22 September, 2023

VARIABLE INTEREST ENTITIES

Hidden tax liabilities

Gillem Tulloch

gillem-tulloch vipshop-holdings-ltd trip-dot-com baidu joyy-inc jd vie zto-express-inc alibaba iqiyi-inc tal-education netease new-oriental-education weibo pinduoduo-inc bilibili momo-inc autohome pdd huya-inc gds-holdings tencent-music data-nexus futu-holdings ke-holdings chindata lufax-holding kingsoft-cloud gaotu-techedu-inc full-truck-alliance-co-ltd kanzhun li-auto vnet-group agora-inc didi-global

Insights

18 August, 2020

NEWSLETTER: COMING HOME?

Watch out for the privatisation “squeeze out”

The proposed Holding Foreign Companies Accountable Act could force hundreds of Chinese companies listed on US exchanges to delist over the next few years. For many large companies, seeking a secondary listing in Hong Kong or the mainland is a sensible insurance policy. However, investors should be wary of companies which decide to privatise and then relist. Our analysis of...

12 August, 2020

NEWSLETTER: TECHNOLOGY ONE

Growth illusion

Nigel Stevenson

Technology One’s growth in the last couple of years appears to be an illusion. It has used various accounting tricks to pull forward revenue and profits, artificially creating growth and hiding a major slowdown. New rules on revenue recognition in FY19 have left a big hole in TNE’s profits, which it filled by starting to capitalise development costs, having previously...