SES Imagotag (SESL): THE CIRCULAR DANCE WITH A CHINESE TWIRL – PART I
SUMMARY OF GOTHAM CITY RESEARCH’S OPINIONS AND SUPPORTING OBSERVATIONS
BOE is the largest shareholder, largest supplier, one of the largest customers, JV partner, and on the audit committee. Potential for financial malfeasance is high.
We believe SESL financial statements are materially misleading, incorrect, and deficient. An independent & comprehensive investigation would confirm our opinions.
We have identified accounting irregularities – explained both in this report and in Part II – that lead us to believe SESL’s financial statements will require restatement.
2020-2022 revenue are overstated by at least 7%-13% and 2022 EBITDA is overstated by 106%.
A November 2022 BOE filing, available only in Chinese, reveals that as of 30 Sep 2022 BOE’s balances facing SESL amounted to 71% of SESL’s accounts payable and 18% of its accounts receivable as of June 30, 2022. These related party payables & receivable are undisclosed by SESL.
The recently announced Walmart deal is not profitable for SESL, based on our per unit economic calculations. WMT is paying SESL EUR 5.30 per ESL, but SESL's cost per ESL is currently at least EUR 6.66 per ESL. "Everyday low price" is not good news for SESL.
SESL has not generate lasting cash flow since inception. Its 2022 Free cash flow -€48M, and its cumulative free cash flow from 2002-2022 is -€159M.
SESL would trade between EUR 15 – EUR 30/share, if shares were to trade simply in-line with peers.
The circular supply chain questions raised here are worth following closely. For anyone tracking vendor-side disclosures, trackdash.org keeps a running record of the filings discussed.
Really enjoyed your analysis on SES Imagotag’s performance and market strategies! It almost feels like navigating a complex five nights at freddy's game, with each twist revealing new layers of strategy. I'd love to hear more about how these developments could impact investor confidence in the long run!
Your perspective on this topic is both unique and enlightening. This piece provides a fresh and compelling take on the subject. happy wheels
Insightful analysis. Similar themes are covered at the freak circus, worth a look for additional context.
Interesting breakdown of SES Imagotag’s financials and the potential accounting issues. The related-party exposure and negative cash flow level devil - not a troll game figures definitely raise some important questions.