In the evening of the same day, Kaiying network announced that Wang Yue, the company’s controlling shareholder and actual controller, was sentenced for the crime of manipulating the securities market after receiving the “notice letter” from Wang Yue’s family. On the evening of December 25, kaiying.com announced that Wang Yue, the company’s controlling shareholder and actual controller, was sentenced to five years and six months’ imprisonment and a fine of 10 million yuan after receiving the “notice letter” from Wang Yue’s family. < p > < p > as of the announcement date, Wang Yue directly held 460 million shares of Kaiying network, accounting for 21.44% of the total shares, and all of her shares were frozen. The announcement also mentioned that at present, Wang Yue no longer holds any position in the company, and the above-mentioned case is an individual case of the controlling shareholder and actual controller, which has no impact on the normal operation of the company. The judgment on Wang Yue will not lead to the change of the company’s control right for the time being. As all shares of the company’s actual controller and its persons acting in concert have been frozen and waiting to be frozen, it can not be ruled out that there may be the risk of the change of the company’s actual control right in the future. < / P > < p > according to public information, Kaiying network was founded in 2008 by Wang Yue. Kaiying network focuses on the R & D and operation of entertainment content such as web games and mobile games. It is an Internet enterprise with mobile Internet traffic entrance, platform operation and product R & D. Up to now, Kaiying network has developed and operated a number of games such as skyscraper, legend of Shushan, miracle of the whole people, legend of the blue moon, etc. < / P > < p > in December 2015, Kaiying network was listed in A-share backdoor, ushering in 12 trading limits. A few months later, Wang Yue, 34, was listed on the 2016 Hurun global rich list with a fortune of 7 billion yuan. She was the youngest self-made rich man in China. < / P > < p > since 2016, Kaiying network has started a number of mergers and acquisitions. According to reports, the acquisition of Zhejiang Shenghe, the development company of “greedy blue moon”, at a 50 times premium, and the acquisition of Zhejiang Jiuling at a price of 1.064 billion yuan are all suspected of insider trading and stock price manipulation. Wang Yue was formally arrested by the Shanghai Municipal Public Security Bureau on June 12. At present, the chairman of Kaiying network is Jin Feng and the general manager is Chen yongcong. Jin Feng is the chairman elected by the new board of directors of Kaiying network on March 20, 2019. He is the former president and CEO of Zhejiang Shenghe Network Technology Co., Ltd. (hereinafter referred to as “Shenghe network”). < / P > < p > since March 2019, in addition to Wang Yue, a number of Kaiying network executives, including vice general manager Feng Xianchao, general manager and chief financial officer Chen yongcong, and chairman Jin Feng, have been investigated or arrested by the public security organs. On March 30, the company announced that Wang Yue lost contact, but the reason is unknown. In response to the Shenzhen Stock Exchange inquiry letter, Kaiying network disclosed that Wang Yue had resigned from the company on March 25 for personal reasons. < / P > < p > as early as may 2019, Kaiying announced on the Internet that the company had received the “notification letter” from Wang Yue’s family, and that his family had received the “detention notice” from Shanghai Public Security Bureau. Wang Yue was detained by Shanghai Public Security Bureau for suspected crime of manipulating the securities market, and all shares of the company held by Wang Yue were frozen by Shanghai Public Security Bureau. < / P > < p > in June 2019, Kaiying network announced again that the board of directors received a notice from the family of Lin bin, the outgoing supervisor of the company, on June 19, 2019, and Lin bin was detained by Shanghai Public Security Bureau for suspected breach of trust and damage to the interests of the listed company. < / P > < p > it is worth noting that prior to Wang Yue’s judgment, Kaiying network announced on December 5, 2020 that Chen yongcong and Lin bin respectively received the “decision on non prosecution” issued by the first branch of Shanghai People’s Procuratorate on December 4, 2020. According to the “decision not to prosecute”, it was found that Chen yongcong and Lin bin had committed a crime of breach of trust to damage the interests of the listed company, and the facts were unclear and the evidence was insufficient, so they decided not to prosecute Chen yongcong. At present, Chen yongcong is still the company’s director, general manager and chief financial officer. < / P > < p > the reporter combed his financial report and found that since 2018, the performance of Kaiying network began to decline, with annual operating revenue of 2.283 billion yuan, a year-on-year decrease of 27.13%, and net profit of 174 million yuan, a year-on-year decrease of 89.17%. Since then, personnel turmoil has accelerated the decline of Kaiying network’s performance in 2019, resulting in a huge loss of more than 2 billion yuan and a sharp decline in its share price. < / P > < p > but this situation will improve slightly in 2020. According to the third quarter report of 2020, the current chairman Jin Feng’s shareholding in Kaiying network has risen to 6.95%, making him the third largest shareholder of the company. In the first three quarters of 2020, Kaiying network achieved an operating revenue of 1.121 billion yuan and a net profit attributable to the net parent of 165 million yuan, with a year-on-year growth of 130.69% in the first three quarters. < / P > < p > game industry analysts pointed out that management problems will have a certain impact on the company’s operation, and Kaiying network has a good performance by relying on legendary games. However, with the increasingly fierce competition in the game industry in recent years, the life cycle of core game products such as “miracle of the whole nation” and “Legend of the blue moon” that used to bring a lot of revenue to Kaiying network has come to an end However, due to the Limited R & D and innovation ability of the company and the stricter approval of the company’s version number, the new hot money has not yet appeared. < / P > < p > when the main business is facing challenges, Kaiying network also needs to deal with litigation problems, company executives involved in cases and other issues, which have an impact on the performance to a certain extent. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.