Sky-mobi Announces Sale of Stake in Fangcun
HANGZHOU, China, June 18, 2014 (GLOBE NEWSWIRE) -- Sky-mobi Limited ("Sky-mobi" or the "Company") (MOBI), a leading mobile application platform in China, today announced the sale of its 37.9% equity interest in Shanghai Fangcun Information Technology Co., Ltd. ("Fangcun"), a leading China-based mobile game developer, to Guangdong Alpha Animation and Culture Co., Ltd. (SZ:002292), a company listed on the Shenzhen Stock Exchange. The Company realized a capital gain of RMB56.4 million1 from this transaction.
Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, stated, "We are extremely pleased with the growth of Fangcun's capabilities for mobile games in China. MonsterxMonster, a light mobile game, which we closely collaborated on with the Fangcun team from concept design to product distribution, has become a recent hit in China and overseas. The success of Fangcun as well as the increasing recognition of Sky-mobi's other strategic investments demonstrate our strong capabilities in discovering and cultivating game developers. These strengths are undergirded by our ability to leverage our deep understanding of Chinese light mobile game players' preferences and identify strategic investments that possess tremendous potential. One of our strategic objectives in solidifying Sky-mobi's leadership in the mobile game publishing market is to continue our dedication in collaborating with and investing in start-up mobile game developers with innovative and unique solutions. We endeavor to consistently distribute the highest-quality and most popular mobile games and applications through our well established distribution networks. Motivating us in this endeavor is our strong commitment to further supporting growth for every participant in our eco-system. We believe that the Fangcun deal is just the beginning of this commitment to strengthen our pipeline of talent. Going forward, we may further leverage our broad platform and explore opportunities of investing in such talented emerging gaming developers, adding an additional avenue of growth in near future."
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may," "will," ''believes,'' ''expects,'' ''anticipates,'' ''intends,'' ''estimates,'' "plans," "continues" or other similar expressions, the negative of these terms, or other comparable terminology. Such statements, including statements relating to the Company's business outlook, are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include the effectiveness, profitability and marketability of the Company's solutions; the Company's limited operating history; measures introduced by the PRC government and mobile network operators aimed at mobile applications-related services; the Company's revenue projections for future periods; the Company's ability to maintain relationships with handset companies, content providers and payment service providers; its dependence on mobile service providers and mobile network operators for the collection of a substantial majority of its revenues; billing and transmission failures, which are often beyond the Company's control; its ability to compete effectively; its ability to capture opportunities in the growing smart phone market; its ability to obtain and maintain applicable permits and approvals; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on June 28, 2013. These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and its industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Sky-mobi Limited
Sky-mobi Limited is a leading mobile application platform in China. The Company works with handset companies to pre-install its Maopao mobile application store on handsets and with content providers to provide users with applications and content titles. Users of its Maopao store can browse, download and enjoy a range of applications and content, such as single-player games, mobile music and books on various mobile handsets with different hardware and operating system configurations. The Company's mobile social network community in China, the Maopao Community, offers mobile social games, as well as applications and content with social network functions to its registered users. The Company is based in Hangzhou, China. For more information, please visit: .
1 Unaudited estimate