Net Qin and then hit the muddy water punch

Shares in NetQin (NYSE: NQ) closed up nearly 7% Wednesday on Wednesday as the company issued a statement on Muddy Waters' A negative report released Monday responded.

On the same day, Qin shares rose 0.28 US dollars in regular trading on the New York Stock Exchange, to close at 4.42 US dollars, or 6.76%, intraday gains hit a high of 4.63 US dollars. In the past 52 weeks, Net Qin's highest price of 25.90 US dollars, the lowest price of 4.12 US dollars.

In October last year, muddy water accused NetQin of manipulating a fraud. In its latest report released on Monday, the agency alleged that the management of NetQin engaged in fraudulent activities when it issued a statement on July 3, when NetQin announced that it had " The independent audit body that is examining the company's accounts hopes to expand the scope of the audit. NetEase also announced on the same day that Han Ying, chairman of the audit committee of the company's board of directors, would leave his position "for personal reasons unrelated to the duties of his company."

NetQin July 3 announcement of the above news, the company shares plummeted 31% on the same day.

In a report Monday, muddy water said: "Qin deliberately delayed the time to recognize the truth so that insiders and their agents in NetQin could sell more stocks at the expense of the existing shareholders." The report also said that NetQin is "distorting The true state of its audit procedures, "and the relationship between the company and PricewaterhouseCoopers Zhong Tian LLP, one of its auditors.

NetQin responded in a statement issued Wednesday saying: "This independent investigation is overseen by a special committee of independent directors. Investigations are conducted by Sherman Stirling LLP Shearman & Sterling LLP) and Deloitte & Touche Financial Advisory Services, both of whom are respected for their integrity of reputation. The investigation did not reveal any fraud that NetQin engaged in under the muddy water "

The statement added: "NetQin has disclosed important information in a timely manner based on regulatory requirements of the Securities and Exchange Commission including information on the departure of the chairman of the audit committee and the appointment of new independent directors, including the appointment of a new audit committee Chairman of the network after the completion of the task of the special committee, net Qin immediately announced the results of an independent investigation. "Qin also said that muddy water in October last year, the first report alleging the company's fraud, the company's management It has always been subject to transaction control.

In early June of this year, NetQin announced the results of its independent audit show that the company's publicly announced financial performance has always been with its cash balance and revenue "in line."

Muddy's debut report, released for the first time last year, caused net Internet stock prices to plummet, and its current share price has fallen more than 70% from its historic high of 25.90. At that time, Muddy Waters allegedly made a large area of ​​network fraud and claimed that "the stock price should actually be zero." At least 72% of China's security product revenue claimed by NetQin was fictitious. " At the same time, muddy water also alleged that NetQin severely exaggerated the company's share of the Chinese market, saying its share of only 1.5%, rather than the net Qin himself claimed 55%; the number of paying users is less than 25 It is not the 6 million people NetQo himself claimed. (Swiss snow)