I would like to file a formal complaint in relation to the proposed listing of Megvii Technology Limited (“Megvii”).
According to the Application Proof submitted by Megvii Technology Limited on 25 August 2019, I would like to express my grief concern on Megvii’s suitability of Listing in following matters:
1. Profitability and Going concern:
Referencing to the Application Proof of Megvii, it recorded over its all track record period. Megvii recorded loss for the year amounted to approximately RMB 342 million for FY2016 and such loss has accelerated to approximately RMB 5.2billion for the sixth month ended 30 June 2019. If such loss trend maintains in the FY2019, the loss could be further increased to RMB 10 billion for FY2019. There is also no any sign that Megvii could make a turnaround performance after listing base on its historical record. With its current equity amounted to approximately 10 billion for FY2019, Megvii may run out of capital and all existing resources within 1-2 years.
2. Legal compliance : Potential violations of human rights, privacy ordinance and potential crime against humanity
The technology of Megvii has been widely adopted in Xinjiang “Re-education Camp(“the Camp”)” to monitor minority in PRC.
On 24 October 2018, the BBC released the details of an extensive investigation into China's hidden concentration camps and the extent to which the People's Republic goes to maintain what it calls "correct thought". US-based journals like the Foreign Policy Journal and Center for World Indigenous Studies have labeled these policies as "cultural genocide". Some parties refer to these camps as "concentration camps". The Times of Israel wrote a piece comparing these vocational camps to the U.S. Japanese-American concentration camps during World War II as well as the British Palestine internment camps for Jews. The European Union and Turkey were invited to visit part of Xinjiang by China in order to examine the situation themselves. The EU initially declined, due to worries that the tour might be “choreographed” by the Chinese government, but it was open to visit Xinjiang at a later date.
The legitimacy of the AI technology of Megvii remains questionable, approval of the listing may give a sign to public, HKEx and SFC agree the above act in the Camp. As a regulatory of the international financial, I sincerely urge you could reject such listing application. Please do not be the evil.
Lastly, I am hereby begging you could reject the listing application. From a Humanity perspective and consider your identity as a Hong Konger, when you make the listing decision of Megvii: think about our teenagers. They are sacrificing their future, life and everything to defend for us; think about the blinded female teens; think about our 6 suicided friends make a death accusation against HK government.