58.com , china's online craigslist, with online real estate subsidiary anjuke

Accuracy score :
97%

58.com Inc ADR repr Class A  WUBA
Summary (from latest annual report and quarterly report 2016)
•    Total equity  : 2.67 billion USD
•    Market Cap is 4.5 billion USD ( last price of the stock is 31.39 USD)
•    58.com Inc operates online marketplace serving local merchants and consumers in China. Its online marketplace enables local merchants and consumers to connect, share information and conduct business
•    Equity of total company increased from 507 million USD in 2014 to 2.67 billion in 2016
•    Company has 152 million USD in cash on account (from latest quarterly report)
•     Total equity – cash on account = 2.67 billion USD – 152 million USD = 2.51 billion USD
•    In 2016 total debt is 266 million USD (In 2014 total debt was zero)
•    In 2016 quarterly report - total equity increased to 2.67 billion  USD from 507 million USD in 2014, total debt is 266 million USD in 2016)
•    Company's revenue increased in 2015 to 715 million USD from 265 million in 2014
•    Net loss in 2015 was 251 million USD, Net income in 2014 was 23 million USD

58.com Inc ADR repr Class A  WUBA
58.com Inc operates online marketplace serving local merchants and consumers in China. Its online marketplace enables local merchants and consumers to connect, share information and conduct business. 58.com business is comprised principally of its online classifieds and listing platforms. Their online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Home, their unconsolidated subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services such as home cleaning, moving services and manicure services provided at home.
Company's classifieds and listing platforms contain local information for approximately 485 cities across diverse content categories, including jobs, real estate, used goods, automotive and yellow pages. 58.com offers three types of mobile applications: downloadable applications developed for Android and iOS platforms, browser-adapted applications for users accessing its websites through their smartphone browsers and tailor-made mobile applications for merchants.
Company's revenues are mainly generated from subscription based merchant memberships and online marketing services on their online classifieds and listing platforms. The number of their average quarterly paying membership accounts increased from approximately 323,000 in 2013 to approximately 529,000 in 2014 and further to approximately 827,000 in 2015. They continue to make progress in upselling additional online marketing services, such as real time bidding services, to their merchant members. Their revenues increased from US$145.7 million in 2013 to US$265.0 million in 2014 and further to US$714.8 million in 2015. The increase was driven by the addition of revenues from Ganji and Anjuke as well as the organic growth of the 58.com platform. They had net income of US$19.6 million in 2013 and US$22.6 million in 2014 and we incurred net loss of US$263.0 million in 2015. Membership represents 41.6% of total revenues, online marketing services represent 53.9% of total revenues, E-commerce services represent 3.2% of total revenues, other services represent rest of revenues.

The markets for online marketing services and mobile services in China are constantly evolving and may not grow as quickly as expected or at al (2015 annual report)
58.com's business and prospects are affected by the development of emerging internet business models in China, including those for online marketing services and mobile services. Company's membership services and other online marketing services have distinct business models which may differ from models for these businesses in other markets, such as the United States, and that are in varying stages of development and monetization. Company's future success will depend on ability to respond to rapidly changing technologies, adapt its products and services to evolving industry standards and improve the performance and reliability of its products and services.

 

58.com standalone subsidiaries and acquisitions :
•    In March 2015, 58.com acquired Anjuke, a major online real estate listing platform in China, through the purchase of a 100% equity interest in Anjuke Inc., a company incorporated under the laws of the Cayman Islands, for 4,839,372 newly issued Class A ordinary shares of the company and US$160.2 million in cash - worth 310 million USD
•    In April 2015, 58.com acquired a less than 50% equity stake in Falcon View Technology, or Ganji, the holding company of the PRC entities operating Ganji.com, a major online local services platform in China, for 34,039,136 newly issued Class A ordinary shares of the company (value of $2.4B in April 2015) and US$412.2 million in cash - worth 1.5 billion USD

Total = 1.8 billion usd

•    On June 27, 2014, Tencent announced that it has agreed to buy a 19.9 percent stake in Chinese e-commerce website 58.com (WUBA) Inc. for $736 million. On April 17, 2015, Tencent announced it has bought an additional $400 million worth of shares, rising its stake in the company to about 25%
•    Mr. Jinbo Yao is the founder, chairman and chief executive officer of the company, having beneficial ownership of 11.3% of the total outstanding shares of the company
•    In 2015, 58.com, as a limited partner, committed an aggregate of 46,505,912 newly issued ordinary shares and US$406.7 million in cash to several private equity funds, of which all the ordinary shares and US$272.4 million in cash were contributed to the funds in August 2015
•    On November 27, 2015, 58 Home raised US$300.0 million in a Series A preferred shares equity funding round, with participation from Alibaba Group Holding Limited, global investment firm KKR, and Ping An Group, among which US$10.0 million was contributed by 58.com Inc. Following the closing of the series A financing of 58 Home, 58.com Inc. holds 87.9% of the total outstanding ordinary shares of 58 Home and 61.7% of the total outstanding shares of 58 Home on an as-converted basis. As certain rights provided to the non-controlling Series A preferred shareholders of 58 Home would be viewed as substantive participating rights under U.S. GAAP, 58.com has ceased consolidating the financial results of 58 Home in its consolidated financial statements in accordance with U.S. GAAP since November 27, 2015

 

Opinion about the company
Fundamentally it is a bad company but in the future we can expect its growth (Total debt is 266 million USD, company has 152 million USD in cash on account, ROE is negative : around -2 %).