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  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-11-06 00:00:00",
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  "notes": "This slide is a narrative-heavy research note documenting a 'fraud-exposure' investigation.",
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      "text": "The existing hole in data constitutes the main source of NQ's profits, and is approximately equal to NQ's pre-IPO total capital.",
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      "text": "These two companies separately represent 11% and 8% of NQ's 2012 total revenue, or a total of $17.4 million USD; so clearly, between these numbers and the $5.9 million USD there remains an enormous gap.",
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      "text": "On a recent conference call NQ revealed that throughout China there were 5000 pre-paid card points of sale, three different distributors, these were off-line sales, and that every month 600,000 cards were pre-sold, most of which were three month pre-paid cards with an ARPU of 11 rmb.",
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      "text": "After iFeng Finance purchased a 13 RMB prepaid card at booth B2178, the salesperson explained that for each pre-paid card they sell they receive 1 RMB, but that in the last two days there has been really not much business, stating that, \"on average, in a given day, we can sell 6 or 7 cards.\" While iFeng Finance was in the middle of making its inquiries, two young men suddenly turned up, hurriedly purchased 10 pre-paid cards, and then vanished almost as quickly as they appeared.",
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      "text": "iFeng Finance checked NQ's IPO prospectus. In the three years 2008, 2009, and 2010, Yidatong separately stood at 52.7%, 20.0% and 21.4% of the Company's revenue and the SP was the primary source of the Company's profits.",
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      "text": "On the afternoon of October 31st, iFeng Finance visited the booths B1108, B1112, and B2178 located in the basement of the Dinghao shopping center sub levels 1 and 2 identified as points of sale [for pre-paid cards] in NQ's counter -attack conference call to carry out some fact-finding. We found that sales were less than ideal.",
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      "text": "After 2010, NQ's primary source of income was derived from NQ's recharge cards. This data is also receiving considerable skepticism from outsiders, because intuitively speaking, NQ's Qin coins have been a rare sight in the market.",
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      "text": "In response to this finding, NQ's Executive Vie President Li Yu expressed that sales of NQ's pre-paid cards in first tier cities were not robust, but that its key markets were third and fourth tier cities, and even lower tier cities, and additionally that the announcement chose to include Tier I cities from their network because the media generally tended to focus more on these places.",
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      "text": "\"on average, in a given day, we can sell 6 or 7 cards.\" — Salesperson at booth B2178",
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