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.