New Oriental Education & Technology Group Inc. reported a 19% year-over-year increase in revenue for the second quarter, reaching $1.04 billion. However, the company faced margin pressure, leading to a drop in adjusted earnings. Following the mixed results, New Oriental's stock fell sharply, with a pre-market decline of 15.8% and a closing drop of 24.2% in Hong Kong. The company's operating profit also decreased by 9.8% to $19.3 million. The broader Hong Kong market also experienced declines, with the Hang Seng Index closing down 327.78 points, or 1.63%. Analysts are questioning whether the current stock price of around $46 represents a buying opportunity or a warning sign for investors in Chinese stocks.