Xiaoxiang Morning News.
* |China ** News, National Business Daily, Company Announcements.
On December 27, the Oriental Selection (1797.)HK) on the Hong Kong Stock ExchangeThe Board of Directors approved the proposal to the parent company, New Oriental, for the education business at a total consideration of RMB1.5 billion, to be paid in cash. 
According to the announcement, ** is part of the business restructuring of New Oriental Group in the broad sense, which aims to more clearly delineate its business lines and better align its business units with the operating environment. **After the event, the industries in which the Group and New Oriental Group operate will be distinct from each other. The group will no longer operate in the field of education, but will become a specialized operator of self-operated products and live broadcast e-commerce business. 
Wind data shows that on December 27, Dongfang Selection's share price was reported at 26HK$85 shares, down 693%。
*：windThe estimated revenue is about 165.3 billion yuanAccording to the announcement of Oriental Selection on the evening of December 27, after the completion of the ** event, the education business will no longer be part of the group, and Oriental Selection and its subsidiaries (hereinafter referred to as the "Group") will no longer operate the ** education business, and there will no longer be any connected transactions between the group and New Oriental Group related to the education business. Therefore, as an integral part of the transfer of the education business, all agreements and transactions relating to the ** education business operated by the Group will be terminated or transferred to (or re-entered by New Oriental Group). For the subject matter of **, the announcement shows that it mainly includes the entire equity of Oriental Youbo (Hong Kong) Education, a company incorporated in Hong Kong on August 13, 2020Beijing Cool Wisdom Network Technology Co., Ltd. (hereinafter referred to as "Cool Wisdom Network"), a company established on February 1, 2013 under the laws of the People's Republic of China).Xi'an Ruiying Huishi Network Technology Co., Ltd. (hereinafter referred to as "Xi'an Ruiying", a company established on April 3, 2020 under the laws of the People's Republic of China);and the assets related to the Group's operating University Education and Institutional Client business segments. According to the announcement of Oriental Selection, the Group operates its education and education-related businesses through these target entities, as well as its business segments including university education and institutional customers. According to Oriental Selection, the ** matter is part of the business restructuring of New Oriental Group in the broad sense, which aims to more clearly delineate its business lines and better align its business units with the operating environment. At present, the Group and New Oriental Group operate in overlapping industries, and their businesses are divided according to the delivery medium of their products and services. **After the event, the industries in which the Group and New Oriental Group operate will be distinct from each other. The group is no longer engaged in the field of education, but has become a professional self-operated product and live broadcast business operator. As of September 30, 2023, the carrying value (net debt) of the education business was approximately 15.3 billion yuanOriental Selection is expected to record a revenue of about 165.3 billion yuan, minus the net debt of the education business by 1$5.3 billion for payment within 10 business days after the delivery date of March 1, 2024 or a date otherwise agreed by the parties. The proceeds are used for live streaming and other businessesFor the net proceeds of the above-mentioned ** items, Dongfang Selection mentioned in the announcement that 10% will be used for marketing and sales, and the use time will be within 5 years from the completion of the ** items;10% will be used for talent onboarding and retention20% for R&D;40% is used for other general development and operation of self-operated products and live broadcast business20% for general working capital. Oriental Selection said that the group plans to expand its catalogue of high-quality products, especially its self-operated products, by strengthening its relationship with existing ** merchants and identifying more ** merchants and agricultural enterprises. Continue to cultivate, grow and retain an excellent team of anchors to convey exciting and educational knowledge about these products and their best products to the audience in an entertaining and educational way. The Group will develop more advanced technologies to support its live channels, while improving its existing technology partnerships to enhance the general experience of anchors, viewers and consumers (including improving the quality of its live audiovisual and expanding its technology to meet the needs of a larger number of streamers and viewers). Oriental Selection, formerly known as New Oriental**, is the ** education platform of New Oriental, and after the "double reduction" policy, it divested its K12 training business and gradually transformed into a live broadcast e-commerce platform. On May 19, 2022, Yu Minhong posted, "Open up a new track (Oriental Selection), and may be able to bring new improvements to New Oriental in the future." Since then, New Oriental** announced in January 2023 that the company's abbreviation has been changed to Oriental Selection. At the end of August 2023, Dongfang Selection handed over its first financial report after the transformation. As of May 31, Dongfang Selection's total operating income for fiscal year 2023 was 4.5 billion yuan, a year-on-year increase of 651%;Achieved a net profit of 97.1 billion yuan, a loss of 53.4 billion yuan, a year-on-year turnaround. In fiscal year 2023, Dongfang Selection's institutional customer revenue was 38.2 million yuan, a year-on-year decrease of 347%。The University Education segment has revenues of 59.1 billion yuan, a year-on-year increase of 1416%；The number of fee-paying students is 5810,000 people, a year-on-year increase of 64%。
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