Controversies

Series C Investor Launches Buyback Arbitration After Failed IPO; Legal Representative Wu Shichun's Assets Worth Over 200 Million Yuan Frozen

Jidiao Network (Tingyun) was listed on the NEEQ in 2015 and delisted in 2018. After completing a 400 million yuan Series C financing in 2020, it failed to relist, and investors triggered buyback clauses and initiated arbitration, demanding that the company reduce capital and repurchase shares and seeking to hold important shareholders including Wu Shichun and Chen Qilin liable for the buyback; the investor applied for pre-litigation preservation against Wu Shichun, the largest shareholder and founder of Meihua Venture Capital, freezing about 212 million yuan of his assets. Wu Shichun said the investor was using litigation tactics to exert pressure and that settlement talks were underway. Arbitration has not been ruled on; Wu Shichun says settlement is underway and the freeze is being lifted.