Thanks to you both, really liked the bull-bear format.
One note: the FCF mentioned in the bullcase is much, much too high (many articles and investors seem to get this wrong). This is because, much of the payments and deposits of merchants are restricted cash. This is held in excrow accounts and can neither be used for daily operations nor be paid out to investors and is therefore not part of FCF.
Operating cashflow in FY20 was 28bn RMB and capex was negligable. But between FY19 and FY20 restricted cash increased by 25bn RMB (52bn - 27bn). So FCF was more like 3bn RMB (460mn USD).
Hahaha, I can't believe you used the word "gweilo"; so good. Albeit that's mostly used in Cantonese, for the Mandarin equivalent, you can use "Laowai"
Thanks to you both, really liked the bull-bear format.
One note: the FCF mentioned in the bullcase is much, much too high (many articles and investors seem to get this wrong). This is because, much of the payments and deposits of merchants are restricted cash. This is held in excrow accounts and can neither be used for daily operations nor be paid out to investors and is therefore not part of FCF.
Operating cashflow in FY20 was 28bn RMB and capex was negligable. But between FY19 and FY20 restricted cash increased by 25bn RMB (52bn - 27bn). So FCF was more like 3bn RMB (460mn USD).