NetPosa's Terrible Situation Worsens

Published May 19, 2020 12:12 PM

NetPosa is fighting for its existence as the situation worsens for what was once the PRC's largest VMS provider. The firm is being investigated by Chinese securities regulators, has suffered another 90% sales drop, and has seen its embattled and debt-ridden founder resign from the board of directors.

IPVM Image

Last year, NetPosa was already under crisis for its many financial and legal issues. In this note, we examine the latest developments for this troubled firm, including:

  • NetPosa Background: Already Under Crisis
  • 2019 And Q1 2020 Report Dismal
  • Lower Government Spending, Strong Competition
  • Police Provider Subsidiaries Hit Hard
  • CSRC Investigation Of Liu Guang, NetPosa Announced
  • Investigation Impact Examined
  • Stock Price Mystery
  • Bad Look For Sichuan SASAC
  • NetPosa Response to Crisis

******* ******* ***** ******

** "****** ** *******" (******* ****), **** ******** ***** how ******* *** ******** ******* ****** bills **** *** ****** ***** ********** clients, **** *******'* ***** ******** ********** standing ****** **** *** ****** ******* of $**** ** ****, ***** *** made ** *****'* ******* *** ******** at *** ****.

*******'**** *** ***** *** **** ***** to **** **** ******** ****** ** debt ** *** *******'* ****, ********* in ******** **** ********* *** *** shares ******* ******, * *********** ********** ***** *** ******* ********** government *** ****** * *********** ***** in *** ****.

* ***** *****, **** ******** ***** how*******'* ** **** ********* **** **** **%*** **** ** ********* ***** *** ********** *** **** *******.

2019 *** ** **** ****** ******

** ******* ******* ******** ******* ****** ******,******* * ****** ********* *********. *** **** *** ***** ** **** $51m **** ****, **** **% **** the **** ******, *** ***** ** losing $**** (******* ***** *** ** Chinese ****):

IPVM Image

* ***** ******* ** *** ****** bills *** ** ** ******* ***: of *** $*** ******* ** ****** bills ******* *** ** *** *** of **** **** **** **** *** customers, $*** ******* **** **********'*** *****'*.*., ************* *** **** ******* ** expenses.

***** ****, ****** ******** *******. *******'* ***** **** **% ** only $*.** *** *** **** ****** a **** ** $**.**. *** ********* unpaid ***** ********* **** ******** (*%) to $*** *******.

***********: ***** ********** ********, *** ***********

******* **** ***** **** ******* **** incurred ** "***** ******* ** *** security ********," ******* ********* ***** ********** resources ******* ******** ** ** ******* or **** *******, ** ********* ** ************:

*** ******** ****** ** **** ** not ** **** ** ******** [...] S******* ******** *** ********: ******** ******** in ******** ******* *** ******* ** bidding ** **************, *** *** **** of ********** ******** *** ****** **** significantly. ******* ******* ** ********, *** the ******* ****** ** **** ** long ** *-* ***** [...] *** to *** ******** ** ********** ****** of ***** ***********, **** ******* ******** projects **** **** ********* ** **** terminated, *** *** **** ** ******* for ********* ******** ** ****** **** expected.

** ** **** **** *** ********** spending ** ***** ************ *** ****** in ****** *****. *** *******, ********* executives******** **** ************* **** *** "************ ****** **** the ****** [**********] ******** ******** *** fewer *** ********" ***** *********'* ********** sales **** *****% ** $*.* *******. *******, *****'* no ******** ** * ***********, **%+ style **** *********** ** *******.

******** ** ********** ***** **** *** the **** ****** ******* ******: ** also ******* ** *** ****** ***** *********** **** ******* (*****'* ******), Huawei, *** "** ********" **** ****** and *********:

*** ******** ***** ** ********** ** the ******* ** ***** ** *** security ********. ***** ******* ****** **** as ******* *** ******, **** ** unicorns, *** ******** *** ******** ** the ******** ********, ***** *** *********** competition

Police ******** ************ *** ****

******* **** **** **** *********** *** two ************ ********** ****,***********************,**** *** ****** ***** ************ ******** providers.

