Netqin IPO Tangled in Top Line Tussle CCTV再度揭露网秦

It seems the detectives at CCTV  have been working hard these days. After uncovering illegal gambling at online game firm Shanda (Nasdaq: SNDA)(see previous post), CCTV is now reporting a huge discrepancy in what IPO candidate Netqin previously reported for its 2008 sales and what it told US regulators in its IPO prospectus (Chinese article). And this is really a huge discrepancy, with CCTV saying the company, a mobile software maker, previously reported sales that year of 3.76 million yuan, while its prospectus says the annual figure was 26 million yuan. I’m sure they’ll find an explanation for all this, and Netqin’s underwriter will probably convince stock exchange officials that the current prospectus is correct. But this, combined with the fact that the company seems to be locked in a fight with China’s 3 major telcos (see previous posting) certainly can’t bode well for Netqin. Btw, before I sign off with my usual bottom line, I’d like to thank one of my students, Lina Guo (郭文鹃), for bringing it to my attention.

Bottom line: Netqin has too many issues to clarify before I would consider it a good IPO investment.

中国的媒体警察CCTV再度出击。在揭露盛大<SNDA.O>子公司涉嫌网络赌博後，央视又报 道了手机软件公司网秦此前披露的2008年销售业绩与其向美国监管机构提交的招股说明书数据不符，并且两者间差距巨大：网秦天下的工商年检资料显示其2008年的销售收入仅为376万元人民币，而向美方提交的招股书中声称有400万美元。也许网秦的IPO承销商能够说服美国监管机构，其招股说明书中的数字是真实的，但此次负面报导，加上中国三大电信公司对网秦的杯葛，网秦的日子肯定愈加难过。（感谢我的学生郭文娟提醒我关注相关报 道。）

一句话：网秦的包袱太重，我现在还看不出它的IPO有什麽投资价值。