{ "docId": "019dd923-622c-750b-8b98-72ad4dd9da96", "docSlug": "86dfa89096f8", "documentTitle": "Momo, Inc. (MOMO)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2018-06-27 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 17, "pageCount": 70, "prevPage": 16, "nextPage": 18, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a screenshot of the official Chinese regulatory notice with English translation/annotation.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-72ad4dd9da96/17", "deckHref": "/decks/019dd923-622c-750b-8b98-72ad4dd9da96", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-72ad4dd9da96.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-72ad4dd9da96#slide-17", "components": [ { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.34 }, "kind": "callout", "text": "SAIC charges are serious and can lead to a wide range of restriction on a businesses operations (Source)", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e9ede2c0-249e-4b49-a1f6-ba36568685cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "SAIC charges are serious and can lead to a wide range of restriction on a businesses operations", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d3-706e-a45c-59f46a89675f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.48, "w": 0.42, "x": 0.04, "y": 0.42 }, "kind": "image", "text": null, "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ccb1f7f8-50b5-416f-8935-f63c80077cac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.48, "w": 0.5, "x": 0.46, "y": 0.42 }, "kind": "list", "text": "Beijing Chaoyang Branch of Industry and Commerce Administration Bureau\nNotice of Decision to List on The Abnormal Operations Directory\n(Beijing Industry and Commerce, Chaoyang District Branch Abnormal Operations List Number [2017] No. 49771)\nBeijing Momo Technology Co., Ltd.:\nFollowing investigations into your organization disclosure of information that conceals the truth and fraud, it is determined that you have violated the relevant provisions of the \"Provisional Regulations on Corporate Information Disclosure\" and the \"Interim Measures on the Administration of Enterprise Abnormalities List\" (or \"Provisional Measures for the Announcement of Annual Reports of Rural Cooperatives\"). According to the provisions of Article 17(1) of the Provisional Regulations on Corporate Information Disclosure and Article 8 of the Interim Measures for the Management of Enterprise Abnormalities List (or Article 11 of the Interim Measures for the Public Announcement of Rural Cooperatives), it is now decided to include your company in the list as a business with abnormal operations.\nIf you fail to comply with this decision, you may apply to the Beijing Municipal Administration for Industry and Commerce or the District (County) People's Government for administrative reconsideration within 60 days from the date of receipt of this Decision; or you may file an administrative lawsuit with the People's Court within six months.\n2017-11-02", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6d778664-5963-4604-a20b-a2e764baeeb6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.92, "x": 0.04, "y": 0.18 }, "kind": "paragraph", "text": "In November 2017 Beijing Momo was charged by the State Administration of Industry and Commerce (SAIC) with \"Filing corporate information with the intent to conceal the truth and falsify\". Beijing Momo’s corrected filings indicate overstated revenues / costs and changes to the timing of Purple Sky / Matrix transfer of ownership from CEO Tang Yan to Momo.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7f072b69-eaaf-4649-b000-1dfe9a21ce78", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Following investigations into your organization disclosure of information that conceals the truth and fraud, it is determined that you have violated the relevant provisions of the \"Provisional Regulations on Corporate Information Disclosure\" and the \"Interim Measures on the Administration of Enterprise Abnormalities List\"... it is now decided to include your company in the list as a business with abnormal operations. — Beijing Industry and Commerce, Chaoyang District Branch", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d3-706e-a45c-5c0fcb2ed0e7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.4, "x": 0.04, "y": 0.94 }, "kind": "source-note", "text": "Source: SAIC (blocked access from outside of China)\nNote spelling mistakes per website", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6522c3b1-bf23-40c0-821f-f2c97dd57dad", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "Red Flag 1: Undisclosed Charges Against Momo By The SAIC", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b6e6a471-1c62-4938-b17d-fd2c4f75cd49", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "d4e2e797-40de-405f-a27e-1633b923e58e", "evidence": "The slide explicitly frames the SAIC regulatory action as a 'Red Flag' and 'fraud' exposure.", "confidence": 0.9 } ], "arcBeats": [ { "to": 69, "from": 7, "beatId": "2ed90acb-05ba-4602-8daa-c17fe790841b", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Slides 7-69 systematically expose contradictions and red flags in Momo's business, including undisclosed charges, complex VIE structure, and regulatory risks.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 28, "from": 17, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "49042e84-1452-41aa-a50b-88bb2f531e3b", "evidence": "Slides 17-28 expose the iceberg of Momo's problems, revealing undisclosed charges and complex VIE structure.", "position": 1, "objective": "What are the implications of Momo's undisclosed charges and complex VIE structure?", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.7, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }