Suddenly! Douyu officially announced, the CEO was arrested by the police, and the stock price plummeted! Northern Myanmar handed over 31,000 suspects of wire fraud to China!

Douyu CEO Chen Shaojie was arrested!

Douyu announced on the evening of November 21 that the company's CEO Chen Shaojie was arrested by Chengdu police around November 16. Douyu alleges that Chen's continued detention and any subsequent related legal proceedings and enforcement actions against the parties involved could have a material adverse effect on the company's reputation, business and results of operations. Affected by the above news, Douyu's pre-market decline expanded to 10%.

In addition, on November 21, the news of the transfer of 31,000 wire fraud suspects from northern Myanmar to China was also on the hot search. According to the Ministry of Public Security, in response to the current severe situation of telecom network fraud in northern Myanmar, the Ministry of Public Security has deployed public security organs in Yunnan and other places to continue to promote border police law enforcement cooperation, and has carried out multiple rounds of crackdowns.

The news of the well-known APP announcing the suspension of service has also swiped the screen. On the evening of November 20, topics related to "TV home running away" sparked heated discussions. Many netizens said that they bought membership services, and the APP "TV Home" used to watch live broadcasts or on-demand film and television dramas suddenly couldn't be opened, and they suspected that "TV Home" ran away. In this regard, the TV home team urgently announced that if there is a problem with its service, the company will properly solve all refund needs and will not run away.

Douyu CEO Chen Shaojie was arrested by the police

On the evening of November 21, Douyu issued an announcement saying that the company's CEO Chen Shaojie was arrested by the Chengdu police around November 16. The company has not received any formal notification of the investigation into Mr. Chen or the reasons for Mr. Chen's apparent arrest.

Douyu said Chen's continued detention and any subsequent related legal proceedings and enforcement actions against the parties involved could have a material adverse impact on the company's reputation, business and results of operations. Affected by the above news, Douyu's pre-market decline expanded to 10%. Previously, in early November, there were rumors that Douyu CEO Chen Shaojie was investigated and had been missing for nearly 3 weeks. As the CEO of a listed company, Chen Shaojie's last appearance in the public eye was in August, when he attended the company's second-quarter earnings analysis call. According to public information, Chen Shaojie was born in Jinan in 1984. In 2010, he bought Station A, the "originator of ACG websites" in China, and established the "Shengbo" channel of Station A. Four years later, he became independent of the "Shengbo" channel from Station A and renamed it "Douyu TV".

In the following years, a large number of game live broadcast platforms such as Huya, Panda TV, and Battle Flag TV rose, while Douyu introduced Tencent's investment, and gradually built Tencent games such as "League of Legends", "Honor of Kings" and "Dungeons and Warriors" as content barriers. In July 2019, Betta was listed on the NASDAQ, with a market capitalization of nearly $4 billion on the day. Chen Shaojie's personal wealth also skyrocketed. In October of that year, Chen Shaojie ranked 1507th in the "2019 Hurun Report" with a net worth of 2.5 billion yuan.

However, with Douyin, Kuaishou and Bilibili entering the field of game content in 2019, Douyu's business situation has also been greatly affected. The 2022 annual report shows that Douyu achieved revenue of 7.108 billion yuan, a year-on-year decrease of 22.44%. In the fourth quarter of 2022, sales and marketing expenses decreased by 45.9% to RMB123.9 million from RMB229.2 million in the same period of 2021, and quarterly R&D expenses also decreased by 39.2% year-on-year to RMB80.6 million.

At present, the high point of Betta's stock price has fallen by more than 95%. As of Monday's close, the market capitalization was only $310 million.

It is worth noting that Betta has been frequently named before. According to Cyberspace China, on May 8 this year, in response to serious ecological problems such as pornography and vulgarity in Douyu, the Cyberspace Administration of China instructed the Hubei Provincial Internet Information Office to send a working group to the Douyu platform to carry out a one-month centralized rectification and supervision. In this regard, Douyu publicly apologized and said that it would actively cooperate with the centralized rectification and supervision of the working group of the Hubei Provincial Internet Information Office, conscientiously carry out in-depth self-examination and self-correction in accordance with regulatory requirements, further optimize the platform's content review mechanism, and comprehensively and thoroughly sort out bad information and content.

Since the beginning of this year, in the 2022 inventory of the "Anti-Pornography and Anti-Illegal Publications" released by the Cyberspace Administration of China and the inventory of the "Qinglang Action" in the first quarter, Douyu has become the only company that has been named in both counts.

Northern Myanmar handed over 31,000 suspects of wire fraud to the Chinese side

On November 21, according to the website of the Ministry of Public Security, in view of the current grim situation of telecommunications network fraud in northern Myanmar, the Ministry of Public Security deployed public security organs in Yunnan and other places to continue to promote border police law enforcement cooperation, and carried out multiple rounds of crackdowns.

