So, I've been picking up some shares here and there with my fingers crossed that the respective auditers are simply being extra cautious in covering all the bases.  If no wrongdoing was discovered by April 30 (going on mgt's word) it's hard to imagine that anything untoward popped up since then.

Also, several other companies needed until April 30 to file their 20f's - and they didn't have the extra onus of 2 separate audits taking place and needing to be integrated prior to filing.  Accordingly, for nq to need an extra month (hopefully less and not more) doesn't seem so extraordinary, if not unnerving for the s/h's.

Finally, NQ's cash position s/b sufficient to allow them a cushion to continue running their business and pursuing/closing deals as the audit process resolves itself.  What appears very clear is that NQ has a suite of products and services that are in demand and growing.

At any rate, I'm still willing to add incrementally at these levels with the idea that the delay is the consequence of an extra thorough audit nearing its completion as opposed to there being any problems with the books.

seems like the fate of NQ shareholders will be at the mercy of Shearman Sterling. without a clean report, there will be no 20F. the way the law firm investigaes a company could be quite different from an auditing firm, it can take as long as they want, which is out of NQ mgmt's control. the mgmt may be wondering whether it was a wise choice initially.

An independent audit was absolutely the right thing to do, it's just the time management process was extremely poor. EDU finished the audit in a little over 2 months, FMCN did it in 4 months. Why NQ is taking this long I have no idea. If you haven't done any homework into the company, at first blush, this certainly looks suspicious and deservedly so, share price got crushed again. If the audit was finished in Feb./Mar., we wouldn't be here talking about this, sure the stock still would have gone done w/ the rest of the Chinese ADR, maybe $15/16, but nothing like the crisis mode it is in now.

But, in terms of proving the company is fraud, to date we have not seen ANY concrete/substantive smoking gun. The short thesis more or less boils down to "it's a Chinese company, therefore it must be a fraud". As stock price goes down, fear begets more fear and perception of "fraud" becomes reality. There are many Chinese readers on the forum, who have looked into the company through the Chinese media, and I'm sure the conclusion is that the company is real.

Nationsky has a contract with the Chinese bureau of Statistics, don't think anything else needs to be said.

As for FL mobile, it runs games for some of the biggest game makers out there, Tencent, Perfect World, and some of its games are routinely ranked in the top 100 grossing apps.

https://itunes.apple.com/cn/app/pa-pa-san-guo/id735065263?l=en&mt=8

https://itunes.apple.com/cn/app/gong-cheng-e-shi-shang-chao/id726652663?l=en&mt=8

The second game is reportedly grossing 30 mil rmb a month(before marketing cost and split with the game maker), still a very respectable number. The upcoming FIFA game FL just secured should be a smash hit, just in time for the World Cup.

You have all seen the download stat. on NQ's AV and security apps, from Google Play or pre-installs w/ telecoms, so that's all real too.

Bottom line, NQ has a perception issue, and the company's effort(or complete lack thereof) has made it infinitely worse. Hopefully, a clean audit plus 20F would at least put the fraud issue to rest, and perhaps through stepped up buybacks and more partnerships/deals, investors confidence would be restored. Will certainly take time.

hi 253,

How can you know that the two IOS games are from FL? they belong to different developers on the links you posted.

(05-18-2014, 08:55 AM)js253 Wrote:

An independent audit was absolutely the right thing to do, it's just the time management process was extremely poor. EDU finished the audit in a little over 2 months, FMCN did it in 4 months. Why NQ is taking this long I have no idea. If you haven't done any homework into the company, at first blush, this certainly looks suspicious and deservedly so, share price got crushed again. If the audit was finished in Feb./Mar., we wouldn't be here talking about this, sure the stock still would have gone done w/ the rest of the Chinese ADR, maybe $15/16, but nothing like the crisis mode it is in now.

But, in terms of proving the company is fraud, to date we have not seen ANY concrete/substantive smoking gun. The short thesis more or less boils down to "it's a Chinese company, therefore it must be a fraud". As stock price goes down, fear begets more fear and perception of "fraud" becomes reality. There are many Chinese readers on the forum, who have looked into the company through the Chinese media, and I'm sure the conclusion is that the company is real.

Nationsky has a contract with the Chinese bureau of Statistics, don't think anything else needs to be said.

As for FL mobile, it runs games for some of the biggest game makers out there, Tencent, Perfect World, and some of its games are routinely ranked in the top 100 grossing apps.

https://itunes.apple.com/cn/app/pa-pa-san-guo/id735065263?l=en&mt=8

https://itunes.apple.com/cn/app/gong-cheng-e-shi-shang-chao/id726652663?l=en&mt=8

The second game is reportedly grossing 30 mil rmb a month(before marketing cost and split with the game maker), still a very respectable number. The upcoming FIFA game FL just secured should be a smash hit, just in time for the World Cup.

