Network Qin suspect illegal sale of company stock

Recently, the United States short the mechanism Muddy water released the latest report, said Qin deliberately postponed the company statement, the purpose is to provide insiders in China an illegal sale of shares of the company the opportunity. Muddy water, said Qin net move once again undermined the interests of existing shareholders.

The following is the main content of the report:

NetQin issued a statement on July 3 to prove that the short seller was right to judge, but Mr. Qin may deliberately postpone the release of the statement in an effort to win the insider 's illusion of selling time illegally for Chinese insiders. The statement also disguised the poor network of Qin audit work. Net Qin announced a few hours before the start of the Fourth Independence Day holiday on July 4 that Han Ying, chairman of the audit committee of the company, resigned. The company also announced that PricewaterhouseCoopers Zhong Tian CPAs Co., Ltd. (hereinafter referred to as "PricewaterhouseCoopers") requested to expand the scope of the audit. Earlier, PwC's audit report has been postponed for more than two months. Although these two pieces of information prove that Sinolink short sellers are right to judge, we still have very much doubt:

- Net Qin deliberately hid the two pieces of news so that Sinolink's Chinese insiders and their agents can illegally sell more shares, damaging the interests of existing shareholders.

- NetQin distorts once again its true audits and its relationship with PricewaterhouseCoopers. NetQin's previous statements and actions made it clear that it knew that PricewaterhouseCoopers would never release an unqualified 2013 audit report. Statements related to PricewaterhouseCoopers' request to expand the scope of the audit are misleading, aiming to keep "passengers" on the sunken ship of NetQin so NetQin insiders can get a respite.

We believe that by June 25: a) Han Ying has informed NetEase that she will resign, and b) NetQin already knows that PricewaterhouseCoopers will never release an unqualified audit report. By postponing the announcement for at least a week, NetQin may offer insiders an opportunity to sell their shares.