Given ongoing changes in the domestic capital market conditions and ongoing uncertainty surrounding relevant regulatory policies in China, today we announced that we have mutually agreed to terminate the remainder of the pending FL Mobile divestment with Shenzhen Prince New Materials. This was frustrating, but we believe the outcome of this decision is that we are now able to move forward.
Together with our other partners and shareholders in FL Mobile, we will move swiftly to do what we always and initially set out to do all along – unlock the value of the FL Mobile business, and other businesses for our shareholders.
Over the past year, we have worked diligently to execute many business developments, including growing our entertainment businesses, improving our profitability and cost structure, and strengthening our balance sheet and capital position. In addition, we have invested in and better positioned our Company for the future by developing other businesses as well including Link Motion, our smart car platform.
These efforts and positive developments have not yet translated over into our equity value as of yet – which is frustrating for everyone. However, today’s announcement indicates the urgency that we feel to help our business value translate into our equity value also. We want to move forward in this pursuit.
We will certainly provide you updates as they occur with our alternative plans regarding our FL Mobile business. Alternative plans can now formally move forward with the termination announcement today.
In addition, we will be able to provide you an update on our fundamentals and business progress when we report our third quarter results.
Forward Looking Statements
This blog post contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in these blog posts are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.