Net Qin three was muddy water "air attack" lost market trust

For Qin investors, the mood of the past week can be described as mixed.

"This year's investment in the NQ network Qin, did not expect not only consulting every investor scoffed, the company's internal researchers even do not want to look at one." Shenzhen Oriental Harbor Investment Management Co., Ltd. But Bin in his latest blog Wrote.

On July 3, NetQin announced that PricewaterhouseCoopers, an independent auditor, demanded that an additional audit process be implemented to expand the scope of the audit of the company. At the same time, Han Ying, Chairman of the Audit Committee, officially resigned. Subsequently, net Qin plunged 32%.

The chairman of the audit committee left the company, the major shareholder quarreled briskly, and the auditing annual reports had been postponed repeatedly. In the US stock market, NetQin has been in constant trouble since its listing. Each time, the muddy water can not be a fatal blow to it, Net Qin seems difficult to completely self-evident innocence.

July 7, muddy water company on the net Qin launched the third "air strikes." This is a company that has become "gray" in the eyes of investors after being spattered with dirty water again and again.

In the face of the third attack, this time Qin said to the outside world, "determined to make every effort to reshape the capital market trust Qin."

However, it seems investors, net Qin from the SP family history, before the listing by the CCTV 3.15 exposure, and then again and Muddy water battle.

Net Qin, where is the road?

Muddy water three air raids Qin

So far, Qin and the United States short positions in the muddy body has been fighting three times.

For the first time, muddy water almost strangled the net Qin's throat.

On October 25, 2013, NetQin said at a press release for its 8th anniversary conference that "NetQin's market capitalization has finally exceeded 1 billion U.S. dollars this summer."

The same day, the United States short hair muddy water institutions launched the first wave of Qin "attack" Qin network within an hour of being cut.

At that time, the muddy water report listed Net sin's nine crimes, including falsifying revenue and faking shares. For the allegations of muddy water, net Qin to 97 pages of the report as a counterattack.

Then Qin network high-profile advertising, advertising is: "carry the world is yours."

In April of this year, Muddy Waters released its second report, accusing NetQin of going on fraud before and after the release of Q4 2013 earnings on April 11. Muddy water pointed out that net Qin 2013 fourth quarter earnings release date extended by one month. This shows that PricewaterhouseCoopers conducts an audit in a more robust manner than ever before.

Net Qin shares plummeted three percent in two trading days, the market value evaporated 300 million US dollars.

On June 4 this year, Net Qin released the result of the investigation conducted by the Independent Special Commission, claiming there is no fraud committed by Hunshui.

But in less than a month, the air strikes come again. NetQin delay the release of the 2013 annual audit report, muddy waterQuanQin delay submitting the annual report means that the company has serious problems, saying "unambiguously, net Qin is a liar."

This round of dive with the net Qin share price, compared with the highest value of 1 billion US dollars last year, now the net market value of Qin has been about one-fifth of the time.

Internal Audit chairman resign "Rashomon"

Muddy water of the air strikes, but also disclosed Qin Qin Qin Ying, chairman of the resignation of the news was deliberately postponed Qin released.

A chief accountant of a listed company on the Beijing News reporter explained that the listed company's board of directors set up a remuneration committee, audit committee. The audit committee is the most important responsibility, the purpose is to supervise the company's accounting, financial reporting and auditing of the company's financial statements.

July 7, muddy water questioned, net Qin stock June 25 in the absence of any news came down 5.3%, then the two trading days after another fell 4.5% and 4.7%.

During this period, net trading volume of Qin increased abnormally from the daily average of 5.2 million shares before June 25 to an average of 980 million shares a day. According to this inference, Qin Qin, chairman of the internal audit committee may have been confirmed on June 25 to leave, and Qin deliberately postponed announcement of the release time, leaving insiders know the insider information to sell the opportunity to sell.

Muddy water that, Han Ying is found inside Qin internal corruption due to work pressure to resign.

Net Qin then issued a statement to be refuted. Said Han Ying and the company no differences, due to "personal reasons" to resign.

Network Qin CEO Lin Yu explained that South Korea resign "mainly for personal health reasons."

