The case of Kaiyings network nest after the fall of seven senior executives

category:Finance
 The case of Kaiyings network nest after the fall of seven senior executives


Feng Xianchao, deputy general manager, born in April 1982;

Wang Yue, the actual controller and former chairman of the board of directors born in May 1983;

Chen yongcong, general manager, born in August 1983;

Lin bin, former chairman of the board of supervisors, born in July 1986;

And Jin Feng, the current chairman, who was born in July 1988.

In addition, the reporter of Economic Observer learned that Kaiying network has at least two outgoing executives who have not been disclosed publicly. Before and after that, they were investigated, namely: Sheng Liyuan, the former director, Secretary of the board of directors and chief financial officer, born in 1981, and Li Siyun, the former director, born in September 1987.

The reporter learned that some of the above-mentioned executives of Kaiying network have been formally arrested with the approval of the procuratorate, and some have been released on bail pending trial. The crimes they are suspected of include: the crime of manipulating the securities market, the crime of insider trading, the crime of breaking faith and damaging the interests of listed companies, and the crime of illegally absorbing public deposits.

In such a concentrated time, seven executives of the same company have been investigated one after another, which is quite rare in the history of A-share.

At the same time, Kaiying network also has a large number of shares and bank accounts, which have been frozen by the judiciary and waiting for freezing; in terms of share price and market value, there is also a collapse: on April 23, 2019, its closing price was 4.32 yuan, with a market value of about 9.299 billion yuan; on November 14, its closing price was 2.52 yuan, with a market value of about 5.424 billion yuan, down 41.67%.

Over the same period, the Shenzhen composite index fell 3.73% to 9746.56 from 10124.66.

If it can be traced back to Wang Yues backdoor way to achieve the highest peak during the listing period of Kaiying network, in June 2015, the market value of the stock once exceeded 49.4 billion yuan, nearly 50 billion yuan. In more than four years, Kaiying networks share price dropped nearly 90%, and the market value evaporated 44 billion yuan.

Kaiying network, whats the matter?

Starting from scratch

Wang Yuecheng is the youngest rich man in China

Among the seven executives surveyed by Kaiying, Wang Yue, the controlling shareholder and actual controller, was the first to make an abnormal announcement.

Wang Yue, 36, is from Dianshanhu Town, Kunshan City, Suzhou, Jiangsu Province. Her parents are teachers. The middle school studied in Kunshan Zhenchuan middle school. In 2001, it was admitted to Changan University in Xian, Shaanxi Province, majoring in hydrology and water resources.

In the 2017 talk show Bostan, Wang Yue said that his university majors are all computer related, and going to hydrology major is forced, subject to adjustment.

During the university period, Wang Yues main energy was still on the computer, and she had not taken any hydrological courses, so that when she graduated in 2005, there was a graduation certificate, but there was no degree certificate, because there were too many suspended subjects .

Wang Yue, who started his own business in college, built his own website, engaged in downloading mobile phone RBT and other businesses, and made a lot of profits.

In an interview with alumni Wang Yue in 2018, Changan University Journal wrote: before graduating from University, he made the first pot of gold, which is worth millions. Wang Yue told reporters a very magical experience: when baidu searches for mobile ring tones, Baidu has 76 pages in total. From the first item on the first page to the last item on the last page, the downloading of mobile ring tones is basically my website.

After graduation, Wang Yue only sent a resume to huicong.com, but fortunately (huicong.com) didnt return to me. Later, he joined Pang Dongshengs 51 online community (51. Com), one of Chinas largest social networking sites at that time.

In 2008, Wang Yue, who learned the companys management experience from 51 network, established Shanghai Kaiying Network Technology Co., Ltd. (hereinafter referred to as Shanghai Kaiying) with Feng Xianchao, a college classmate from Yulin, Shaanxi Province, to focus on the development and operation of online games.

According to industrial and commercial data, Kaiying was founded in October 2008, with the contribution of Feng Xianchao and Qian Hua, holding 10% and 90% respectively.

