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  "documentTitle": "58.com Inc. (WUBA)",
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  "presentationDate": "2020-02-01 00:00:00",
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  "notes": "The slide highlights a significant revenue drop for a key VIE entity, suggesting potential financial deterioration or accounting shifts.",
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      "kind": "callout",
      "text": "Astonishingly, Shanjing Kechuang’s revenues in 2018 were only 2.8% of what they were in 2015!",
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      "kind": "chart",
      "text": "Shanjing Kechuang Revenues (USD'000)",
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      "text": "revenue: $3.6 million",
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      "text": "This corporate chart includes all the material consolidated entities of WUBA. The red-boxed parts are Ganji related entities, among which is the company “Beijing Shanjing Kechuang Network Technology Co., Ltd.” (“Shanjing Kechuang”, Chinese name: 山景科创网络技术(北京)有限公司) the main VIE operating Ganji’s business in China.",
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      "text": "Because WUBA does not disclose revenues separately for its major subsidiaries, we went to China’s SAIC to obtain Shanjing Kechuang’s financials for the past few years. According to SAIC information, Shanjing Kechuang’s total revenues increased from $0 in 2011 to a peak of $130.7 million in 2015. After 2015, revenue dropped significantly to just $15.8 million in 2016, $7.3 million in 2017 and just $3.6 million in 2018. Astonishingly, Shanjing Kechuang’s revenues in 2018 were only 2.8% of what they were in 2015! Below is a chart of Shanjing Kechuang’s revenue from 2011 to 2018.",
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      "text": "In addition, we also obtained SAIC financials of Ganji’s WFOE, Beijing Yangguang Gudi Science Development Co., Ltd. (“Yangguang Gudi”, Chinese name: 北京阳光谷地科技发展有限公司) from 2011 to 2018. If we add these two entities’ financials together, we see the same trend in total revenue as we see with Shanjing Kechuang alone. The total revenues for the two combined entities increased from $4.6 million in 2011 to a peak of $203.0 million in 2015, and then dropped significantly to $23.2 million in 2016, $9.7 million in 2017 and $3.6 million in 2018. Revenue from the combined entities is only 1.8% of what it was in 2015! Below is the combined two entities’ total revenue from 2011 to 2018.",
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      "text": "Source: SAIC information",
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