Our decision to revise the Offer Price has been a difficult one to make but is necessitated by the tougher than expected market conditions facing the Company and the Chinese economy. In particular,
Since the Original Proposal, the Company has experienced weaker than expected financial performance. According to the Company's earnings release for the second quarter of 2015, the Company's EBITDA declined by 15.8% and GAAP net income declined by 31.0%, respectively, year-on-year during the second quarter of 2015. Furthermore, the Company has recently revised down its full year 2015 net revenues and non-GAAP net income guidance. The Company now anticipates its net revenues to grow by a low-single-digit percentage over 2014 and non-GAAP net income to decrease by approximately 30% from 2014. We believe that such deterioration in the Company's business has had a significantly negative impact on the value of the Company.The global financial markets have experienced significant volatility recently, including substantial volatility in equity securities markets, and volatility and tightening of liquidity in credit markets. These developments have negatively affected our ability to raise the necessary debt anticipated by our Original Proposal.The People's Bank of China recently announced a total of more than 4% devaluation of Renminbi reference rate, which is expected to further depreciate against the US dollars. Following that, emerging market currencies started to accelerate in depreciation against the US dollars. We face great exposure to adverse movements in most emerging market currencies as these affect the purchasing power of our international customers. This, in turn, has a significant negative effect on the valuation of the Company. Furthermore, our cost of funding associated with the financing for the Acquisition rises with a stronger US dollar. In closing, we continue to be fully committed to close the Acquisition and believe that the Acquisition provides full value to the Company's shareholders. We hope that the Special Committee will give prompt consideration to our offer and we are prepared to execute definitive agreements on an expedited basis. Should you have any questions regarding this proposal, please do not hesitate to contact the undersigned. We look forward to speaking with you.