Muddy Water Spy undercover six months new Oriental share price again hit

Peat, peat, involved in the VIE survey of the new Oriental, yesterday again exploded by shorting institutions muddy Waters. Muddy Waters July 18 issued a challenge to the new Oriental report, and the unit rating to "strong sell." The same day, the new Oriental shares continued to plunge 35%, the share price below 10 U.S. dollars. Two trading days, the new Oriental fell 57.32%, the market capitalisation of nearly 2 billion U.S. dollars.　　After a fierce market questioning, the new Oriental helm, Mr Yu, finally made a public response last night, saying that the new Oriental has been a law-abiding taxpayer and will work to protect investors ' interests. Muddy Water called its "spy" investigation of the new Oriental for six months, July 17, the U.S.-listed new Oriental Disclosure received the SEC (Securities and Exchange Commission) investigation letter, the company's accounting practice launched a formal investigation. News hit the stock price, the day tumbled 34.32%, closed to 14.62 U.S. dollars. The next day, muddy Water Company issued a query report, the new Oriental stock rating as a strong sell. According to the snowball user "Marco" translation of the record, muddy water report that the new Oriental will store performance as a direct shop to deal with whitewashing the report, that the new Oriental profit margins far higher than peers, high abnormal and so on.　　And said the problem of the new Oriental is far more serious than an unstable vie structure.　　On the third page of the report, muddy water mentions that their "spies" have conducted a six-month investigation into new Oriental. The report also refers to the 5 years has not issued a dividend of the miser New Oriental (before listing but paid VC generous dividend), April 17 this year uncharacteristically issued its first dividend after the U.S. listing, the sudden dividend is to respond to future doubts.　　"A lot of Chinese companies smell the trouble and they will send dividends immediately." The shares were hit hard again. Market capitalisation evaporated 2 billion US dollar a day earlier, the shares of the new Oriental, which fell into the Vie storm, had fallen 34.32%, plunging again on July 18, closing down 35% per cent and the share price of 9.5 dollars.　　In the past 52 weeks, the new Oriental's highest stock price was $128.43.　　Two trading days, the new Oriental fell as high as 57.32%, the share price reached a 5-year low, the market value evaporated nearly 2 billion U.S. dollars (about 12.7 billion yuan), shrinking to 1.47 billion U.S. dollars.　　Most of the shares in the US listing followed a slump, with a 31.82% per cent decline in the United States and a 18% fall in the international market.　　Goldman Sachs suspended its rating of new Oriental in Wednesday after issuing an SEC investigation, Goldman Sachs suspended its new oriental rating. Goldman Sachs said it had suspended its investment rating and set its target share price for new Oriental, mainly because there was currently no sufficient basis to determine its investment rating and the target price of its shares. Previously announced investment ratings and target stock prices are no longer valid.　　Goldman Sachs said it would continue to assess the fundamentals of the new Oriental, while keeping a close eye on the progress of the published formal investigation.　　However, the Korean investment company's future Asset securities issued an investment report in Wednesday to maintain the new Oriental stock "buy" rating, while maintaining a 21 dollar target share price unchanged. Text/Our correspondent Ziyan Yu last night Weibo first responded to questions about the new Oriental No privatisation plan yesterday evening, is at the cusp of Mr Yu to send a message to our correspondent: "has been in the meeting, now all good." "Will try to protect the interests of investors" in fact, at 20:27 yesterday, Mr Yu, chairman of the New Oriental Education Technology Group, finally "spoke" on his microblog to respond to public questioning about the vie and Muddy Waters. He said that the new Oriental country more than 600 teaching points 100% Holdings, only in the new Oriental in more than 10 small cities have cooperative operation, the new Oriental will never use VIE (domestic "agreement control", that is, the listed entities of overseas registration and the domestic business operations entities separated, The listed entity abroad controls the business entity within the territory through agreement, and the business entity is the VIE "variable interest entity" of the listed entity, which destroys the investor's interest. Mr Yu admits: "Although I don't like to go public, but the market must be single-minded operation of the new Oriental schools are all straight shop, bubble children in some non-direct city cooperative School, only the cooperation fee into the financial results; New Oriental has always