We are incorporated under the laws of the cayman islands as an exempted company with a limited liability so that chinese company you just invested in it's a cayman islands company the numbers also look strange. I don't know what to make of this check this out. These are the numbers for dd and in fact these are the revenues, the cost of revenues and the actual net income. As you can see right here, the company lost money from 2018 to 2020., now, all of a sudden, after losing 1.6 billion dollars, both in 2020 and in 2019 give or take another couple hundred million.

They made 837 million dollars in q1 2021 just before the ipo. My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody hey. This is tom, and you know on page 11 of the dd global inc prospectus, which actually read in full, i'm a nerd. You can find the following sentence.

We are very fortunate to have been founded in china in this new era. I'm sure that the happiness level from being founded in china and actually reduced in the past few days, but let's hold down on that in a second. Let's talk about what really is going on here, because i think that the dd story is way bigger than people realize. I think we just saw the tip of the iceberg.

I think the real story is massive and has not been told yet and in this video i'll show you some real concerns about dd beyond just the chinese regulations and the chinese interventions and all of that stuff that everybody's already covering there's a lot of tough questions And a lot of concerns, which you have to see for yourself, because when i went through this - and i only put in a few hours into researching this my eyes literally pop out of my socket, you have to see this now in case you haven't heard. Dd is a chinese company, went public in the us, pulled a lot of money, 4.5 billion dollars and three cycles. Later three days later, the rock got pulled from under the investors by the chinese government, which pretty much alex jones. This company out of existence and everybody lost a lot of money.

Now, that's the story in a nutshell. That's just the executive summary in this video i'll explain what the hell happened, why it happened. But more importantly, i'm going to show you the concerns i have with dd beyond the narrative that everybody's talking about, because i think if you can actually read financials and you can actually read legal documents, the dd story is much worse than mainstream media is showing you Because i think there's a lot of unknowns here which you're about to find out in this video. So for that, i ask you not to click nothing not to smash nothing, not to subscribe to nothing not to buy.

Nothing. Just give me attention and take this ride with me now speaking about rides, i mean dd in case you don't know this company is kind of like the chinese uber. They have a lot of business, 500 million users, 15 million drivers, 25 million daily rides. I mean it's a big business now they just went public in the new york stock exchange and they raised 4.5 billion dollars and it was a pandemonium.

I mean i'm talking about bankers, running away from the toilet, leaving all the coke there basically running, trying to get a piece of it. It was so oversubscribed. It was like a liquor store in russia on a sunday i mean you couldn't get in. It was crazy and the irony is that this pandemonium, this feeding frenzy, was because the price went down from 100 billion to 70 billion.

Because of you guess it yes, regulatory concerns. Ladies and gentlemen, we have a winner, no sherlock, i mean now you see why even the 30 discount is not enough, even the 40. This kind of enough, even the 99 discount, is not enough to invest in chinese companies. So for everyone out there saying that you can invest in chinese companies if the discount is big enough.

This is a living breathing proof that it's not and the stuff i'll show in this video is way bigger than just the chinese regulatory stuff. Now, let's talk about irony for a second here, we have the chinese government coming out at a chinese company out of fear that their data collection will leak to the west. Is that not the definition of irony? This is insane now beyond. Just the irony of it.

We do have to answer some tough questions. I mean there's a lot of people who get hurt here, 25 and counting even more. On this pre-market day. I mean there's a lot of money that people lost.

The chinese government literally pulled the rug underneath these investors, like it, was nothing it's a major deal and we do have to talk about what the hell happened here. So just to give you the brief. What happened here is that the chinese company went public, raised a lot of money and then three days later three days, that's all it took the chinese government. Pretty much said: hey app, store, apple store, whatever store.

You can't have this app on your stores and udv. You can't add any new customers until we figure out what the hell is going on here. That's basically a distance to diddy, at least for the foreseeable future. It's a very massive blow.

So i have two questions here. First of all, i have a question for softbank. Now, in case you didn't know, softbank are the main investors in this company and if this name sounds familiar, it's because softbank we're the main investor in another company called wework. Remember that mess that fiasco, calling that fiasco is kind of an understatement, but i mean something what the hell i mean.

Do you have a monkey with a tambourine picking companies? Do you have an octopus? I mean i can literally put my grandpa on your committee and have better choices than you did in the past few years. What the hell sheesh come on. Oh my god. Now on the serious note, there's a lot of difficult questions about the banks and the underwriters.

I mean who in the hell, did not see this coming. I mean this happened three days after going public, so the real question is how much the banks knew and we have to follow the money. Now. The underwriters here actually made 90 million dollars all in all.

Together, jp morgan, morgan stanley, i mean we're talking about a lot of morgan's. Also - and i mean all of the usual players - were involved - goldman sachs, all of them, they made 90 million dollars and it got spread around pretty evenly and the question i have to ask of you: how much did the banks know? Were they suspecting anything? Did they turn a blind eye? Did they have no clue? I mean, i don't believe the banks will ever do anything and not morally or ethically responsible, just to make a few bucks and if you think the banks would do something like this. I think you're a cynical person, so the other question is: if the banks didn't know, didn't, have any reason to suspect this. Did they not cop? I mean it was your job on the lover.

