For those who wish to read even further, there is a wealth of great information which is updated often at Chinalawblog. It is safe to say that anyone who does not understand the basics of these structures has no business owning Sungy. In fact with Sungy, the situation rapidly gets much worse. Buried in the prospectus, we can see that during the IPO process, Sungy was forced to disclose one material weakness along with two significant deficiencies in its internal controls designed to prevent fraud.
These were as follows:. An obvious question might be: So why not simply wait to go public until such serious deficiencies in control could be remedied? There are two reasons why Sungy did not wait and instead rushed to get the IPO out the door. The first reason was that there was simply no need to fix the deficiencies. The Act was finally passed in A number of recent Chinese IPOs have already begun making use of exemptions a. A Bloomberg article entitled.
It is exempt from certain disclosures regarding executive compensation. Investment banks love the provision that allows them to publish research prior to their IPOs — a practice which was banned following the dot. Even though these exemptions should cause anger among US investors, the Act has been extremely popular among new IPO candidates. This makes it somewhat worse than other Chinese companies who have used the Act for different exemptions.
In fact, the exemptions utilized by Sungy allow the company to go for well over a year after receiving its money from US investors without even remedying the deficiencies in internal controls. These deficiencies are all the more concerning for an unusual structure like Sungy where investors have no claim on the underlying assets and virtually no voting power.
But the second reason that Sungy rushed its IPO was perhaps far more important. The offering was launched with perfect timing to coincide with a dramatic spike in revenues and online traffic for its Go Launcher Ex. The fact that the spike coincided with a strong surge in prices for other Chinese Internet stocks made this urgent timing for an immediate IPO even more imperative.
Investors in the IPO somewhat naturally assumed that this growth was natural and sustainable. But independent sources already provide strong indications that this growth was a spike, not a trend.
The IPO prospectus included data up until September Free YouTube Downloader. IObit Uninstaller. WinRAR bit. Internet Download Manager. VLC Media Player. MacX YouTube Downloader.
Microsoft Office YTD Video Downloader. Adobe Photoshop CC. Microsoft Office YTD Video Downloader. Adobe Photoshop CC. VirtualDJ Avast Free Security. WhatsApp Messenger.
Talking Tom Cat. Clash of Clans. Subway Surfers. TubeMate 3. Google Play. Bill Gates' favorite books of Watch Tiger Woods golf again. The sensitive information was leaked due to the vulnerable IP addresses which allowed the data leakage without lots of effort.
The number of affected users can be explained by the fact that GOMO apps are commonly known in China and are frequently used by numerous kids. The Sungy Mobile company has already achieved around 2 billion downloads of the famous app. The app was launched for the first time in and received lots of good reviews from its users.
It provides a big range of entertaining programs and gives users access to more than 70 channels. According to research, data, which was exposed by the Chinese firm, included various email addresses, passwords, the users' addresses, various purchases, etc. Nevertheless, even US users' information such as email addresses, usernames, genders, birth dates, and other personal details were leaked during the exposure.
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