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  "documentTitle": "EHang Holdings, Ltd. (EH)",
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  "authorName": "Wolfpack Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-02-16 00:00:00",
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  "notes": "The slide highlights a specific liability line item as evidence of a potential investor-to-creditor conversion and subsequent legal dispute.",
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      "text": "Looking at EH’s unaudited quarterly earnings reports, we noticed in Q2 2020, a new liability line-item worth RMB 40 million appears as “mandatorily redeemable non-controlling interest.”",
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      "text": "According to our Chinese legal observer, the fact that Join-Share is suing to cancel certain of EH's transactions and it was able to secure protective freeze on EH's equity indicates that there are serious risks for EH and its investors.",
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      "text": "mandatorily redeemable non-controlling interests: 40,000",
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      "text": "Looking at EH's unaudited quarterly earnings reports, we noticed in Q2 2020, a new liability line-item worth RMB 40 million appears as \"mandatorily redeemable non-controlling interest.\"",
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      "text": "Last but not least, from a legal perspective, this judicial freeze and the type of lawsuit present serious concerns to investors, mandating a complete and responsible explanation from EH.",
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      "text": "A common way for an investor to turn into a creditor, is through the exercise of the investor's right to redeem its shares. Such redemption right is typically accounted for similar to a loan but recorded as a separate line item on the liabilities side of the company's balance sheet.",
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      "text": "EHang Holdings, Ltd. Financial Statements table showing liabilities from 4Q19 to 3Q20.",
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