treasury stock as a component of the shareholders’ equity. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
May 31, 2023 | |
Summary of NES Activities under 2006 and 2016 Share Incentive Plan | The NES activities under the 2016 Share Incentive Plan for the year ended May 31, 2023 are summarized as follows: Number of NES Weighted-average NES outstanding as of May 31, 2022 16,495,845 11.51 Granted 20,759,130 2.60 Vested (5,659,610 ) 11.51 Forfeited (1,324,092 ) 8.90 NES outstanding as of May 31, 2023 30,271,273 5.52 NES expect to vest as of May 31, 2023 30,271,273 |
Koolearn pre ipo share option scheme [Member] | |
Share-based compensation, stock options | The movements of share options under the Pre-IPO Number of share Weighted average Outstanding as of May 31, 2021 36,902,985 1.13 Forfeited (837,500 ) 1.13 Exercised (153,500 ) 1.13 Outstanding as of May 31, 2022 35,911,985 1.13 Exercised (8,827,600 ) 1.13 Outstanding as of May 31, 2023 27,084,385 1.13 Options vested and expected to vest as of May 31, 2023 27,084,385 1.13 |
Koolearn post ipo share option [Member] | |
Share-based compensation, stock options | The movements of share options under the East Buy Post-IPO Number of share Weighted average Outstanding as of May 31, 2021 29,541,815 3.26 Forfeited (10,088,192 ) 3.26 Cancelled (7,971,290 ) 3.26 Cancelled and replaced by East Buy Post-IPO (11,482,333 ) 0.67 Outstanding as of May 31, 2022 and 2023 — — Options vested and expected to vest as of May 31, 2023 — — |
Koolearn post ipo share option two [Member] | |
Share-based compensation, stock options | The movements of share options under the East Buy Post-IPO Number of share Weighted average Outstanding as of May 31, 2021 20,848,000 4.39 Forfeited (6,445,000 ) 4.39 Cancelled (6,311,000 ) 4.39 Cancelled and replaced by East Buy Post-IPO (8,092,000 ) 0.67 Outstanding as of May 31, 2022 and 2023 — — Options vested and expected to vest as of May 31, 2023 — — |
The fair value estimate of share options | (a) Those options were cancelled and replaced as disclosed below. The assumptions used to estimate the fair value of the share options granted under East Buy Post-IPO Share Option II, are as follows: August 25, Weighted average share price US$ 4.52 Exercise price US$ 4.39 Expected volatility 49.5 % Expected life 10 years Risk-free rate 0.44 % Expected dividend yield 0.00 % |
Koolean Post Ipo Share Option Three [Member] | |
Share-based compensation, stock options | The movements of share options under the East Buy Post-IPO Number of share Weighted Granted on November 15, 2021 24,986,000 0.67 Forfeited (2,447,497 ) 0.67 Granted to replace cancelled options 23,455,590 0.67 Outstanding as of May 31, 2022 45,994,093 0.67 Forfeited (1,216,275 ) 0.67 Exercised (4,315,008 ) 0.67 Outstanding as of May 31, 2023 40,462,810 0.67 Options vested and expected to vest as of May 31, 2023 40,462,810 0.67 |
The fair value estimate of share options | November 15, Weighted average share price US$ 0.67 Exercise price US$ 0.67 Expected volatility 61 % Expected life 10 years Risk-free rate 1.63 % Expected dividend yield 0.00 % |
East Buy 2023 Scheme [Member] | |
Share-based compensation, stock options | The movements of share awards under the East Buy 2023 Scheme for the year ended May 31, 2023 are summarized as follows: Number of Weighted-average Granted on April 11, 2023 30,459,000 3.69 Vested — — Forfeited (145,000 ) 3.69 Outstanding as of May 31, 2023 30,314,000 3.69 Vested and expect to vest as of May 31, 2023 30,314,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | Significant components of provision for income taxes for the years ended May 31, 2021, 2022 and 2023 were as follows: For the years ended May 31, 2021 2022 2023 US$ US$ US$ Current: PRC 127,313 44,378 97,594 Deferred: PRC (43,725 ) 91,934 (31,528 ) Total provision for income taxes 83,588 136,312 66,066 |
Components of Group's Deferred Tax Assets and Liabilities | Significant components of the Group’s deferred tax assets and liabilities were as follows: As of May 31, 2022 2023 US$ US$ Deferred tax assets Allowance for doubtful accounts 41,806 37,424 Accrued expenses 53,069 56,716 Net operating loss carry-forward 321,258 324,355 Tax impact from the long-term investments disposed to a related party 1,521 1,521 Total deferred tax assets 417,654 420,016 Less: valuation allowance (397,616 ) (364,083 ) Total deferred tax assets, net 20,038 55,933 Deferred tax liabilities Acquired assets 1,788 4,523 Tax impact from the unrealized gain on available-for-sale 17,452 19,326 Total deferred tax liabilities 19,240 23,849 |
Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates | A reconciliation of the provision for income taxes computed by applying the EIT rates of 25% for the years ended May 31, 2021, 2022 and 2023 to income/(loss) before provision for income tax and the actual provision for income tax is as follows: For the years ended May 31, 2021 2022 2023 US$ US$ US$ Income/(loss) before income taxes 314,977 (1,032,498 ) 308,531 PRC statutory income tax rate 25 % 25 % 25 % Income tax at statutory income tax rate 78,744 (258,125 ) 77,133 Effect of non-deductible (5,174 ) 106,903 40,577 Effect of income tax exemptions and preferential tax rates (38,795 ) (19,570 ) (12,927 ) Effect of income tax rate difference in other jurisdictions (181 ) (424 ) (5,184 ) Changes in valuation allowance 48,994 307,528 (33,533 ) Provision for income taxes 83,588 136,312 66,066 |
Net Income_(Loss) Per Share (Ta
Net Income/(Loss) Per Share (Tables) | 12 Months Ended |
May 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income/(Loss) Per Share | The computation of basic and diluted net income/(loss) per common share for the years ended May 31, 2021, 2022 and 2023 is as follows: For the years ended May 31, 2021 2022 2023 Numerator: Net income/(loss) attributable to New Oriental Education & Technology Group Inc.’s shareholders - basic (US$ in thousands) 334,414 (1,187,721 ) 177,341 Net income/(loss) attributable to New Oriental Education & Technology Group Inc.’s shareholders - diluted (US$ in thousands) 334,414 (1,187,721 ) 173,732 Denominator* Weighted average common shares outstanding-basic 1,645,463,440 1,696,419,232 1,678,264,547 Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method 6,518,944 — 7,367,440 Weighted average common shares outstanding-diluted 1,651,982,384 1,696,419,232 1,685,631,987 Net income/(loss) per common share* - Basic (US$) 0.20 (0.70 ) 0.11 - Diluted (US$) 0.20 (0.70 ) 0.10 * Retrospectively adjusted for effect of stock split |
Related-Parties Transactions (T
Related-Parties Transactions (Tables) | 12 Months Ended |
May 31, 2023 | |
Balances and Transaction with Related Parties | The Group had the following significant balances and transactions with major related parties: (a) Amount due from/to related parties: Amounts due from Amounts due to related Notes Relationship 2022 2023 2022 2023 US$ US$ US$ US$ Metropolis Holding China Limited (“Metropolis”) (1) Company controlled by Mr. Yu 998 2,435 27 236 Beijing Edutainment World Education Technology Co., Ltd (“Edutainment World”) (2) Equity method investee 2,016 4,086 — 18 Beijing Dianshi Jingwei Technology Co., Ltd (“Dianshi Jingwei”) ( 3 Equity method investee 20,181 — — — Others 50 2,862 199 92 Total 23,245 9,383 226 346 Amounts due from non-current Notes Relationship 2022 2023 US$ US$ Metropolis (1) Company controlled by Mr. Yu 2,770 1,398 Others 595 337 Total 3,365 1,735 (b) Transactions: Rental expenses 2021 2022 2023 US$ US$ US$ Metropolis (1) Company controlled by Mr. Yu 11,653 11,590 8,387 Revenues 2021 2022 2023 US$ US$ US$ Edutainment World (2) Equity method investee 1,096 — 2,098 Others 18 41 — Total 1,114 41 2,098 Loans provided to related parties 2021 2022 2023 US$ US$ US$ Dianshi Jingwei ( 3 Equity method investee — 3,096 — Beijing MaxEn International Education Consulting Company Limited (“Beijing MaxEn”) ( 4 Equity method investee 10,486 38,130 — Others — — 2,387 Total 10,486 41,226 2,387 Cost 2021 2022 2023 US$ US$ US$ Dianshi Jingwei (3) Equity method investee — 52,380 — Beijing Dongfang Heli Investment and Development Ltd Equity method investee 1,915 1,415 513 Edutainment World (2) Equity method investee 175 186 1,253 Others — 714 — Total 2,090 54,695 1,766 (1) As of May 31, 2022 and 2023, the current amounts due from Metropolis, which is a n entity non-current the right-of-use assets related to the leases rented from Metropolis were (2) Prior to April 2022, the Group’s investment in Edutainment World’s preferred shares were accounted for accounted for ( 3 In April 2016, the Group sold 51% of its equity interest in Dianshi Jingwei which became an equity method investee of the Group. In October 2021, the Group entered into a purchase agreement with Dianshi Jingwei for the purchase of learning devices of which $52,380 was further recorded as cost. In November 2022, the Company transferred all its equity interest in Dianshi Jingwei to the founder of Dianshi Jingwei and ceased the business cooperation aforementioned. ( 4 For the year ended May 31, 2022, the Group provided the loans in aggregate of US$38,130 to Beijing MaxEn, an equity method investee of the Group. As of May 31, 2022, the outstanding balance of the loans was US$40,197, which was fully impaired . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Capital Commitments under Non-Cancelable Construction and Investments | As of May 31, 2023, the future minimum capital commitments were as follows: US$ Capital commitment for the purchase of property and equipment 801 Capital commitment for leasehold improvements 16,692 Total 17,493 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | For the year ended May 31, 2021 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 3,667,270 210,591 278,594 120,084 4,276,539 Operating cost and expenses: Cost of revenues (1,680,779 ) (145,428 ) (127,841 ) (82,827 ) (2,036,875 ) Selling and marketing (326,708 ) (175,092 ) (61,259 ) (25,346 ) (588,405 ) General and administrative (955,211 ) (124,897 ) (60,580 ) (69,524 ) (1,210,212 ) Unallocated corporate expenses — — — — (323,781 ) Total operating cost and expenses (2,962,698 ) (445,417 ) (249,680 ) (177,697 ) (4,159,273 ) Operating income/(loss) 704,572 (234,826 ) 28,914 (57,613 ) 117,266 Segment assets 4,380,247 516,488 477,568 281,579 5,655,882 Unallocated corporate assets — — — — 4,495,171 Total assets 4,380,247 516,488 477,568 281,579 10,151,053 For the year ended May 31, 2022 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 2,535,318 136,705 325,901 107,322 3,105,246 Operating cost and expenses: Cost of revenues (1,442,156 ) (68,732 ) (165,673 ) (77,730 ) (1,754,291 ) Selling and marketing (273,344 ) (79,428 ) (72,847 ) (30,494 ) (456,113 ) General and administrative (1,308,742 ) (72,361 ) (61,258 ) (63,859 ) (1,506,220 ) Unallocated corporate expenses — — — — (371,135 ) Total operating cost and expenses (3,024,242 ) (220,521 ) (299,778 ) (172,083 ) (4,087,759 ) Operating (loss)/income (488,924 ) (83,816 ) 26,123 (64,761 ) (982,513 ) Segment assets 2,227,184 313,258 177,821 4,381 2,722,644 Unallocated corporate assets — — — — 3,312,022 Total assets 2,227,184 313,258 177,821 4,381 6,034,666 For the year ended May 31, 2023 Educational Private label e-commerce Overseas study Others Consolidated US$ US$ US$ US$ US$ Net revenues 1,825,212 647,161 354,764 170,623 2,997,760 Operating cost and expenses: Cost of revenues (773,989 ) (364,645 ) (179,284 ) (91,520 ) (1,409,438 ) Selling and marketing (217,915 ) (89,302 ) (80,528 ) (45,657 ) (433,402 ) General and administrative (503,345 ) (50,658 ) (61,861 ) (65,725 ) (681,589 ) Unallocated corporate expenses — — — — (283,285 ) Total operating cost and expenses (1,495,249 ) (504,605 ) (321,673 ) (202,902 ) (2,807,714 ) Operating income/(loss) 329,963 142,556 33,091 (32,279 ) 190,046 Segment assets 1,703,762 307,167 109,422 149,017 2,269,368 Unallocated corporate assets — — — — 4,123,090 Total assets 1,703,762 307,167 109,422 149,017 6,392,458 |
Organization and Principal Ac_3
Organization and Principal Activities - Details of Company's Major Subsidiaries and VIEs and Its Major Subsidiaries (Detail) | 12 Months Ended |
May 31, 2023 | |
New Oriental Education & Technology Group Co., Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Aug. 02, 2001 |
Place of incorporation (or establishment)/ operation | PRC |
Beijing New Oriental Xuncheng Network Technology Co., Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Mar. 11, 2005 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries of the Company [Member] | Beijing Decision Education & Consulting Company Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Apr. 20, 2005 |
Place of incorporation (or establishment)/ operation | PRC |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Beijing Hewstone Technology Company Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Apr. 20, 2005 |
Place of incorporation (or establishment)/ operation | PRC |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Elite Concept Holdings Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Dec. 03, 2007 |
Place of incorporation (or establishment)/ operation | Hong Kong |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Winner Park Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Dec. 09, 2008 |
Place of incorporation (or establishment)/ operation | Hong Kong |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Smart Shine International Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Dec. 09, 2008 |
Place of incorporation (or establishment)/ operation | Hong Kong |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Beijing Pioneer Technology Company Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Jan. 08, 2009 |
Place of incorporation (or establishment)/ operation | PRC |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | Beijing Smart Wood Software Technology Company Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Dec. 21, 2011 |
Place of incorporation (or establishment)/ operation | PRC |
Legal ownership | 100% |
Major Subsidiaries of the Company [Member] | East Buy (Formerly known as "Koolearn Technology Holding Limited") [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Feb. 07, 2018 |
Place of incorporation (or establishment)/ operation | Cayman Islands |
Legal ownership | 54.95% |
Major Subsidiaries of the Company [Member] | New Oriental Xuncheng Technology (HK) Limited [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Mar. 02, 2018 |
Place of incorporation (or establishment)/ operation | Hong Kong |
Legal ownership | 54.95% |
Major Subsidiaries of the Company [Member] | Beijing Dexin Dongfang Network Technology Co Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Mar. 21, 2018 |
Place of incorporation (or establishment)/ operation | PRC |
Legal ownership | 54.95% |
Major Subsidiaries and Schools of the VIEs [Member] | Beijing Haidian District Privately-Funded New Oriental School [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Oct. 05, 1993 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Hangzhou New Oriental Advanced Study School [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Jul. 21, 2005 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Guangzhou Haizhu District Privately-Funded New Oriental Training School [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Nov. 05, 2000 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Nanjing Gulou New Oriental Advanced Study School [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Nov. 28, 2002 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Beijing New Oriental Dogwood Cultural Communications Co., Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | May 16, 2003 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Beijing New Oriental Vision Overseas Consultancy Co., Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Feb. 19, 2004 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Dongfang Optimization (Beijing) Technology Co., Ltd [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Oct. 27, 2021 |
Place of incorporation (or establishment)/ operation | PRC |
Major Subsidiaries and Schools of the VIEs [Member] | Oriental Selection (Beijing) Technology Co., Ltd. [Member] | |
Variable Interest Entities [Line Items] | |
Date of incorporation or acquisition | Dec. 07, 2021 |
Place of incorporation (or establishment)/ operation | PRC |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
May 31, 2023 Agreement | May 31, 2022 USD ($) | May 31, 2021 | |
Product Information [Line Items] | |||
Renewal of trade mark registration | 10 years | ||
Exclusive service agreement renewal term | 10 years | ||
Notice period of agreement termination | 30 days | ||
Number of new equity pledged agreements | Agreement | 5 | ||
Loss on deconsolidation of subsidiaries | $ | $ 79,609 | ||
Century Friendship [Member] | Previously Held Equity Interest [Member] | |||
Product Information [Line Items] | |||
Equity interest of Century Friendship prior to the transfer | 53% | ||
Minimum [Member] | |||
Product Information [Line Items] | |||
Operating services fee percentage from revenue | 2% | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Operating services fee percentage from revenue | 6% | ||
Variable interest entities (VIEs) [Member] | |||
Product Information [Line Items] | |||
Shareholding percentage of Mr. Yu | 12.30% | ||
Credit Concentration Risk [Member] | Assets, Total [Member] | Variable interest entities (VIEs) [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 56.10% | 51.90% | |
Credit Concentration Risk [Member] | Liabilities, Total [Member] | Variable interest entities (VIEs) [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 95.20% | 95.40% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Variable interest entities (VIEs) [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 99.50% | 99.60% | 99.90% |
Organization and Principal Ac_5
Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Variable Interest Entities [Line Items] | |||
Total current assets | $ 4,413,887 | $ 4,473,959 | |
Total assets | 6,392,458 | 6,034,666 | $ 10,151,053 |
Total current liabilities | 2,250,978 | 1,710,114 | |
Total liabilities | 2,577,670 | 2,241,142 | |
Net revenues | 2,997,760 | 3,105,246 | 4,276,539 |
Net income/(loss) | 177,341 | (1,187,721) | 334,414 |
Net cash provided by operating activities | 971,008 | (1,280,453) | 1,130,085 |
Net cash used in investing activities | (37,411) | 1,168,532 | (2,177,639) |
Net cash used in financing activities | (246,867) | (230,858) | 1,654,084 |
Variable interest entities (VIEs) [Member] | |||
Variable Interest Entities [Line Items] | |||
Total current assets | 2,366,136 | 1,909,663 | |
Total non-current assets | 1,218,363 | 1,221,847 | |
Total assets | 3,584,499 | 3,131,510 | |
Total current liabilities | 2,145,624 | 1,676,989 | |
Total non-current liabilities | 309,269 | 461,891 | |
Total liabilities | 2,454,893 | 2,138,880 | |
Net revenues | 2,982,945 | 3,093,340 | 4,270,169 |
Net income/(loss) | 593,183 | (1,116,151) | 663,099 |
Net cash provided by operating activities | 652,523 | (1,517,697) | 1,046,695 |
Net cash used in investing activities | 294,911 | 1,174,720 | (789,120) |
Net cash used in financing activities | $ (19,353) | $ 155,451 | $ (16,658) |
Organization and Principal Ac_6
Organization and Principal Activities - Balances and Amounts of Company's WFOEs and VIEs (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Net cash provided by (used in) operating activities | $ 971,008 | $ (1,280,453) | $ 1,130,085 |
Net cash provided by (used in) investing activities | (37,411) | 1,168,532 | (2,177,639) |
Net cash provided by (used in) financing activities | (246,867) | (230,858) | 1,654,084 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Net cash provided by (used in) operating activities | 652,523 | (1,517,697) | 1,046,695 |
Net cash provided by (used in) investing activities | 294,911 | 1,174,720 | (789,120) |
Net cash provided by (used in) financing activities | (19,353) | 155,451 | (16,658) |
Variable Interest Entity, Primary Beneficiary [Member] | Consolidation, Eliminations [Member] | |||
Variable Interest Entity [Line Items] | |||
Net cash provided by (used in) operating activities | 965,336 | 1,227,712 | 1,420,383 |
Net cash provided by (used in) investing activities | 294,911 | 1,174,720 | 789,120 |
Net cash provided by (used in) financing activities | $ 19,353 | $ 0 | $ 16,658 |
Significant Accounting Polici_4
Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | May 31, 2023 |
Transportation equipment [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 10 years |
Furniture and education equipment [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 5 years |
Computer equipment and software [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements [Member] | |
Significant Of Accounting Policies [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] |
Minimum [Member] | Buildings [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Buildings [Member] | |
Significant Of Accounting Policies [Line Items] | |
Estimated useful lives | 50 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Estimated Useful Lives of Intangible Assets (Detail) | May 31, 2023 |
Trademark [Member] | Minimum [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 5 years |
Trademark [Member] | Maximum [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 10 years |
License [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 20 years |
Student base [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 1 year 9 months |
Favorable lease [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 8 years 8 months 1 day |
Courseware [Member] | Minimum [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 3 years |
Courseware [Member] | Maximum [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 5 years |
Copyright [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 5 years |
Distribution channel [Member] | |
Estimated useful lives of intangible assets [Line items] | |
Estimated useful lives | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Apr. 01, 2019 | May 31, 2019 | Apr. 30, 2018 | Mar. 31, 2019 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2019 | ||
Significant Of Accounting Policies [Line Items] | |||||||||
Value added tax | 13% | ||||||||
Vat on sales | 13% | 6% | |||||||
Excess of refund | 3% | ||||||||
Accounts receivable | $ 33,074 | $ 16,430 | |||||||
Deferred revenue | 1,337,630 | 933,062 | |||||||
Refund liability | [1] | 19,323 | 22,481 | ||||||
Revenues | 2,997,760 | 3,105,246 | $ 4,276,539 | ||||||
Total advertising expenses | 49,365 | 43,520 | 77,704 | ||||||
Government subsidies received | 16,010 | 9,170 | 109,294 | ||||||
Aggregate amounts denominated in RMB | $ 2,012,511 | 956,476 | |||||||
Amortization term of long term debt | 1 year | ||||||||
Investee Companies [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 20% | ||||||||
Unsecured Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Unsecured debt fair value | $ 14,653 | ||||||||
Service [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 2,544,729 | 3,050,022 | 4,230,638 | ||||||
Service [Member] | Educational services and test preparation courses [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 1,825,212 | 2,535,318 | 3,667,270 | ||||||
Service [Member] | Private label products and livestreaming Ecommerce and other services [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 267,818 | 134,175 | 210,591 | ||||||
Service [Member] | Overseas Study Consulting Services [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 354,764 | 325,901 | 278,594 | ||||||
Service [Member] | Other Segments [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 96,935 | 54,628 | 74,183 | ||||||
Product [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 453,031 | 55,224 | $ 45,901 | ||||||
Product [Member] | Private label products and livestreaming Ecommerce and other services [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 379,343 | 2,530 | |||||||
Product [Member] | Other Segments [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Revenues | 73,688 | 52,694 | |||||||
Other Current Liabilities [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Refund liability | 138,549 | 95,398 | |||||||
Contract With Customer Assets [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Accounts receivable | 33,074 | 16,430 | |||||||
Contract With Customer Liability [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Deferred revenue | $ 1,337,630 | $ 933,062 | |||||||
Inter Company Sales [Member] | Books and Other Services [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Vat on sales | 6% | ||||||||
Sales [Member] | Books and Other Services [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Vat on sales | 9% | 11% | 10% | ||||||
Sales Revenue, Net [Member] | Self Developed Software Product [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Vat on sales | 13% | ||||||||
Minimum [Member] | Investee Companies [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 20% | ||||||||
Maximum [Member] | Investee Companies [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Percentage of ownership interest in voting stock considered to exist significant influence over investee company | 50% | ||||||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Group Customer [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Concentration risk | 10% | 10% | |||||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Group Customer [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Concentration risk | 10% | 10% | |||||||
Land use rights [Member] | Minimum [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 38 years 6 months | ||||||||
Land use rights [Member] | Maximum [Member] | |||||||||
Significant Of Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 50 years | ||||||||
[1]Advance payment from students represent (1) the miscellaneous expenses other than tuition fee prepaid by students which will be paid out on their behalf; and (2) advance payment prepaid by students for class enrollment. |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2022 | May 31, 2023 | May 31, 2022 | May 31, 2021 | Aug. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 105,514 | $ 70,803 | |||
Other Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business combination, consideration transferred | 9,556 | ||||
Cash and cash equivalents | 497 | ||||
Intangible assets | 1,129 | ||||
Goodwill | 12,776 | ||||
Non-controlling interests | 1,652 | ||||
Other Acquisitions Three [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | 2,029 | $ 0 | $ 13,131 | ||
Business combination, consideration transferred | 15,201 | ||||
Cash and cash equivalents | 430 | ||||
Intangible assets | 2,085 | ||||
Goodwill | $ 13,420 | ||||
Tibet Tianli Education Technology Co Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 9,773 | ||||
Percentage of voting interests acquired | 12.40% | 17.40% | 42.40% | 17.40% | |
Business combination, consideration transferred | $ 13,031 | $ 19,547 | |||
Goodwill | 26,216 | ||||
Non-controlling interests | $ 31,007 | ||||
Percentage of additional voting interests acquired | 30% | ||||
Business combination, acquisition of less than 100 percent, non controlling interest percentage | 59.80% |
Business Acquisitions - Purchas
Business Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 105,514 | $ 70,803 |
Other non-current assets | 67,230 | $ 9,064 |
Tibet Tianli Education Technology Co Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 4,568 | |
Other current assets | 33,906 | |
Property and equipment | 218 | |
Goodwill | 26,216 | |
Other non-current assets | 317 | |
Other current liabilities | (13,411) | |
Deferred tax liabilities | (2,489) | |
Fair value of the 35% equity interests previously held | (13,395) | |
Non-controlling interests | (31,007) | |
Total | $ 32,578 | |
Tibet Tianli Education Technology Co Ltd [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Amortization period | 1 year | |
Tibet Tianli Education Technology Co Ltd [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Amortization period | 5 years | |
Tibet Tianli Education Technology Co Ltd [Member] | Trademark [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 8,108 | |
Amortization period | 5 years | |
Tibet Tianli Education Technology Co Ltd [Member] | Copyrights [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 2,317 | |
Amortization period | 5 years | |
Tibet Tianli Education Technology Co Ltd [Member] | Distribution channel [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 17,230 | |
Amortization period | 5 years |
Business Acquisitions - Purch_2
Business Acquisitions - Purchase Price Allocation (Parenthetical) (Detail) | May 31, 2023 | Sep. 30, 2022 | Aug. 31, 2022 | May 31, 2022 |
Tibet Tianli Education Technology Co Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, equity interest | 17.40% | 12.40% | 17.40% | 42.40% |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Short-term Investments [Abstract] | ||
Short-term investments | $ 1,477,843 | $ 1,902,254 |
Wealth Management Products Measured At Fair Value [Member] | ||
Short-term Investments [Abstract] | ||
Short-term investments | 1,404,830 | 1,831,652 |
Trading securities [Member] | ||
Short-term Investments [Abstract] | ||
Short-term investments | $ 73,013 | $ 70,602 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets, Net - Components of Prepaid Expenses and Other Current Assets, Net (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Prepaid Expenses And Other Current Assets [Abstract] | |||
Receivable from third party payment platform | $ 64,962 | $ 40,620 | |
Advances to suppliers | 63,473 | 60,018 | |
VAT recoverable | 21,887 | 12,174 | |
Rental deposits | 18,399 | 17,921 | |
Prepaid advertising fees | 10,336 | 5,155 | |
Interest receivables | 8,154 | 33,459 | |
Prepaid rents | [1] | 8,004 | 14,785 |
Staff advances | [2] | 5,042 | 17,564 |
Deposits of advertising and decoration | 555 | 1,719 | |
Others | [3] | 11,119 | 12,443 |
Prepaid expense and other assets current before allowance | 211,931 | 215,858 | |
Less: allowance for prepaid expenses and other current assets | (691) | (456) | |
Prepaid expenses and other current assets | $ 211,240 | $ 215,402 | |
[1]Prepaid rents represent the prepayment of rent related to less than 12 months leases.[2]Staff advances were provided to staff for travelling and business related use and are expensed as incurred.[3]Others primarily included prepaid maintenance fees, other receivables and other miscellaneous prepayments. |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 751,890 | $ 806,804 |
Less: accumulated depreciation | (401,687) | (379,445) |
Less: accumulated impairment loss | (14) | (9,385) |
Exchange differences | 9,571 | (15,284) |
Property and equipment, net | 359,760 | 402,690 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 156,017 | 166,238 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,366 | 6,127 |
Furniture and education equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 118,936 | 144,342 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 129,119 | 111,471 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 293,236 | 341,019 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 48,216 | $ 37,607 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Depreciation expense | $ 117,036 | $ 192,291 | $ 225,657 |
Impairment loss on property plant and equipment | 435,662 | $ 33,769 | |
Leasehold Improvements [Member] | |||
Impairment loss on property plant and equipment | 368,602 | ||
Accumulated impairment | $ 388,758 |
Land Use Rights, Net - Land Use
Land Use Rights, Net - Land Use Rights, Net (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Real Estate [Abstract] | ||
Land use rights | $ 3,831 | $ 4,083 |
Less: accumulated amortization | (558) | (474) |
Exchange differences | 48 | 18 |
Land use rights, net | $ 3,321 | $ 3,627 |
Land Use Rights, Net - Addition
Land Use Rights, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Land Use Rights [Line Items] | |||
Amortization expenses of land use rights | $ 84 | $ 205 | $ 262 |
Future amortization expense next twelve months | 6,348 | ||
Future amortization expense year two | 5,972 | ||
Future amortization expense year three | 5,941 | ||
Future amortization expense year four | 5,856 | ||
Future amortization expense year five | 785 | ||
Future amortization expense thereafter | 47 | ||
Land use rights [Member] | |||
Land Use Rights [Line Items] | |||
Amortization expenses of land use rights | 84 | $ 205 | $ 262 |
Future amortization expense next twelve months | 84 | ||
Future amortization expense year two | 84 | ||
Future amortization expense year three | 84 | ||
Future amortization expense year four | 84 | ||
Future amortization expense year five | 84 | ||
Future amortization expense thereafter | $ 2,901 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Intangible assets with indefinite lives: | ||
Intangible assets with indefinite lives, Gross | $ 230 | $ 245 |
Intangible assets with finite lives: | ||
Intangible assets, gross | 49,786 | 23,071 |
Less: accumulated amortization | (25,555) | (19,972) |
Exchange differences | 948 | (299) |
Intangible assets | 25,179 | 2,800 |
Trademark [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 16,221 | 8,760 |
Courseware [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 1,214 | 124 |
Student base [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 12,059 | 12,824 |
Favorable lease [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 660 | 703 |
License [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 415 | $ 415 |
Copyrights [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | 2,250 | |
Distribution channel [Member] | ||
Intangible assets with finite lives: | ||
Intangible assets with finite lives, Gross | $ 16,737 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 5,583 | $ 1,933 | $ 4,524 |
Future amortization expense next twelve months | 6,348 | ||
Future amortization expense year two | 5,972 | ||
Future amortization expense year three | 5,941 | ||
Future amortization expense year four | 5,856 | ||
Future amortization expense year five | 785 | ||
Future amortization expense thereafter | 47 | ||
Impairment of finite lived intangible assets | $ 0 | $ 0 | $ 2,936 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and Intangible Asset Impairment |
Goodwill, Net - Schedule of Goo
Goodwill, Net - Schedule of Goodwill, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 106,588 | $ 109,039 |
Acquisition | 38,992 | |
Exchange differences | (4,281) | (2,451) |
Ending balance | 141,299 | 106,588 |
Accumulated impairment | (35,785) | (35,785) |
Goodwill, net | $ 105,514 | $ 70,803 |
Goodwill, Net - Additional Info
Goodwill, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Goodwill impairment | $ 0 | $ 0 | $ 28,858 |
Long Term Investments, Net - Sc
Long Term Investments, Net - Schedule of Long Term Investments, Net (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity securities with readily determinable fair value | $ 6,291 | $ 7,561 | |
Equity securities without readily determinable fair value | 38,135 | 53,305 | |
Long term investments | 399,585 | 437,919 | |
Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | 195,571 | 204,050 | |
Available for sale securities investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | 159,588 | 173,003 | |
Sunlands [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities with readily determinable fair value | [1] | 3,588 | 5,472 |
Tibet Tianli [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities without readily determinable fair value | [2] | 16,217 | |
GNet Cloud Service [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities without readily determinable fair value | [3] | 14,065 | 14,989 |
EEO Education Tech [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities without readily determinable fair value | [4] | 9,312 | 9,312 |
VM EDU Fund [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [5] | 66,331 | 67,324 |
Golden Finance [Member] | Available for sale securities investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [6] | 76,115 | 82,972 |
Uhozz [Member] | Available for sale securities investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [7] | 17,890 | 17,510 |
Happy Seed Cayman Ltd [Member] | Available for sale securities investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [8] | 20,183 | 20,515 |
New Oriental Education Industry Fund [Member] | Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [9] | 76,369 | 74,530 |
Other investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities with readily determinable fair value | 2,703 | 2,089 | |
Equity securities without readily determinable fair value | [10] | 14,758 | 12,787 |
Other investments [Member] | Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [11] | 52,871 | 62,196 |
Other investments [Member] | Available for sale securities investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Long term investments | [12] | $ 45,400 | $ 52,006 |
[1]As of May 31, 2023, the Group held 8% in aggregate equity interests in Sunlands. For the years ended May 31, 2021, 2022 and 2023, the stock price of Sunlands declined, and losses of US$5,501, US$10,467 and US$1,883 were recorded in loss from fair value change of investments on the Group’s consolidated statements of operations, respectively.[2]In December 2018, the Group invested 5% equity interests in Tibet Tianli, a company engaged in developing educational products. In April 2020 and December 2020, the Group further subscribed 5% and 11% equity interests, respectively. In September 2022, the Group subscribed 12.4% equity interests with a consideration of US$13,031, meanwhile acquired another 30.0% equity interests in Tibet Tianli from other four shareholders with a total consideration of US$19,547. Prior to NOE’s acquisition in Tibet Tianli as disclosed in Note 3, as an equity security investment without readily determinable fair value, the Group measured the equity security investment at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Group recorded nil, US$10,137 and nil impairment loss for the years ended May 31, 2021, 2022 and 2023, respectively.[3]In August 2020, the Group acquired 3% equity interests in G-Net, a company engaged in the business of audio and web conferencing services. The Group accounted for the investment as equity securities without readily determinable fair value as G-Net is a private company without readily determinable fair value. For the years ended May 31, 2021, 2022 and 2023, no impairment loss was recorded from this investment.[4]In April 2017, the Group acquired 10% equity interests in EEO, a company engaged in the business of developing on-line classroom product. The Group accounted for the investment as equity securities without readily determinable fair value as EEO is a private company without readily determinable fair value. For the years ended May 31, 2021, 2022 and 2023, no impairment loss was recorded from this investment.[5]In June 2019, VM EDU Fund I, LP., a market-driven investment entity, was established with a total committed capital of US$100,000. The Group participates in VM EDU Fund I, LP. as a limited partner and invested US$66,331 in VM EDU Fund I, LP. as of May 31, 2023. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 49.69% interest in VM EDU Fund I, LP.[6]In April 2015, the Group invested 9.8% equity interests in Golden Finance, a company engaged in training program business associated with finance and business management. In November 2015, the Group further subscribed 9.8% equity interests. In May 2019, the Group disposed of 7.2% equity interests for a total consideration of US$33,156. The Group accounts for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured at fair value.[7]In May 2015, the Group invested in Uhozz, a company providing oversea rental agency services, for a 10% equity interests with redemption and liquidation preferences. In March 2018, the Group further subscribed to 15.2% series B preferred shares. The Group accounted for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured them at fair value.[8]In August 2019, the Group invested 6.4% equity interests in Happy Seed, a company engaged in cultivating logical thinking skill. In September 2020, the Group further subscribed additional 1.6% equity interests. The Group accounts for the investment as available-for-sale investments since the investee’s preferred shares held are redeemable and determined to be debt securities and measured at fair value.[9]In July 2018, Education Industry Fund was established with the total committed capital of US$224,000. There are two general partners in the fund, which include an entity invested by Mr. Yu and an unrelated third party. The Group participates in Education Industry Fund as a limited partner and invested US$76,369 in Education Industry Fund as of May 31, 2023. The Group accounts for the investment under the equity method in accordance with ASC 323, Equity Method of Accounting (“ASC 323”) because the Group is a limited partner and owns 36.3% interest in Education Industry Fund.[10]The Group holds several insignificant investments in third-party private companies and has no ability to exercise significant influence over the investees. Those investments were accounted for using the measurement alternative when there is no readily determinable fair value for the investments. The Group recorded US$12,532, US$24,354 and nil impairment loss on these investments for the years ended May 31, 2021, 2022 and 2023, respectively.[11]The Group holds from 6.9% to 50.0% equity interests in other 12 third-party companies through investments in their common shares or in-substance common shares as of May 31, 2023. The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees. For the years ended May 31, 2021, 2022 and 2023, the Group recorded impairment loss of nil, US$48,417 and US$3,892, respectively.[12]Other available-for-sale investments represent several insignificant individual investments classified as available-for-sale investments as of May 31, 2021, 2022 and 2023. Realized gains of US$3,535, US$18,068 and nil were recorded in realized gain from long-term investments for the years ended May 31, 2021, 2022 and 2023, respectively. The Group recorded US$27,675, US$46,442 and US$2,901 impairment loss on these investments for the years ended May 31, 2021, 2022 and 2023, respectively. |
Long Term Investments, Net - _2
Long Term Investments, Net - Schedule of Long Term Investments, Net (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2022 | Dec. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2018 | Jun. 30, 2019 | May 31, 2019 | Jul. 31, 2018 | May 31, 2023 | May 31, 2022 | May 31, 2021 | Sep. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2018 | Apr. 30, 2017 | Nov. 30, 2015 | May 31, 2015 | Apr. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss from equity method investments | $ (7,102) | $ (51,466) | $ (1,368) | |||||||||||||||
Payments made to acquire long term investments | 13,597 | 82,082 | 106,965 | |||||||||||||||
Gain On Sale Of Equity Investments | 767 | 22,004 | 3,535 | |||||||||||||||
Impairment loss from long-term investments | $ 8,056 | 129,350 | 40,207 | |||||||||||||||
Investment ownership interest | 7.20% | |||||||||||||||||
Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 20% | |||||||||||||||||
New Oriental Education Industry Fund [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Total committed capital | $ 224,000 | |||||||||||||||||
Committed to invest | $ 76,369 | |||||||||||||||||
Investment ownership interest | 36.30% | |||||||||||||||||
Minimum [Member] | Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 20% | |||||||||||||||||
Maximum [Member] | Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 50% | |||||||||||||||||
Other Long-term Investments [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss from equity method investments | $ 0 | 24,354 | 12,532 | |||||||||||||||
Gain On Sale Of Equity Investments | 0 | 18,068 | 3,535 | |||||||||||||||
Impairment loss from long-term investments | 8,056 | 129,350 | 40,207 | |||||||||||||||
Impairment loss on other available for sale investments | 2,901 | 46,442 | 27,675 | |||||||||||||||
Other Long-term Investments [Member] | Equity Method Investments [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss from equity method investments | $ 3,892 | 48,417 | 0 | |||||||||||||||
Third Party Companies [Member] | Minimum [Member] | Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 6.90% | |||||||||||||||||
Third Party Companies [Member] | Maximum [Member] | Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 50% | |||||||||||||||||
Golden Finance [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Proceeds From Sale Of Equity Method Invstments | $ 33,156 | |||||||||||||||||
Investment ownership interest | 9.80% | 9.80% | ||||||||||||||||
Uhozz [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 15.20% | |||||||||||||||||
Uhozz [Member] | Investee Companies [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 10% | |||||||||||||||||
Sunlands [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss Arising From Change In Fair Value Of Investments | $ 1,883 | 10,467 | 5,501 | |||||||||||||||
Investment ownership interest | 8% | |||||||||||||||||
EEO Education Tech [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss from equity method investments | $ 0 | 0 | 0 | |||||||||||||||
Investment ownership interest | 10% | |||||||||||||||||
Tibet Tianli [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Impairment loss from long-term investments | 0 | 10,137 | 0 | |||||||||||||||
Tibet Tianli [Member] | Educational Programs And Services [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Equity ownership interest classified as available for sale | 12.40% | 11% | 5% | 5% | ||||||||||||||
Payment to acquire equity securities without readily determinable fair value member | $ 13,031 | |||||||||||||||||
Tibet Tianli [Member] | Other Four Shareholders [Member] | Educational Programs And Services [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Equity ownership interest classified as available for sale | 30% | |||||||||||||||||
Payment to acquire equity securities without readily determinable fair value member | $ 19,547 | |||||||||||||||||
VM EDU Fund I L P [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Total committed capital | $ 100,000 | |||||||||||||||||
Investment ownership interest | 49.69% | |||||||||||||||||
VM EDU Fund I L P [Member] | Equity Method Investments [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Payments made to acquire long term investments | 66,331 | |||||||||||||||||
Happy Seed Cayman Ltd [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Investment ownership interest | 1.60% | 6.40% | ||||||||||||||||
GNet Cloud Service [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Loss from equity method investments | $ 0 | $ 0 | $ 0 | |||||||||||||||
Investment ownership interest | 3% |
Long Term Investments, Net - Ad
Long Term Investments, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Impairment loss from long-term investments | $ 8,056 | $ 129,350 | $ 40,207 |
Other Long-term Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Impairment loss from long-term investments | $ 8,056 | $ 129,350 | $ 40,207 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Short-term investments: | |||
Available-for-sale investments | $ 159,588 | $ 173,003 | |
Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Wealth management products measured at fair value | [1] | 1,404,830 | |
Trading securities | [1] | 73,013 | 70,602 |
Equity securities with readily determinable fair values | [2] | 6,291 | 7,561 |
Available-for-sale investments | [3] | 159,588 | 173,003 |
Total | 1,643,722 | 251,166 | |
Quoted Prices in Active Market for Identical Assets Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Trading securities | [1] | 73,013 | 70,602 |
Equity securities with readily determinable fair values | [2] | 6,291 | 7,561 |
Total | 79,304 | 78,163 | |
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Wealth management products measured at fair value | [1] | 1,404,830 | |
Available-for-sale investments | [3] | 17,890 | 10,029 |
Total | 1,422,720 | 10,029 | |
Significant Other Observable Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Available-for-sale investments | [3] | 141,698 | 162,974 |
Total | $ 141,698 | $ 162,974 | |
[1]The short-term investments of wealth management products use alternative pricing sources, accordingly classified Level 2 measurement. The short-term investments of trading securities are valued at their daily closing price as reported by the financial institutions and are classified Level 1 measurement.[2]The Company measured the fair value of its investments in common shares using the market approach based on the quoted stock price of its investees in the active market and has classified it as Level 1 measurement.[3]As of May 31, 2023, the fair value of available-for-sale investments amounted to US$159,588, with original cost of US$82,813 and unrealized gain of US$76,775. As of May 31, 2022, the fair value of available-for-sale investments amounted to US$173,003, with original cost of US$86,024 and unrealized gain of US$86,979. |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Available-for-Sale Securities Included in Long Term Investments Measured and Recorded at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments at fair value | $ 159,588 | $ 173,003 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments at fair value | [1] | 159,588 | 173,003 |
Available for sale investments at original cost | 80,000 | 86,024 | |
Avaiable for sale investments cumulative unrealized gain | $ 79,588 | $ 86,979 | |
[1]As of May 31, 2023, the fair value of available-for-sale investments amounted to US$159,588, with original cost of US$82,813 and unrealized gain of US$76,775. As of May 31, 2022, the fair value of available-for-sale investments amounted to US$173,003, with original cost of US$86,024 and unrealized gain of US$86,979. |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) $ in Thousands | May 31, 2023 USD ($) yr |
Fair Value Measurements [Line Items] | |
Amount transfer from level 1 to level 2 | $ | $ 0 |
Minimum [Member] | Measurement Input, Price Volatility [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 53.9 |
Minimum [Member] | Measurement Input, Discount Rate [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 13 |
Minimum [Member] | Measurement Input, Expected Term [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 1.6 |
Maximum [Member] | Measurement Input, Price Volatility [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 96.8 |
Maximum [Member] | Measurement Input, Discount Rate [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 21 |
Maximum [Member] | Measurement Input, Expected Term [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements [Line Items] | |
Available for sale investments, Measurement input | 5.6 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliation of The Fair Value Measurements of Assets And Liabilities Using Significant Unobservable Inputs (level 3) (Detail) - Level investments [Member] - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 162,974 | $ 65,232 |
Transfer from Level 2 | 10,028 | 133,030 |
Transfer to Level 2 | (17,510) | (15,705) |
Unrealized gain (loss) | (3,172) | 2,015 |
Impairment | (2,901) | (15,632) |
Foreign exchange difference | (7,721) | (5,966) |
Ending balance | $ 141,698 | $ 162,974 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Accelerated Share Repurchases [Line Items] | |||
Accrued payroll | $ 277,020 | $ 229,041 | |
Refund liability | [1] | 138,549 | 95,398 |
Payable for purchase of property and equipment | 27,093 | 27,240 | |
Advance payment from students | [2] | 19,323 | 22,481 |
Amounts reimbursable to employees | [3] | 15,437 | 14,425 |
Accrued advertising fees | 14,426 | 10,632 | |
VAT payable | 12,300 | 8,907 | |
Payable for investments and acquisitions | 9,531 | 1,097 | |
Welfare payable | 9,294 | 8,156 | |
Royalty fees payable | [4] | 7,568 | 10,166 |
Rent payable | 6,124 | 33,829 | |
Refundable deposits | [5] | 5,825 | 8,418 |
Other taxes payable | 5,095 | 4,897 | |
Accrued professional service fees | 2,824 | 6,015 | |
Others | [6] | 19,028 | 29,562 |
Total | $ 569,437 | $ 510,264 | |
[1]The refund liability is recognized for variable amount of the considerations received from the customers and recorded as refund liability as described in Note 2.[2]Advance payment from students represent (1) the miscellaneous expenses other than tuition fee prepaid by students which will be paid out on their behalf; and (2) advance payment prepaid by students for class enrollment.[3]Amounts reimbursable to employees include travelling and business related expenses.[4]Royalty fees payable relate to payments to content providers for on-line learning programs and those to counterparties for copyrights and resource sharing.[5]Refundable deposits represent student deposits for dormitory or other fees that will be refunded upon graduation and student security deposits refunded upon completion of the study tour.[6]Others primarily include transportation expenses, utility fees, property management fees and other miscellaneous expenses payable. |
Lease - Additional Information
Lease - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Operating lease cost | $ 163,195 | $ 368,058 | $ 518,798 |
Short-term lease cost | $ 39,057 | $ 2,344 | 14,149 |
weighted average remaining lease term | 3 years 7 months 6 days | 3 years 10 months 24 days | |
weighted average discount rate | 4.40% | 4.50% | |
Lessee operating lease, lease not yet commenced contract value | $ 33,523 | ||
General and Administrative Expense [Member] | Selected Learning Centre [Member] | |||
Impairment losses on operating lease right of use assets | $ 0 | $ 19,580 | $ 4,228 |
Lease - Summary of Supplemental
Lease - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Disclosure Of Supplemental Cash Flow Information Of The Leases [Line Items] | ||
Cash payments for the operating leases | $ 180,157 | $ 355,284 |
Right-of-use assets obtained in exchange for the new operating lease liabilities | $ 231,887 | $ 157,455 |
Lease - Summary of Maturity Ana
Lease - Summary of Maturity Analysis of Annual Undiscounted Cash Flows (Detail) $ in Thousands | May 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
May 31, 2024 | $ 181,970 |
May 31, 2025 | 123,599 |
May 31, 2026 | 83,218 |
May 31, 2027 | 44,463 |
May 31, 2028 | 26,182 |
Therafter | 21,409 |
Total future lease payments | 480,841 |
Less:Imputed interest | (36,899) |
Present value of operating lease liabilities | $ 443,942 |
Unsecured Senior Notes - Summar
Unsecured Senior Notes - Summary of unsecured senior notes (Detail) - Unsecured Senior Notes [Member] - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | Jul. 31, 2020 |
Debt Instrument [Line Items] | |||
Carrying amount of the unsecured senior notes due 2025 | $ 14,653 | $ 65,394 | |
Unamortized debt discounts, accrued interest expenses and debt issuance costs | 221 | ||
Total principal amount of the unsecured senior notes | $ 14,653 | $ 65,615 | $ 300,000 |
Debt Instrument, Interest Rate, Effective Percentage | 2.35% |
Unsecured Senior Notes - Summ_2
Unsecured Senior Notes - Summary of unsecured senior notes (Parenthetical) (Detail) | 12 Months Ended |
May 31, 2023 | |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument maturity period | 2025 |
Unsecured Senior Notes - Additi
Unsecured Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2020 | May 31, 2023 | May 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt Instrument payment terms | interest payable semiannually in arrears on January 2 and July 2 of each calendar year, commencing on January 2, 2021. | ||
Unsecured Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument Principal amount | $ 300,000 | $ 14,653 | $ 65,615 |
Interest rate | 2.125% | ||
Debt instrument date of first required payment | Jan. 02, 2021 | ||
Debt instrument frequency of periodic payment | semiannually | ||
Proceeds from issue of unsecured senior notes | $ 299,181 | ||
Debt issuance costs net | $ 2,098 | ||
Repurchase price | 48,764 | 221,997 | |
Debt instrument repurchased total principal amount | 50,962 | 234,385 | |
Unsecured Senior Notes [Member] | Interest Expense And Interest Income [Member] | |||
Debt Instrument [Line Items] | |||
Repurchase gain | $ 2,347 | $ 12,579 |
Common Shares and Treasury St_3
Common Shares and Treasury Stock - Movement of the outstanding common shares and treasury stock (Detail) - shares | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | ||
Balance, shares | 1,696,966,183 | ||
Balance, shares | 1,643,162,653 | 1,696,966,183 | |
Common Stock [Member] | |||
Balance, shares | 1,696,966,183 | 1,690,082,150 | |
Issuance of common share for NES | 5,659,610 | 6,884,033 | |
Shares repurchase | [1] | (59,463,140) | |
Balance, shares | 1,643,162,653 | 1,696,966,183 | |
Treasury Stock, Common [Member] | |||
Balance, shares | 0 | ||
Shares repurchase | [1] | 59,463,140 | |
Balance, shares | 59,463,140 | ||
[1]On July 26, 2022, the Company’s board of directors authorized the repurchase of up to US$400 million of the Company’s common shares during the period from July 28, 2022 through May 31, 2023. During the year ended May 31, 2023, the Company repurchased 5,946,314 ADS on the open market for total consideration of US$191,628. The Group accounts for repurchased common shares under the par value method and includes such treasury stock as a component of the shareholders’ equity. |
Common Shares and Treasury St_4
Common Shares and Treasury Stock - Movement of the outstanding common shares and treasury stock (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | Jul. 26, 2022 | |
Stock repurchase program, authorized amount | $ 400,000 | |
Value of stock that has been repurchased during the period | $ 191,628 | |
ADR [Member] | ||
Number of shares that have been repurchased during the period | 5,946,314 | |
Value of stock that has been repurchased during the period | $ 191,628 |
Common Shares and Treasury St_5
Common Shares and Treasury Stock - Additional Information (Detail) | Mar. 10, 2021 $ / shares | May 31, 2023 $ / shares shares | May 31, 2022 $ / shares shares |
Common stock shares authorized | shares | 3,000,000,000 | 3,000,000,000 | |
Common shares, par value | $ / shares | $ 0.001 | $ 0.001 | |
Previously Reported [Member] | |||
Common stock shares authorized | shares | 3,000,000,000 | 3,000,000,000 | |
Common shares, par value | $ / shares | $ 0.01 | $ 0.001 | $ 0.001 |
Common Stock [Member] | Restatement Adjustment [Member] | |||
Stock split, Conversion ratio | 10 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Apr. 11, 2023 shares | Nov. 15, 2021 $ / shares shares | Aug. 25, 2020 USD ($) $ / shares shares | Jan. 29, 2020 USD ($) $ / shares shares | Jul. 13, 2018 shares | Jan. 31, 2016 shares | May 31, 2023 USD ($) $ / shares shares | May 31, 2019 USD ($) $ / shares shares | May 31, 2020 $ / shares | May 31, 2022 $ / shares shares | May 31, 2021 $ / shares shares | May 31, 2023 USD ($) $ / shares shares | May 31, 2022 USD ($) $ / shares shares | May 31, 2021 USD ($) $ / shares shares | Jul. 31, 2018 Grantees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Common shares issued to employees upon the vesting of their shares | 68,111,823 | 68,111,823 | |||||||||||||
Common shares transferred to be issued to employees and non employees upon the exercise of their vested share options and vesting of non-vesting equity shares | 121,446,630 | ||||||||||||||
Weighted-average grant date fair value, Granted | $ / shares | $ 2.6 | $ 0 | $ 11.51 | ||||||||||||
Total fair value of shares vested | $ | $ 65,142 | $ 50,821 | $ 53,335 | ||||||||||||
Share-based compensation expense | $ | $ 89,788 | 132,968 | 68,880 | ||||||||||||
Non-Vested Equity Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share transfer | 182,560,000 | 182,560,000 | |||||||||||||
Reissuance of treasury stock for non-vested equity shares, shares | 39,412,570 | ||||||||||||||
Total unrecognized compensation cost related to NES | $ | $ 50,431 | $ 50,431 | |||||||||||||
Weighted-average period of recognition | 1 year 4 months 24 days | ||||||||||||||
Parent Company [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation expense | $ | $ 69,547 | $ 118,487 | $ 29,353 | ||||||||||||
Employees and Directors [Member] | Non-Vested Equity Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Treasury shares for future issuance | 0 | ||||||||||||||
2016 Share Incentive Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Common shares authorized (including options) granted to employees and directors | 100,000,000 | ||||||||||||||
2016 Share Incentive Plan [Member] | Non-Vested Equity Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of share options, Granted | 71,681,298 | 20,759,130 | 0 | 19,595,518 | |||||||||||
Number of share options, Forfeited | 1,324,092 | 1,536,112 | 428,228 | ||||||||||||
Koolearn pre ipo share option scheme [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of options granted | 47,836,985 | ||||||||||||||
Exercise period | 6 years | ||||||||||||||
Share-based compensation expense | $ | $ 0 | $ 1,298 | |||||||||||||
Option per share | $ / shares | $ 0.53 | ||||||||||||||
Percentage of maximum limit on shares Options granted | 5.23% | ||||||||||||||
Exercise price | $ / shares | $ 1.13 | ||||||||||||||
Fair value of share options granted | $ | $ 21,613 | ||||||||||||||
Overall limit on the number of shares which may be issued | 47,836,985 | ||||||||||||||
Number of Grantee | Grantees | 144 | ||||||||||||||
Koolearn post ipo share option [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercise period | 10 years | ||||||||||||||
Number of canceled outstanding share options | 7,971,290 | ||||||||||||||
Option per share | $ / shares | $ 1.56 | ||||||||||||||
Exercise price | $ / shares | $ 3.26 | ||||||||||||||
Overall limit on the number of shares which may be issued | 40,000,000 | 0 | 0 | 29,541,815 | 0 | 0 | 29,541,815 | ||||||||
Recognised total expenses | $ | $ 10,897 | $ 13,183 | |||||||||||||
Koolearn post ipo share option two [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Additional shares granted | 25,000,000 | 20,848,000 | |||||||||||||
Exercise period | 10 years | ||||||||||||||
Number of canceled outstanding share options | 6,311,000 | ||||||||||||||
Option per share | $ / shares | $ 4.52 | $ 2.14 | |||||||||||||
Exercise price | $ / shares | $ 0.67 | $ 4.39 | $ 4.39 | ||||||||||||
Share based compensation by share based arrangement options granted during the period aggregate fair value | $ | $ 53,872 | $ 62,135 | |||||||||||||
Veting schedule of options Extended period | 10 years | ||||||||||||||
Koolearn post ipo share option three [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Additional shares granted | 24,986,000 | ||||||||||||||
Number of options granted | 24,986,000 | ||||||||||||||
Exercise period | 10 years | ||||||||||||||
Option per share | $ / shares | $ 0.67 | $ 0.32 | |||||||||||||
Exercise price | $ / shares | $ 0.67 | $ 0.67 | |||||||||||||
Fair value of share options granted | $ | $ 7,995 | ||||||||||||||
Modified Koolean Post Ipo Share Option Three [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Recognised total expenses | $ | $ 8,146 | ||||||||||||||
Modified Koolean Post Ipo Share Option Three [Member] | Board of Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of canceled outstanding share options | 14,282,290 | ||||||||||||||
East Buy 2023 Scheme [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Additional shares granted | 30,459,000 | ||||||||||||||
Number of options granted | 30,459,000 | ||||||||||||||
Share-based compensation expense | $ | 9,344 | ||||||||||||||
Exercise price | $ / shares | $ 3.69 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
East Buy 2023 Scheme [Member] | Non-Vested Equity Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Total unrecognized compensation cost related to NES | $ | $ 102,647 | $ 102,647 | |||||||||||||
Weighted-average period of recognition | 1 year 10 months 24 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of NES Activities under 2006 and 2016 Share Incentive Plan (Detail) - $ / shares | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Weighted-average grant date fair value, Granted | $ 2.6 | $ 0 | $ 11.51 |
2006 and 2016 Share Incentive Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of NES, Beginning balance | 16,495,845 | ||
Number of NES, Granted | 20,759,130 | ||
Number of NES, Vested | (5,659,610) | ||
Number of NES, Forfeited | (1,324,092) | ||
Number of NES, Ending balance | 30,271,273 | 16,495,845 | |
Number of NES,expect to vest as of May 31, 2023 | 30,271,273 | ||
Weighted-average grant date fair value, Beginning balance | $ 11.51 | ||
Weighted-average grant date fair value, Granted | 2.6 | ||
Weighted-average grant date fair value, Vested | 11.51 | ||
Weighted-average grant date fair value, Forfeited | 8.9 | ||
Weighted-average grant date fair value, Ending balance | $ 5.52 | $ 11.51 |
Share-Based Compensation - Move
Share-Based Compensation - Movements of share options under the Koolearn Pre IPO Share Option Scheme (Detail) - Koolearn pre ipo share option scheme [Member] | 12 Months Ended | |
May 31, 2023 $ / shares shares | May 31, 2022 $ / shares shares | |
Number of share options outstanding, Beginning balance | shares | 35,911,985 | 36,902,985 |
Number of share options, Forfeited | shares | (837,500) | |
Number of share options, Exercised | shares | (8,827,600) | (153,500) |
Number of share options outstanding, Ending balance | shares | 27,084,385 | 35,911,985 |
Number of share options, Options vested and expected to vest | shares | 27,084,385 | |
Weighted average exercise prices, Options outstanding, Beginning balance | $ / shares | $ 1.13 | $ 1.13 |
Weighted average exercise prices, Options, Forfeited | $ / shares | 1.13 | |
Weighted average exercise prices, Exercised | $ / shares | 1.13 | 1.13 |
Weighted average exercise prices, Options outstanding, Ending balance | $ / shares | 1.13 | $ 1.13 |
Weighted average exercise prices, Options vested and expected to vest | $ / shares | $ 1.13 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary Of Share Option Under the Post-IPO Share Option (Detail) - Koolearn post ipo share option [Member] | 12 Months Ended | |
May 31, 2023 $ / shares shares | May 31, 2022 $ / shares shares | |
Number of share, Options granted, Begining balance | shares | 0 | 29,541,815 |
Number of share options, Forfeited | shares | (10,088,192) | |
Number of share options, Cancelled | shares | (7,971,290) | |
Number of share options, Cancelled and Replaced | shares | (11,482,333) | |
Number of share, Option outstanding, Ending balance | shares | 0 | 0 |
Number of share options, Options vested and expected to vest | shares | 0 | |
Weighted average exercise prices, Options outstanding, Beginning balance | $ / shares | $ 0 | $ 3.26 |
Weighted average exercise price per, Option forfeited | $ / shares | 3.26 | |
Weighted average exercise prices, Cancelled | $ / shares | 3.26 | |
Weighted average exercise prices, Cancelled and Replaced | $ / shares | 0.67 | |
Weighted average exercise prices, Options outstanding, Ending balance | $ / shares | 0 | $ 0 |
Weighted average exercise prices, Options vested and expected to vest | $ / shares | $ 0 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Binomial Option-Pricing Model To Determine The Fair Value Of The Share Option As Of The Grant Date (Detail) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Nov. 15, 2021 | Aug. 25, 2020 | May 31, 2021 | May 31, 2023 | |
Koolearn post ipo share option two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average share price | $ 4.52 | $ 2.14 | ||
Exercise price | $ 4.39 | |||
Expected volatility | 49.50% | |||
Expected life | 10 years | |||
Risk-free rate | 0.44% | |||
Expected dividend yield | 0% | |||
Koolearn post ipo share option three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average share price | $ 0.67 | $ 0.32 | ||
Exercise price | $ 0.67 | |||
Expected volatility | 61% | |||
Expected life | 10 years | |||
Risk-free rate | 1.63% | |||
Expected dividend yield | 0% |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Movements of Share Options Under The Koolearn Post-IPO Share Option II (Detail) - $ / shares | 7 Months Ended | 12 Months Ended | ||||
Nov. 15, 2021 | Aug. 25, 2020 | Jan. 29, 2020 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Koolearn post ipo share option two [Member] | ||||||
Disclosure Of Share Based Compensation By Share Based Arrangement Stock Option Activity One [Line Items] | ||||||
Number of Share Option, Granted | 25,000,000 | 20,848,000 | ||||
Number of Shares Option, Forfeited | (6,445,000) | |||||
Number of share options, Cancelled | (6,311,000) | |||||
Number of share options, Cancelled and Replaced | (8,092,000) | |||||
Number of Shares Option, Outstanding | 0 | 0 | 0 | |||
Weighted average exercise prices, Options, Granted | $ 0.67 | $ 4.39 | $ 4.39 | |||
Weighted average exercise prices, Forfeited | 4.39 | |||||
Weighted average exercise prices, Cancelled | 4.39 | |||||
Weighted average exercise prices, Cancelled and Replaced | 0.67 | |||||
Weighted Average Exercise Price Per Option, Outstanding | $ 0 | $ 0 | $ 0 | |||
Options vested and expected to vest, Shares | 0 | |||||
Options vested and expected to vest, Weighted Average Exercise Price | $ 0 | |||||
Koolearn post ipo share option three [Member] | ||||||
Disclosure Of Share Based Compensation By Share Based Arrangement Stock Option Activity One [Line Items] | ||||||
Number of Share Option, Granted | 24,986,000 | |||||
Number of Shares Option, Forfeited | (2,447,497) | (1,216,275) | ||||
Number of share options, Cancelled and Replaced | 23,455,590 | |||||
Number of Shares Option, Outstanding | 45,994,093 | 40,462,810 | 45,994,093 | |||
Weighted average exercise prices, Options, Granted | $ 0.67 | $ 0.67 | ||||
Weighted average exercise prices, Forfeited | 0.67 | 0.67 | ||||
