{
  "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": 3,
  "pageCount": 30,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "This is a research note from Muddy Waters, LLC, exposing potential fraud at Orient Paper, Inc.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-ad799e03bd2b/3",
  "deckHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "In the best case scenario, ONP paid less than $5 million total for both sets of assets, thereby leaving over $25 million unaccounted for.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0a-91f91ce041e6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.78,
        "x": 0.11,
        "y": 0.48
      },
      "kind": "paragraph",
      "text": "We spoke with the purported seller of the equipment, Qinyang, and four other Chinese papermaking equipment manufacturers. Qinyang told us that its highest capacity 5.6 m corrugating medium production line... produces only 150,000 tons per year and costs approximately $4.4 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3963bdec-7398-421e-9b2e-2be1395f5f4f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "Most - if not all - of the $31.5 million... has been misappropriated. ONP purported to raise these funds to finance the purchases of two groups of assets... In the best case scenario, ONP paid less than $5 million total for both sets of assets.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "80507530-e8d2-481b-9bbe-6c80da5bfffa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.6
      },
      "kind": "paragraph",
      "text": "None of the other four companies makes a 5.6 m corrugating medium line that can exceed 200,000 tons per year... none of these companies sold lines for prices above $7.3 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d5d2f276-7f47-4d7c-8b61-a596f3a566c5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.78,
        "x": 0.11,
        "y": 0.32
      },
      "kind": "paragraph",
      "text": "Between April 6, 2010 and April 14, 2010, ONP raised a net amount of $26.9 million... ONP announced that it had 'entered into a definitive equipment purchase agreement' to purchase one corrugating medium paper production line... for approximately US$27.8 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eeaa960b-c0d5-4b92-ab8c-fac73d5ba5b6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.78,
        "x": 0.11,
        "y": 0.81
      },
      "kind": "source-note",
      "text": "1 Orient Paper, Inc., November 25, 2009 Form 8-K... 5 April 9, 2010 Form 8-K, Exhibit 10.1...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39ab60d8-b918-48e4-b7b1-7f3952d3ce6e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.65,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "title",
      "text": "Approximately $30 Million Has Been Misappropriated since October 2009",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9b863301-a11f-47ed-b00a-c9f0e76b8a42",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.55,
        "x": 0.11,
        "y": 0.28
      },
      "kind": "title",
      "text": "March / April 2010 Raise and the Corrugating Medium Production Line",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b169bf75-17a4-4f72-8946-5e3b9f8d83f1",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Credibility Transfer",
      "slug": "credibility-transfer",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "54b47acd-d76f-45aa-8d83-009832bfe60b",
      "evidence": "The slide mentions conversations with Chinese papermaking equipment manufacturers, which adds credibility.",
      "confidence": 0.7
    }
  ],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "f747604e-753f-4cf3-bcb5-f18e246f2030",
      "evidence": "The slide systematically compares company claims against third-party manufacturer data to expose financial discrepancies.",
      "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
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}