It is beneficial for US investors to read Chinese media coverage of our 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. 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’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.
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.
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