JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Investment Advisors

BIDU-YY Live Streaming Integration Update: Unlocking Deep Value in YY

Joyy’s Potential Privatisation by Top Two Shareholders

[JOYY (YY US, SELL, TP US$25.1) Target Price Change]: Price Correction to Come Amid Global Headwinds

Investment Advisors, JL Warren Capital

Junheng Li

Forensic Accounting

<p style="text-align: justify;">Muddy Waters’ short selling report on YY is technically detailed and logical.  It showcases its team’s cyber capability to collect user activity data and analyze them.  While the report is credible, we believe that the data used to make its arguments are snapshots of activities during specific periods (i.e. during the annual <em>talent show</em> from November 2019 to January 2020). The lack of a continuum has created biases, and ultimately results in an inappropriate conclusion that YY is 90% fraudulent.  Our due diligence primarily involves speaking with the agencies that have helped to build the YY video streaming business, leads us to conclude that YY Live is “mostly” real.  It is a massively lucrative cash machine monetizing on fandom-ship and virtual relationships among individuals across China. While the virtual gifting phenomenon is difficult for certain American investors to comprehend, it is prevalent in China. </p>

Muddy Waters’ short selling report on YY is technically detailed and logical.  It showcases its team’s cyber capability to collect user activity data and analyze them.  While the report is credible, we believe that the data used to make its arguments are snapshots of activities during specific periods (i.e. during the annual talent show from November 2019 to January 2020). The lack of a continuum has created biases, and ultimately results in an inappropriate conclusion that YY is 90% fraudulent.  Our due diligence primarily involves speaking with the agencies that have helped to build the YY video streaming business, leads us to conclude that YY Live is “mostly” real.  It is a massively lucrative cash machine monetizing on fandom-ship and virtual relationships among individuals across China. While the virtual gifting phenomenon is difficult for certain American investors to comprehend, it is prevalent in China. 

YY Due Diligence Suggesting a Lucrative Cash Machine with Unique Ecosystem