Dogfishs listing in the U.S. is suspected to be a diversion of overseas competitive websites.

category:Internet
 Dogfishs listing in the U.S. is suspected to be a diversion of overseas competitive websites.


Teng Xiao in Investor Net

In late April, Dogfish Live (Dogfish for short) submitted its prospectus to the NYSE under the stock code of DOYU, with an estimated financing scale of about 500 million US dollars, or 3.4 billion RMB.

Since Huya seized the first share of live game broadcasting in 2018, it took only one year for the company to turn its performance into profit, with annual revenue reaching 4.66 billion yuan and net profit reaching 460 million yuan. Or envy the successful demonstration of the former. Despite years of huge losses and many criticisms from the outside world on its operation, Fighting Fish is still trying to make a success of its campaign and seek to break the market.

Nowadays, it is a foregone conclusion to launch the market, but the problems and doubts that accompany the listing of Betta Fish have not yet disappeared. Why on earth?

Why are there two prospectus

According to the prospectus, in 2018, the companys business income increased by 93.8% to RMB 3,654.4 billion yuan, with a net loss of 876 million yuan.

Although the net profit performance is bad, its main business of live broadcasting has many bright spots. In the three years from 2016 to 2018, the income of live broadcasting has been increasing, accounting for 77.7%, 80.7% to 86.1% of the total revenue, respectively.

In addition to the public submission of the prospectus, the SEC (Securities Regulatory Commission) website has also appeared before the secret submission of the prospectus documents.

Searching the SEC website, Investor Net found that the prospectus submitted on March 6, 2019 had a restatement of financial statements compared with the version submitted on January 16, 2019. Among them, the audit report mentions that there were mistakes in the process of content cost amortization. The amortization period should be reduced from 1-10 years to live content (usually less than 1 year). Therefore, after submitting a financial report to SEC, the company had to change its historical financial statements.

In this regard, according to industry sources, said: Before the public submission of the prospectus, the prospectus secretly submitted by Fighting Fish has corrected the financial statements due to errors in the handling of content cost amortization.

However, it is worth noting that this adjustment has a small impact on profits of more than 40 million yuan in 2016 and 2017.

It is not excluded that Betta fishes had hoped to reduce costs through non-routine accounting methods in order to whitewash losses over the years. However, auditors or regulators may find this accounting treatment unreasonable and require companies to revise the cost data in the statement according to the standards, said the industry.

In the view of the above-mentioned persons, it also reflects to a certain extent that the companys listed financial information processing is not rigorous enough, as well as the financial internal control procedures or defects, resulting in significant accounting adjustments in the short time of two submissions.

Is the data true and valid?

In fact, in order to go public, the Betta Fish is painstaking.

Erie, a professional third-party organization, tracks the installed capacity of mobile apps. Statistics show that the installed capacity of new mobile apps is still higher than that of its peers in 2018. It is reported that Erie is the listed data supplier of Betta fish.

In October 2018, Fighting Fish? App? Came off the shelves, and the Android mobile phone application market can only find the extreme version, and the extreme version can only be viewed, not appreciated. It took more than half a month for Fighter App to come back on the shelves.

Later, on October 12, Dogfish issued a statement saying that due to platform management errors, there were still rewarding and bullet screen running incidents in the live broadcasting room when a popular anchor was blocked, which exposed serious deficiencies in social responsibility, platform management and security awareness of the company.

In the same period, Eries mobile APP statistics showed that the number of bucket loads increased sharply in the same period last year (from August to October). Generally speaking, during the same period, the whole industry, especially the head platform, should have a significant growth, but Erie data shows that the other companies in the industry have not increased significantly, only the betta has soared, October is not affected by the shelf.

Aiming at the above phenomenon that the data of Betta monitored by Erie is higher than that of its counterparts, the betta responded to the outside world that although it suffers from short-term shelving, it is normal for the business to grow faster than that of its counterparts.

According to Hexun. com, since the first half of 2018, a large number of false live broadcasters have been exposed.

Take Survival of the Jedi: Stimulating the Battlefield as an example. There are 1822 simultaneous broadcasts. There are 1360 live broadcasters with 4.0 heat, but they cant Click To Watch them. The same situation also appears in the category of live games such as QQ Flying Car, Kings Glory and Fifth Personality.

In this regard, the external response of the betta does not recognize the existence of the above situation.

