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  "documentTitle": "Orient Paper Inc. (ONP)",
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  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-06-28 00:00:00",
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  "notes": "The slide uses forensic accounting logic to compare public filings (10-K) against internal PRC tax filings and independent vendor quotes to expose fraud.",
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      "text": "We estimate that ONP has overstated its asset values by at least ten times.",
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      "kind": "disclaimer",
      "text": "27 March 31, 2010 Form 10-Q, p. F-2. 28 Supra FN 11. 29 December 31, 2008 10-K, p. F-3. 30 HBOP December 21, 2001 business license. 31 HBOP March 27, 2003 capital verification report.",
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      "kind": "paragraph",
      "text": "In 2003, Chairman Liu and his brother, Xiaodong Liu, invested $10.5 million in equity capital. The problem is that none of the investment was in the form of cash. Rather, it was in the form of equipment.",
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      "text": "We estimate that ONP has overstated its asset values by at least ten times. ONP's 2008 audited PRC balance sheet shows total net assets worth less than half of what it claimed in its 2008 Form 10-K.",
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      "text": "However, we believe that even the PRC balance sheet values are greatly overstated. We estimate that the true value of ONP's PP&E is not more than five million dollars, as compared to the $54.4 million in the most recent balance sheet.",
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      "text": "ONP's 2008 Form 10-K lists asset value that is more than twice what is listed its 2008 audited PRC tax return. HBOP's audited 2008 PRC financials show assets of $24.3 million, which is 54.0% less than the $52.8 million shown in the balance sheet.",
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      "text": "However, we have found evidence that the PRC financial statements overstate (likely by at least $20 million or two times) the value of ONP's assets. ONP was a tiny company with equity capital of only $512,000 until 2003.",
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