The Chinese hand tour suffered short, the executive came to marry the share price did not plunge

The first wave of "shorting" against China stocks in 2015 hit the Chinese hand tour on the Nasdaq listing.

January 15, the U.S. investment agency GeoInvesting wrote that the Shenzhen-kai Soft Silver Technology Co., Ltd. is China's hand tour has not disclosed the associated entity, the Chinese hand travel allegedly through the company virtual increase revenue.

China's tour was clarified on the evening of January 16, saying the report had many speculative speculations and misconceptions, and that none of the company and its managers were in control, and that China's travel and positive turnover accounted for only 1% of the revenue. In response to the Beijing News reporter, the Chinese tour explained in detail the business dealings with Chiang Kai-shek and said there was no association between the two companies.

The second day of the short report, China's tour had plunged 7.83%, but the company's shares did not fall further as executives clarified the issues. The capital market seems to have cast a "vote of confidence" in China's hand tour.

China hand tour by U.S. investment Agency survey

January 15, U.S. investment agency GeoInvesting on its official web site published a report on the champion tour of Nasdaq listed companies-"China Mobile games–cmge–who is really maximally played" ("Chinese Hand Tour- Who was really fooled? "

In the report, GeoInvesting pointed out that there is an undisclosed link between China's hand tour----------Chiang Kai-shek Soft Silver Technology Co., Ltd. (hereinafter referred to as "Chiang Kai-shek"), the Chinese hand tour is very likely through the company to increase revenue. The report said that the role of China's hand tour is likely to be similar to the muddy water before the Qin Dynasty, found a affiliated company-Tianjin Yi-Tong is very similar.

Beijing News reporter in GeoInvesting's official website to see the full text of the report, the report's firepower is mainly focused on China's hand tour and is likely to exist in the relationship, as well as business dealings.

The agency's investigation found that the company's telephone and address with the Chinese hand tour, the report also shows the investigators in Shenzhen photos, Chiang Kai-shek's Industrial and commercial registration address-Shenzhen Futian District che Kung Temple, the Cedar Tower B Block 13 Floor, is the Chinese Hand tour office.

The investigators inquired about the business information of the Chiang Kai-shek, the current Chinese hand Tour COO has indeed been the legal representative of the company, but on June 6, 2013, the shareholders and legal representatives have been changed, at present, the book Ridge is no longer the shareholders and the legal representative, the legal representative of the Zheng people into Azalea.

The report also shows that Chinese hand-launched some games, such as "superhero" "Every Day Hero" "I Am the Shadow" and so on, in Baidu's 91 hand tour platform, and 360 mobile phone assistant platform, showing the operator as "positive soft silver." These clues suggest that there are indeed some business dealings between the Chinese and China's hand tours.

The report speculated that if China were the ones that had not been disclosed, Chinese hand travel could add to the company's operating income.

Affected by the short report, the next day, China's share prices were volatile. As of January 16, the Chinese hand Tour reported 17.54 U.S. dollars, down 7.83%, and its share price fell to 16.36 U.S. dollars at the lowest.

"The revenue that is being brought is only 1%."

So, what is the link between China's hand tour and the positive, whether there is the possibility of increasing income through the virtual?

On the evening of January 16, Chinese tour officials issued a clarification statement saying that neither the company nor any of its managers were in control. The statement said the investigation report was flawed, not only with a large number of unfounded inferences, but also by a number of misconceptions about past events and situations.

In the media interview, the Chinese Hand tour response said, was founded in November 2009, at that time should be the book Ridge is indeed the shareholders and CEOs, is also with the Chinese hand tour Friends of the Digital (Kkfun) has a deep cooperation-through the agent Kkfun function machine Game products, In part of the manufacturer's channel pre-installed promotion, kkfun based on the promotion of the manufacturers brought about by the number of users and the game consumption generated by these users, according to a certain price and the proportion to pay promotion fees and divided.

Therefore, the name "Chiang Kai-shek in Shenzhen" was mentioned in the 2012 annual report submitted by China in April 2013.

However, according to the book Ridge, in June 2013 when the Chinese Hand tour set up a superb game, they have officially withdrawn, do not hold any stake in the company, nor gain any interest in the company.

Response to the media in the book Ridge, at present, China's hand tour and still have cooperation, but only in the use of some of the large channel platform to upload the account of the game, is not through the issue, because the actual settlement of these games is still the main channel platform and the Chinese Hand Tour direct settlement, not through the Chiang Kai-shek.

