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  "documentTitle": "GSX Techedu (GSX)",
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  "notes": "Includes a table summarizing a shareholder change event from Qichacha.",
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      "text": "We suspect GSX committed CAPEX fraud in its commercial building purchase, and in reality paid a substantially lower price for the real estate than reported to investors.",
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      "text": "Based on the public information from National Zhengzhou Economic and Technological Development Zone, Zhengzhou Kaitong in 2016 had applied to build 2 R&D buildings and 1 product display sales center.",
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      "text": "One key issue for companies who report fake profits is finding ways to explain the missing cash without developing suspect balance sheet accounts. We suspect GSX committed CAPEX fraud in its commercial building purchase, and in reality paid a substantially lower price for the real estate than reported to investors.",
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      "text": "It has recently closed the purchase of several plots of commercial real estate... for a total consideration of RMB333.8 million.",
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      "text": "It has recently closed the purchase of several plots of commercial real estate in the Economics Development Area of Zhengzhou, Henan Province, for a total consideration of RMB333.8 million. GSX has made the first installment payment of RMB69 million, and expect to complete the payment of the remaining installments within the next 3 years. Such commercial real estate includes two completed office buildings and one office building in construction. GSX plans to use these premises for business operating functions. They expect to begin business operations in these office buildings in the second half of 2020. — GSX Techedu (January 31, 2020 announcement)",
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      "text": "source: Qichacha",
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      "text": "Time: January 13, 2020 | Change Item: Shareholder Change | Before Change: Congyu Li 50% [Exit], Ding Sun: 50% [Exit] | After Change: Beijing BaiJiaHuLian (GSX VIE): 100% [New]",
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      "text": "3.3 Where Did the Cash go? We Suspect CAPEX Fraud in the latest Commercial Buildings Purchase",
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