Former CEO Chen Lei responded: There is a problem in the Thunder audit and he wants to pour dirty water on me

On the evening of October 8, Xunlei issued an announcement stating that it had filed a complaint with the Shenzhen Public Security Bureau in April 2020 regarding the former CEO of Xunlei, Chen Lei, and others for alleged occupational occupation. The company received a notice from Shenzhen Public Security Bureau recently. , Shenzhen Municipal Public Security Bureau has initiated investigations against Chen Lei and others suspected of occupational embezzlement.

As early as early April this year, Chen Lei was “expelled” by Xunlei’s board of directors.At that time, Xunlei announced a major personnel adjustment order: Chen Lei no longer serves as the CEO of Xunlei Group and other affiliated companies, Wang Chuan, chief strategy officer of Xiaomi Group, stepped down as chairman of Xunlei. Both positions were taken over by Li Jinbo, the former head of Xunlei technology.

Not only that, there were also major changes in the Xunlei executive team. The former Xunlei board of directors Wang Chuan, Hong Feng, Zou Tao, and Liu Qin collectively resigned and were replaced by Li Jinbo, Duan Hui, Shi Peng and Luo Weimin. In the eyes of the outside world, this is nothing more than a palace fight. After the palace fight is over, “change of dynasty” is a normal operation.

However, Chen Lei, who stepped down as Xunlei’s CEO, failed to retreat completely.At the beginning of May, the public security organs found him, saying that Xunlei sued him for “suspicion of occupational occupation” and asked Chen Lei to cooperate in the investigation.. What made Chen Lei angry is that Xunlei not only sued him alone, the original team had more than a dozen defendants. So around May 20, Chen Lei accepted interviews with several media, responded positively to Xunlei’s allegations, and described the whole story of his being “deposed”.

Regarding Xunlei’s announcement and allegations, the reporter of Daily Economic News (WeChat ID: nbdnews) recently contacted Chen Lei. Chen Lei described to reporters the whole process of being notified by the public security organ to cooperate with the investigation in early May.

Chen Lei said that from the investigation of the public security agency from May to July this year, he submitted 5 pieces of information and answered the questions of the public security agency one by one. At that time, the public security agency made a decision to “not open the case” and officially notified it. He (this is Chen Lei’s unilateral statement,The reporter did not obtain written materials that would not allow the case to be filed)。

Both sides have their own opinions

According to Chen Lei’s recollection, two months after the public security agency decided to “not open the case” (early September), an internal Xunlei colleague told him, “They (Xunlei’s current management) are not finished and are looking for the procuratorate to apply for supervision.” On September 17, he was notified by the public security agency that (the public security agency) had decided to open a case for investigation.

Chen Lei also claimed that behind Xunlei’s accusation against him, there is actually a secret. “Xunlei is a US stock-listed company. The auditing agency (PwC) found some problems. They wanted to pour all these problems (dirty water) on me, but the auditing agency did not approve it. They said that Chen Lei was suspected of taking up his position. The embezzlement has been filed by the public security organs. The auditing agency said that a notice of case filing is required to do the audit.” Chen Lei said: “This is why they are so anxious to file a case.”

The two companies that Chen Lei is accused of being suspected of occupation are Shenzhen Xing Fusion Technology Co., Ltd. (hereinafter referred to as Xing Fusion) and Hainan Lianxiangyun Network Technology Co., Ltd. (hereinafter referred to as Hainan Lianxiangyun). The focus is on Xing Fusion.Chen Lei explained in detail in a document of more than 2,500 words that Xinghui’s business completely relies on Xunlei’s subsidiary Wangxin Technology and cannot make profits from Xinghui. Xinghui has no money flowing into his or any other executives’ pockets.

On October 9, AI Finance and Economics and many other media said,Xunlei revealed the relevant details of Chen Lei’s case: Chen Lei was suspected of embezzling company assets in a false transaction link and making false contracts to obtain company funds, The amount involved is huge. Chen Lei is also suspected of embezzling tens of millions of funds from the company for illegal currency speculation that is expressly prohibited by the state. In order to avoid the investigation, Chen Lei has left the country with former Xunlei senior vice president Dong Yu in early April.

The report also stated that during the audit of the company, the new management of Xunlei discovered the fact that Chen Lei was suspected of embezzling the company’s huge assets: A Xunlei bandwidth provider called Xing Fusion was actually a company personally controlled by Chen Lei, and he had used various illegal means Xiangxing Fusion transferred a huge amount of funds and resorted to deception to attempt to transfer Xunlei’s core technical personnel to Xing Fusion.