Weighted average exercise prices, Cancelled and Replaced | 0.67 | |||||
Weighted Average Exercise Price Per Option, Outstanding | $ 0.67 | $ 0.67 | $ 0.67 | |||
Number of share options, Exercised | (4,315,008) | |||||
Weighted average exercise prices, Exercised | $ 0.67 | |||||
Options vested and expected to vest, Shares | 40,462,810 | |||||
Options vested and expected to vest, Weighted Average Exercise Price | $ 0.67 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Movements of Share Awards Under the East Buy Schemes (Detail) - East Buy 2023 Scheme [Member] | 2 Months Ended |
May 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Share, Granted | 30,459,000 |
Number of Share, Vested | 0 |
Number of Share, Forfeited | (145,000) |
Number of share options outstanding | 30,314,000 |
Number of Share, Vested and expect to vest | 30,314,000 |
Weighted-average grant date fair value, Granted | $ / shares | $ 3.69 |
Weighted average exercise prices, Exercised | $ / shares | 0 |
Weighted average exercise prices, Options, Forfeited | $ / shares | 3.69 |
Weighted average exercise prices, Options outstanding | $ / shares | $ 3.69 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands, $ in Millions | 12 Months Ended | |||||||
May 31, 2023 USD ($) $ / shares | May 31, 2023 HKD ($) | May 31, 2023 CNY (¥) | May 31, 2022 USD ($) $ / shares | May 31, 2021 USD ($) $ / shares | May 31, 2019 USD ($) | May 31, 2019 HKD ($) | May 31, 2016 | |
Income Taxes [Line Items] | ||||||||
State income tax rate | 21% | 21% | 21% | |||||
Effective income tax rate | 25% | 25% | 25% | 25% | 25% | |||
Assessable profit | $ 235,363 | $ (1,220,276) | $ 230,021 | |||||
Valuation allowance | 364,083 | 397,616 | 90,087 | |||||
Net operating loss | 127,708 | |||||||
Withholding tax, dividends paid by PRC schools and subsidiaries to their foreign investors | 10% | |||||||
Aggregate undistributed earnings available for distribution | 2,078,517 | 1,880,057 | 2,795,596 | |||||
Unrecognized tax benefits | 0 | 0 | 0 | |||||
Provision for income taxes | 66,066 | 136,312 | 83,588 | |||||
Increase in income tax expenses | $ 25,420 | $ 5,453 | $ 33,847 | |||||
Decrease in net income/(loss) per share—basic | $ / shares | $ 0.01 | $ 0 | $ 0.2 | |||||
Decrease in net income/(loss) per share—diluted | $ / shares | $ 0.02 | $ 0 | $ 0.2 | |||||
After Expiration [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate | 25% | 25% | 25% | |||||
UNITED KINGDOM | Walkite [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate | 19% | 19% | 19% | |||||
AUSTRALIA | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate | 30% | 30% | 30% | |||||
CANADA | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate | 15% | 15% | 15% | |||||
Income tax rate | 11.50% | 11.50% | 11.50% | |||||
JAPAN | New Oriental Vision Overseas Japan [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate | 23.20% | 23.20% | 23.20% | |||||
Minimum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Underpayment of tax liability | $ 16,000 | ¥ 100 | ||||||
Beijing Hewstone, Shanghai Smart Words, Beijing Smart Wood and Beijing Pioneer [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Withholding tax paid for the dividend | $ 5 | |||||||
High and new tech enterprise (HNTE) [Member] | Beijing Decision Beijing Hewstone And Xuncheng [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate | 15% | 15% | 15% | |||||
Other Information Pertaining to Income Taxes | Although Xuncheng’s HNTE certificate is expected to expire on October 21, 2023, Beijing Hewstone, Beijing Decision, Dexin Dongfang and Beijing Be-linked Online Education Company Limited’s HNTE certificates are expected to expire on December 2, 2023, these enterprises are not subject to a tax rate of 15% staring form January 1, 2023, if they choose not to renew their certificates. | Although Xuncheng’s HNTE certificate is expected to expire on October 21, 2023, Beijing Hewstone, Beijing Decision, Dexin Dongfang and Beijing Be-linked Online Education Company Limited’s HNTE certificates are expected to expire on December 2, 2023, these enterprises are not subject to a tax rate of 15% staring form January 1, 2023, if they choose not to renew their certificates. | Although Xuncheng’s HNTE certificate is expected to expire on October 21, 2023, Beijing Hewstone, Beijing Decision, Dexin Dongfang and Beijing Be-linked Online Education Company Limited’s HNTE certificates are expected to expire on December 2, 2023, these enterprises are not subject to a tax rate of 15% staring form January 1, 2023, if they choose not to renew their certificates. | |||||
Newly established software enterprise (NESE) [Member] | Beijing Decision Beijing Hewstone And Xuncheng [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 12.50% | 12.50% | 12.50% | |||||
Tax holiday year | 2 years | 2 years | 2 years | |||||
Income tax holiday, description | Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. | Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. | Enterprises that qualify as the newly established software enterprise (“NESE”) are exempt from the EIT for two years beginning the enterprise’s first profitable year followed by a tax rate of 12.5% for the succeeding three years. | |||||
Peoples Republic Of China Entities [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate | 25% | 25% | 25% | |||||
Variable interest entities (VIEs) [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate | 25% | 25% | 25% | |||||
Hong Kong [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Assessable profit | $ 2 | $ 2 | ||||||
Income tax rate | 16.50% | 16.50% | 16.50% | 8.25% | 8.25% | |||
Hong Kong [Member] | Major Subsidiaries of the Company [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Provision for income taxes | $ 0 | $ 0 | $ 0 | |||||
Earliest Tax Year [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss expiration dates | May 31, 2023 | May 31, 2023 | May 31, 2023 | |||||
Latest Tax Year [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss expiration dates | May 31, 2028 | May 31, 2028 | May 31, 2028 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Current: | |||
PRC | $ 97,594 | $ 44,378 | $ 127,313 |
Deferred: | |||
PRC | (31,528) | 91,934 | (43,725) |
Total provision for income taxes | $ 66,066 | $ 136,312 | $ 83,588 |
Income Taxes - Components of Gr
Income Taxes - Components of Group's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | May 31, 2021 |
Deferred tax assets | |||
Allowance for doubtful accounts | $ 37,424 | $ 41,806 | |
Accrued expenses | 56,716 | 53,069 | |
Net operating loss carry-forward | 324,355 | 321,258 | |
Tax impact from the long-term investments disposed to a related party | 1,521 | 1,521 | |
Total deferred tax assets | 420,016 | 417,654 | |
Less: valuation allowance | (364,083) | (397,616) | $ (90,087) |
Total deferred tax assets, net | 55,933 | 20,038 | |
Deferred tax liabilities | |||
Acquired assets | 4,523 | 1,788 | |
Tax impact from the unrealized gain on available-for-sale investments | 19,326 | 17,452 | |
Total deferred tax liabilities | $ 23,849 | $ 19,240 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income/(loss) before income taxes | $ 308,531 | $ (1,032,498) | $ 314,977 |
PRC statutory income tax rate | 25% | 25% | 25% |
Income tax at statutory income tax rate | $ 77,133 | $ (258,125) | $ 78,744 |
Effect of non-deductible expenses and loss and super deduction expenses | 40,577 | 106,903 | (5,174) |
Effect of income tax exemptions and preferential tax rates | (12,927) | (19,570) | (38,795) |
Effect of income tax rate difference in other jurisdictions | (5,184) | (424) | (181) |
Changes in valuation allowance | (33,533) | 307,528 | 48,994 |
Provision for income taxes | $ 66,066 | $ 136,312 | $ 83,588 |
Net Income_(Loss) Per Share - C
Net Income/(Loss) Per Share - Computation of Basic and Diluted Net Income/(Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Numerator: | ||||
Net income/(loss) attributable to New Oriental Education & Technology Group Inc.'s shareholders - basic | $ 177,341 | $ (1,187,721) | $ 334,414 | |
Net income/(loss) attributable to New Oriental Education & Technology Group Inc.'s shareholders - diluted | $ 173,732 | $ (1,187,721) | $ 334,414 | |
Denominator | ||||
Weighted average common shares outstanding basic | [1] | 1,678,264,547 | 1,696,419,232 | 1,645,463,440 |
Plus: incremental weighted average common shares from assumed vesting of NES using the treasury stock method | 7,367,440 | 0 | 6,518,944 | |
Weighted average common shares outstanding diluted | [1] | 1,685,631,987 | 1,696,419,232 | 1,651,982,384 |
Net income/(loss) per common share | ||||
- Basic | [1] | $ 0.11 | $ (0.7) | $ 0.2 |
- Diluted | [1] | $ 0.1 | $ (0.7) | $ 0.2 |
[1]Retrospectively restated for the effect of stock split. (Note 15) |
Related-Parties Transactions -
Related-Parties Transactions - Balances and Transaction with Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - non current | $ 1,735 | $ 3,365 | ||
Net revenues | 2,997,760 | 3,105,246 | $ 4,276,539 | |
Loans provided to related parties | 2,387 | 41,226 | 10,486 | |
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | 9,383 | 23,245 | ||
Amounts due to related parties - current | 346 | 226 | ||
Amounts due from related parties - non current | 1,735 | 3,365 | ||
Net revenues | 2,098 | 41 | 1,114 | |
Loans provided to related parties | 2,387 | 41,226 | 10,486 | |
Cost | 1,766 | 54,695 | 2,090 | |
Metropolis [Member] | Executive Chairman [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [1] | 2,435 | 998 | |
Amounts due to related parties - current | [1] | 236 | 27 | |
Amounts due from related parties - non current | [1] | 1,398 | 2,770 | |
Rental expense | [1] | 8,387 | 11,590 | 11,653 |
MaxEn [Member] | Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans provided to related parties | 38,130 | |||
MaxEn [Member] | Equity Method Investee [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans provided to related parties | [2] | 0 | 38,130 | 10,486 |
Dianshi Jingwei [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost | 52,380 | |||
Dianshi Jingwei [Member] | Equity Method Investee [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans provided to related parties | [3] | 0 | 3,096 | 0 |
Cost | [3] | 0 | 52,380 | 0 |
Others [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 41 | 18 | |
Loans provided to related parties | 2,387 | 0 | 0 | |
Cost | 0 | 714 | 0 | |
Other Subsidiaries [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | 2,862 | 50 | ||
Amounts due to related parties - current | 92 | 199 | ||
Amounts due from related parties - non current | 337 | 595 | ||
Edutainment World [Member] | Equity Method Investee [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [4] | 4,086 | 2,016 | |
Amounts due to related parties - current | [4] | 18 | 0 | |
Net revenues | [4] | 2,098 | 0 | 1,096 |
Cost | [4] | 1,253 | 186 | 175 |
Beijing Dianshi Jingwei Technology Co., Ltd ("Dianshi Jingwei") [Member] | Equity Method Investee [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties - current | [3] | 0 | 20,181 | |
Amounts due to related parties - current | [3] | 0 | 0 | |
Beijing Dongfang Heli Investment and Developement Ltd ("Dongfang Heli") [Member] | Equity Method Investee [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost | $ 513 | $ 1,415 | $ 1,915 | |
