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Replies to post #28 on Cheetah Mobile Inc (CMCM)
We predicted last year that $CMCM would face questions over what we believe are its fake "revenues" and significant ad fraud practices. Our report here: https://t.co/ZvWjTLNZf9
— Prescience Point Capital (@PresciencePoint) November 28, 2018
Fantastic reporting this week from @CraigSilverman @BuzzfeedNews on alleged ad fraud being committed by @CheetahMobile $CMCM https://t.co/ERJ9UysfSY
— Prescience Point Capital (@PresciencePoint) November 28, 2018
"This is theft — no other way to say it" @kochavamobile tells @BuzzfeedNews about $CMCM. We agree - @CheetahMobile has many questions to answer for what we find to be suspect financial reporting and ad fraud practices https://t.co/ugFifI0WZ6
— Prescience Point Capital (@PresciencePoint) November 28, 2018
Allegations Regarding OrionStar Investment:
The allegations claim that the OrionStar investment is a vehicle for the misappropriation of shareholder capital. Because the transaction is considered a related-party transaction, the Company has followed strict procedures to ensure the fairness of the investment. Each of the Company and Kingsoft Corporation, the parent company of Cheetah Mobile, engaged an independent appraiser to evaluate the transaction and the audit committee of the Company has approved the transaction as well. Several external investors also invested in OrionStar at the same valuation.
Cheetah GreetBot, which is a full-sized reception robot developed by Beijing OrionStar. Cheetah GreetBot can recognize visitors when they arrive, communicate with them, help them find their contacts and accompanying them to meeting rooms
With Beijing OrionStar's end-to-end knowledge of robot production, they can tailor maker -- tailor make Cheetah GreetBot for customers such as companies, banks and hospitals at a compelling price.
Beijing OrionStar had made significant progress on Cheetah GreetBot production testing since its launch. If they execute according to plans, we expect to start delivering Cheetah GreetBot to customer in Q4 2018.
Q&A My first question about the margin trend for Q2 and 2018 due to our investment in the robotics business. And my second question is about our competitive strengths and our differentiations in the robotics business versus our peers.
A: First of all, for the OrionStar, Beijing OrionStar, this is a -- we are not controlling the company right now. We only have a warrant to acquire controlling position. So at this moment, it was (inaudible) possible right now (inaudible) alternative measurements, so we have not recognized the cost and expenses of Beijing OrionStar yet. So just on our book is our costs. The expense and costs will not impact the bottom line of Cheetah Mobile. In term of the margin, we expect that the gross margin will probably be slightly lower because the top line was reduced.
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