In this regard, the reporter of the Daily Economic News (WeChat ID: nbdnews) contacted Xunlei and asked whether the above details were disclosed by Xunlei. Xunlei did not answer directly, but said, “These are actually public information, you can see…the official announcement has been disclosed, and the announcement is official information.” Regarding the above question mentioned by Chen Lei, Xunlei only said that it is not easy to reply at present.

Chen Lei’s statement: Investigation began in early May

The following is what Chen Lei said.

At the beginning of May, it should be after May 1st, the public security organs found me and said that Xunlei’s management had accused me of occupational occupation. I didn’t know how many people had been sued at the time, but later a colleague (was) called for questioning. , In the process of speaking, I gradually learned that a dozen people were actually accused.

Since the investigation by the public security organs, police officers have asked me to cooperate in the investigation by calling and texting. I thought at the time that after the investigation, everyone would know what was going on. During the entire public security investigation process, I was quite worried at the beginning, but after contacting it later, I felt that the public security organs’ problems were related to the case and did not deliberately distort the facts.

During that cycle, the public security organs asked many questions. This case is divided into several parts, one of the most critical part is a company called “Xing Fusion”, (Xing Fusion) is an affiliate of Net Heart Technology. The question asked by the public security agency is: Why is this company established? Why does it need to be isolated from Wangxin to establish this company? How are the profits of this company distributed?

I think these questions are very reasonable, and I have fully answered them. All these facts are fully written in the materials I gave to the police. The whole material is dozens of pages. Although the company was established separately, it has always been openly operated in the company. We will also award the company’s award to colleagues who worked on this project in 2019. Moreover, there are a lot of mail exchange processes within the company, and project management is all generous. It’s not that I started a company outside and then benefited from it. Xinghui’s business is completely dependent on Net Heart, and the company itself has no value.

I probably submitted 4 documents one after another, divided into 4 times, because after the police officer had finished asking a circle, he still had questions to ask, and I asked him again, I pressed my handprint and submitted the materials to him 4 times.

(This case) was investigated from May to July, and the public security organs concluded at that time that the case was not filed (this is Chen Lei’s unilateral statement that the reporter did not obtain written materials for not filed). Although the conclusion has been made, some things may have some changes or something, they are still following up, so together I should have submitted the materials 5 times, signed and fingerprinted, because I submitted the materials to the police, my lawyer When guiding, every piece of paper must be signed and fingerprinted. I should have done it 5 times and handed in materials 5 times.

After I learned about this incident (the public security organs did not file the case), I was quite happy. I thought this incident would come to an end, but a colleague in Xunlei told me, “They are not finished, they must go down. One-step case filing and supervision.” At about 5 pm on September 11, I received a notice saying that they (the procuratorate) were indeed doing case filing supervision, and then asked me to cooperate with the supplementary investigation. Someone told me on September 17 that the public security organ had decided to open the case.

Why did the investigation conclusion be made in such a short time? Why are you so anxious?I was very strange at the time.

Later, I learned why Xunlei was so anxious. Xunlei is a U.S. stock-listed company. The auditing agency found some problems. They wanted to pour all these problems (dirty water) on me, but the auditing agency did not approve it. They said that Chen Lei was suspected of occupational occupation and had been filed by the public security agency . The audit agency said that a notice of filing a case is required to do the audit.

Does Chen Lei have any problems? Is Xing Fusion a tool for embezzling company assets?

(Reporter’s note: The key point for Chen Lei’s alleged occupation of office is Xinghui. According to media reports such as AI Finance and Economics, the details of the case disclosed by Xunlei are: A Xunlei bandwidth provider named Xinghui is actually controlled by Chen Lei. He has used various illegal means to transfer a huge amount of funds to Xing Fusion, and resorted to deception to attempt to transfer the core technical personnel of Xunlei to Xing Fusion.)

According to Qixinbao, Xing Fusion was established in July 2018, and Hainan Lianxiangyun holds 100% of it. On the surface, Xing Fusion has no connection with Xunlei and its subsidiary, Wangxin Technology. But in fact, Xing Fusion is a company that relies on the development of Wangxin Technology, and Wangxin Technology is a wholly-owned subsidiary of Xunlei Group established by Chen Lei. It carries the blockchain and cloud computing business that Xunlei has heavily invested in in recent years.

For the company Xing Fusion, Chen Lei sent a detailed introduction to the Daily Economic News (WeChat ID: nbdnews) reporter. The following is the specific content (part):

(1) The business relationship between Xinghui and Wangxin Technology.

The business that Xing Fusion is engaged in is essentially to obtain cheap bandwidth through gray channels. Specifically, operators such as China Telecom and China Unicom, as state-owned enterprises, have strict control over the price of bandwidth sold to avoid the loss of state-owned assets. However, some mine owners can get very cheap or even free bandwidth resources because of their relationships.

