EDU
New Oriental Education & Tech
Is EDU Halal?
Chinese education company — tutoring and language learning.
What You Should Know
New Oriental provides education and language learning. Core business is permissible. New Oriental's FY2025 filing reports $7,805.499 million of assets, $4,933.661 million cash plus term deposits and short-term investments, and $4,900.262 million revenue. Education is generally permissible, but liquidity/assets is above examined limits and the group also operates livestreaming e-commerce, product and consulting businesses.
⚠️ Concerns
- •Chinese regulatory risk
- •Liquidity/assets is 63.21% under the asset screen
- •Private-label products and livestreaming e-commerce need category review
- •Cayman/VIE structure and China regulatory risk
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-05-31; calculated 2026-07-14.
14.403 / 7,805.499
4,933.661 / 7,805.499
1,646.008 / 7,805.499
119.605 / 4,900.262
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 63.21%, above the examined FTSE liquidity limit; debt/assets is 0.18%, receivables plus cash/assets is 21.09% and interest income/revenue is 2.44%.
- Financial
- Fails
- Overall
- Fails
Identifiable liquidity/assets is 63.21%, above the examined MSCI liquidity limit; the business screen also remains incomplete.
- Financial
- Fails
- Overall
- Fails
Conventional liquidity/assets is 63.21%, above the examined Malaysia SAC financial limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed average-market-cap series is not stored; the asset-based liquidity screen fails independently.
Business-activity disclosure
New Oriental provides education and test preparation, overseas-study consulting, educational products and livestreaming e-commerce. Education is generally permissible, but retail product categories, content, consulting and livestreaming activities require qualitative review.
Limitation: The annual report does not isolate a universal prohibited-revenue numerator across education, commerce, consulting and other services.
Purification
New Oriental discloses $119.605 million of interest income, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from New Oriental's audited May 31, 2025 Form 20-F.
- Identifiable interest-bearing securities include $1,092.115 million current term deposits, $355.665 million non-current term deposits and $1,873.502 million short-term investments; restricted cash and equity investments are excluded.
- Unsecured senior notes are $14.403 million; operating lease liabilities are excluded. Accounts receivable is $33.629 million and total net revenue is $4,900.262 million.
- Interest income is $119.605 million, approximately 2.44% of revenue. New Oriental also operates private-label products and livestreaming e-commerce, overseas-study consulting and other services, so the business screen is not reduced to education alone.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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