English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 29 January 2015, 14:47 HKT/SGT
Share:
CMGE Responds to Allegations of Questionable Business Practices

HONG KONG, Jan 29, 2015 - (ACN Newswire) - China Mobile Games and Entertainment Group Limited (CMGE), the largest publisher and aleading developer of mobile games in China, stated in response to allegations made by a USshort seller recently that the allegations have confused the connections between ShenzhenZhongzheng Ruanyin Science and Technology (Zhongzheng) and CMGE.

Geoinvesting, a short seller based in the US, mentioned on January 15 that CMGE isengaging in questionable business practices and has overstated its revenues, creating anenvironment that allows for the transfer of revenue away from the company to a non-disclosed related entity, Zhongzheng.

CMGE responded to the allegations on the following day, saying that the allegations containnumerous errors and the speculations have no basis.

"Zhongzheng was founded in November 2009, and I was the founder and CEO back then buthave since left Zhongzheng," Shuling Ying, CMGE's chief operating officer, said. "Zhongzheng provided mobile game promotion at that time."

Ying said he started cooperating with Xiao Jian, the CEO of CMGE, in 2012, as they facedthe challenges of expanding in the large mobile game market, and Xiao at that time wastransforming their business from feature phone to smartphone games and was building a newteam for mobile games publishing. Ying said he later joined CMGE in June 2013 as one of theteam leaders in the mobile game publishing division, after disposing of all his shares inZhongzheng. He became the COO of CMGE last October.

Yet the previous team working with Ying remained at Zhongzheng.

"Of all CMGE's revenue in the first three quarters in 2014, less than one percent came fromZhongzheng and payments made to Zhongzheng for the first three quarters of 2014accounted for approximately 3.0% of CMGE's operating expenses for the same period.," Ying said. "It is not possible that CMGE transferred revenue to, or generated significant revenuefrom, Zhongzheng. Furthermore, Zhongzeng is just one of CMGE's many mobile gameadvertising agents and CMGE has no control over Zhongzheng's business."

"Consistent with China's mobile game market practice for Android and iOS, some mobilegame advertising agents put their names on the mobile games for promotion of the gamesand the convenience of game uploads, even though game titles belong to the publishers andrevenue collection is done by the publishers and the app store platforms. In the gamesmentioned by Geoinvesting, revenue collection is done by CMGE and app store platformsand not through Zhongzheng."

CMGE said it has conducted its business with Zhongzheng at arm's length.

Ying also mentioned that in October 2014, Zhongzheng's lease for its old office expired and itwas in the process of looking for a new office space. CMGE agreed to temporarily lease partof its office in Shenzhen to Zhongzheng during the transition. Both Zhong Zheng and CMGEagreed that Zhongzheng should secure a new office space and move out of CMGE'sShenzhen office and change its registered address as soon as possible.

By Zhang Yue (chinadaily.com.cn)
http://www.chinadaily.com.cn/business/tech/2015-01/28/content_19431772.htm


Topic: Press release summary Sectors: Daily Finance, IT Individual, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Theinvestmedia.com Offers Exclusive Brokerage Account Opening Offers and In-Depth Tutorials, Empowering Investors with Precise Decision-Making  
July 26, 2025 08:00 HKT/SGT
maxWin Receives Honesty Award 2025, Setting New Standards for Integrity in Online Gaming  
July 25, 2025 19:00 HKT/SGT
OMS Energy Recorded Significant Profits Growth in 2025FY, Roth Capital Rating it "Buy" with a Potential 40% Upside TP  
July 25, 2025 17:18 HKT/SGT
CWE held 'Lancang Mekong Green Course' Open Day to celebrate the 10th anniversary of the Nam Ngiep 2 Hydropower Station  
July 25, 2025 16:25 HKT/SGT
Olympus Enters Strategic Partnership to Develop Endoluminal Gastrointestinal Robotics  
Friday, July 25, 2025 3:00:00 PM
Eisai Listed for 24th Consecutive Year in FTSE4Good Index Series, an Index for Socially Responsible Investment
  
Friday, July 25, 2025 12:31:00 PM
Ultraman Omega joins the battlefield alongside beloved Ultraman Arc in Tsuburaya Production's new Starter Deck 03 'Ω to the Future' and Booster Pack 4 'Gleam of Eternal Hope'  
July 25, 2025 12:25 HKT/SGT
Multi-Dose Diquafosol Sodium Eye Drops Obtained Approval from NMPA for Commercialisation in China  
July 25, 2025 10:52 HKT/SGT
Everest Medicines Announces Share Placement to Raise Approximately HK$1,572.50 Million  
July 25, 2025 10:01 HKT/SGT
International Land Alliance Announces Tiny Home Offerings at Cabo Oasis Development  
July 24, 2025 22:04 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2025 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575