The reason is to upload the game package through the Chiang Kai-shek account, the book Ridge explains: "This is because as the main channel platform advertisers, using the positive account upload can get a better ranking advantage, so the Chinese hand tour part of the game will use its account to upload the game." ”

Beijing News reporter to many people in the industry to confirm the tour, in the domestic hand tour industry does exist this practice, a hand tour of the issuer will be another company's name with 91 of assistants, 360 mobile phone assistants and other channels to contact, channel business on the page marked by the issuer, perhaps not the real issue of the game.

In an interview with Beijing News reporter, China's hand tour response said that at present, there are two capital exchanges between China's hand tour and Chiang Kai-shek: First, some of China's games with the Chinese hand to carry out a joint operation, then the Chinese hand tour will be to obtain income; the second is the Chinese Hand tour agent of some games through the positive channel promotion and distribution, Therefore, the Chinese are going to travel to China to collect fees for distribution and promotion.

The company said the revenue from the three quarter of 2014 years ago accounted for less than 1% of the company's total revenue, while China's tour of the capital in the three quarter of 2014 years ago accounted for only about 3% of the company's total operating costs.

"It is because of the small proportion of income, so did not disclose in the earnings report." "Chinese hand wandering facing the Beijing News said:" Not to mention is also not the Chinese Hand Tour Association. ”

In response to the unanimous questioning of two office addresses, the media had previously received an interview with the book Ridge, which said that the original Shenzhen office lease was due to be held in the former, and that the company had no intention of renewing its lease, but was unable to find a suitable new office space as scheduled. and the new tenant urgently needs to use the address for registration company, so Zheng Cheng soft silver executives will temporarily change their registered address to China Hand tour Shenzhen office.

Stock prices have not plunged

On the second night of the report, China's tour of the Chinese side clarified the allegations. The move was quick. After that, geoinvesting, the US investment agency, did not release more evidence to refute it. The capital markets also seem to have cast a vote of confidence in the clarification of China's hand tour. As of January 22 stocks closed, China's share price closed at 17.51 U.S. dollars, did not appear a further plunge.

"The impact of the incident on China's hand tour is not particularly significant, mainly because the proportion of Chinese hand-taking is too small to be achieved through the revenue." A senior U.S. investment fund analyst told The Beijing News: "As opposed to some of the previous turmoil, institutional investors are not particularly concerned about the incident." ”

It is noteworthy that Chinese hand tour is still one of the largest game publishers in China, according to Analysys International report, in the third quarter of 2014, the domestic mobile game platform distributor Competition, the Chinese hand tour to 19.5% of the market share in the first, with the Nasdaq-listed fun games to 15.6% ranked third.

By contrast, China's hand tour market capitalisation is lower than the fun, as of January 22, the U.S. close, the Chinese hand tour market value of 551 million U.S. dollars, and fun game market value of 625 million U.S. dollars.

China's third-quarter operating income was 357.6 million yuan (about 58.3 million US dollars), with a net profit of 75.2 million yuan (about 12.3 million US dollars), up 193.8% from a year earlier, according to the 2014 quarterly report of the Chinese tour.

In this respect, familiar with U.S. stocks analysts said that the short institutions often choose to release good news, the stock price rose for some time, issued short report, if short success, profit will be more.

Related

Company "Infighting"

Hurt a lot of stock prices

June 2014, the Chinese hand tour has exposed personnel unrest, the company has issued a report, including President Chong, Vice President Sun Jingzhi, Vice President du Hin, and so on 9 senior executives were dismissed. The presentation of the document is rather tough-"spontaneously from the date, stop the above people in China Hand tour all the work, and in the date of dispatch three days to complete all work and office supplies transfer." "The matter was interpreted by the media as President Chong and CEO Xiaojian's" infighting. " This kind of personnel unrest, also lets the Chinese hand swims the share price to fall endlessly.

Personnel Adjustment Bulletin released the day, China's hand tour suffered a cliff-type plunge, the day fell 22.47%. In July 2014, Chinese share prices, which were the lowest since 2014, fell to $12.58 trillion, down 70% from the February 2014 40.

August 18, China tour will be the book Ridge back to the company, appointed chief Operating Officer (COO). Xiaojian and the book Ridge issued a letter to explain the matter, said that personnel changes are mainly to streamline the organizational structure. Then Chong in the circle of friends forward this joint letter, and enclose the text: Brothers Unite, its profit break gold! Little friends, we will create more brilliant! Let the rumors come to an gossip. After that, China's share price has been rising, and the four-quarter share price has remained above $20 trillion for a long time.

There is a view in the industry that, in the eyes of the U.S. stock, the company's high level infighting is often a blow to the company, which will affect the company's long-term share price.