At the same time, the Internet even quoted Han Ying 40 years ago to go to Heilongjiang to go to the countryside, had fallen into the biting glacier almost life-killing experience, said South Korea since then "has been engaged in intensive financial work, the body has always been poor." In order to prove that South Korea resigned as a health condition.

Muddy water counterattack said that after Han Ying left Qin net, still served as Chairman of the large pharmaceutical and drug companies Kant, the audit committee, we can see that leaving from net Qin is not a physical reason.

However, on July 9, just three days after Han Ying resigned from net Qin, Han Ying resigned as chairman of WuXi PharmaTech's audit committee.

For Han Ying leave the truth, the Beijing News reporter failed to contact her to confirm.

The annual report presents disappointing issues

Han Ying resign the truth is unknown. But one fact can not be rebutted, that is, net Qin 2013 annual report has been postponed for four months has not yet released.

April 10, NetQin executives in the interpretation of 2013 annual earnings, said the audit is expected to be completed by the end of April.

April 30, Net Qin said in a separate statement, the company audited the annual report for 15 days. The reason is that the company is waiting for the findings of allegations of muddy water.

By May 15, Net Qin said in a separate statement that as the annual report needs to be further improved, it can not be submitted on time.

However, on July 8, NetQin admitted in an open letter that the company's annual report posed a "disappointing question."

This time, Qin Lin, CEO of NetQin said, according to the provisions of the US Securities Act, the longest delay is 2 years to submit reports, Internet Qin May 15 has been submitted for submission of reports delayed six months to November 15, Submit the 2013 audit report as soon as possible before this time.

A chief accountant in the shares of the company told the Beijing News reporter, the NYSE and the Nasdaq listed companies annual report has a very strict time limit, under normal circumstances, April 30 is the United States listed foreign companies submitted Deadline for annual performance. If there are special circumstances, you can apply for an extension of 14 natural days. If after the expiration, the company still can not submit the audit annual report, it has entered a special state.

Under normal circumstances, the exchange will send a warning letter to such companies need to be disclosed to shareholders after receiving the warning letter, and the exchange replies, are willing to work hard to maintain the listing status, or delisting. "

The accountant said that at this time the company can also apply for a six-year buffer period, if six months later still unable to submit annual reports, they may face a mandatory delisting.

In response to the outside world, Qin can be "postponed for 2 years," the questioning, the Beijing News reporter repeatedly confirmed to Lin Qin Lin Qin card, but no response.

Network Qin public relations person said that the company is in a sensitive period, the company only one person Lin Yu can interview, "but Lin has no one answered the phone, we have no way to contact."

The above accountants, the delay in submitting audit annual reports in the United States is very rare, the move itself shows that the company's audit problems.

"Reshape trust" pseudo proposition

In the face of the third wave of muddy water attacks, July 8, Qin said outside, "is working hard to complete the 2013 financial audit, and is trying to continue to expand the network Qin business." Qin Qin determined to make every effort to reshape the capital market on the network Qin's trust. "

Beijing News reporter in the investor community website "Snowball" to see that investors are discussing net Qin was short when the event, said: do not understand.

For Qin Net "remodeling trust in the capital market" commitment. One investor said that NetQin is far from "reshaping trust" because it has not given enough trust to the company since it was released by CCTV before its IPO. "How many people now use the net Qin mobile phone guards or net Qin cell phone anti-virus? Now muddy water is only throwing public suspicions thrown."

"Net Qin is still unable to let the public and investors believe that the authenticity of its users, but the short run can not fully prove that the network Qin financial statements fraud, so this investment opportunities are not ordinary people, the best way is to avoid the non-participation, which has been Beyond the capacity of most people, "one investor said.

In June of this year, a survey released by NetQin said investigators found that "some information" may be missing on the "many devices" that were investigated. The investigation team also believes that NetQin before IPO in 2011, the company's internal management loose, the company's business practices are not standardized. At present, these problems still exist.

Since then, some insider told the media that NetQin has always been unable to provide all the information PwC needs. Net Qin in the early stages of laying too many hidden dangers, is now concentrated in the outbreak.

Now, what is the problem with the annual report of NetQin auditing? The company has not given a detailed answer except repeatedly.