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News Breaks
June 20, 2014
12:44 EDTCMGEChina Mobile Games announces restructuring, says committee to probe allegations
China Mobile Games and Entertainment announces the implementation of organizational restructuring and personnel changes in its game publishing business. The purpose of the restructuring is to streamline the company's operations to better position it for profitable long-term growth. Since Mr. Shuling Ying was asked to oversee the company's publishing business in October 2013, its publishing business has grown significantly, and now has teams of over 700 employees located in Beijing, Shanghai, Shenzhen and Chengdu. However, the company's rapid growth has also created operational challenges that it must carefully manage, including redundancies within its businesses which have resulted in inefficiencies. To make the company more efficient and competitive and to continue producing high quality and innovative products, and to ensure the company is positioned to be profitable and achieve sustainable growth, the chief executive officer has been tasked with conducting organizational reviews and structural realignments. As part of the organizational restructuring of its publishing business, on June 19, the company removed nine employees from their positions in the publishing business, including Ying. The company notes that these employees are awaiting reassignments within the company. The company does not expect this restructuring, including the personnel changes, to have a material adverse impact on the company's overall operations. The company expects the restructuring will enhance its productivity, helping to strengthen its leading market position. China Mobile Games said, "The company is aware of market speculations about the reasons for the restructuring, including allegations of employee misconduct, which have led to significant fluctuations in its ADS price. The company announces that today its board of directors has authorized an independent committee, consisting solely of independent directors, to look into the market speculations. In order to provide a high level of transparency to its shareholders, the company will update shareholders on the results of its findings."
News For CMGE From The Last 14 Days
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January 29, 2015
09:37 EDTCMGEChina Mobile Games management to meet with Roth Capital
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January 20, 2015
11:59 EDTCMGEChina Mobile Games management to meet with Roth Capital
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January 16, 2015
08:57 EDTCMGEChina Mobile Games responds to allegations made by short seller
China Mobile Games and Entertainment Group issued the following statement in response to allegations made by a short seller on January 15: The company believes that the allegations made contain numerous errors, unsupported speculation and incorrect interpretations of facts and circumstances. Neither the company nor, to the best of the company's knowledge, any member of its management controls Shenzhen Zhongzheng Ruanyin Science & Technology, a mobile game advertising agent in China, and the company at the center of the short seller's allegations. The company's transactions with Zhongzheng have been conducted and will continue to be conducted in the ordinary course of business and on an arm's length basis. Moreover, the company's revenue derived from business with Zhongzheng for the first three quarters of 2014 accounted for less than 1.0% of the company's total revenue for the period, and payments made to Zhongzheng for the first three quarters of 2014 accounted for approximately 3.0% of the company's operating expenses for the same period. The company intends to take all appropriate legal actions to defend itself against these malicious allegations and to protect the interest of its shareholders.

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