However, whether its Wang Yues public interview or his introduction to the reporter of the economic observer by people familiar with him, Wang Yue is the main founder of Shanghai Kaiying. Moreover, Kaiying comes from the transliteration of English king. Wang Yue says that both of their main founders have King in English, and Wang Yues English name is toking.

In fact, in less than a year, in August 2009, Qian Hua transferred all his shares to Wang Yue and Feng Xianchao. After the transfer, Wang Yue held 62.5% of the shares and Feng Xianchao 37.5%.

In skyscraper, a popular game developed by Kaiying in Shanghai, Wang Yue also directly acts as a customer service staff, leaving her phone number for customer service.

In addition to skyscrapers, the game Legend of Shushan developed by Kaiying in Shanghai is also enjoyed by players. Wang Yue said the game costs only 700000 yuan to develop and 40 million yuan to flow in one month..

Kaiyings success has attracted a lot of capitals attention.

In the years after 2009, Kaiying has experienced a series of equity transfer, capital increase and share expansion. As of January 2015, Wang Yue held 29.74%, Feng Xianchao 16.84%, and the rest were held by 9 individual shareholders or company shareholders.

In addition to directly holding 29.74% of the shares, Wang Yue is also the executive partner of Shanghai Qifei investment management partnership (limited partnership) (hereinafter referred to as Qifei investment), which holds 8.78% of the shares of Shanghai Kaiying. Wang Yue is the actual controller of Shanghai Kaiying.

On January 5, 2015, Taiya Shoes Co., Ltd. (002517.sz, hereinafter referred to as Taiya shares), headquartered in Quanzhou, Fujian Province, was suspended.

In April of the same year, the company announced that Shanghai Kaiying would set a price of 6.3 billion yuan and borrow to restructure the company. On April 17, the trading of Taiya shares was resumed, and then the trading limit was increased continuously.

On the last trading day before the suspension of trading of Taiya shares, on December 31, 2014, its share price was 14.41 yuan per share (non reversion price). After the resumption of trading, it continuously pulled out 12 trading limits. By June 15, 2015, the highest price was 70.01 yuan (non reversion price), a sharp rise of 385.84%, with a total market value of more than 49.4 billion yuan. Although the same period is also a crazy bull market in Chinas stock market, the Shenzhen Composite Index rose only 65.34%.

After that, with the stock market turbulence in 2015, the share price of Taiya shares also fell sharply. On July 9, 2015, it bottomed out to 20.75 yuan, but by the end of December 2015, it rose again to more than 66 yuan.

(from 2014 to 2016, Kaiyings stock price trend before and after backdoor listing was not reinstated. Photo source, screenshot of sina)

At the end of 2015, Shanghai Kaiying borrowed the shell to complete Taiya shares, and Wang Yue became the new actual controller of the listed company. In January of the following year, he was elected chairman of the board of directors and concurrently general manager of the company. His old partner, Feng Xianchao, was elected as the companys director and executive deputy general manager. In February, the company officially changed its name to Kaiying Network Co., Ltd., while Shanghai Kaiying became a wholly-owned subsidiary of Kaiying network.

Also in 2016, Wang Yue was ranked 516 on the Hurun rich list with a fortune of 7 billion yuan. He was also known as the youngest rich man in China who started from scratch and was in the limelight for a while.

Two strange acquisitions

Shortly after taking full control of Kaiying network, Wang Yue began to make a series of large-scale acquisitions.

In June 2016, the board meeting of Kaiying network approved that Shanghai Kaiying, a wholly-owned subsidiary of Zhejiang Shenghe Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Shenghe), purchased a total of 20% shares of jindanliang and Chen Zhongliang, shareholders of Zhejiang Shenghe Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Shenghe) at a price of 200 million yuan. At that time, Zhejiang Shenghe was valued at 1 billion yuan.

Zhejiang Shenghe, founded in July 2011, is also an online game company. It is famous in the industry for developing the Legend of the blue moon game. This game has created a monthly running water (i.e. monthly operating revenue) of more than 60 million yuan in the test stage, and a brilliant achievement of more than 100 million yuan after it was officially launched.

At the beginning of its establishment, Zhejiang Shenghe had a registered capital of 10 million yuan. Its shareholders were Jin Feng and Chen Zhongliang. Jin Feng held 80% of the shares and Chen Zhongliang held 20%.

Jin Feng was born in Shengzhou, Shaoxing, Zhejiang Province in July 1988. Chen Zhongliang was born in August 1959 in Shangyu, Shaoxing, Zhejiang Province.

People close to Jin Feng told the economic observer that Chen Zhongliang was Jin Fengs father-in-law. In this regard, the reporter of Economic Observer couldnt contact Jin Feng and Chen Zhongliang directly for verification, and Kaiying network company didnt reply to the reporters inquiry on this point.

In the resume of Jin Feng published later by kaiying.com, at the beginning of the establishment of Zhejiang Shenghe, Jin Feng was only the product manager of Zhejiang Shenghe; in 2013, he became the marketing director; in January 2018, he was promoted to the president and CEO of Zhejiang Shenghe.

In September 2015, jindanliang transferred all the equity of Zhejiang Shenghe held by Jinfeng, and the shareholders of the company became jindanliang and Chen Zhongliang.

Born in October 1990, jindanliang, like Jinfeng, is from Shengzhou, Shaoxing, Zhejiang Province.

Two people who once met with Kaiying network told the economic observer that their actual education background was only Jin Feng of high school. In the field of online games, they are gifted and rare Wizards.

A considerable part of the games developed by Jin Feng are online games adapted from Korean legend. Around 2013, he was sentenced to one years imprisonment and three years probation by the court for the crime of infringing copyright.

In June 2016, Kaiying networks acquisition also agreed that if the net profit of Zhejiang Shenghe in 2016 is not less than 80 million yuan, Kaiying network or Shanghai Kaiying will acquire the remaining 80% of the equity of Zhejiang Shenghe. The price of the 80% stake will be 2.52 billion yuan.

As of May 31, 2016, Zhejiang Shenghes net assets were only 49.0417 million yuan. The net assets of RMB 49041700, corresponding to the acquisition valuation of RMB 1 billion, have a premium of more than 19 times!

In 2016, Zhejiang Shenghe achieved a net profit of 89.9776 million yuan and achieved the goal of gambling in this year.

On July 26, 2017, the board meeting of Kaiying network approved that Kaiying network company purchased 51% of Zhejiang Shenghe shares held by jindanliang at the price of RMB 16006.5 million.

Whats unusual is that: for the amount over 1.6 billion, the payment method is within ten (10) working days after signing this Agreement, 120 million yuan will be paid in advance; and then within ten (10) working days after the agreement comes into force and when the transferee (Kaiying network) completes the change of use plan of the raised funds, the remaining amount will be paid in one time.

Kaiyings payment method is quite straightforward . Generally speaking, the acquisition payment of a listed company will be made in several installments according to the annual performance of the acquisition target, often in several years. A capital market person who has been engaged in M & A transactions of listed companies for many years told the economic observer.

There is also a foreshadowing in this transaction: the transferor promises to purchase the listed non restricted tradable shares of Kaiying Network Co., Ltd. with RMB 750 million among them before December 31, 2017 after receiving the equity transfer payment from the transferee.

That is to say, jindanliang will pay 750 million yuan to buy shares of Kaiying network before December 31, 2017.

Since July 27, 2017, Kaiyings online share price has gone all the way up, up 32.04% by the end of 2017; on December 12, 2017, the cumulative increase reached 69.50%. From July 27, 2017 to the end of that year, the Shenzhen Composite Index rose only about 7.22%.

(Note: the trend chart of Kaiying networks share price from July 27, 2017 to the end of 2017, and the share price recovers forward. Photo source, screenshot of sina)

Less than a year later, Kaiying network launched a new acquisition.

On May 29, 2108, Kaiying network board of directors passed the proposal of cash acquisition of part of the equity of Zhejiang Jiuling Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Jiuling).

The content of the acquisition is that Shanghai Kaiying, a wholly-owned subsidiary, acquired 70% of the total equity of Zhejiang Jiuling held by Zhou Yu, Huang Yan, Li Siyun and Zhang Jing for 1.064 billion yuan. Corresponding to the valuation of the whole company of Zhejiang Jiuling is 1.52 billion yuan.

Zhejiang Jiuling, formerly known as Hangzhou Jiuling Network Technology Co., Ltd. (hereinafter referred to as Hangzhou Jiuling), was founded on April 19, 2017, more than a year ago.

Initially, the shareholders include Li Siyun, Jin zhouying, Jin Sai, Zhao Xiang and Hangzhou Jiuwan Network Technology Co., Ltd. (hereinafter referred to as Hangzhou Jiuwan), of which Hangzhou Jiuwan accounts for 51% of the shares.

Hangzhou Jiuwan company was founded in June 2014. Zhejiang Shenghe and four other natural persons are shareholders. Even before October 30, 2014, Zhejiang Shenghe was the only shareholder who paid in capital.

In a series of industrial and commercial changes from 2016 to 2017, Jinfeng once appeared as an executive director, and jindanliang once held 90% of the equity of Hangzhou Jiuwan company.

The former shareholders of Hangzhou Jiuwan company also include Hangzhou Shengyan Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Shengyan). Zhejiang Shenghe company and jindanliang were the controlling shareholders of Zhejiang Shengyan.

Since June 2017, two months after the establishment of Hangzhou Jiuling company, jinzhouying, Jinsai, Hangzhou Jiuwan company and other shareholders have successively withdrawn. Prior to the acquisition in June 2018, the shareholders were Zhou Yu, Huang Yan, Li Siyun and Zhang Jing, four natural persons, holding 65.55%, 17.10%, 12.35% and 5% respectively, and Li Siyun was the legal representative.

It should be noted that Zhou Yu and Huang Yan, like Jin Feng and Jin Danliang, are from Shengzhou, Shaoxing, Zhejiang Province.

Moreover, on May 29, 2018, Kaiying networks acquisition of Zhejiang Jiuling (Hangzhou Jiuling) Co., Ltd. also agreed that Zhou Yu, Huang Yan, Li Siyun and Zhang Jing promised to purchase Kaiying networks shares with no less than 500 million yuan within 12 months after the completion of the equity transfer.

In addition, there is another thing worthy of attention: on February 23, 2018, another listed company, Zhongying Internet Technology Co., Ltd. (002464. SZ, hereinafter referred to as Zhongying Internet), headquartered in Kunshan, Suzhou, Jiangsu Province, released the public notice on the progress of major asset restructuring and the postponement of resumption of trading. At that time, it took Hangzhou Jiuling company as one of the targets of M & A and restructuring with Hangzhou Zhou Jiuling signed a letter of intent to acquire.

On April 26, Zhongying Internet suddenly announced that it would give up the acquisition of Hangzhou Jiuling company. One of the reasons is that the financial data verification of Hangzhou Jiuling still needs a long time.

Two days before the announcement, Hangzhou Jiuling company had changed its name to Zhejiang Jiuling.

More than a month later, on May 29, 2018, Kaiying network announced the acquisition of 70% of the equity of Zhejiang Jiuling.

At least two people close to Jin Feng told the economic observer, whether its Zhejiang Shenghe or Zhejiang Jiuling, Jin Feng is the big boss behind it. A considerable part of the shares of jindanliang and others are only held for Jinfeng, which is almost an open secret in the industry.

More people familiar with the matter said that in the two odd acquisitions with a total amount of 2.864 billion yuan, there was a huge interest transfer behavior between Jin Feng and many senior executives of Kaiying network at that time.

These executives include: Wang Yue, Chen yongcong, Sheng Liyuan, Lin bin, Feng Xianchao, etc. Chen yongcong once served as Kaiying network director, general manager, chief financial officer, etc.; Sheng Liyuan also served as Kaiying network director, secretary, deputy general manager, chief financial officer, etc.; Lin bin, former chairman of Kaiying network board of supervisors; Feng Xianchao, former Kaiying network director, executive deputy general manager, deputy general manager, etc.