Moreover, Xinghui does not simply purchase these illegal bandwidths. In fact, Xing Fusion provides equipment and technical means for collecting these bandwidths through Xiaorong Box, and provides sales channels for mine owners. It also organizes these mine owners through WeChat groups and offline activities. Many mine owners are because of Xing. Converged business only appeared.Strictly speaking, this is the self-built network that the Ministry of Industry and Information Technology will investigate and deal with.

The normal business of Wangxin is fundamentally different from that of Xinghui. Wangxin uses the idle bandwidth that has been installed in personal homes by selling intelligent electronic products: Qianjinbao and Wankeyun to individuals. The main sales channels for these products are consumer-oriented sales channels such as, Suning and Xiaomi. There are no specific regulations for this type of business.

The main reason why Xing Fusion Company does not reflect Net Heart Technology in its equity is to better avoid risks. If Xing Fusion is Net Heart Holdings, or if it wants to consolidate the financial statements, in a strict sense, it must be disclosed to meet the requirements of the SEC (US Securities Regulatory Commission).

We are not worried that Xinghui will be separated from the management of the network. Because in terms of design, Xinghui’s business completely relies on Netheart. Without Netheart’s Wanke cloud equipment and technology authorization, Xinghui cannot carry out the business of Xiaorong Box. The bandwidth collected by Xing Fusion is 100% used by NetCentral. If NetCentral decides not to use the bandwidth of Xinghui, Xinghui will stop business at any time. Instead, Wangxin can use another affiliate at any time to take over all the businesses of Xing Fusion.

This situation actually happened on April 9. At that time, Xunlei’s new management did not want to admit the relationship between Xinghui and Wangxin because of certain considerations. Overnight, all of Xinghui’s business and customers were cut away. Xing Fusion became a shell company with no business and completely stagnant. Therefore, Xinghui has never been separated from the basis of independent operation of the network.

(2) Xing Fusion is not an in vitro company that secretly designs.

From the first half of 2019,In the bi-weekly 2B regular meeting, the affiliated company’s business will be discussed, and a large amount of content involves Xing Fusion. Members who regularly participate in the above regular meetings include: Sun × Bin, Fu × Hua, Dang × Mei, Sun ×, Sun × Qiang, Yang × Wen, Yang × Qi, Sun × Ye, Qu ×, Liu × Qiao, Wu ×, Zeng × Ji, Cao × Fei, Shang × Shuai, etc.

In August 2019, at the semi-annual strategic discussion meeting of Netsoc Corporation (participants included all senior management cadres and some backbones of Netsoc, more than 20 people), the strategy of expanding nodes and bandwidth was also very clear. discuss. Among them, “Xiaorong” as the main way to expand nodes is also one of the main contents of the discussion.

Xing Fusion includes official website, APP, settlement, sales and other systems, all of which are in charge of the R&D team of Wangxin. In the project management system maintained by Fu Donghua, you can clearly see all the projects related to Xing Fusion and the participants. Colleagues involved in Xing Fusion related projects will not do special treatment for such projects except for using the XR code to refer to Xing Fusion. Problems to be solved in such projects, or data synchronization, will appear in various daily and weekly reports.

Former CEO Chen Lei responded: There is a problem in the Thunder audit and he wants to pour dirty water on me 1

Former CEO Chen Lei responded: There is a problem in the Thunder audit and he wants to pour dirty water on me 2

After-sales technical service weekly report (you can see that the weekly report is simultaneously sent to the entire department of the technical operation department. In March 2020, there are more than 50 people in this department).Image source: Photo courtesy of Chen Lei

Xing Fusion is not a secretly established in vitro company. At the 2019 annual meeting, Wangxin Company also commended the Wangxin team for the business of Xiaorong (the XR mentioned in the picture) in front of all employees, and was commended at that time There are 47 team members.

(3) Unable to profit from Xing Fusion.

First, Xing Fusion is doing a high-risk business and it is impossible to obtain financial returns in the stock market.

Second, Xing Fusion has never paid dividends, and there is no dividend agreement. Even before it was a loss, it was only during the Spring Festival and the epidemic that the mine owner’s income was drastically reduced to make a profit.

Third, Xing Fusion did not have any money flowing into the pockets of me or any other executives.

Fourth, Xing Fusion still owes a lot of accounts to Wangxin and another affiliated company Beidou (which has already been received by Wangxin). The purpose of business is not to make it profitable.

Regarding the relevant content mentioned by Chen Lei, the reporter of Daily Economic News (WeChat ID: nbdnews) interviewed Xunlei,Xun Lei said that the current case has been handed over to the public security organs for handling in accordance with the law and will not accept interviews for the time being.

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