Chinese education group New Oriental posts $876m loss after clampdown

Chinese education giant New Oriental Education & Technology Group Inc posted heavy losses on Tuesday in its fiscal report since the government launched regulations on the billion-dollar private tutoring sector in July.

The company reported $876 million loss for the six months to November 30, a huge contrast to the $229 million net profit over the same period a year earlier.

Yu Minhong, chairman of New Oriental, said on a social platform that New Oriental staff would not admit failure and believed that the company can continue to develop.

The move came as the country's leading education companies, including TAL Education Group and Gaotu Techedu, all posted heavy losses since the strict regulations.

TAL reported $1 billion net loss in the nine months to November 30. The company recorded $53 million in profit over the same period a year earlier.