Jun 30, 2015
BEIJING, June 30, 2015 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company that provides mission critical applications to help make the internet and mobile experience speedier, simpler, and safer for users worldwide, today announced it has entered into a supplemental agreement with Shenzhen Tencent Computer Systems Company Limited ("Tencent Shenzhen"), a subsidiary of Tencent Holdings Limited ("Tencent"), which increases the annual cap for promotional services fees payable by Tencent and its subsidiaries and associates to Cheetah Mobile for the year ending 31 December 2015.
Under the new supplemental agreement, the annual cap for the year ending 31 December 2015 have been increased from RMB105 million to RMB250 million. Noting increased demand from Tencent for the Company's mobile advertising services, both companies agreed to raise the annual fee cap. Aside from the aforementioned revision, all existing terms and conditions under the original Strategic Cooperation Agreement (as described in "Background Information" below) remain unchanged.
For the first four months of 2015, the historical transaction amount for the promotion services fees payable by Tencent to Cheetah Mobile was RMB64.3 million. The Company has confirmed that, up to the date of this announcement, the transaction amount for the promotion services fees payable by Tencent to Cheetah Mobile has not exceeded the annual cap for the year ending 31 December 2015, i.e., RMB105 million.
Mr. Sheng Fu, Cheetah Mobile's Chief Executive Officer, stated, "We are pleased to deepen our strategic cooperation with Tencent and see the growing demand for our mobile advertising services from Tencent as well as advertisers on GuangDianTong, Tencent's performance-based advertising system. We are confident that our large and growing global user base, with increasing user engagement, will further facilitate our progress towards becoming the leading global mobile advertising platform. Looking ahead, we remain committed to working with our global partners, delivering the best solutions available to meet their mobile advertising needs."
On December 27, 2013, Cheetah Mobile and Tencent Shenzhen initially entered into a Strategic Cooperation Agreement, which was amended on July 31, 2014, and further amended on January 30, 2015. Pursuant to the agreement, Cheetah Mobile would, through its PC and mobile products and platforms (including licensed products and platforms), provide various forms of promotional services to Tencent for various types of products. Under the amendment on July 31, 2014, the annual caps with respect to the fees payable by Tencent to Cheetah for the years ending 2014 and 2015 were increased to RMB100 million and RMB 105 million, respectively.
Additionally, on January 30, 2015, Cheetah Mobile and Tencent expanded scope of strategic cooperation agreement, pursuant to which Tencent agrees to provide promotional services to Cheetah Mobile, subject to an annual cap of RMB100 million for the year ended December 31, 2015.
About Cheetah Mobile Inc.
Cheetah Mobile is a global mobile Internet company. The Company provides the best apps for mobile users worldwide, while building a leading global mobile ad platform for advertisers. As of March 2015, Cheetah Mobile had reached approximately 443.6 million mobile monthly active users. Its mission-critical applications, including Clean Master, CM Security, Battery Doctor and Photo Grid, help make the Internet and mobile experiences speedier, simpler, and safer for users worldwide. Clean Master is the #1 app in the Google Play Tools category worldwide by monthly downloads as of March 2015, according to App Annie.
The Company also provides various platform products such as Duba.com, Cheetah Browser, game centers, and mobile app stores to provide multiple user traffic entry points and global content distribution channels for its business partners.
Safe Harbor Statements
This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: Cheetah Mobile's growth strategies; Cheetah Mobile's ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile's ability to monetize its platform; Cheetah Mobile's future business development, financial condition and results of operations; competition from companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile's revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile's filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
SOURCE Cheetah Mobile, Inc.
For further information: Investor Relations Contact, Cheetah Mobile Inc., Helen Jing Zhu, +86 10 6292 7779, IR@cmcm.com; or ICR, Inc., Chenjiazi Zhong, +1 (646) 417-5395, IR@cmcm.com