Muddy Waters questioned Huanju Group’s data fraud and announced short selling, Huanju Group’s share price plunged 26%

By yqqlm yqqlm

Muddy Water, a well-known short-selling agency, said on Wednesday that it is doing aerial stocks Happy Gathering Times. Huanju Times stock price plunged after hearing the news, the intraday decline was close to 30%, refreshing the intraday low since mid-June to 70.60 US dollars . As of the close, the company’s share price reported $73.66, a drop of 26.48%.

In a brief report, Muddy Waters stated that the survey showed that about 90%of YY live broadcasts were fraudulent, which is a false ecosystem. The income of high-income live performers is only a small part of the total reported. The fan organizations in the YY live broadcast are all internal robots, and over 50%of the gifts are also controlled internally by Huanju Group, Baidu These problems may be discovered in subsequent in-depth investigations. In addition, Huanju Times international live broadcast service Bigo has a degree of fraud comparable to YY live broadcast.

Baidu previously announced that it has signed a final binding agreement with Huanju Group to acquire Huanju Group’s domestic live broadcast Business (ie”YY Live”), with a total transaction value of approximately US$3.6 billion, and the transaction is expected to be completed in the first half of 2021.

After the market this Monday, Huanju Group released its financial report for the third quarter of 2020 as of September 30. Net income increased by 36.1%year-on-year to 6.286.4 billion yuan ($925.9 million), compared with the same period in 2019. It was 4.617.3 billion yuan. Net profit was 2.303.2 million yuan (339.2 million U.S. dollars), compared with 61.8 million yuan in the same period in 2019. Under non-US GAAP, net profit was 809 million yuan ($119.2 million), compared with 493.4 million yuan in the same period in 2019.

After the financial report was released, Huanju Chairman and CEO Li Xueling stated that Huanju Group itself is not giving up the Chinese market , We still have to focus on business expansion in China, this general direction has not changed. The company’s chief financial officer Jin Bingzhe said that Bigo Live’s performance continued to be strong and had reached breakeven in the third quarter and even achieved profitability. The main regional markets are the Middle East, Southeast Asia and other regions. The growth of Bigo Live in different markets such as North America, Europe, Japan, South Korea, New Zealand and Australia also continued to be strong.