{
  "docId": "019dd923-622c-750b-8b9a-e9f945bdaf31",
  "docSlug": "37ff9313bd57",
  "documentTitle": "58.com Inc. (WUBA)",
  "authorId": "62_Grizzly_Research",
  "authorName": "Grizzly Reports",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-01 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 14,
  "pageCount": 35,
  "prevPage": 13,
  "nextPage": 15,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 16,
  "notes": "The slide uses a 'fraud-exposure' framework to cast doubt on the auditor's independence and thoroughness.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "footnote",
    "quote_block"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-e9f945bdaf31/14",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-e9f945bdaf31",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-e9f945bdaf31.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-e9f945bdaf31#slide-14",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "But we are overall concerned that audit fees are not growing in line with revenues, and are in fact in a downward trend.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-70f7-7334-b222-80a3e77d0f2c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Audit Fees: $2.55 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-70f7-7334-b222-8aa624bda44f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.64
      },
      "kind": "paragraph",
      "text": "A recent release by the SEC from December 2018 seems to indicate that U.S. authorities and related organizations may revisit audit issues that were settled between the SEC and Big Four accounting firms...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0cd5ad89-bc46-49c0-b05a-f059a6d73297",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "We urge the company's auditor, PricewaterhouseCoopers Zhong Tian LLP (“PwC Zhong Tian”), to immediately conduct a thorough review on the Ganji operating unit(s) and determine whether an impairment is necessary at this point.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "48888b4a-db56-4bdf-995c-a9a8951be2ef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.7,
        "x": 0.15,
        "y": 0.74
      },
      "kind": "quote",
      "text": "There are 224 U.S.-listed companies (with $1.8 trillion in combined market capitalization) where the PCAOB faces obstacles in inspecting the principal auditor's work.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bb82bc8f-3b26-430c-90cc-114f7b26b4e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "There are 224 U.S.-listed companies (with $1.8 trillion in combined market capitalization) where the PCAOB faces obstacles in inspecting the principal auditor’s work. — SEC",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-70f7-7334-b222-87e8a98ba059",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.01,
        "w": 0.15,
        "x": 0.11,
        "y": 0.46
      },
      "kind": "source-note",
      "text": "Source: company's 20Fs",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0dbc8b7b-979c-4d86-8383-281dc1ababc3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.78,
        "x": 0.11,
        "y": 0.37
      },
      "kind": "table",
      "text": "Audit fees and revenue table from 2011 to 2018",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "22dbf802-e483-4612-b553-c785d10182f3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.24,
        "x": 0.38,
        "y": 0.1
      },
      "kind": "title",
      "text": "3.5 But Who is to Catch It?",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "63407f4d-5fde-4380-94c9-55cd756f5085",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "994908a9-1aef-453e-a024-207a2e51b4aa",
      "evidence": "The slide explicitly questions the auditor's diligence and links it to SEC concerns about audit inspections in China.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 14,
      "from": 5,
      "beatId": "88daed9b-9d11-441d-92b6-b1257565bf8b",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The report highlights various contradictions in WUBA's financials and business practices",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 14,
      "from": 5,
      "name": "Zoom In",
      "slug": "06-zoom-in",
      "bestFor": "Technical deep-dives, case studies, detailed analysis",
      "matchId": "3304c382-5282-4e25-b044-7647c6b2f81b",
      "evidence": "The report highlights various contradictions in WUBA's financials and business practices",
      "position": 0,
      "objective": "What are the specific contradictions in WUBA's financials?",
      "structure": "The Big Picture -> Key Area of Focus -> Specific Detail -> Implication",
      "confidence": 0.8,
      "description": "Start broad, then progressively focus on specific details that prove your point"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}