NetQin hopes to clear its name as soon as possible and make full efforts to transform into a platform-based strategy

With the advent of the mobile Internet era, more and more people are turning their attention to mobile application platforms in order to seek more interactive information and services. As the world's largest mobile security service provider, NetQin Technology also began its transformation to four major platforms in 2012, namely mobile advertising platform, mobile game platform, enterprise mobility platform and mobile security platform.

As we all know, NetQin Technology was originally just a simple mobile Internet security service provider. After acquiring most of the shares of Guoxin Lingtong, Ruifeng and Feiliu, it gradually expanded its business to mobile search and advertising platforms, mobile games, enterprise mobility, personal mobile security, family mobile security and other fields. Since the end of October last year, after being shorted by Muddy Waters, NetQin has further affirmed the importance of platform upgrades.

In response to the multiple malicious accusations from the short-selling agency Muddy Waters, NetQin did not panic, but instead planned a response policy at the first opportunity. In addition to quickly establishing an independent investigation team to actively cooperate with the investigation, NetQin Technology also invited Deloitte and Shearman Law, two of the most authoritative law firms in the global capital market, as third parties to conduct an overall and comprehensive investigation into NetQin's revenue, costs, users, important partners, cash and other details.

The facts also prove that NetQin did not commit any fraudulent acts as alleged by Muddy Waters. After NetQin announced the results of the independent committee's investigation into the case, its stock price soared by nearly 31% that day. However, compared with the first time NetQin was accused of fraud by Muddy Waters, the company's stock price is still down about 56%.

With the emergence of similar security products such as Qihoo 360 and Tencent, the increase in user choices, and the advent of the Internet thinking era, NetQin has also begun its transformation plan for the mobile Internet platform. Regarding the recent sale of a small number of shares in its subsidiaries Feiliu and Guoxin Lingtong, in addition to NetQin's statement of "looking for all possible ways to release value for shareholders", I personally infer that this is also a direct manifestation of NetQin's true self-value.

Industry insiders pointed out that the valuation of Guoxin Lingtong has reached 530 million US dollars, and NetQin sold 3.4% of Guoxin Lingtong's shares for 18 million US dollars. According to this calculation, the current valuation of NetQin can reach 473 million US dollars. This also effectively refutes the so-called "shell" company accusation made by Muddy Waters.

We would like to think that NetQin's transformation from a security vendor to a diversified company is a change made to adapt to the competitive environment. In fact, NetQin does need to optimize its diversified development and seek business development beyond security.

It is understood that since officially upgrading to a platform in 2013, NetQin has begun to focus on business lines such as Weile Wallpaper, Music Radar, and Feiliu Mobile Games, while using entertaining and grassroots activities to attract young user groups, and through cooperation with film manufacturers, mobile games and well-known overseas operators such as Sprint, it has opened up a new mobile advertising marketing channel.

For example, Weiluo, a global leading mobile phone dynamic wallpaper provider under NetQin, has started to frequently make moves in the field of mobile phone dynamic wallpaper. During the Father's Day that just passed, many mobile phone users found that Weiluo had launched a warm "Father's Day" mobile phone dynamic wallpaper on Father's Day. As an important product of NetQin's mobile search and advertising platform, Weiluo dynamic wallpaper will not only be the first entrance to users' mobile phones, but will also fully drive interaction with users and complete a new mobile marketing method.

With the success of the transformation, NetQin has successfully developed several major mobile operator customers, including I-Mobile, US Cellular, Axio Telecom, Cricket, Metro PCS. Taking American Movil as an example, this mobile operator can bring 262 million mobile phone users, which is expected to increase NetQin's EPS by an additional $0.65.

According to relevant data, as of December 31, 2013, NetQin's total registered users reached 587.7 million, and its unaudited net revenue for fiscal year 2013 reached $196.7 million, up 114.3% from fiscal year 2012. NetQin's advertising revenue for the fourth quarter was $16.7 million, up 532.4% from the same period last year and 51.5% from the previous quarter. NetQin's recently released fourth quarter financial report for 2013 showed that the four major platform businesses accounted for three-quarters of its revenue.

On June 20, at the 3rd China Financial Summit held in Beijing, NetQin won two corporate awards: "2014 Best Innovation Model" and "2014 Most Promising Enterprise". As NetQin COO Shi Wenyong said: "The mobile Internet continues to change. NetQin needs to continue to innovate if it wants to continue to develop. It needs to provide the best services to global users with new businesses. This is the fundamental reason why NetQin is awarded the title of the best innovation and growth enterprise."

After the platform transformation began, NetQin Technology began to rely on the three key areas of mobile search advertising platform (NQLive), mobile game platform, and enterprise mobility to drive NetQin's revenue growth. It is predicted that as the impact of the short-selling institution Muddy Waters' accusations fades, NetQin will usher in a critical development stage in the coming period.

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.