Import traffic for overseas competitive websites?

While the live broadcast data is different from the growth of its peers, Fighting Fish has won the recognition of overseas competitive websites. Through the official form of sponsorship, there was a suspected overseas gambling company Lei Jintao on the official interface of the Fighting Fish website, which provided a large flow of entrance.

According to the data captured by Investor Network, Ray Sports advertised on the official live broadcasting channel of the 2008 Heroes League Global Finals, which attracted more than 8.5 million people and lasted from October 1 to October 12.

At the same time, Ray Sports, a gambling website, appears on the contribution list by brushing gifts on the fishing platform.

At the same time, Lei Jingjie, who has set up a live platform for fighting fish, has also been optimized through Baidu search, and has obtained Baidus top ranking, as well as posting in forums such as post bars to guide users to log in and register.

After registration, the E-Sports website provides the gambling service of payment and withdrawal of RMB for E-Sports Competition.

During the World Competition, Lei Jingjie gained a lot of exposure through the exposure of fighting fish, and Baidu Index increased significantly during the competition.

In fact, Ray Athletics, which harvested a lot of traffic, did not terminate its cooperation with the fighting fish because of the end of the competition. Instead, they continue to cooperate in a more covert way.

It is understood that after October 12, 2018, although the Thunder Competition advertisement in the live broadcasting room was withdrawn, it still appeared on the weekly list of gifts contribution in the live broadcasting room with the Mr. Thunder advertisement. Players can easily enter the relevant guessing communication group by clicking on the head image and searching the QQ group according to the guidelines:?565929596.

After joining the group, the announcement inside the group shows that Thunder Sports is the official partner of 8 fighters. At the same time, the group announcement also has the recommendation of guiding users to recharge 20 to 100,000 yuan, giving 18 to 1000 yuan for betting.

So, what kind of company is Ray Sports?

According to public information, Raybet claims to be a legitimate company registered in Malta. Raybet Group covers many industries in Europe, such as real estate, ports, trade, investment, tourism and so on. It has many physical offices and businesses. At the same time, it is also one of the largest E-sports platforms in the world, providing the best real-time game experience for the vast majority of E-sports players, covering all events. Provides dozens of electronic competitive games including DOTA2, Heroes Alliance, CSGO, King Glory, Jedi Survival and so on.

According to the information of Dougai and Youxun, in addition to the normal disk ports, there are exclusive disk ports, which can bring better choices to the vast number of players. Internet information shows that Leis prediction has covered almost all game items and events of different sizes. The richness of playing methods is no less than Bet365 (British Gambling Website) and other old prediction platforms. As many as 48 kinds of playing methods are available for players to choose from. Moreover, Leis prediction has developed the first five killing platforms, time platforms, head puppet platforms and csgo unpacking platforms.

Lei Jingjies Chinese official website clearly stated: In order to play the real money game on our website, you will be required to transfer money and collect money from us... Include transferring your personal information abroad when necessary. And the relevant rules of electronic bidding betting, including the civil website also has detailed instructions.

Ray Sports is a typical real gold gambling, that is, cash in and cash out. A senior game practitioner believes that the current state stipulates that virtual money in the game can not be converted back into cash, if converted, it is a disguised gambling. Leis game is similar to the rules of football and basketball. Some of them are linked to the gambling tables of Europe and other foreign countries, and some are their own odds.

As Leis main business is overseas, its promotion in mainland China is limited. Its main promotion channels are through offline Wechat Group and QQ Group.

According to the above analysis, the problem would be serious if the game was directly recommended by the broadcasting studio or the official community. But even if the cooperation between Lei Jing and Fighting is just brand cooperation, in fact, it is to use the users curiosity psychology to search this website to help Lei Jing guide traffic, which is a disguised promotion, is also illegal and legitimate, and will have adverse social impact on teenagers.

He also said that in fact, when any event introduces sponsors, it will do a very strict qualification review to avoid risk to the event. ?

It is understood that Leis gambling business includes not only electric sports, but also basketball and football. At present, the subscription payment port of domestic mobile app has been systematically identified as fraudulent and cut off.

In response to the above questions mentioned in this article, Investor Net has sent many letters to Dogfish for confirmation, and relevant people said that they would report to the company for instructions before replying, but ultimately did not reply. (Think about financial products)

Source: Responsible Editor of Investor Network: Qiao Junjing_NBJ11279