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.