{
  "docId": "019dd923-622c-750b-8b9a-efeacc31a16f",
  "docSlug": "b06f7e555102",
  "documentTitle": "58.com Inc. (WUBA)",
  "authorId": "62_Grizzly_Research",
  "authorName": "Grizzly Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-29 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.60714287,
  "pageNumber": 5,
  "pageCount": 6,
  "prevPage": 4,
  "nextPage": 6,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 1,
  "notes": "This is a research note from Grizzly Reports regarding 58.com (WUBA).",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-efeacc31a16f/5",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-efeacc31a16f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-efeacc31a16f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-efeacc31a16f#slide-5",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.1,
        "y": 0.35
      },
      "kind": "callout",
      "text": "Key Issues Raised in Our Initial Report",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c4761d56-0c7b-4cde-ba74-ca911e217b8b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Shareholders should demand transparency on the numerous acquisitions and spin-offs where company insiders are counterparties.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-70fa-7556-8663-3f029e7c7b35",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.07,
        "y": 0.88
      },
      "kind": "disclaimer",
      "text": "THE REPORT AND ALL STATEMENTS CONTAINED HEREIN ARE THE OPINIONS OF GRIZZLY RESEARCH...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "98fcbc6b-c0ed-4fd9-bce7-dabc8f156ad9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.42,
        "x": 0.07,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "The company did not respond to our allegations raised in the initial report. Specifically, we firmly believe that the company should have written down the majority, if not all, of the goodwill related to Ganji's acquisition in 2015.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "250727e8-fe7b-4af9-9c36-a4374b86d78a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.42,
        "x": 0.51,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Our initial report alleged that one trick that WUBA played is not consolidating 58 Hone into WUBA's reported consolidated financials.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "48a11437-9e25-4b24-820b-e59e6f4e937b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.42,
        "x": 0.07,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "Home. To us, it seems like WUBA is trying to further disconnect WUBA and 58 Home. However, this does not change the fact that WUBA had total control over 58 Home in the past yet still chose not to consolidate 58 Home's financials.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b3549e1a-5b78-4adf-b5c0-ebd1a079e3b0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.42,
        "x": 0.51,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "resignation as a director on the board and a member of all the committees of the board recently. Mr. Lin has served as WUBA's director since March 2010, and he was a member of Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ca6e565b-fadc-4ebe-9890-79d530287ef8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.85,
        "x": 0.07,
        "y": 0.13
      },
      "kind": "title",
      "text": "Shareholders Should Demand Answers from Management",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8322c635-4cc3-4a52-acdb-8ee31f732b34",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Call to action",
      "slug": "call-to-action",
      "agent": null,
      "layer": "slide",
      "matchId": "2425beb1-5ee8-40f1-9338-e3bf0e3b53f4",
      "evidence": "Shareholders should demand transparency on the numerous acquisitions and spin-offs where company insiders are counterparties.",
      "confidence": 0.7
    },
    {
      "name": "CEO quote contradiction",
      "slug": "ceo-quote-contradiction",
      "agent": null,
      "layer": "slide",
      "matchId": "866d1889-366d-44a4-85c2-789715697067",
      "evidence": "The company did not respond to our allegations raised in the initial report.",
      "confidence": 0.7
    }
  ],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "8777dad7-3ddd-43e4-b4d3-91508a22c9f6",
      "evidence": "The slide explicitly lists 'Key Issues' regarding non-consolidation and revenue discrepancies to argue for accounting fraud.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 5,
      "from": 4,
      "beatId": "01d71509-7df3-4ced-965b-041236fe4cf7",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The research note and expose contradiction slides highlight potential issues.",
      "position": 1,
      "confidence": 0.9,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    },
    {
      "to": 6,
      "from": 5,
      "beatId": "e08f9d80-ebf7-4896-8e06-1b0abe758b20",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution (Provide relief)",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "The report suggests shareholders demand answers from management.",
      "position": 2,
      "confidence": 0.9,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 6,
      "from": 1,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "1041223d-18af-4e4c-88fb-52e3e56038c1",
      "evidence": "The report implies that not demanding answers may lead to negative outcomes.",
      "position": 0,
      "objective": "What are the consequences of not scrutinizing the offer?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}