Its specific operation path is that Jin Feng transfers money to the account or controlled account of the above-mentioned person through the bank account of his close relatives or the bank account of others controlled by him, with the amount ranging from several million yuan to billion yuan.

For this situation, a person from Hangzhous famous private fund told the economic observer, I really heard about (the huge kickback to executives of Kaiying network).

The reporter of Economic Observer couldnt contact Jin Feng, Wang Yue and others for confirmation. At the same time, Kaiying network company didnt respond to the reporters inquiry.

It is worth noting that whether it spent more than 1.8 billion yuan to acquire Zhejiang Shenghe or 1.064 billion yuan to acquire Zhejiang Jiuling, Kaiying network said that it does not involve related party transactions, does not constitute a major asset restructuring, and this matter does not need to be submitted to the general meeting of shareholders for deliberation and approval.

However, Shenzhen Stock Exchange has issued the inquiry letter. When purchasing Zhejiang Jiuling, the questions of Shenzhen stock exchange include: does the counterparty (i.e. Zhejiang Jiuling) have any relationship with your company (i.e. Kaiying network), your companys directors, supervisors, senior management personnel and their close family members, and does your companys major shareholders have any previous relationship and other interests? Please further disclose whether there are any other interest arrangements between your company (Kaiying network) and the counterparty (Zhejiang Jiuling) except for the equity transfer agreement in this transaction?

Wang Yue changes frequently

Jin Feng steps up to the front desk

With the completion of Kaiying networks acquisition of Zhejiang Jiuling company, Jin Feng also began to step on the front desk.

On July 27, 2018, Kaiying network held an extraordinary general meeting of shareholders, and Jin Feng was elected as the director of the company.

The next day, Wang Yue resigned as general manager of Kaiying network for personal reasons, but still retained the position of chairman. Chen yongcong, then deputy general manager, took over the post of general manager.

On July 30, Jin Feng was elected vice chairman.

On September 28, Jin Feng went further and was elected co chairman.

In fact, during that time, Wang Yue began to retire gradually, and Jin Feng was in charge of the company, a person close to Kaiying network told the economic observer.

What are the reasons for Wang Yues retirement?

When Kaiyings network share price was at a high level, Wang Yue pledged and cashed out almost all of his shares, and then worked on real estate projects in Xian around Changan University. With a new round of stock market volatility in 2018, Kaiying networks share price cant be held any longer, and Wang Yue is actually gradually losing control of the company - although when purchasing Zhejiang Jiuling, he also agreed that Zhejiang Jiuling would pay 500 million yuan to buy Kaiyings shares. Those close to Kaiying said.

According to Kaiying networks annual report, quarterly report and other public information, by the end of 2018, Wang Yue directly held 461570064 Kaiying network shares, of which 461568139 shares were pledged, with a pledge rate of 99.9958%, that is to say, only 1925 shares were not pledged.

Qifei investment, as a concerted actor, holds 135579632 shares, of which 135276397 shares are pledged, with a pledge rate of 99.78%.

His old partner Feng Xianchao holds 260471808 shares, of which 260104988 are pledged. The pledge rate is 99.86%.

Shanghai Holy Grail investment management partnership (limited partnership), as a concerted actor with Feng Xianchao, holds 80720328 shares, of which 80064800 shares are pledged, with a pledge rate of 99.19%.

In 2018, Kaiying network fell 74.71% and its market value shrank to 7.985 billion yuan. Over the same period, the Shenzhen composite index fell 34.42%.

(Note: Kaiying networks share price trend chart in 2018 - share price reversion forward. Photo source, screenshot of sina)

By 2019, Kaiying networks board of directors will be replaced.

Wang Yues post has gone through many twists and turns.

On February 1, 2019, Kaiying network held a board of directors meeting and nominated nine candidates for the new board of directors, including Jin Feng and Feng Xianchao. Wang Yue was not on the candidate list; Sheng Liyuan, then the companys director, deputy general manager and chief financial officer, was not on the new candidate list.

