Foreign media reported that the assets of Megaspeed, a company related to Jensen Huang’s rumored girlfriend, soared 90 times in one year. (AFP)
[Financial Channel/Comprehensive Report] After Nvidia CEO Jen-Hsun Huang admitted to having an extramarital affair, the focus of the outside world also turned to Megaspeed International, a Singapore-based cloud computing service company where the rumored scandal target Alice Huang once served as a director. According to "Lianhe Zaobao", the company's financial data in recent years have been quite astonishing. Revenue in 2023 was almost zero, but it jumped to US$290 million (approximately NT$9.425 billion) in 2024, and its total assets increased by about 90 times in just one year, approaching NT$100 billion.
The report pointed out that what is even more concerning is that the company’s total liabilities also surged by about 129 times during the same period, even exceeding its total assets. The market wonders how a company that had almost no revenue the previous year could accumulate nearly US$3 billion (approximately NT$97.5 billion) in assets in just one year while shouldering higher liabilities. The source of funds and financing structure behind it have become issues worthy of attention.
According to reports, Megaspeed has been a Huida customer in the past and has also attracted the attention of U.S. authorities for allegedly helping China obtain advanced artificial intelligence (AI) chips that are subject to U.S. export controls.
According to Singapore's official financial records, Megaspeed experienced astonishing asset growth in 2024, with total assets soaring from US$32.89 million (approximately NT$1.06 billion) in 2023 to US$2.975 billion (approximately NT$96.68 billion) in 2024, an increase of approximately 90 times in just one year.
In addition to the rapid expansion of assets, revenue has also jumped from almost zero in 2023 to US$290 million in 2024. However, the company's after-tax loss expanded from US$21,283 (approximately NT$691,000) to US$20.04 million (approximately NT$650 million).
On the other hand, Megaspeed's total liabilities have also surged from US$22.93 million (approximately NT$740 million) in 2023 to US$2.98 billion (approximately NT$96.85 billion) in 2024, an increase of approximately 129 times. In terms of cash flow, operating activities will have a net outflow of US$2.97 million (approximately NT$96.525 million) in 2024, and investment activities will have a net outflow of US$844,000 (approximately NT$27.43 million); in 2023, there will be a cash inflow of approximately US$10 million (approximately NT$320 million) from financing activities.
It is worth noting that despite the substantial increase in assets and liabilities, Megaspeed's financial statements from 2022 to 2024 have all received unqualified opinions from accountants, and the audit report did not find any significant uncertainty in its ability to continue operating.
Megaspeed was established in 2015 and was formerly known as 7Road International. It was renamed in March 2023 and its office is located in the Ocean Financial Center in Singapore's central business district. Its predecessor, 7Road, was an online game company originating in Shenzhen and founded by Chinese national Meng Shuqi. 7Road Hong Kong once held shares in Megaspeed, and Meng Shuqi also served as director and general manager.
Megaspeed is currently wholly owned by Swiftdata, which was established in Singapore in October 2023. Tan Yong Pong, a Singaporean, became a director of Swiftdata on the 31st of the same month and became a director of Megaspeed less than two weeks later; Huang Le ended his eight-month tenure at Megaspeed in November of the same year.
In response to reports on Huang Le's relationship with Huang Jen-Hsun and suspected Chinese intelligence activities, Singapore's Ministry of Home Affairs previously clarified that the authorities have not conducted relevant investigations against Huang Le as pointed out by the Wall Street Journal.
However, "Bloomberg" quoted sources on November 10 as saying that the Singapore police had detained Huang Le for questioning and restricted her from leaving the country. Tim Teter, Huida's legal director, also contacted Jeffrey Kessler, Undersecretary for Industry and Security Affairs of the U.S. Department of Commerce, to inquire whether to participate in related actions. "Lianhe Zaobao" inquired about this from the Ministry of Home Affairs of Singapore, but received no response.
In addition, some Huida shareholders filed a class action lawsuit in the federal court in San Jose, California on November 9, accusing Huida and Huang Renxun of failing to disclose their extramarital affair with Huang Le to shareholders, as well as the possible national security concerns and impact on the company's business, and allegedly concealed important information and deceived investors.
