It is beneficial for US investors to read Chinese media coverage of our NQ Mobile Inc (ADR) (NYSE:NQ) reports. This update consists of English translations of four articles that have appeared in Chinese media in the past week. There are two articles quoting certain of NQ’s purported partners (e.g., ZTE) as stating that NQ fabricated the partnerships. One article covers the disappearance of NQ / FL Mobile’s games from the iTunes store.
NQ Mobile market share do not match
One article is an IM exchange between Chinese investors and Chairman Lin. (The host of the chat was Xueqiu.com, a Chinese investment site.) Chairman Lin seems to take pain to avoid directly answering tough questions, such as those stating that NQ Mobile Inc (ADR) (NYSE:NQ)’s market share claims do not match with Chinese investors’ observations. The articles also mention Chairman Lin’s (unverified) claim that NQ has sued Muddy Waters in China.
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The articles are:
- NQ’s “Business Partners” ZTE, Huawei and Lenovo, Denied There Was Pre-installation Cooperation, The Beijing News, Oct. 30, 2013.
- NQ Accused of Unilaterally Fabricating Reports of Cooperation with ZTE, Money.163.com, Oct. 25, 2013.
- FL Mobile: iOS Games Drop-off Issue Still Under Discussion, Sina Technology, Oct. 29, 2013.
- NQ Mobile CEO Yu Lin: We have filed a lawsuit in China against Muddy Waters, and are considering organizing an anti-Muddy-Waters group, Caijing News, Oct. 29, 2013.
NetQin’s business partners denied pre-?installation cooperation
Some of NetQin’s alleged business partners, such as mobile phone-?related companies ZTE Corporation (SHE:000063) (OTCMKTS:ZTCOY), Huawei Technology Co Ltd (SHE:002502), Lenovo Group Limited (ADR) (OTCMKTS:LNVGY) (HKG:0992), etc., claimed to have no pre-?installation business with NetQin during interviews with the reporter yesterday.
After NetQin was questioned by the short-?seller and the media, some of NetQin’s alleged business partners, such as mobile phone-?related companies ZTE Corporation (SHE:000063) (OTCMKTS:ZTCOY), Huawei Technology Co Ltd (SHE:002502), Lenovo Group Limited (ADR) (OTCMKTS:LNVGY) (HKG:0992), etc., revealed they have had no pre-?installation business with NetQin, during the interviews with The Beijing News reporter yesterday. In response to this, NetQin expressed there must be a misunderstanding resulting from internal communication problems with the mobile phone companies. NetQin has adequate evidence to prove it is genuinely doing pre-?installations with these companies.