*********, * ******** ********, **** **** making ****** $** ******* ** ******* in **** ** ****** $** ******* of ****** ** ****. ***********, ***** focuses ** ***** ******* ********, **** $4.3 ******* ** ******* ** **** but **** $**.* ******* ** ****:

IPVM Image

*** ********* *** ***** **** *****, Hikvision, *******, ******, ******, *** ********* is *** **** ****** ********* **** PRC ******/**********, *** **** ***** ******* sector *****, ********* ******* *****.

**** ************* *********, ***** *******

** ***** **, ******* ********* **** its ******* *** ***** *** *** company ****** **** ***** ************ ** the***** ********** ********** ********* (****):

**. *** *****, *** *******'* ****** controlling *********** *** ******* ********, ******** the "***** ********** ********** ********** ********** Notice" (******* ************* ****** **. *******), due ** *** ******* ’* ******* information ********** ********* ** **** *** regulations [...] *** ******* *** **. Liu ***** **** ******** ********* **** the **** ** *** ***** ********** Regulatory ********** *** ********* *** ******** comply **** ********** ************ ** ******* information ********** ***********.

*** **** *****, *** ************* **** *******'* ***** ** *********. ******** ***** *** ** ***********, PRC ***** ******** **** *** ******* to *** *************'* ************.

IPVM Image

CSRC ** *******; ***** ** ******* ** ************ *****

*** ****, ** *********, *** *** announce ******* **** ** *** ************* Guang *** ******* ****. *******, *** possibility *** *** ******** ************ ***** Liu ***** ******** **** ****.

** ************, ***** *** '*******' *** ******* shares *** ****. ** *******'* ***** price ********, ** ****** **** ** cover *** *******. ** *** **** cash, ** ******** ******** ***** ** NetPosa's **** ******* ****** ***** *************. Guang **** ******** **** ** **** manner ** *** **** *******'* ******** accounts ********** *******.

** * ****** ** ***** *****, Guang *** **** ** *** **** creditors, *** *** ****** **% ***** in ******* *** ******. ** *** time, ***** ***** ******* * ******** $220 *******, ** ***** **** $** million *** **** **** ** ***. IPVM ***** *** **** ** ****** from ******* ** ******* ***** **** figure ****** ** ** *****.

Investigation ****** ********

* **** ************* ** *** *********** fatal. *********'* *** *** ********** ** *** **** ****,*** ***** *** **** * ******* ********* ******* ****.

*******, ******* ** ** *** ***** financial ***** **** *********, *** *** potential ***** *** *** ************* (**** unpaid *** ************ *****) ** **** serious **** *** ********* (*********** ***** sales).

Bad **** *** ******* *****

*** **** ******** **** **** ******** over *******'* ***** (*** ********** ************ overseeing *****-***** *********) *** ****** * controlling ***** ** ******* **** ****. PRC ********* ***** **** ********* ** this,**** ******"****'* ***** **** ******* *****?" *** saying ** "******* ** * ****".

IPVM Image

******, ******* ***** ****** * *********** 26% ***** ** ******* ** *** 2019 ** *** ***** ** $*.** per *****, ***** ******* ********* ****** at ******** **** **** ** *****, a -**% ******.

** *** ****, ******* *****'* ******** was **** ** * ******** ********** trying ** ******* * ********* **** business **** *** ****** ** ***** times *** ********** * ******* **** for *******.

******* ***** *************

*******'* ***** ***** *** ****** ************** is ********, ** *** *** *****. Despite *** ******* ********, ******* ********* has * ****** ************** ** ******$*** ******* (*** *.** ******* *** highlighted *****):

IPVM Image

**** ** ******** *** * ******* that ********* **** ******** ** **** $51 *******, *** ***** *** **** legal ******. ******* ** ******* ** nearly *** *******, ***** ** **** consistent **** ********* ********** ******* **%, instead ** *******'* ****** **% *******.

