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  "documentTitle": "Joyy Inc. (YY)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-11-18 00:00:00",
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  "notes": "This is a page from a short-seller research report (Muddy Waters Research).",
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      "text": "Such discrepancies, particularly in cash balances, are indicators of manipulation or fraud.",
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      "text": "cash balances: RMB 1.0 billion",
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      "text": "We obtained China credit reports for YY's onshore VIEs and compared them to YY's SEC filings, only to find numerous discrepancies. These differences amounted to hundreds of millions of RMB, including significant cash shortages in local financials as compared to what YY reported to the SEC.63 Such discrepancies, particularly in cash balances, are indicators of manipulation or fraud.",
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      "text": "month, or RMB 104.0 million per quarter. This is a shortfall of at least 79.8% from the Big One's dating channel revenue estimate of RMB 513.4 million. Our ~80% estimated discrepancy between real and reported revenues for the dating channels is thus broadly consistent with our ~90% fraudulent revenue estimate for the non-dating YY business. Our research finds this little-discussed corner of YY's livestream ecosystem is a not a secret cash cow, but just another lie.",
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      "text": "For example, YY's 2018 SEC filings showed RMB 1.0 billion in long-term deposits, as shown infra. We believe this total is likely invented or greatly inflated, as the major YY onshore VIEs do not contain these same long-term deposits. A cursory comparison of the two sets of financial statements reveals this discrepancy.",
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      "text": "63 Cash (including cash, short term deposits, short term investments)",
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      "kind": "title",
      "text": "Anomalies in YY's Chinese Financials Suggest Fake Cash and Fraud",
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