Yidatong

[admin]

The last critical article argues

1. Xu Rong was a consultant to NQ in 2006 and 2007 - NQ's May 2011 prospectus.
2. Xu Rong consulted for NQ for less than six months in 2007, and bought 75% of YDT at the time she left NQ - NQ's response to J Capital report, August 1, 2013.
3. Xu Rong was an employee of NQ from September 1, 2006 to December 31, 2008. She bought 75% of YDT after she left NQ - conference call, October 25, 2013.
4. Xu Rong was an NQ consultant from spring 2007 until the end of 2007; she was then an NQ employee (Director of Marketing) from December 2007 to August 2008 - a narrowly circulated email to investors from Matt Mathison, November 2, 2013.

Is it possible that NQ wanted to avoid a higher level of scrutiny by not disclosing the true details of the relationship?

How would they avoid scrutiny by providing four different answers? That actually seems to invite scrutiny, and that's exactly what happened.

It's not a secret that Xu Rong had an employment history with NQ anyway, getting conflicts in the exact dates looks more like bungling than a cover up for, well, for what exactly?

When was Yidatong founded, if that was after Dec 2008 (the latest date in the four answers above) what's left of the short case (unless none of these dates are correct)? And even if she bought Yidatong whilst still having an employment or consulting contract with NQ, is that a cardinal sin? There are people who seem to argue it's reason for delisting and total loss to shareholders, I'm not a lawyer, but I have a hard time imagining that (providing the payments are processed correctly, of course).

[kevinh]

I think she was an official employee for a specific amount of time and then was a consultant for x number of months. In fact, this is what's going on with the company I'm working for.

As for YDT, owning YDT while providing consulting services for NQ is perfectly fine and legal. The short case is that YDT is in cahoots with NQ, artificially inflating numbers. This is something that no one outside of NQ/YDT/auditor can definitively prove or disprove. Any time I read a comment about YDT being legitimate by the bulls or illegitimate by the bears, I chuckle, because it's all conjecture.