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  "documentTitle": "Orient Paper Inc. (ONP)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2010-06-28 00:00:00",
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  "notes": "This is a research note from Muddy Waters, LLC, focusing on corporate governance and accounting transparency issues.",
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      "text": "ONP was improperly consolidating HBOP’s (misstated) assets and operations prior to that time.",
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      "text": "HBOP is the primary operating company for ONP. Sheng De’s main purpose is to consolidate HBOP’s operations and assets into ONP because ONP has no ownership in HBOP. This type of consolidation arrangement is called a “variable interest entity” (“VIE”).",
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      "text": "ONP, the AMEX-listed company, has a U.S. subsidiary, Sheng De Holdings, Inc. Sheng De Holdings, Inc. in turn incorporated Bao Ding Sheng De Paper Co. Ltd. (“Sheng De”) in Bao Ding City, He Bei Province, the People’s Republic of China in June 2009.",
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      "text": "However, and second, after reviewing the various agreements that purport to give control of HBOP to Sheng De, we see that the agreements are largely cosmetic. It would effectively be up to Chairman Liu",
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      "text": "There are two points to make about ONP’s VIE structure. First, the VIE did not exist until June 2009, so ONP was improperly consolidating HBOP’s (misstated) assets and operations prior to that time.",
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      "text": "Footnotes 46-55 detailing SEC filings and business licenses.",
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      "text": "ONP Has a History of Deceiving Shareholders in that it “Went Public” Without Disclosing for 20 Months that it had No Ownership or Legal Control of its Purported PRC Operating Subsidiary",
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