You are the underwriter you're literally getting paid to know the stuff. How did you not know? How did you see this coming as the underwriter i mean this is literally your job. What are we paying you for? They literally put all of these investors in peril because they didn't do their job at the minimum and now that we got this out of the way. Let's talk about the real concerns, the real major issues with dd that nobody seems to covering and here's the kicker everything we spoke about so far.

It's nothing compared to what i'm about to show you just so you know when you invest in chinese companies through the new york stock exchange or the nasdaq you're, not investing in a chinese company you're. Getting a belief share. You have to believe it's like santa claus. You're getting a share in an offshore company, a cayman or guernsey or bvi, whatever that owns as the holding company the chinese company that actually owns the business and the assets.

So you have no link not to the business, not the assets, not to the real chinese company you're getting these holding shares now just to let you know that in my m a days that deal would have never passed any sort of due diligence. No investor wants to buy a holding company; they want to buy the company that holds the assets for multitude of reasons. Regulatory you can actually enforce. You can collect.

You can't do jet through the holding company because it literally has no assets. Everything is owned by another company: you're separated you're, not a shareholder of the chinese company holding the assets in the business, and that is something that i'm not making up the actual chinese company saying this. Let me show you and by the way i do have to give a huge shout out to patrick boyle. This is his youtube channel on the screen right now for helping me with the research for this video, providing some important information if you're not yet subscribed to patrick's channel, go right ahead and do it trust me it's gon na be worthwhile your time.

This is one of the most underrated channels on youtube. In my opinion, this is from page 108 out of 418 pages of the dd prospectus and in case you're wondering yes, i read the whole thing, i'm a nerd - and i also did this for you so check this out. Page 108 clearly says we are incorporated under the laws of the cayman islands as an exempted company with a limited liability so that chinese company you just invested in it's a cayman islands company some of you may be asking yourself: how can it be tom? It's not a cayman islands. Company dd is a chinese company.

Let me show you how they do it. This is how it's done. This is page 25 from the perspectives. Dd global is actually a cayman islands company.

It holds a bunch of these cayman companies. This is a bvi company. This is a bvr company. This is a cayman company.

This is a hong kong company. This is another hong kong company. That's all offshore and you're investing right here and below all of this convoluted offshore structure, which is actually below the company. You actually have shares in is the actual business right here, which you have zero shares in and when i say zero i mean zero.

You have no relationship with the chinese company that holds the assets or the business. Would you want to invest in a structure like this? I don't think so and if you needed more reasons not to invest in chinese companies, here's more reasons i mean i don't want to invest in the holding company that holds the actual business down below the numbers. Also, look strange, i don't know what to make of this check this out. These are the numbers for dd and in fact these are the revenues, the cost of revenues and the actual net income.

As you can see right here, the company lost money from 2018 to 2020., now, all of a sudden, after losing 1.6 billion dollars, both in 2020 and in 2019 give or take another couple hundred million. They made 837 million dollars in q1 2021 just before the ipo, and the question is how because they're still losing money on operations, and if you take a look at this right here, it says: look at this income from investments and the question is: where did this Money come from because they're still losing money on operation and you can see 1.8 billion, and when you dig into this, you find something very interesting. Let me show you on page 137 in the prospectus. Yes, i went all the way to page 137.

It says our investment income improved from a loss of 5 billion rmb for the three months ended in march 31, 2020 to an income of 1.9 billion dollars for the three months ended in 2021 march, primarily due to the deconsolidation of this company ching shin technology, inc And here's the weird part this company was only established eight months ago and they already sold this for this much money for billions of dollars. Look at this right-handling giant dd adds group buying feature to its flagship app november 2020. check this out didi, the uber of china has introduced a new feature to its ride-hailing app, allowing users to order groceries and fresh produce through this changshin company. Now this is from eight months ago it's a new operation, new business.

They started eight months ago and now only eight months later, they're reporting that they deconsolidated this company for two billion dollars. A new operation. Eight months old, got deconsolidated whatever. That means for two billion dollars.

Now i try and find any sort of information on who purchased this company, who paid two billion dollars 2d for this company. I couldn't find anything if you have any new information about this. Please let me know in the comments below i couldn't find any paper trail who purchased this because i didn't understand what deconsolidation is i mean, did you sell it? Who did you sell it to it's not specified here, and this information is critical? Also, i don't understand where the half a billion dollars came from equity investment disposal, but i'll just settle for the two billion of the the consolidation information i mean what the hell is going on here now. This is just my questions.

I'm not accusing anything. I'm not saying anything, i'm just saying that i have some really tough questions that i would like answers to. How did this company made two billion dollars from deconsolidating this new business that you just started seven or eight months ago? That thing doesn't make sense to me as a numbers guy, but again just my opinion. It might be inaccurate.

It might be completely wrong, it might be the ramblings of amendment. You have to do your own research and find that for yourself again, this is just me wondering where these numbers come from. I don't know you tell me if you can read chinese and you can find some information, please let me know below. As always, it's been a pleasure bringing this information to you shout out to the channel members and the patrons for being amazing.

Thank you. So much we'll see you guys in the next video.