NetQin accused of deliberately distorting its audit status and delay the release of information

July 7, the United States short professional body muddy water July 6 release of the latest report said net Qin (NYSE: NQ) recently released statement is still misleading investors deliberately distort the audit status and Postpone information release to cover insider shipping.

Hunshui pointed out in the report that NetQin's announcement on July 3 proved that the short seller was correct, but it is likely to deliberately postpone the release in order to give Chinese insiders an opportunity to illegally sell their shares. Net Qin's statement also covered the network Qin bad audit status.

Just a few hours before the July 4 holiday of Independence Day, NetQin suddenly announced the resignation of Han Ying, Chairman of the Audit Committee, and PricewaterhouseCoopers Zhongtian Certified Public Accountants Co., Ltd. to expand the scope of the audit. However, prior to this, Zhongtian Certified Public Accountants's audit report has been delayed more than two months.

Both of these messages proved that the short seller was correct, but Muddy suspects that Qin deliberately concealed the two messages so that insiders in China could sell more shares of NetQin at the expense of the existing shareholders.

Second, Muddy also suspects that Qin deliberately distorted its audit status and its relationship with PricewaterhouseCoopers Zhong Tian CPAs. Netease's previous statements and actions indicate that it has long known that PricewaterhouseCoopers will never release an unqualified 2013 audit report. NetQin said PricewaterhouseCoopers asked to expand the scope of the audit is a misleading alibi, the purpose is to allow other investors to continue to stay on the net Qin silent ship, while insider Qin net left himself a lifeboat.

Muddy water that as early as June 25, South Korea had informed NetQin she will leave the news, network Qin already knew PricewaterhouseCoopers will not issue unqualified 2013 audit report. It postponed the release of both messages for at least a week, in an effort to give insiders a chance to sell their shares. (Lin Jingdong)