NetQin promotes "FeiLiu", but the capital market is not buying it and the stock price continues to fall

NetQin hopes to use its role as a mobile game publisher to rebuild its image in the eyes of investors. Previously, the actual number of users of NetQin's security products had been questioned by the outside world.

On Friday afternoon Beijing time, NetQin released an open letter to investors to the media. The letter elaborated on the value of Feiliu, a gaming subsidiary of NetQin, and believed that Feiliu's understanding of the mobile gaming market and its role would bring value to NetQin.

In November 2012, NetQin announced that it had reached an agreement with Feiliu to achieve 100% control after the completion of the acquisition, making it a subsidiary of NetQin.

NetQin said that Feiliu's business model is based on publishing and operating mobile games and related communities, and can provide localization and distribution services to companies that want to publish games in China. NetQin listed the third-party game developers it mainly supports and emphasized its channel's advantages in exclusive agency and its market share.

Data provided by NetQin shows that as of December 31, 2013, Feiliu operated and published 20 iOS games and 69 Android games, with more than 106.9 million cumulative registered user accounts and 20.4 million average monthly active user accounts. NetQin said that in 2013, the game business generated revenue of approximately 20.7 million (excluding additional revenue from advertising and promotions).

NetQin said it hopes this open letter can convince investors to recognize Feiliu's value and potential.

Recently, Bison Capital Holding and other investors invested in 5.88% of Feiliu shares. Xu Peixin, founder of Bison Capital Holding, believes that Feiliu's valuation exceeds that of NetQin, and it would be a good business if it were privatized and repackaged and listed.

Bessen Capital has made a non-binding privatization offer to NetQin and invited NetQin's two co-founders to negotiate, but it does not hold any NetQin shares.

In this regard, NetQin CEO Lin Yu did not respond.

As of press time, NetQin's stock price had fallen 4.32% from the day's opening price.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.