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  "documentTitle": "58.com Inc. (WUBA)",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-01 00:00:00",
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  "notes": "Includes a table showing 'Amounts due from related parties' highlighting 'Finance Business' as a significant debtor.",
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      "kind": "callout",
      "text": "WUBA gave its finance business to its CEO for nothing but a profit-sharing agreement while continuing to bankroll it.",
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      "kind": "callout",
      "text": "What a wonderful example for the old mantra “Heads I (Jinbao Yao) win, tails you (WUBA shareholders) lose.",
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      "kind": "paragraph",
      "text": "It was reported in July 2018 that 58 Finance completed a financing of RMB 400 million... Hypothetically assuming this RMB 400 million accounts for a 20% equity interest, then the whole 58 Finance transaction would value the company at RMB 2 billion.",
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      "text": "What a wonderful example for the old mantra “Heads I (Jinbao Yao) win, tails you (WUBA shareholders) lose.",
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      "kind": "paragraph",
      "text": "Investors should demand that WUBA discloses detailed terms of this deal and how it will be beneficial to shareholders, not just insiders.",
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      "text": "The first thing we find troubling is the fact that the spun-off finance business apparently has never lived up to the initial agreement. Instead of paying down the initial contributions of RMB 132 million, the finance business' accounts payable to WUBA continue to grow.",
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      "kind": "paragraph",
      "text": "for automobile financing receivables that were outstanding as of the disposal date, amounting to RMB132 million, will be repaid to the Group no later than 3 years after the disposal date. The transaction was completed in October 2017.",
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      "kind": "quote",
      "text": "“Heads I (Jinbao Yao) win, tails you (WUBA shareholders) lose.” — Grizzly Research",
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