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  "documentTitle": "Orient Paper Inc. (ONP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2010-06-28 00:00:00",
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  "notes": "The slide argues that ONP's gross margin is suspiciously high compared to peers and discusses the use of 'fa piao' in Chinese accounting fraud.",
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      "text": "Given the differences in equipment and processes, we find it inconceivable that ONP's gross margin could compare so favorably to those of the industry leaders.",
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      "text": "gross margin: 19.6%",
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      "text": "We'd be remiss if we didn't address the question of how the auditors could have missed such a large fraud. For one, ONP's 2007 financials were not audited...",
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      "text": "Our Theory as to Why ONP's Auditors Have Missed the Fraud",
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      "text": "Muddy Waters, LLC | ONP June 28, 2010 | Page 27 of 30",
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      "text": "Company, Exchange/Symbol, 2009 Revenue, 2009 COS, Gross Margin. Orient Paper Corp, ONP, 102,142,828, 82,107,531, 19.6%. Shandong Chenming, 000488:CH/1812:HK, 2,188,916,081, 1,773,149,391, 19.0%. Nine Dragons, 2689:HK, 2,268,734,553, 1,781,451,684, 21.5%.",
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      "text": "Comparison of 2009 Gross Margin between ONP and Those of its Publicly Traded \"Main Competitors\" (USD)",
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