(Yicai Global) Dec. 29 -- Shares of New Oriental Education and Technology Group plunged after the Chinese education technology giant broadcast its first live-streamed e-commerce show, as investors are unhappy with the firm’s new direction.

New Oriental [HKG: 1797] sank almost 22 percent to close at HKD5.64 (72 US cents) today. The stock has lost 80 percent of its value this year in the wake of a government crackdown on the online education sector.

As part of plans to transform itself, the Beijing-based company launched a live e-commerce sales platform yesterday evening. Founder Yu Minhong sold CNY5 million (USD785,000) of farm produce during the three-hour show. Nearly 1.9 million people tuned in, with a peak viewership of 33,000, according to data from short video platform Douyin, TickTok’s Chinese sister app, where the event took place.

After people complained that the products were too pricey, Yu said that was because New Oriental selects only the best-quality agricultural products.

New Oriental announced on Nov. 14 that it would stop teaching academic subjects to students from kindergarten to grade nine, or K-9, by the end of this year. The move followed new government guidelines in July to ease the ‘twin pressures’ of excessive homework and off-campus tutoring on children in compulsory education.

New Oriental is not seeking to withdraw with “elegance,” but to confidently transform itself, Yu has said.

Income from the K-9 business accounts for half to about 60 percent of New Oriental’s total revenue, according to the company. The firm plans to close at least two-thirds of its tutoring centers, lay off nearly 40,000 staff, and focus more on adult and vocational education.

New Oriental posted around USD3.6 billion in operating revenue in the fiscal year ended on May 31, up 15.6 percent from a year earlier, a senior manager at the firm previously said. Net profit was USD413.3 million, up 73.6 percent in the same period.

Famous live sales host Luo Yonghao, a former teacher at New Oriental, will soon pay off CNY600 million (USD94 million) of debt after failing to start his own business. He holds the record for the most raised in a debut live e-commerce event: CNY100 million (USD15.7 billion).

Editor: Futura Costaglione