Since September this year, under the command and deployment of the Ministry of Public Security and the Yunnan Provincial Public Security Department, the public security organs in Xishuangbanna, Pu'er, Lincang and other places have carried out border police law enforcement cooperation with relevant local law enforcement departments in Myanmar, carried out a series of crackdown actions, and a large number of suspects of telecommunications network fraud have been handed over to our side, achieving remarkable results. After entering November, in order to promote the crackdown in depth, our public security organs further deepened the cooperation between China and Myanmar police law enforcement, and launched a fierce offensive against the crime of telecommunications network fraud in northern Myanmar. Ming Guoping, Ming Julan, and Ming Zhenzhen, the important leaders of the Kokang telecommunications network fraud criminal syndicate in northern Myanmar, who were publicly wanted by our public security organs, were successfully arrested and brought to justice, and the first offender, Ming Xuechang, committed suicide in fear of crime, and a large number of overseas fraud dens were successfully eradicated, severely cracking down on the arrogance of overseas fraud groups. On November 18, the Dehong Public Security Bureau made an important breakthrough in border police law enforcement cooperation, and the law enforcement department of Mujie District in northern Myanmar handed over 571 suspects of telecommunication network fraud to our side one after another, forming a strong deterrent to fraudsters.

Up to now, with the strong cooperation of all parties in Myanmar, a total of 31,000 suspects of telecommunications network fraud have been handed over to our side and have been escorted back by the local public security organs involved in the cases. The public security organs will thoroughly investigate all the facts of his violations and crimes and resolutely punish him severely in accordance with the law.

The relevant person in charge of the public security organ said that it will always maintain a high-pressure and hard-hitting posture against telecommunications network fraud criminal groups in northern Myanmar, continue to deepen cooperation in police and law enforcement along the China-Myanmar border, continue to organize special crackdown actions, make every effort to clean up fraud dens, arrest people involved in fraud in accordance with the law, resolutely safeguard the safety of people's lives and property and legitimate rights and interests, and earnestly maintain border security and stability.

The well-known APP announced the suspension of service, saying that it would not run away

On November 20, many netizens reported on social media platforms that the APP "TV Home", which is usually used to watch live broadcasts or on-demand film and television dramas, suddenly couldn't be opened. Some netizens said that they had become members.

The announcement on the page reads: "According to the regulatory requirements of the State Administration of Radio, Film and Television for Internet TV live broadcast services, this product will be suspended from now on. We deeply regret this decision and apologize for the inconvenience. Thank you for your understanding and support, and for complying with the relevant laws and regulations together. ”

According to the Metropolis Express, "TV Home" is a video player specializing in watching live TV, and the official has introduced that it provides CCTV, satellite TV, and local stations for more than 1600 TV channels to watch live online. Many netizens said that without the "TV home", they don't know where to watch the live TV. However, while having a lot of loyal users, "TV home" is also controversial because of its live broadcast copyright issues, some bloggers pointed out, "TV home" and other third-party TV APPs are basically genuine network signal sources captured by piracy, and piracy is also charged, which is actually illegal.

At around 23 o'clock in the evening of November 20th, the TV assistant responded to the "running away" incident on Weibo, saying, "Dear users, I'm very sorry, we have encountered problems with our service. If you are in the membership period, your payment will be refunded in full, due to the large number of people, we will release the refund as soon as possible, please be patient. If you have any questions, you can contact our customer service on the WeChat official account. We will properly address all refund requests and will not run away, absolutely not. ”

Tianyancha APP shows that Beijing Jiashitong Technology Co., Ltd., an affiliated company of TV home, was established in June 2017 with a registered capital of 80,000 yuan, and the legal representative, executive director and manager is Peng Yaming, with Peng Yaming, Meng Yu and Rao Dongyu holding 84%, 15% and 1% respectively. According to the information in the annual report, the number of social security contributors in the company in 2022 is 0. According to the risk information, in September this year, the company was included in the list of abnormal operations by the Beijing Shijingshan District Market Supervision and Administration Bureau because it could not be contacted through the registered residence or business premises. In addition, the company also has a number of consumption restriction orders, judgment defaulters (Lao Lai), and final case information.

In addition, the Chinese reporter of the brokerage noticed that a number of TV-related public accounts under Beijing Jiashitong Technology Co., Ltd. changed their names on November 20. Then, on the afternoon of the 21st, the TV assistant issued the "Guidelines for Quick Refund after the Name Change of the TV Home Official Account", saying, I am very sorry, users please go to the official WeChat public account "TV Tuantuan" and directly click [Apply for refund] to enter the refund process.

Editor-in-charge: Tactical Heng

Proofreading: Su Huanwen