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  "documentTitle": "58.com Inc. (WUBA)",
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  "presentationDate": "2020-02-01 00:00:00",
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      "text": "In short: Our analysis leads us to believe that WUBA is a fraud vehicle that primarily exists to enrich insiders and to raise money from US investors on the back of fake financials.",
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      "text": "Verticals chart showing 58.com brands and their origins (incubated vs acquired).",
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      "text": "The documentary The China Hustle has shed light on many issues US investors face when buying into Chinese operators. The assets are based in mainland China, disclosure is opaque, and there is little to no legal recourse for Chinese insiders that lie to and steal from US public shareholders. The Public Company Accounting Oversight Board (\"PCAOB\") said the SEC faces obstacles in inspecting the principal auditor's work when it comes to companies operating in China. This set-up has led to terrible incentives, and we believe enhanced due diligence is warranted when investing in Chinese companies.",
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      "text": "Unfortunately, in our view, WUBA does not pass the due diligence test. Filings from China suggest to us that the company has been overstating revenues. WUBA's biggest acquisition has seen almost its entire revenue vanish and we believe that over 50% over the shareholder equity should be impaired in light of our findings. We also see a pattern where the best businesses are spun off at deflated prices to insiders, and we believe enhanced due diligence is warranted when investing in Chinese companies.",
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      "text": "58.com Inc. operates various online classifieds platforms and vertical listing platforms in China. The company's main segments are yellow page services, real estate platforms, and job platforms amongst others.",
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      "text": "WUBA presents itself as a prime opportunity for US investors to participate in the growth of the Chinese online economy and has raised over $1.6 billion from investors since becoming a US public company in 2013.",
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      "text": "1. Introduction",
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