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  "docSlug": "37ff9313bd57",
  "documentTitle": "58.com Inc. (WUBA)",
  "authorId": "62_Grizzly_Research",
  "authorName": "Grizzly Reports",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-01 00:00:00",
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  "notes": "The slide uses a forensic accounting approach to challenge the company's reported financial health.",
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      "text": "It is evident that if investors include acquisition related expenses when calculating the company's free cash flow, the sum of free cash flow generated from 2013 to 2018 would be $205 million, as compared to $1.1 billion if those acquisition related expenses were excluded from capex.",
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      "text": "1. Why did the company record decreased goodwill yet there is no explanation for it? 2. Why is this decrease in goodwill not reflect in WUBA's financial statements? 3. How did this goodwill change pass the audit?",
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      "text": "Free Cash Flow: $205 million",
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      "text": "It is evident that if investors include acquisition related expenses when calculating the company's free cash flow, the sum of free cash flow generated from 2013 to 2018 would be $205 million, as compared to $1.1 billion if those acquisition related expenses were excluded.",
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      "text": "There was not mentioning of goodwill write-down in 2018 20F for the goodwill arising from Ganji's acquisition in 2015, however, WUBA reported almost an RMB 1.5 billion decrease of Ganji's goodwill from RMB 16.0 billion in 2017 to RMB 14.5 billion in 2018.",
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      "text": "Table showing Cash from Operations, Capex (excl/incl acquisitions), FCF (excl/incl acquisitions), and Capital raised from 2013-2018.",
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      "kind": "title",
      "text": "6.5 Lots of Capital Raises, Little Cash Flow",
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      "evidence": "The report suggests that WUBA's practices have significant consequences for investors",
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