On February 27, Feng Xianchao sent a letter to Kaiying network company, saying that he planned to no longer serve as the director of the new board of directors.

Wang Yue, as a shareholder, nominated himself as a candidate for the new board of directors.

On March 18, Wang Yue was elected as the new director at Kaiying networks extraordinary shareholders meeting.

On March 20, the first meeting of Kaiying networks new board of directors was held in the form of on-site communication, and Jin Feng was elected chairman of the board.

According to the announcement of the listed company, Wang Yue attended the board of directors.

However, only five days later, on March 25, Kaiying network received Wang Yues application to resign as a director of the company.

The next day, the second meeting of Kaiying networks new board of directors held a notice: Wang Yue resigned as a director of the company for personal reasons, and will no longer hold any post in the company after resignation.

At the same time, as a director and general manager, Chen yongcong concurrently held the post of CFO of Kaiying network.

Hearsay, refutation and confirmation

Seven executives of Kaiying network have been investigated one after another

Three days later, after the closing on March 29, Kaiying announced again:

On March 28, 2019, we received the inquiry letter on Kaiying Network Co., Ltd. (SME board inquiry letter [2019] No. 155) issued by Shenzhen Stock Exchange. As the relevant questions in the inquiry letter need to be confirmed by the controlling shareholder and the actual controller Mr. Wang Yue, the company has tried to contact Mr. Wang Yue by email, telephone and other means since March 28, 2019. So far Still unable to contact Mr. Wang Yue. Up to now, the company has not been able to understand the specific reasons for Mr. Wang Yues loss of contact.

At the end of March 2019, a person familiar with the matter told the reporter of the economic observer that as early as 2018, the public security organ began to investigate Wang Yue and others, and gradually closed the network from the beginning of 2019, first of all, they took away several stock markets niusan , because they were suspected of joining hands with Wang Yue and others to bid up and manipulate the stock price.

According to the above people, around 2017, taking advantage of the opportunity of acquisition of Zhejiang Shenghe company, Kaiying network executives such as Wang Yue, together with some institutions, niusan and colluded to raise several billion yuan of capital, used nearly 200 securities accounts and bank accounts to reverse and knock on Kaiying network stocks, so as to achieve the purpose of manipulating the securities market and pulling up the stock price.

The Economic Investigation Department of Shanghai police carried out an online pursuit of Wang Yue.

At that time, the reporter of the Economic Observer also contacted Jin Feng, chairman of Kaiying network, Qian Junfa, vice general manager of dongmi and vice general manager, and Wang Yue himself by telephone for verification.

When Jin Feng heard the reporter mention Wang Yue, he immediately hung up the phone; however, Qian military law replied that he had not received such information, and he did not know about this situation. As for Wang Yue, the reporter dials his cell phone many times and is always in the off state.

In the middle of April, several sources confirmed to the reporter of the economic observer that Jin Feng himself had also been put on criminal record by the public security organ and had carried out online pursuit; those who had been chased back together with Jin Feng also included Jin Danliang, the shareholder and legal representative of Zhejiang Shenghe company, as mentioned above.

On April 18, ecowatch exclusively disclosed this matter (see the report this time is the chairman of ecowatch on April 18, 2019! u2014u2014After Kaiyings chairman Jin Feng was chased by the Internet), Jin Fengs wechat circle of friends sent out a message for two consecutive days to refute rumors.

According to the information sent by its wechat circle of friends, I solemnly declare as chairman of Kaiying network that I have never manipulated the stock price and insider trading; if any organization or individual has slandered me and the company with irresponsible words and means, thereby defacing the companys image and damaging the interests of shareholders, I will not hesitate to take up legal weapons to protect my and the companys rights and interests

However, there is no picture, video or voice of Jin Feng in the above wechat friend circle information.

Whats more, in the half a year since he was chased off the Internet, according to Kaiyings announcements, Jin Feng has presided over the companys board meeting at least five times.

On April 23, Kaiying online announced that it had received a notice from the family of Feng Xianchao, deputy general manager of the company, that Feng Xianchao was under investigation by the public security organ for suspected personal economic crimes.