[1]As of May 31, 2022 and 2023, the current amounts due from Metropolis, acquired by a company wholly-owned by Mr. Yu, the chairman of the Company, were US$998 and US$2,435, respectively and the non-current amounts due from Metropolis were US$2,770 and US$1,398, respectively. Those represented prepaid rent related to a short-term lease and deposit for the building. As of May 31, 2022 and 2023, the right-of-use assets related to the leases rented from Metropolis were US$7,891 and US$15,920, respectively, and the relevant lease liabilities were US$7,826 and US$15,723, respectively.[2]For the year ended May 31, 2022, the Group provided the loans in aggregate of US$38,130 to Beijing MaxEn, an equity method investee of the Group. As of May 31, 2022, the outstanding balance of the loans was US$40,197, which was fully impaired.[3]In April 2016, the Group sold 51% of its equity interest in Dianshi Jingwei which became an equity method investee of the Group. In October 2021, the Group entered into a purchase agreement with Dianshi Jingwei for the purchase of learning devices of which $52,380 was further recorded as cost. In November 2022, the Company transferred all its equity interest in Dianshi Jingwei to the founder of Dianshi Jingwei and ceased the business cooperation aforementioned.[4]Prior to April 2022, the Group’s investment in Edutainment World’s preferred shares were accounted for available-for-sale investment, while since April 2022, the investment was accounted for using equity method considering that the Group can exercise significant influence over Edutainment World. For the year ended May 31, 2021, 2022 and 2023, the Group provided services to Edutainment World, from which the unpaid balance was US$2,016 and US$4,086 as of May 31, 2022 and 2023, respectively. |
Related-Parties Transactions _2
Related-Parties Transactions - Balances and Transaction with Related Parties (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2016 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Related Party Transaction [Line Items] | |||||
Payment towards loans to related parties | $ 2,387 | $ 41,226 | $ 10,486 | ||
Operating lease right of use assets | 439,535 | 531,102 | |||
Operating lease liabilities | 443,942 | ||||
Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, current | 9,383 | 23,245 | |||
Payment towards loans to related parties | 2,387 | 41,226 | 10,486 | ||
Related party costs | 1,766 | 54,695 | 2,090 | ||
Metropolis Holding China Limited [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating lease right of use assets | 15,920 | 7,891 | |||
Operating lease liabilities | 15,723 | 7,826 | |||
Metropolis Holding China Limited [Member] | Executive Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Long-term investment under equity method and carrying amount | 1,398 | 2,770 | |||
Metropolis Holding China Limited [Member] | Executive Chairman [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, current | [1] | 2,435 | 998 | ||
Dianshi jingwei [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of equity interest sold | 51% | ||||
Dianshi jingwei [Member] | Equity Method Investee [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, current | [2] | 0 | 20,181 | ||
MaxEn [Member] | Equity Method Investee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment towards loans to related parties | 38,130 | ||||
Impairment of loans receivable from related parties | 40,197 | ||||
MaxEn [Member] | Equity Method Investee [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment towards loans to related parties | [3] | 0 | 38,130 | 10,486 | |
Dianshi Jingwei [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party costs | 52,380 | ||||
Dianshi Jingwei [Member] | Equity Method Investee [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment towards loans to related parties | [2] | 0 | 3,096 | 0 | |
Related party costs | [2] | 0 | 52,380 | 0 | |
Edutainment World [Member] | Equity Method Investee [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, current | [4] | 4,086 | 2,016 | ||
Related party costs | [4] | $ 1,253 | $ 186 | $ 175 | |
[1]As of May 31, 2022 and 2023, the current amounts due from Metropolis, acquired by a company wholly-owned by Mr. Yu, the chairman of the Company, were US$998 and US$2,435, respectively and the non-current amounts due from Metropolis were US$2,770 and US$1,398, respectively. Those represented prepaid rent related to a short-term lease and deposit for the building. As of May 31, 2022 and 2023, the right-of-use assets related to the leases rented from Metropolis were US$7,891 and US$15,920, respectively, and the relevant lease liabilities were US$7,826 and US$15,723, respectively.[2]In April 2016, the Group sold 51% of its equity interest in Dianshi Jingwei which became an equity method investee of the Group. In October 2021, the Group entered into a purchase agreement with Dianshi Jingwei for the purchase of learning devices of which $52,380 was further recorded as cost. In November 2022, the Company transferred all its equity interest in Dianshi Jingwei to the founder of Dianshi Jingwei and ceased the business cooperation aforementioned.[3]For the year ended May 31, 2022, the Group provided the loans in aggregate of US$38,130 to Beijing MaxEn, an equity method investee of the Group. As of May 31, 2022, the outstanding balance of the loans was US$40,197, which was fully impaired.[4]Prior to April 2022, the Group’s investment in Edutainment World’s preferred shares were accounted for available-for-sale investment, while since April 2022, the investment was accounted for using equity method considering that the Group can exercise significant influence over Edutainment World. For the year ended May 31, 2021, 2022 and 2023, the Group provided services to Edutainment World, from which the unpaid balance was US$2,016 and US$4,086 as of May 31, 2022 and 2023, respectively. |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Capital Commitments under Non-Cancelable Construction and Investments (Detail) $ in Thousands | May 31, 2023 USD ($) |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 17,493 |
Purchase of Property and Equipment [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | 801 |
Leasehold Improvements [Member] | |
Capital Lease Obligations [Line Items] | |
Capital commitment | $ 16,692 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
May 31, 2023 Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 7 |
Percentage of quantitative threshold on segment reporting | 10% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 2,997,760 | $ 3,105,246 | $ 4,276,539 |
Operating cost and expenses: | |||
Cost of revenues | (1,409,438) | (1,754,291) | (2,036,875) |
Selling and marketing | (444,693) | (466,895) | (600,778) |
General and administrative | (953,583) | (1,866,573) | (1,489,826) |
Total operating cost and expenses | (2,807,714) | (4,087,759) | (4,159,273) |
Operating income/(loss) | 190,046 | (982,513) | 117,266 |
Total assets | 6,392,458 | 6,034,666 | 10,151,053 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,997,760 | 3,105,246 | 4,276,539 |
Operating cost and expenses: | |||
Cost of revenues | (1,409,438) | (1,754,291) | (2,036,875) |
Selling and marketing | (433,402) | (456,113) | (588,405) |
General and administrative | (681,589) | (1,506,220) | (1,210,212) |
Total operating cost and expenses | (2,807,714) | (4,087,759) | (4,159,273) |
Operating income/(loss) | 190,046 | (982,513) | 117,266 |
Total assets | 2,269,368 | 2,722,644 | 5,655,882 |
Corporate, Non-Segment [Member] | |||
Operating cost and expenses: | |||
Total operating cost and expenses | (283,285) | (371,135) | (323,781) |
Total assets | 4,123,090 | 3,312,022 | 4,495,171 |
Educational services and test preparation courses [Member] | |||
Operating cost and expenses: | |||
Total assets | 1,703,762 | 2,227,184 | 4,380,247 |
Educational services and test preparation courses [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,825,212 | 2,535,318 | 3,667,270 |
Operating cost and expenses: | |||
Cost of revenues | (773,989) | (1,442,156) | (1,680,779) |
Selling and marketing | (217,915) | (273,344) | (326,708) |
General and administrative | (503,345) | (1,308,742) | (955,211) |
Total operating cost and expenses | (1,495,249) | (3,024,242) | (2,962,698) |
Operating income/(loss) | 329,963 | (488,924) | 704,572 |
Total assets | 1,703,762 | 2,227,184 | 4,380,247 |
Others [Member] | |||
Operating cost and expenses: | |||
Total assets | 149,017 | 4,381 | 281,579 |
Others [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 170,623 | 107,322 | 120,084 |
Operating cost and expenses: | |||
Cost of revenues | (91,520) | (77,730) | (82,827) |
Selling and marketing | (45,657) | (30,494) | (25,346) |
General and administrative | (65,725) | (63,859) | (69,524) |
Total operating cost and expenses | (202,902) | (172,083) | (177,697) |
Operating income/(loss) | (32,279) | (64,761) | (57,613) |
Total assets | 149,017 | 4,381 | 281,579 |
Overseas Study Consulting Services [Member] | |||
Operating cost and expenses: | |||
Total assets | 109,422 | 177,821 | 477,568 |
Overseas Study Consulting Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 354,764 | 325,901 | 278,594 |
Operating cost and expenses: | |||
Cost of revenues | (179,284) | (165,673) | (127,841) |
Selling and marketing | (80,528) | (72,847) | (61,259) |
General and administrative | (61,861) | (61,258) | (60,580) |
Total operating cost and expenses | (321,673) | (299,778) | (249,680) |
Operating income/(loss) | 33,091 | 26,123 | 28,914 |
Total assets | 109,422 | 177,821 | 477,568 |
Private label products and livestreaming e-commerce and other services [Member] | |||
Operating cost and expenses: | |||
Total assets | 307,167 | 313,258 | 516,488 |
Private label products and livestreaming e-commerce and other services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 647,161 | 136,705 | 210,591 |
Operating cost and expenses: | |||
Cost of revenues | (364,645) | (68,732) | (145,428) |
Selling and marketing | (89,302) | (79,428) | (175,092) |
General and administrative | (50,658) | (72,361) | (124,897) |
Total operating cost and expenses | (504,605) | (220,521) | (445,417) |
Operating income/(loss) | 142,556 | (83,816) | (234,826) |
Total assets | $ 307,167 | $ 313,258 | $ 516,488 |
Mainland China Contribution P_2
Mainland China Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions for employee benefits | $ 196,042 | $ 272,433 | $ 257,542 |
Statutory Reserves - Additional
Statutory Reserves - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statutory Accounting Practices [Line Items] | |||
Percentage allocation of profits to general reserves | 10% | ||
Registered capital | 50% | ||
Accrued for general reserve | $ 3,620 | $ 2,828 | $ 3,302 |
Percentage allocation of profits to development fund | 25% | ||
Group transfers to the statutory reserves | $ 16,842 | 316 | 67,426 |
Profit private school minimum appropriations of audited annual net income | 10% | ||
Non-profit private school minimum appropriations of audited annual increase in the unrestricted net assets of the school | 10% | ||
Development fund [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Appropriations to reserves | $ 13,222 | $ 2,512 | $ 64,124 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | May 31, 2021 |
Restricted Net Assets [Line Items] | |||
Restricted net assets | $ 935,032 | $ 918,190 | $ 724,854 |
Variable interest entities (VIEs) [Member] | Paid in capital, additional paid-in capital and statutory reserves [Member] | |||
Restricted Net Assets [Line Items] | |||
Restricted net assets | 535,700 | 519,388 | 681,309 |
Wholly owned subsidiaries [Member] | Paid in capital, additional paid-in capital and statutory reserves [Member] | |||
Restricted Net Assets [Line Items] | |||
Restricted net assets | $ 399,332 | $ 398,802 | $ 43,545 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Sep. 15, 2023 shares |
Subsequent Event [Member] | ADR [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program, aggregate number of shares repurchased | 5,969,314 |