New Oriental Education & Technology Group Inc. (NYSE: EDU) sank to a five-year low on Wednesday, after short seller Muddy Waters LLC alleged that the Chinese profit educational services provider's accounts are fraudulent.

21^st Century Business Herald (hereinafter referred as 21CBH), a leading business newspaper in China timely obtained an exclusive interview with Yu Minhong, CEO of New Oriental.

21 CBH: Do you find being pushed into a passive position by Muddy Waters’ report?

Yu: I feel guilty rather than passive as so many investors have brought our shares and now they have to suffer the loss because of the report. But it’s not New Oriental’s fault. We didn’t make it.

21CBH : Have you communicated with the company interior?

Yu: I have written several letters to top management, and we are united to overcome the difficult time.

21CBH: Is current influence mainly hit on stocks and investors?

Yu: Yes, totally in the secondary market. The company itself is not a bit influenced by Muddy Waters' irresponsible report.

21CBH: Is the timepoint you adjusted your VIE structure a coincidence or ?

Yu: Not a coincidence at all. We adjusted the VIE aiming to convince our investors and SEC that we are innocent.

21CBH: What about the fnancial fraud mentioned by Muddy Waters?

Yu: Not a problem at all. All the taxes are paid according to relevant regulation. Only Beijing division enjoys certain concessions.

21CBH: What about franchisees?

Yu: Nonsense. It’s brand licensing fee rather than franchisees revenue.

21CBH: Do you find Muddy Waters has chosen a good timepoint to release the report, just the following day after SEC’s investigation?

Yu: Muddy Waters profits by toppling others. But they don’t have basic morality and even attack healthy companies.

21CBH: The last conclusion put forward by Muddy Waters said you would issue a new profit report and Deloitte would resign?

Yu: Our profit report is rigorous and it’s ridiculous that our auditor has to resign.

21CBH : Will the stock plunge lead to delisting? Since you previously mentioned a regret of going public.

Yu: I truly regret going public as many troubles come along with listing. But at this point it’s precisely not a good time to delist. We have to prove to the public that it’s healthy here in New Oriental.