Another ten days later, on May 6, 2019, Kaiying announced on the Internet that Wang Yue, the actual controller and former chairman of the company who had been chased off the Internet, had been brought to justice.

According to the announcement, on the same day, the company received the notification sent by Wang Yues family members, who said that they had recently received the detention notice from Shanghai Public Security Bureau, and Wang Yue was detained by Shanghai Public Security Bureau for the crime of suspected manipulation of the securities market.

At least two different sources told the economic observer that before and after Wang Yues case, Sheng Liyuan, the former director, secretary, deputy general manager and chief financial officer of Kaiying network, had also been forced by the Shanghai police.

The reporter of the Economic Observer called Sheng Liyuan many times and failed to get through. At the same time, no reply was received from Kaiying network company to verify Shengliyuan.

On May 20, Kaiying network announced that the company recently learned that Mr. Chen yongcong, the companys director, general manager and chief financial officer, was being investigated by the public security organ for the crime of suspected manipulation of the securities market.

In June, Kaiying network announced that the board of supervisors of the company received a written resignation report from Lin bin, the supervisor of the company, on June 5, 2019. Lin bin applied to resign as the fourth supervisor and chairman of the board of supervisors of the company due to personal reasons; however, he will continue to be the person in charge of XY game business group of the company.

Two weeks later, on June 19, Kaiying network received a notice from Lin Bins family. Lin bin was detained by the Shanghai Public Security Bureau on suspicion of breaking the letter and damaging the interests of listed companies.

On July 22, Li Siyun, a director of Kaiying network and the legal representative of Zhejiang Jiuling company, also submitted a written resignation report to Kaiying network, for personal reasons, he applied to resign as a director of the board of directors of (Kaiying network) company, and after resignation, he will no longer hold any post in (Kaiying network) company.

Someone familiar with the matter told the economic observer that Li Siyun was also forced to take measures by the Shanghai public security organ just before and after that. However, Li Siyun was later granted a guarantor pending trial.

In November 2019, the reporter of the Economic Observer once got through to Li Siyuns phone, but the text message sent by the reporter to Li Siyun and the interview email sent to Kaiying network about Li Siyun were not replied.

At least two sources also told the economic observer that Jin Danliang, the legal representative of Jinfengs hometown of Shengzhou and Zhejiang Shenghe company, was arrested by Zhejiang Police in late August 2019, more than four months after being chased.

On October 8, 2019, Kaiying network announced that it had received the notice of investigation (mzz No. 2019131) issued by China Securities Regulatory Commission on the same day. Due to the suspected illegal information disclosure of Kaiying network, according to the relevant provisions of the securities law of the peoples Republic of China, China Securities Regulatory Commission decided to put the company on file for investigation

It will take another half a month for Jin Feng to come to justice.

On October 25, 2019, Kaiying network released a notice that the company received the notice letter sent by Jinfengs family on the same day, saying that Jinfeng was arrested by Shanghai Public Security Bureau on suspicion of insider trading.

Less than 20 days later, during the day of November 14, 2019, the source told the economic observer that Jin Feng had been released on bail.

Immediately, the reporter sent an interview letter to Kaiying network for verification.

In the evening of the same day, Kaiying network issued the announcement on the guarantee pending trial of the chairman of the company, saying that on November 14, 2019, the company received the notice letter from Mr. Jin Feng, saying that he had gone through the procedures of guarantee pending trial in Shanghai Public Security Bureau.

During the period when many executives of Kaiying network such as Wang Yue and Jin Feng were investigated one after another, Kaiying networks operating performance was also rather ugly: in the first three quarters of 2019, the companys operating revenue, net profit and cash flow decreased by 13.31%, 85.51% and 97.85% respectively. At the same time, the company is also facing a series of civil litigation, the companys bank accounts and equity, were frozen.

Where will Kaiying network company go?

What about the fate of Wang Yue and Jin Feng?

Source: editor in charge of economic observation network: Wang Xiaowu NF