New Oriental's Dong Yuhui Resignation and Related Developments
TapTechNews August 2nd news, Dong Yuhui, the anchor of Oriental Selection, officially announced his resignation on July 25 this year, and 'With Hui Together' will operate independently. This news sparked heated discussions among netizens at that time.
On July 31, at the earnings call for the fourth quarter of fiscal year 2024 of New Oriental Education & Technology Group, Yang Zhihui, the executive president and chief financial officer of New Oriental Education & Technology Group, responded to whether New Oriental would pay the relevant costs and expenses for Dong Yuhui. He said that this expense would be incurred in the fourth quarter of this fiscal year and the first quarter of the next fiscal year, and the specific amount would be announced at the next earnings call, but this is a one-time expense.
New Oriental released a statement today. When an analyst asked about the relevant costs and expenses paid by the company to Teacher Dong Yuhui, the term 'one-time compensation' was used. This expression, which was misinterpreted by some people as the one-time severance pay given by the New Oriental Group to dismiss Teacher Dong Yuhui.
New Oriental's statement said that the separation of 'With Hui Together' from Oriental Selection was the result of friendly consultations and mutual agreements between the two sides, and there was no such thing as dismissal. The company arranged to pay all the proceeds since the establishment of 'With Hui Together' and all the payments related to the equity transfer of 'With Hui Together' to Teacher Dong Yuhui, which is to support the future continued development of Teacher Dong Yuhui and 'With Hui Together', not the severance pay.
TapTechNews noticed that Yu Minhong, the founder of New Oriental and CEO of Oriental Selection, once wrote on July 25:
'With Hui Together' is about to become independent. In order to express gratitude to Yuhui, in addition to having already paid all the promised treatment, I have pleaded with the board of directors and the compensation committee and obtained their consent, to reward all the net profits of 'With Hui Together' to Yuhui. At the same time, the equity purchase money that Yuhui holds for 'With Hui Together' has also been arranged and paid by me in a manner that complies with the rules of listed companies and the company's articles of association. In order to ensure the normal operation of the business of 'With Hui Together', Oriental Selection, with the consent of the board of directors, will unconditionally deliver the developed information system to 'With Hui Together' for use.