On April 24, Duoyi Network issued a document stating that the company stipulates that the bride price of any employee of the company shall not exceed 100,000 yuan, otherwise the whole company will be criticized and severely punished.
According to the official website of Duoyi Network, the company has more than 3,000 employees, is one of the "Top 10 Chinese Games", and has been listed among the top 100 Internet companies in China for nine times. It has a number of games such as "Phantom Tang Zhi" and "Dream World 3".
A reward of 10 million was offered to send the former female CEO to prison, but to no avail
On March 17, 2023, Duoyi Network released the "Announcement on the Loss of Hundreds of Millions of Dollars to the Company by Former Female Executives Using Online Trolls to Commit Fraud" on its official website. The above announcement mentions:
The corrupt gang headed by former CEO Tang Yilu took advantage of his position to abuse his power for personal gain, and collaborated with advertising agencies to create false advertisements and contract fraud against the company, bringing direct economic losses of up to 500 million yuan to the company.
Tang Yilu once served as the CEO and general manager of Duoyi Group Company, and as a member of the Guangzhou CPPCC, he knowingly violated the law, and without the knowledge of the board of directors, he used his position to actually control the company's administrative and financial departments to evade personal income tax and false reimbursement, totaling nearly 10 million yuan.
Duoyi Network said that it expects the relevant departments to conduct a thorough investigation on this major corruption and troll crime to protect the legitimate rights and interests of private enterprises. The company has reported Tang Yilu's evasion of huge individual income tax to the competent tax authorities in accordance with the law. He has also reported the crime of embezzlement to the public security organs.
The above-mentioned announcement also named Yan Haibing, the former vice president of marketing of Duoyi Network, Dou Xiaojun, the former head of advertising, and Ma Xingjia, the former head of administration and human resources, who took advantage of their positions to seek personal interests and embezzled the company's property many times.
It is worth noting that Duoyi Network said that the company reported the case to the Guangzhou Municipal Public Security Bureau in March 2022, and the Guangzhou Municipal Public Security Bureau's Economic Investigation Detachment finally gave a notice not to file a criminal case after 3 months of investigation.
As early as August 19, 2021, Duoyi Network released an article entitled "The Chairman Personally Investigates Advertising Corruption and Advertising Fake Advertising Connivance Plug-in Case", which was written by Xu Bo, the company's chairman himself.
Since then, Duoyi Network has published an article on its official website, openly soliciting clues and evidence related to the corruption of Tang Yilu and others. The article specifically pointed out that if the whistleblower can provide key evidence to make Tang Yilu personally sentenced to 5 years or more, the whistleblower will be rewarded with 10 million yuan.
According to the historical article on the official website of Duoyi Network, Tang Yilu is a woman who graduated from Sun Yat-sen University.
Duoyi Network's two IPOs failed
In June 2016, Duoyi Network submitted an application for an initial public offering and listing on the Growth Enterprise Market (GEM), sponsored by CITIC Securities. The company received feedback from the China Securities Regulatory Commission (CSRC) on the company's IPO in January 2018, but opted to terminate its IPO review on March 27, 2018. In June 2018, Duoyi Network submitted an IPO prospectus to the Hong Kong Stock Exchange, with the sponsor being CITIC CLSA, but finally announced the termination of the IPO in January 2019.
It is the industry consensus that the gross profit margin of game companies is high, but the gross profit margin of Duoyi Network is indeed rare among game companies in recent years. According to the data disclosed at that time, in 2015~2017, the revenue of Duoyi Network was 1.63 billion yuan, 1.55 billion yuan and 1.93 billion yuan respectively, and the net profit in the same period was as high as 1.04 billion yuan, 840 million yuan and 1.007 billion yuan respectively, corresponding to the gross profit margin ratio of Duoyi Network in each period in 2015~2017 was 98.8%, 98.4% and 98.7% respectively.
At that time, Duoyi Network still relied heavily on the IP of "Shenwu". In 2015~2017, the revenue of Shenwu series games accounted for 92.7%, 92% and 90.7% of the revenue in the same period.