{ "docId": "019dd923-622c-750b-8b9a-83df2d8136b6", "docSlug": "40a11d17abe5", "documentTitle": "Qutoutiao, Inc. (QTT)", "authorId": "60_Wolfpack_Research", "authorName": "Wolfpack Research", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2020-01-17 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 9, "pageCount": 23, "prevPage": 8, "nextPage": 10, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide uses a screenshot of a website to highlight a discrepancy in QTT's public statements.", "elementsJson": [ "paragraph", "quote_block", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-83df2d8136b6/9", "deckHref": "/decks/019dd923-622c-750b-8b9a-83df2d8136b6", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-83df2d8136b6.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-83df2d8136b6#slide-9", "components": [ { "bbox": null, "kind": "callout", "text": "QTT’s claim that it has no trading relationship with Shanghai Jusou is strange given what we see on Jusou’s website and Dianguan’s website as of today.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f7-7334-b225-2797ad73c8cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.092, "w": 0.302, "x": 0.118, "y": 0.025 }, "kind": "image", "text": "WOLFPACK RESEARCH", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d488f645-15a9-428f-8242-2ed56ade2fae", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.268, "w": 0.764, "x": 0.118, "y": 0.485 }, "kind": "image", "text": "Screenshot of Jusou website showing QTT branding", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef6d870d-4918-4798-b2a8-250a8bb3b4d1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.065, "w": 0.764, "x": 0.118, "y": 0.193 }, "kind": "paragraph", "text": "In our report, we provided details of two advertising agencies which claimed to us to be important trading partners of QTT, something which QTT disclaimed. QTT's response contains information which directly contradicts the facts on the ground, and our ongoing research has identified a concerning relationship between QTT and an old friend, Wutong Holding Group Co., Ltd. (Ticker: 300292 CH).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6c2e34c4-fdec-40c0-91ea-93225f949872", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.065, "w": 0.764, "x": 0.118, "y": 0.781 }, "kind": "paragraph", "text": "Further, if these two agents have only generated year-to-date revenues of RMB 400,000, it raises the question of which other \"second-tier\" agents might have accounted for the rest. That seems like an easy disclosure for QTT to make in order to disprove our research - unless that answer is potentially incriminating?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7d573cc4-4ebf-4f26-ae3d-9aa9a1c455c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.764, "x": 0.118, "y": 0.413 }, "kind": "paragraph", "text": "QTT's claim that it has no trading relationship with Shanghai Jusou is strange given what we see on Jusou's website and Dianguan's website as of today:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8a6130af-db1b-4292-968b-7fd8f770ae51", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.065, "w": 0.764, "x": 0.118, "y": 0.128 }, "kind": "paragraph", "text": "6. Dianguan's website, which QTT is apparently so proud of, is far less functional and looks less professional than the websites of the agents QTT claimed to do little-to-no business with. In fact, yesterday the \"contact us\" button was entirely removed from Dianguan's website:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ca43a263-1ef0-406f-acfc-0b82a619fefb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.125, "w": 0.764, "x": 0.118, "y": 0.268 }, "kind": "paragraph", "text": "QTT made the following claims in their response: \"The Report also quotes two advertising agents who claimed to us to be \"core\" advertising agents for QTT - the truth is, Hunan Jie Jisuan Computer Tech Company... is one of QTT's agents with year-to-date transactions amounting to only RMB0.4 million; as for Shanghai Jusou Info Tech Co., we do not have any direct business relationships with that particular advertising agent per our internal check.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fd946b63-1032-4342-9e0c-5f0fa0e07a7c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"The Report also quotes two advertising agents who claimed to be “core” advertising agents for QTT - the truth is, Hunan Jie Jisuan Computer Tech Company (湖南皆计算网络科技有限公司) is one of QTT’s agents with year-to-date transactions amounting to only RMB0.4 million; as for Shanghai Jusou Info Tech Co.(上海聚搜信息技术有限公司), we do not have any direct business relationships with that particular advertising agent per our internal check.\" — Qutoutiao, Inc.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-70f7-7334-b225-2a294cfa9124", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }