Muddy Water Short Network Qin report summary: 9 cases of "sin"

Phoenix Science and technology news Beijing time October 25, according to BusinessInsider reported that the short body of muddy water Thursday for the Network Qin (NYSE:NQ) issued a short report, the Network Qin called "Big Liar." Affected by this, the Net Qin stock prices in Thursday, a plunge of more than 50%. The following article, the report on Muddy water inventory, interpretation of the 9 sins of the Network Qin. The following are the main points of the report: 1. Fabricated revenue: At least 72% of the 2012 China market security revenue, Qin Xuan said, was fabricated. Network Qin so far the largest customer is actually the Network Qin himself. 2, False share: According to our research estimates, the real share of netqin in China is only 1.5%, rather than the net Qin Xuan called 55%. 3, exaggerated the number of paid users: we expect that the Network Qin China paid users less than 250,000 people, and the Network Qin claimed 6 million people. 4, the software is not safe: netqin-oriented consumer sales of version 7.0 anti-virus software is not safe, we think it is a backdoor program, making users mobile phone vulnerable to network attacks. 5, unprotected user privacy: NetQin did not try to protect the user's privacy data, because the company uploaded data to the server process through the Chinese government firewall filtering. The user's phone is vulnerable to man-in-the-middle attacks (MITM), because NetQin did not stick to the basic security protocol. Muddy Water hired a first-class security software engineers to the NetQin's product analysis. 6, International revenue Chaos: NET Qin Xuan said 36.5 million U.S. dollars international revenue is likely to be lower than the Chinese market revenue. The company does not clearly identify the market that generates international revenue. 7. Bleak outlook: The future of NetQin is as bleak as ever. NetQin's recent campaign around advertising and gaming is nothing more than a change in the company's desire to make fraud less obvious. NetQin did not have customers, not to mention the use of customers to commercialize. 8, see decline acquisition: NetQin's acquisition is likely to worsen further. 9, the cash flow is not true: NetQin's cash balance is very likely not true. In the 2012 filing document submitted by NetQin, PwC classified all cash and term deposits as "level two assets" (some of which are difficult to assess), as we have seen for the first time. Under the control of China's foreign exchange policy, the net Qin Xuan said that the cash flow from the IPO transaction is almost certainly not implemented. Therefore, we think that the Net Qin time deposit is likely to be fabricated. (Compiling/Xiao Yu)