Overseas Chinese Equities, Aequitas Research

Ming Lu

A veteran with 19-year experience in equity research.

Geographical coverage:
* Companies operating in China, but listed in Hong Kong and the U.S.
* Previously China A-share (listed in mainland China).

Equity sector coverage:
* Chinese App / Internet-based consumption in China, e.g., Alibaba, Tencent, etc.
* Previously covered education, transportation, telecom, power, bank, advertisement, hotel, etc.

Research methods:
* Generally bottom-up.
* Talk to related people on the ground.  Talk to readers and independent writers for analyzing a news portal.  Talk to parents and teachers for analyzing a tutoring school. 
* Visit stores and show photos as evidence in notes.
* Do technical analysis when finding a short-seller attacking an equity.

Languages:
* English
* Mandarin Chinese (Official language of China)
* Shanghainese (Language of Shanghai, the most developed city in China)
* Cantonese (Language of Hong Kong and Canton Province, one of the most developed provinces in China)

Overseas Chinese Equities

Qutoutiao Pre-IPO - Cash Payments Driving Downloads but Aren't as Effective with Usage

Qutoutia IPO - Engagement Picking Up but Questions over Sustainability Remain

ECM Weekly (15 September 2018) - Fast & Furious - NIO, Qutoutiao, Haidilao, Viomi, X Financial

Weibo (WB) – Strong Q2, But Not to Buy Until Short Seller Leaves

Byte Dance Lawsuits Show: Tencent (700 HK) Is Small Companies’ Inevitable Platform and Competitor

Qutoutiao IPO Preview: Facing an Inescapable Catch-22

Equity Capital Markets

<ul>
<li>Qutoutiao is not the only mobile applications which pays readers, but the Company pays aggressively.</li>
<li>Therefore in 2Q18, on one hand, monthly active users and revenues grew rapidly; on the other hand, losses and operating cash outflows were significant.</li>
<li>QTT does not have exclusive content for an exclusive market.</li>
<li>We believe QTT’s business model is not sustainable.</li>
</ul>


Qutoutiao is not the only mobile applications which pays readers, but the Company pays aggressively.
Therefore in 2Q18, on one hand, monthly active users and revenues grew rapidly; on the other hand, losses and operating cash outflows were significant.
QTT does not have exclusive content for an exclusive market.
We believe QTT’s business model is not sustainable.


Qutoutiao 趣头条 (QTT) – A Spendthrift Who Pays News Readers Generously

Qutoutiao Inc

Qutoutiao 趣头条 (QTT) – A Spendthrift Who Pays News Readers Generously