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Below is the shareholder letter:
As announced in our press release on
We recognize that the past four years have been marked by a series of unintended disappointments and both perceived and actual negative outcomes for our Company. This has been extremely disappointing, frustrating, and difficult for all of our shareholders, employees, and partners. We are pleased that the independent investigation has been concluded and that the Company is now in a position to build for the future. We invite you to review the press release summarizing the background and findings of the report to the Board of Directors submitted by
Although the Board of Directors and the management team are gratified by the results of the investigation, we all know that improving the Company's corporate governance and operational controls are crucial if the Company is to fulfill its potential and meet the high expectations that the shareholders and the Board of Directors share. The Company has identified a clear pathway forward to growth and profitability. We have already begun, and will continue, to work with the entire organization and all relevant parties to move the Company ahead. We are committed to being a better Company and to achieve outstanding results for all our shareholders. We recognize that the personal dispute between the beneficial owners of
The first necessary action that has been agreed to by the Board is that beginning today, Vincent will be primarily focused on the following three areas: 1) Resolving the ongoing dispute with Henry 2) working with Tongfang to ensure the successful payment of their note obligation to the Company and 3) working at a high level capacity with Zhongzhi on future strategic business cooperation opportunities. Having Vincent shift his whole focus on these priorities is in the best interest of the Company and its shareholders.
In addition to Vincent's focused efforts on these matters, the Board has appointed Mr.
We are pleased that the Company can now move forward to take full advantage of the significant opportunities for business expansion and profitable growth that are before us. The Board of Directors and the management team have already begun taking action, and will continue to implement other constructive steps, to ensure the enhancement of the Company's corporate governance and operational controls. Beginning with the actions announced on
The Company has tremendous opportunities in the transportation industry, especially in what we have labeled our "Smart Ride" and "Smart Car" businesses. This sector is not only a big market with exciting growth potential, it is a business opportunity that the Company has been working on and to which it has devoted considerable attention and resources for a couple of years now. The team has made significant progress in reaching key milestones necessary to commercialize our efforts and to have a real impact on this operational sector. As we have announced, the Company has already begun to partner with key industry and strategic players. We have gone through and passed certain key regulatory requirements with respect to our technology and have already demonstrated key differentiators against the competition.
Our "Smart Ride" and "Smart Car" businesses are the key focus of our Company going forward and we look forward to successfully executing our plans. We are convinced that our business model of helping passengers move efficiently from point A to point B is a good one, and we intend to leverage this model by making the time the passengers spend enjoyable and productive. It is in our ability to create the "Smart Space" that enables riders to make their time in the car more enjoyable and productive that we see our competitive advantage and our major business opportunity.
Our Company's technological and operational management teams have done an outstanding job in getting us to this point. As we move forward, we will keep these teams intact and further empower them with the resources and support necessary to "step on the accelerator. " The market opportunity is open for us now and we must act quickly to take advantage of this open window.
One final point we wish to make today. We announced over the weekend a new agreement with
In summary, it is time to begin anew to build the Company that we can all be proud of. We are powerfully positioned to profit from a major industrial and technological revolution, but we must utilize our advantages and execute our business plan in a way that drives shareholder returns and value. We are humbled by this great opportunity, but determined and focused to enact positive change and deliver successful outcomes for you. We believe that the steps we are taking is putting the Company in position to move forward. We appreciate your support and continued patience.
With gratitude and determination,
Larry and Vincent
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the
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