Muddy water accused in its report of fraud Qin network operations

Tencent Technology News June 4, in response to a fraud agency allegations against NetQin of Muddy Waters late last year, NetQin announced on Wednesday that the company's special committee of directors of the Board's independent investigation of the case.

Today's pre-market trading, net Qin shares rose 2.6 US dollars, up 34%, now reported 10.22 US dollars.

On October 24, 2013, Muddy Waters accused Cyberqin of fraud in its report on its activities. After that, the NetQin board of directors established an independent special commission to investigate the matter and to conduct an investigation by an independent lawyer. The team conducted extensive investigations of NetQin's business activities and financial records.

During the investigation, the investigation team did not find any evidence that NetQin had had any fraud alleged by Muddy Water Company. In addition, the investigation team also put forward a series of suggestions to NetQin to further enhance the company's internal management. NetQin's board of directors has also adopted these recommendations and guided the company's management to implement it.

In order to verify the allegations of Muddy Waters last year, the independent investigation has carried out a survey on the business activities, earnings, cash flow and revenue of NetQin, partners in China and overseas, and major acquisitions, which lasted six months. In the survey, the company management and staff fully cooperate with the survey.

To wait for the final result of the investigation, NetQin postponed the annual audit report to the Securities and Exchange Commission (SEC).

At the end of October 2013, Muddy Waters released a 97-page report calling into account the number of users and performance fraud. Triggered a series of subsequent stock price turmoil and controversy, questioned. Report released the same day, net Qin closed down 47.16%, almost cut the market value. (Tan think)