Month: May 2020

Predict. Do not extrapolate.

Which One of China’s Properties Big 3 Sells Its Projects the Quickest?

A Chinese property developer typically takes two years to complete a project from start to finish. However, developers in China can pre-sell the projects before they are completed. The sooner a developer receives cash from pre-selling a project, the sooner the developer recycles capital and the stronger is its liquidity. However, the financial statements do…
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Car Inc’s short-term and long-term sustainability model

In the previous article, Modtris model reverse-computes the historical operating metrics of Car Inc using only balance sheet and income statements from 2013 to 2019. With these operating metrics, the short-term and long-term sustainability of the company are simulated. Short-term: cash position under extreme scenarios are simulated. Long-term: financial outcome under constant level of financing…
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DO CAR INC’S PAST FINANCIAL RESULTS MAKE SENSE?

Following the announcement of internal investigation of Luckin Coffee, Car Inc was immediately under fire for the guilt of association. Its stock price on HK stock exchange lost more than 50% value and subsequently Moody’s and S&P downgraded the company’s rating to Caa1 and CCC. The primary market concern may be that Car Inc, even…
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