This financial report may be the "bottom" before the transformation of New Oriental

$EAST BUY(01797.HK)$ $New Oriental(EDU.US)$ $NEW ORIENTAL-S(09901.HK)$ $Education(BK1091.HK)$
In this quarter, New Oriental continued to abolish its campus, resulting in a decrease in revenue and an increase in losses month on month. However, as of the end of the quarter, the total number of schools and learning centers retained by New Oriental exceeded the estimated upper limit, indicating that New Oriental is optimistic about the transformation prospect.

At the financial report meeting, Yang Zhihui, the executive president and chief financial officer of New Oriental, said, "we are confident that we will turn losses into profits in the first quarter of fiscal 2023 and make profits in fiscal 2023." Yang Zhihui said.

Another basis for bottoming out is that New Oriental realized positive operating cash flow in this quarter, from a net cash use of $235 million in the previous quarter to a net gain of $29.34 million in the current quarter.

For education companies after the "double reduction", cash flow is an important financial indicator, which means that they can "make blood" by relying on their own business, so they are expected to survive without disorderly capital expansion and external financing.