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Last week, New Oriental Education announced that it had accomplished the $50 million buy-back project, which was authorized by the board of directors in April 2013.

New Oriental Education is a provider of private educational services in China. The business of New Oriental includes pre-school education, general courses for students of various age levels, online education, overseas study consulting, and textbook publishing. New Oriental was the first Chinese educational institution to enter the New York Stock Exchange in the United States in 2006.

New Oriental Education bought back its 2,436,300 shares at an average price of $20.47 per share from April 29^th to June 17^th. The buy-back amounts account for 1.5% of its total outstanding shares. On June 21^st, New Oriental Education declared in a statement, they corrected the buy-back amounts to 2,445,500 shares.

According to Yu Minhong, the founder and current CEO of New Oriental Education, the stock buy-back project indicates that New Oriental Education still try giving value back to the shareholders. The project also proves that thet are confident about the long-term prospects of New Oriental Education & Technology Group Inc.

Yu Minhong said, currently, New Oriental Education has strong cash reserves. He believes the project is a good investment at present. New Oriental Education will continue its business implementation strategy "Harvest Market". The company will keep improving the operational efficiency, enhancing the profitability. "I believe the project will lead to constant margin improvement with long-term growth."

For the buy-back project, it arouses speculations again on the rumor that New Oriental Education will be privatized soon. Some Industry sources say it is quite obvious that Yu Minhong wants to transfer New Oriental Education into privatization. However, business of New Oriental Education in some core areas has shown weakness, even loss. Its new business mode is unknown yet. Under the circumstance of declining in profit rate, New Oriental's prospects are not optimistic.