been law-abiding tax-paying business; New Oriental respects the United States Securities Commission on the Vie investigation and strives to protect investors ' interests. "will be relieved to make the new East better" In addition, Mr Yu revealed that the new Oriental did not privatize the city plan. No matter what happens, "the interests of students and employees are above everything else." New Oriental will be peace of mind to do the new Oriental better! New Oriental announced on July 11 that it would further strengthen its corporate governance structure by simplifying the shareholding structure of Beijing New Oriental Education Technology (Group) Co., Ltd., and transfer the Vie 100% to the entity under Mr Yu's control through an unsecured agreement (Mr Yu Holdings 53%).　　Mr Yu said the restructuring of the new Oriental Vie had no effect on the structure of the new Oriental listed shareholders, and there was no plan to privatize. Mr Yu, who has said he does not want to be listed, is a 50-year-old from Jiangyin, Jiangsu, and founded Beijing's New Oriental School in 1993. In the eyes of international students, Yu Yu's "GRE Vocabulary selection" For many years by the students as "red", its "Godfather" status has been no one to the right. By 2000, the new Oriental once monopolized Beijing 80% of the overseas training market, occupying half of the country, the annual number of training students reached 200,000. September 7, 2006, New Oriental Landing on the New York Stock Exchange, as the first Chinese education concept stocks, the new Oriental by many investors and media hot, only on the day of the listing, Mr Yu's worth of 242 million U.S. dollars.　　However, Mr Yu later told a number of media interviews that he did not want to go public, but the listing may be the new Oriental and new Oriental best choice. Wen/Our correspondent Yang Yu Yu "New Oriental fake Four sins" claimed not to join, but its store has been joined the form of the franchise, but only one-time franchise fee, but the franchise performance or be counted into the total revenueThe shareholder of the overseas listed company is the mother of Mr Yu, who is suspected of "speculating"; the prospectus claims to enjoy government tax cuts, but the corresponding column for the registration file is "none". About franchise to the muddy water company about the new Oriental bubble children exist "franchise" question, Mr Yu said that at present, the new Oriental brand in all schools, are new Oriental Direct camp, new Oriental brand bubble children's education in the country authorized 19 to join the school, the Stars brand authorized 2 to join the school. The above 21 schools, all only authorize the use of bubble children and stars brand, rather than authorize the use of new Oriental brand.　　In addition to joining costs, the above joined the school's own operating income has never been reflected in the new Oriental comprehensive financial statements. On the question of taxes on muddy water companies, Mr Yu said that the new Oriental has been a law-abiding company, for many years has been a major taxpayer, has been in accordance with the relevant national policies and regulations to pay a variety of taxes. Mr Yu also explained that the 17th share price fall was affected by the SEC's letter on the structural Adjustment Survey of the new Oriental vie. The 18th share price fell because muddy water companies issued a query about the new Oriental.　　At present, new Oriental management and operation in the normal track. On the "small earthquake" exposure in financial view the credit crisis as New Oriental's restructuring of the VIE (variable interest entity) structure was investigated by the SEC (US Securities and Exchange Commission), the Chinese concept stocks were sold by investors and the stock prices fell collectively. Among them, 17 shares fell more than 5%, 30 languished shares fell by more than 3%. Chinese concept stocks are encountering a collective "small earthquake".　　China concept stocks four major sectors of the plate, the education sector led down.　　Industry analysts believe that this round of China concept stocks "small earthquake" behind the deep-seated reason is that the Chinese concept stocks are experiencing a credibility crisis, a little "trouble" will easily trigger the "butterfly effect."　　Dongdengwen, director of the Institute of Financial Securities, Wuhan University of Science and Technology, argues that foreign investors are not aware of Chinese companies, and that for companies from the same region, they often think that there are similar flaws and problems, and thus have a linkage effect. Zheng, chief economist of Guangzhou Securities, believes that the underlying reason behind the fall in China's concept stocks is that the Chinese concept stocks are not good enough abroad.　　It has also made the once-sought-after Chinese concept stocks the target of a short body. Wen/Xinhua Cartographic/Kang Lin