*** ******* ********* **** ******************** ***** *******'* *********** *** **** reputation **** *********, ** "*** ** delisted" **** *** ******** ***** ********. However, ** ***, ***** ** ** sign ** **** *********.

******* ******** ** ******

******* **** ** ** ********** ** its **** **** **** ******* **** various *****:

  • ******* ** ***** **** $** ******* for *** **** ** *** ********* subsidiary ***** *********** ***** ************ ****** **** ****** ***** ** selling *** ****** ** *** **** on *** **** ******. ** ***, this **** *** *** ********* ***.
  • ********* ********* *% ***** ** **** ** a ***** ***** ****,*** *****,** ********** ** ***** ** ****** a $** ******* ****.

***** **** ** ****, *** **'* not ***** ** ** *** **** can **** ** *** *** *******'* fundamental ********, ******* * **** ** paying *********.

******* ** ********

******* *** *** ******* ** ****'* repeated ******** *** *******.

******* ****

***** *******'* ********* ******** *** ***** from *** *** ********* *******, ** are *** ***** ***** *** *******'* problems ******* *** ******* ***** ************ market. *******, **** ***** ***** ************ companies *** ********** ** ******* ******* including **** ******** *** ****** ** coronavirus (****** ******* ******** ******* ******* that).

**** **** ** ********** ** ***** is ******* ******* ** **** ** an ******* ** * **** ** fundamental ******* *** *** **** ****-****** 2010s ***** ***** ************ ******.

Comments (6)
JH
John Honovich
May 19, 2020
IPVM

*******, **** *********!

*** ***** * **** *********** ** the ***** *****. ** **** **** noticed **** *** ********** *** ***** video ************ ********* **** *** ****** than ***-***** ********* **** ******* ******* and *******. * *** ***** ***, a ********** **** ***** ** **** about *** ********* ******, *.*. *** valuation *** **** '****' *** ******, e.g., *** ******* ********* ******* ** 30% ******** *** * *****, **** company's ******* **** ******* *********. ***** this **** *** **** **** *** some ***** ** ****.

***, **** * ******* **** *******, it's **** ** ******* ******** ***** to **** *********. ****** ** *** fundamentals, * ******* **** *** $** million ** *******, ******** **%, ***** losing $*** ******* ***** ** ****** worth ******** - ** ***** ** hard ** ******* ****** $** ******* for **** * *******, ******** ** Netposa's ****** ****** *** ** ~$*** million.

** ** ***** ********* **** **** artificially **** ********** ************ **?

(2)
(2)
U
Undisclosed #1
May 19, 2020

*** **** ***** ***** ***** ** Knightscope? ****'* *** ** ** ** least ***** $*****... ***

(2)
U
Undisclosed #1
May 19, 2020

IPVM Image

(1)
JH
John Honovich
May 22, 2020
IPVM

******: ***** ********** *** **** ********* **************** ******* *** ***** ****** ******.

U
Undisclosed #1
May 22, 2020

*********** **** $** **** *******... **'* unbelievable **** *** ***** **** **** money **** ****** ********* **** ** questions ** ******** ** *** *** shenanigans **** ******* ** ******* ****** sanctions. **** *** ** ****!!!

Avatar
Charles Rollet
Jul 09, 2020

******: *** ******** ***** *********** ****** * "****** ************"** ******* *** *** ******* ****** loans *** ***-***********, *******:

*** ***** ********** ****** ** ******* the ****** ********** *** *********** ********** obligations ** * ****** ****** [...] Major ****** **** *** ********* ** a ****** ******.

**** ****** ******* ** ***** ******, so ********* ** **** ** * warning ** *********. ******* ** ***** being ************ ** *** ****, ***** does **** *** *********** ********.

************* *****,* **** *********** ********** **** *** stock ********,******** ****** *** **** ********** ***** ******* an ************** *******, ********* **** ****** NetPosa's ****** ****** * ******* ****** of **** *** ** ******** ** compensation.