SKIPPACK, Pa., Jan. 27, 2015 /PRNewswire/ -- GeoInvesting, LLC ("GeoInvesting" or "Geo"), a research company that specializes in providing high quality insights on equities both in the China and U.S. spaces, today announced that it has published new evidence and a detailed rebuttal to China Mobile Games ("China Mobile").
GeoInvesting originally wrote a report called "China Mobile Games: Who is Really Being Played?" on January 15, 2015, which laid out the argument that:
- China Mobile Games is operating in a cloud of obfuscation
- Undisclosed related parties of China Mobile's business remain a risk for U.S. shareholders
- The company could potentially be overstating revenues
Last week, China Mobile issued a response to GeoInvesting's assertions. The company's response lacked key details, failed to address GeoInvesting's concerns, was brief in nature and can be viewed in its entirety here.
In GeoInvesting's latest report, released yesterday and available here, Geo offered a response to China Mobile's rebuttal of the initial article. In this response, the key points are:
- We believe China Mobile's response to our article to be purposefully vague and unresponsive to our key concerns.
- Two working days after we published our initial report, Zhongzheng's SAIC address has been amended from China Mobile's office to a "virtual office".
- Super Hero and Tian Tian Ying Xiong, two "key drivers" of China Mobile's business growth, appear to be operated by Zhongzheng and could easily constitute more than 1% of China Mobile's revenue.
- What was China Mobile's "business with Zhongzheng" when it claimed that "business with Zhongzheng" accounted for 1% of China Mobile's revenue and 3% operating expenses?
- We look forward to a strong response from the SEC and China Mobile's auditors, Ernst & Young.
To receive exclusive notice of further reports from GeoInvesting, as well as to access its archive of research and insights, readers can visit www.geoinvesting.com and become part of Geo's investment community.
Co-Founder and Vice President, GeoInvesting, LLC
About GeoInvesting, LLC
GeoInvesting, LLC is a research company that specializes in providing high quality insights on equities, both in the China and U.S. spaces.