{
  "docId": "019dd923-622c-750b-8b95-ad799e03bd2b",
  "docSlug": "fd245f907dd4",
  "documentTitle": "Orient Paper Inc. (ONP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-06-28 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.70695555,
  "pageNumber": 22,
  "pageCount": 30,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 8,
  "notes": "The slide uses a forensic accounting approach to challenge the validity of reported inventory assets.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-ad799e03bd2b/22",
  "deckHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b#slide-22",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The most obvious problem in this table is that Chairman Liu told us categorically that ONP has no finished goods inventory because customers pick up finished product as it comes off of the lines.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0b-af85a45d73ef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "inventory value: $6,926,392",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0b-b055979b0bf4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.8,
        "x": 0.1,
        "y": 0.46
      },
      "kind": "paragraph",
      "text": "The most obvious problem in this table is that Chairman Liu told us categorically that ONP has no finished goods inventory because customers pick up finished product as it comes off of the lines. We did not see the approximately 2,000 tons of finished goods lying around that $605,719 would represent.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2408d60d-7305-4598-b2ee-6fda8a041a33",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.8,
        "x": 0.1,
        "y": 0.59
      },
      "kind": "paragraph",
      "text": "The second issue is that while ONP has a substantial amount of recycled paper board (\"OCC\") sitting outside, we are incredulous that it is worth anywhere close to $2.3 million. OCC degrades if stored outside because it soaks in moisture. It would be irresponsible at the least to store such valuable paper outside. The photo on the following page shows one of our analysts climbing a heap of OCC.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4d476741-1f7e-48b4-9673-3aa92a20d5f8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.7,
        "x": 0.1,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "The table below shows ONP's claimed inventory breakdown as of December 31, 2009:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "585a764b-2ea5-49e4-a1b3-435a7ff4e20e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.1,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "34 2009 10-K p. 32.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "24a62da5-3864-47d6-b3ba-ba55ff0c095b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.36,
        "x": 0.32,
        "y": 0.17
      },
      "kind": "table",
      "text": "ONP Claimed Inventory as of 12/31/2009 (USD)",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "612ba28c-26aa-48cb-8693-a33618981252",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.6,
        "x": 0.1,
        "y": 0.09
      },
      "kind": "title",
      "text": "ONP Has Overstated Inventory Values by Millions of Dollars",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "50184f75-e12f-4085-8e76-ebb4eddfcd1d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "99c5a28c-cc52-42ee-9808-7f79506e698a",
      "evidence": "The slide explicitly identifies contradictions between management claims and reported financial data to allege inventory overstatement.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 28,
      "from": 3,
      "beatId": "66591126-ef8c-444e-a107-c7ec3cd5ece0",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document presents numerous contradictions in ONP's statements and actions.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 23,
      "from": 11,
      "beatId": "8c4cedc9-c13c-4d45-be96-adabde76a4ce",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Villain Critique",
      "beatSlug": null,
      "evidence": "The document critiques ONP's actions and management, portraying them as villainous.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}