You have all seen the download stat. on NQ's AV and security apps, from Google Play or pre-installs w/ telecoms, so that's all real too.

Bottom line, NQ has a perception issue, and the company's effort(or complete lack thereof) has made it infinitely worse. Hopefully, a clean audit plus 20F would at least put the fraud issue to rest, and perhaps through stepped up buybacks and more partnerships/deals, investors confidence would be restored. Will certainly take time.

'avunculus' pid='43509' datel Wrote:

hi 253,

How can you know that the two IOS games are from FL? they belong to different developers on the links you posted.

Avunculus,

For some odd reason, FL does not use the company's name in app submission, it's also true for other games FL operates

https://itunes.apple.com/cn/app/quan-min-dou-san-guo-zhen/id738989322?l=en&mt=8

https://itunes.apple.com/cn/app/wo-qu-xi-you/id762106325?l=en&mt=8

For the two I listed, you can verify on FL's home page

http://papasg.feiliu.com/

http://gc.feiliu.com/

If that's not good enough, just do a Baidu news on the game 啪啪三国 and 攻城略地, plenty of articles written by non-affiliated mobile gaming sites and all point to the fact they are run by FL mobile.

So is FL just one of the publishers of 啪啪三国? I found the android version of 啪啪三国 is also available at shoujizijia: http://www.shouyouzhijia.net/game/16815.html

'avunculus' pid='43512' datel Wrote:

So is FL just one of the publishers of 啪啪三国? I found the android version of 啪啪三国 is also available at shoujizijia: http://www.shouyouzhijia.net/game/16815.html.

In China, the norm for mobile gaming publishing is platform exclusive, meaning game maker will only select one publisher to operate the game on a single platform(iOS or Android), but may choose different publishers across platforms(publisher A for iOS, publisher B for Android). Incidentally, the Android market in China is 2-3 times the size of iOS, not surprising considering Huawai, Lenovo, Xiaomi have flooded the market with $200 Android phones that have better specs. thanthe  iPhone.  In the case of 啪啪三国，FL operates both the iOS and Android platform. The link you posted(doesn't work) is likely an URL for downloading the android version of the game, the website owner does NOT operate the actual game.

I have mistakenly added a period at the end of the link. Now it should work. The way mobile games are operated ｌｏｏｋs confusing to me. How can I　ｆｉｎｄ　ｏｕｔ　ｗｈｏ　ｉｓ　ｂｅｈｉｎｄ　ｗｈｉｃｈ　ｇａｍｅ？　Ｓｅｅｍｉｎｇｌｙ　ｎｏｔ　ｂｙ　ｌｏｏｋｉｎｇ　ａｔ　ｔｈｅ　ｗｅｂｓｉｔｅ　ｗｈｅｒｅ　ｔｈｅ　ｇａｍｅ　ｃａｎ　ｂｅ　ｄｏｗｎｌｏａｄｅｄ．

'js253' pid='43515' datel Wrote:

In China, the norm for mobile gaming publishing is platform exclusive, meaning game maker will only select one publisher to operate the game on a single platform(iOS or Android), but may choose different publishers across platforms(publisher A for iOS, publisher B for Android). Incidentally, the Android market in China is 2-3 times the size of iOS, not surprising considering Huawai, Lenovo, Xiaomi have flooded the market with $200 Android phones that have better specs. thanthe  iPhone.  In the case of 啪啪三国，FL operates both the iOS and Android platform. The link you posted(doesn't work) is likely an URL for downloading the android version of the game, the website owner does NOT operate the actual game.

'avunculus' pid='43517' datel Wrote:

I have mistakenly added a period at the end of the link. Now it should work. The way mobile games are operated ｌｏｏｋs confusing to me. How can I　ｆｉｎｄ　ｏｕｔ　ｗｈｏ　ｉｓ　ｂｅｈｉｎｄ　ｗｈｉｃｈ　ｇａｍｅ？　Ｓｅｅｍｉｎｇｌｙ　ｎｏｔ　ｂｙ　ｌｏｏｋｉｎｇ　ａｔ　ｔｈｅ　ｗｅｂｓｉｔｅ　ｗｈｅｒｅ　ｔｈｅ　ｇａｍｅ　ｃａｎ　ｂｅ　ｄｏｗｎｌｏａｄｅｄ．

Chinese sites that host gaming app download has NO relation to the actual operating entity,  that is especially true of Android apps. Because there is no Google play in China, the app store front is a very fragmented market, with 91.com Wandoujia, Qihoo360, Xiaomi having the most mkt. share. But many more sites will host download of popular games to attract traffic. The URL you listed is just one such site. It's not hard to find out which company is actually behind the game, just Baidu/Google for the official site(not fan sites, of which there are often many), the URL is usually a dead giveaway.