Shares of Weimob (2013) plunged 11.84 percent to HK$8.64 yesterday on news that the Tencent-backed cloud-based marketing provider has been plagued by complaints of merchants hit by the sabotage accident in February over the 150-million-yuan (HK$164 million)compensation plan.
A court hearing was held in Shanghai yesterday over the complaints, said mainland media reports.
If all Weimob's three million registered merchants were affected by service outages, each merchant could get compensation of only 50 yuan on average.
Weimob said in a Hong Kong stock exchange filing on March 2 that it would set aside 150 million yuan for the affected SaaS business merchants, one week after it said the production environment and data of its software as a service (SaaS) business was sabotaged by an employee in the maintenance and operation department. It has also invited external data security experts to assist the company in formulating and evaluating the data security assurance plan.
Weimob is a WeChat-based customer relationship management solution provider that helps businesses to build mobile commerce platforms on WeChat at lower costs.
Revenue from the SaaS business was 507 million yuan last year, accounting for 35.3 percent of total revenue.
