{ "docId": "019dd923-622c-750b-8b96-2fbe642fbf78", "docSlug": "69cc18cfe079", "documentTitle": "NQ Mobile (NQ)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2013-10-24 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 46, "pageCount": 81, "prevPage": 45, "nextPage": 47, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a text-heavy research note page detailing specific instances of corporate malfeasance.", "elementsJson": [ "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-2fbe642fbf78/46", "deckHref": "/decks/019dd923-622c-750b-8b96-2fbe642fbf78", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-2fbe642fbf78.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-2fbe642fbf78#slide-46", "components": [ { "bbox": null, "kind": "callout", "text": "3-15 is important for investors to understand NQ's management. First, they obviously lack an ethical compass - that is the obvious. More subtly though, this is evidence that they just cannot help themselves.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0936-7173-ab0f-2d52ab6bdfe3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.882, "x": 0.11, "y": 0.518 }, "kind": "paragraph", "text": "NQ tried to paper over its wrongdoing by submitting code to be certified as clean. Obviously NQ submitted the OTHER code - i.e., the code without the malware.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1292abeb-2308-4538-9e7f-813b9d9bc8c6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.882, "x": 0.11, "y": 0.568 }, "kind": "paragraph", "text": "We have posted the 3-15 video on our website with subtitles. We believe that investors will find it illuminating. The video is at: https://vimeo.com/77704496.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1def073b-afdf-4dd5-b39f-822354347903", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.882, "x": 0.11, "y": 0.094 }, "kind": "paragraph", "text": "former NQ employee who joined the Company after the 3-15 incident. She informed us that NQ tells employees that CCTV the following year aired a retraction. We viewed the 2012 program, and there was no retraction of any sort. This appears to be a lie.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23566e39-530e-481b-aaf8-fa5516a8c051", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.882, "x": 0.11, "y": 0.328 }, "kind": "paragraph", "text": "The issue addressed in their statement was primarily that of the \"version problem\" followed by the \"key\" problems, and even went so far as to claim that they were framed by their competitors. All so-called \"great\" companies claim they were framed by competitors when they are exposed. Would CCTV's 3-15 Gala show do such a thing? Now the two companies have removed their statements, both having already admitted their mistakes.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "64bb68ca-4716-428e-a2eb-4f7b086c85cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.821, "x": 0.17, "y": 0.278 }, "kind": "paragraph", "text": "Yin Wen: the content of Feiliu JiuTian's statement really has no substance, they did not state what specific points were mistaken.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7582791a-74e1-4512-bf38-7267dd8a7c02", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.821, "x": 0.17, "y": 0.228 }, "kind": "paragraph", "text": "China Times: The day after the report exposing NetQin and Feiliu Jiu Tian of jointly harming consumers, they declared there were serious discrepancies with your facts.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "95fb052e-d266-4532-8424-d7d0f48f00a9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.882, "x": 0.11, "y": 0.618 }, "kind": "paragraph", "text": "3-15 is important for investors to understand NQ's management. First, they obviously lack an ethical compass - that is the obvious. More subtly though, this is evidence that they just cannot help themselves. Scamming consumers for RMB 2 a pop was clearly a stupid risk given the hundreds of millions of dollars they could pocket through a successful stock fraud. These are people who will steal the shirts off investors' backs - without hesitating.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "971885ea-5645-4ade-828f-cf58b408ab78", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.882, "x": 0.11, "y": 0.423 }, "kind": "paragraph", "text": "In fact, the purpose of this program is to provide consumers with a clue. Although the program was only a few minutes long, in fact, we started the investigation of these two companies in October of last year and spent a total of four months of time investigating. In total we spent four months tracking them, determining how they did the downloads, assessing how they control users, all of this have been investigated very clearly.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a7a4732a-b61e-492d-8d5e-134c04b64a3c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.882, "x": 0.11, "y": 0.163 }, "kind": "paragraph", "text": "NQ tells investors that CCTV privately retracted its reporting. We see no evidence of the sort. We did come across an interview with the director of that episode in which the director reiterated that NQ and FL were culpable:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e5f3f709-ff38-4474-8c97-538297dba6f2", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "China Times: The day after the report exposing NetQin and Feiliu Jiu Tian of jointly harming consumers, they declared there were serious discrepancies with your facts. Yin Wen: the content of Feiliu JiuTian's statement really has no substance, they did not state what specific points were mistaken.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0936-7173-ab0f-3365e739528f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.024, "w": 0.488, "x": 0.11, "y": 0.848 }, "kind": "title", "text": "US Management is Merely a Front", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20f47870-6fe5-4a2e-ad25-efb3ef6e4b38", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "4416af2b-9b7c-42f9-90d1-19ce5741a202", "evidence": "The slide systematically lists evidence of corporate deception and fraud to discredit management.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }