According to public information released by Yueshang Group on December 1st, the company recently conducted internal audits on departing executives and directors, and found that former COO Li Zhuo and former CFO Xu Jianda had a high expenditure of $2 million; After investigation, there are many doubts about this expenditure. At present, the company has reported this matter to the Accounting Oversight Board (PCAOB) of listed companies in the United States and submitted all information to the Chinese police.
According to a survey by Yueshang Group, in July 2022, former COO Li Zhuo and former CFO Xu Jianda, under the pretext of paying Nasdaq guarantee and consulting fees, spent a huge amount of $2 million on "About Investment Pte. Ltd.". After verification by the registration office, the company is actually 100% owned by a Chinese person named Li Jiaming.
The investigation found that on November 22, 2022, when TAAD, the former auditing company of Yueshang Group, questioned Xu Jianda about this $2 million through a WeChat group, Xu Jianda explicitly replied, "Nasdaq instructed us to pay About Investment.". On November 8, 2023, when the company sent an email to the official Nasdaq to verify this payment, the other party replied, "There is no such payment request.".
Through inquiries with relevant employees, it was learned that at 20:26 on April 13, 2023, Xu Jianda requested employees to "help me put Dai Zheng's signature on the $2 million contract" through WeChat. However, there was no response from the employees. At 20:51, Xu Jianda replied through WeChat, "It's done, I have asked Wang Xin to do it.". Wang Xin is Xu Jianda's assistant.
In the 2022 annual report of Yueshang Group, there is no confirmation letter or true record of this $2 million.
From November 13, 2023 to November 21, 2023, Li Daxue, an independent director of Yueshang Group, sent multiple emails to AssentSure Pac Audit Company, requesting an explanation from AssentSure regarding the fact that the 2022 annual report did not truthfully reflect this $2 million matter. So far, no response has been received from AssentSure.