Gridsum Publishes Letter to Shareholders from CEO
Dear Fellow Shareholders:
2018 was an extremely challenging year for our company. Over the past five years, our main focus has been to drive growth by bringing global best-of-breed big data and AI technology solutions to the emerging enterprise SaaS market and our blue-chip enterprise, government and legal clients in
As you may be aware, we have previously provided information on the investigation by our Audit Committee into our accounting processes. This investigation, which was conducted with assistance from external legal and accounting advisors, was concluded in
Our auditor has now completed its audit of our financial statements for the years ended
With the filing of our 2017 Form 20-F, and the filing of our financial results for the first six months of 2018, we have started to emerge from the most difficult period in our company's life. We believe we have regained compliance with the
We have always been committed to following high standards of corporate governance and transparency and will continue to do so. We have learned from the experiences described above. Unfortunately, the company has suffered some client and staff defections and a marked slowdown in our momentum. We have, however, continued to invest heavily in research and development. In particular, we continue to see strong potential in sectors where we had already initiated investments that presented substantial opportunities that would have otherwise been lost. As a result, our performance in 2018 and 2019 will be negatively impacted. In terms of net revenues, despite the growth seen in the first half of 2018, we will experience a down year in 2018 based on our preliminary review.
However, we hope that 2019 will be a key year for us to rebuild momentum. We need to focus on driving a recovery in our core marketing automation business against a backdrop of a tough macroeconomic environment as well as the challenges we have faced as a company. We also need to focus on scaling our new and emerging products through our client base. Longer-term, we believe we are well positioned to leverage our strong technical competitive advantages in areas such as Intelligent CRM, legal solutions, IIoT and associated big data and AI-grade data warehousing.
As the company's largest shareholder, I am fully aware that the company has not performed as well as we expected. I am truly sorry for this. I can only ask for your patience and continued trust in us. Our management team and our technology team remain intact and, more than ever, fully dedicated to regaining momentum and driving the business while remaining cognizant of the critical need for a solid foundation of supporting processes and structures. Thank you for your support.
Guosheng Qi, Chief Executive Officer
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Forward-looking statements involve inherent risks and uncertainties. Among other things, our express or implied statements about our future growth, areas of business focus and regulatory filing schedule are forward-looking statements. Many factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to uncertainty about whether our ordinary shares will remain listed; unexpected difficulties in pursuit of our goals and strategies; reduced demand for our solutions; difficulties keeping and strengthening relationships with customers; potentially costly research and development activities; competition in the digital intelligence market; PRC governmental policies relating to media, software, big data, the internet, internet content providers and online advertising; and general economic and business conditions. Further information regarding these and other risks is included in Gridsum's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Gridsum undertakes no duty to update such information except as required under applicable law.
For more information please visit http://www.gridsum.com/.
Mr. Christian Arnell
Mr. Tip Fleming
Phone: +1 917 412 3333