We posted a thorough fundamental analysis of New Oriental Education & Technology Group Inc. (NYSE:EDU) excatly a month ago - this rerpot is an update of latest developements. Report by Vivian Li

1)     Rising Demand for English Training

• The rapid development of globalization means English is becoming significantly important in people’s daily life. EDU is a big beneficiary of a huge population that is eager to learn English and new technical skills.

2)     Strategic Decisions & Improvement

• The “New Oriental U-Can” all-subjects middle and high school training program has grown quickly after its initial launch. The company expect the program to be the main revenue driver for the coming years.
• Expansion plan for learning facilities. The company successfully executed on its expansion plan by opening a total of 77 new studying facilities during year 2008. These expansions would contribute substantial future revenue and would be the key to the company’s continuing growth.
• Promote brand name by providing e-learning platform to Coca-Cola (China).
• Alliance with Intuto Ltd., Heinle ELT, Thomson Learning and Nokia to enhance its wireless distribution channel.

3)     Company’s Strong Financial Performance

• Total net revenue for the quarter increased by 62.5% YoY, and total net revenue for the fiscal year increase by 51.6% YoY.
• Net income for the quarter increased YoY from a net loss of US$1. 5 million to US$1.8 million. Net income for the fiscal year increased by 71.4% YoY.
• Loss from operations for the quarter decreased YoY by 94%, and income from operations for the fiscal year increased by 73.8% YoY.
• Basic and diluted earnings per ADS for the quarter were US$0.05 and US$0.05 respectively, basic and diluted earnings per ADS for the fiscal year were US$1.31 and US$1.25 respectively.

4)     Dominant Position in the Private Education Industry

• Since New Oriental’s founding in 1993, it has become the most recognized brand in Chinese private education. Up to May 2008, it has a total of 41 schools and 166 learning centers.
• It had over 4.5 million student enrollments, including approximately 1.2 million enrollments in calendar year 2007.