New Oriental Education & Technology Group (9901.HK) and East Buy Holding (1797.HK) experienced significant declines in the Hong Kong stock market. New Oriental's shares dropped over 31% at one point, while East Buy saw a nearly 10% decrease. By midday close, New Oriental was down 25.05%, and East Buy fell by 2.97%.
The market reaction followed New Oriental's release of its second-quarter earnings for the fiscal year ending November 30, 2025. The company reported a net revenue of $1.039 billion, a 19% year-over-year increase, and a net profit of $31.93 million, up 6.2% from the previous year. However, operating profit fell by 9.8% to $19.25 million. On a Non-GAAP basis, net profit decreased by 29.1% to $35.54 million, and operating profit dropped by 45.8% to $27.58 million.
New Oriental's performance was negatively impacted by East Buy (1797.HK). Excluding losses from East Buy's self-operated products and live e-commerce business, New Oriental's operating profit was $25 million, marking a 102.5% increase from the previous year. A company representative mentioned that the guidance for the next quarter might not meet market expectations, acknowledging East Buy's impact on the second-quarter results. The decline in East Buy's performance was attributed to the divestment of "With Hui" in July last year, which had a one-time effect, but excluding this, East Buy was profitable.
