Earlier this year, it was reported that Yueshang Group, a publicly traded company, conducted an internal audit of its departing executives and directors and found that a $2 million expenditure was missing. The incident, involving two former company executives, has sparked speculation both inside and outside the industry.
Yueshang Group is a NASDAQ-listed global diversified SaaS technology service provider. It is understood that the company's former COO Li Zhuo and former CFO Xu Jianda (Keith) transferred $2 million to a company called "About Investment Pte." on the eve of Yueshang Group's listing, under the pretext of paying Nasdaq guarantee fees and consulting feesltd.
However, the investigation found that the company is actually wholly owned by Chinese Li Jiaming. This raises questions about the flow of this huge amount of money and the relationship between the people involved, whether it is suspected of forgery and embezzlement.
Worryingly, the financial statements of Yueshang Group for the third quarter of 2023 were found to have not been signed by the company's current management, and the data disclosed in them was also untrue, resulting in the company's stock price** nearly 30%. In addition, there are rumors that other companies and individuals have cooperated with Li Zhuo and Xu Jianda (Keith) in embezzlement and falsification. There are also doubts about the whereabouts of the $40 million raised by Yueshang Group's IPO and the authenticity of the information provided by Xu Jianda (Keith) about the Bank of Vanuatu.
The results of Yueshang Group's 2022 annual report and 2023 Q1-Q3 audit are questionable, and its former CEO, Mr. Wei Hechun, admitted that he never signed these financial reports. The whole incident has brought more uncertainty to the personnel relations, financial condition and operating conditions of Yueshang Group. Recently, the national regulatory authorities have once again stepped up their efforts to crack down on the purification of the capital market, and IPO supervision has become the top priority.
Whether Yueshang Group has become a typical case, how to deal with the ** crisis, and what kind of outcome Li Zhuo and Xu Jianda (Keith) will face, all of this is worth waiting for.