Event Details

On August 30th, a report email circulated online alleging that an internal employee of Kuaishou had leaked the company's core data and strategic plans, leading to a drop in share prices.

The email was sent to several senior executives at Kuaishou, including co-founder Cheng Yixiao.

It is reported that the employee who leaked the information, Ms. Meng, worked in the Investment Development Department of Kuaishou Group. Since February 2024, she has been leaking company secrets by accepting interviews and selling related reports, earning over 700,000 yuan (after tax).

Ms. Meng used a voice changer and a fake account to present herself as a Kuaishou expert during interviews, while also selling reports containing core data from Kuaishou and other internet companies.

The information disclosed was so detailed that relevant sources revealed that it was Ms. Meng's ex-boyfriend who sent the report email.

Some netizens even speculated that her ex-boyfriend might have been involved in the scheme, turning against her due to an unequal distribution of the profits.

Linking to 'Share Price Decline'

The email was clever in linking to the 'share price,' a key concern for company executives. Regardless of whether the leak actually impacted the share price, the parties involved are sure to face the company's harshest punishment.

So, how exactly did this impact the share price?

According to the reporter, 'On the second day after 618, precise data down to two decimal places for the overall market and various industries was provided to the market through suppliers, leading to a drop in share prices.'

To add, Kuaishou's 618 performance this year was indeed impressive – with the number of merchants with active sales on the platform increasing by 26% year-on-year, orders from small and medium-sized merchants growing by 25%, and shelf-based payment orders surging by 65%; video-linked GMV increased by 66%...

However, despite all these positive numbers on June 19th, the day Kuaishou announced its good news, the stock price fell, and continued to decline sharply in the following days.

Kuaishou reached its peak upon listing on the Hong Kong Stock Exchange, with a total market value of up to 1.7 trillion Hong Kong dollars on its sixth trading day. Today, its total market value is approximately 170 billion Hong Kong dollars, representing just 10% of its peak value.

Cheng Yixiao probably isn't smiling at all right now.

Similar Incidents

Similar incidents of insider leaks and personal gain are not uncommon, and employees involved in such activities must bear civil, criminal, and administrative liabilities. The seriousness with which these cases are handled reflects the stance and determination of internet companies to protect their business secrets and combat internal corruption.

At Kuaishou as well, an employee was fired for leaking the Spring Festival Gala marketing plan, K3 strategy, and e-commerce data and strategies to the media. Their personal stock options were also recalled.

In April 2024, ByteDance reported 61 cases of employees taking advantage of their positions to accept bribes, illegally introduce service providers, and use virtual accounts in violation of regulations. Four individuals were investigated by the police for suspected criminal offenses.

In September 2017, before Apple's autumn product launch, the iPhone 8 was subject to multiple instances of surreptitious photography and exposure during transportation and production, leading to the premature leak of product information to the media. In 2023, an employee collaborated with hackers to launch a data attack, prompting Apple to strengthen its end-to-end encryption measures.

In 2023, over 120 Tencent employees were dismissed for illegally appropriating company assets and accepting bribes, violating the company's 'high-voltage line.' Nearly 20 individuals were transferred to the police for suspected criminal offenses. Tencent has established an 'Anti-Fraud Department' within the company, formulated strict anti-fraud policies and regulations, and utilizes advanced technologies such as big data and AI for real-time monitoring and analysis of internal operations.

In December 2018, Yang Weidong, the former president of Youku at Alibaba, was taken away by police for suspected economic irregularities. Alibaba has consistently taken a tough stance on corruption, and has established a specialized 'Integrity and Compliance Department' within the company.