{
  "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": 4,
  "pageCount": 30,
  "prevPage": 3,
  "nextPage": 5,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 5,
  "notes": "This is a page from a Muddy Waters research note exposing potential financial irregularities at Orient Paper, Inc. (ONP).",
  "elementsJson": [
    "headline_text",
    "data_table",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-ad799e03bd2b/4",
  "deckHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-ad799e03bd2b#slide-4",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Thus, either ONP is purchasing a line (at far lower capacity than claimed) and misappropriating most of the $26.9 million; or, ONP is not purchasing any line and misappropriating all of the $26.9 million.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0a-f19fdbabe581",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.76,
        "x": 0.12,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "Because Shuang Xing has a longstanding close relationship with ONP, it may be complicit in the fraud. On January 1, 2003, Shuang Xing leased space at ONP's administrative headquarters for ten years. ONP's 2009 Form 10-K states that Shuang Xing's former assets are located at ONP's administrative offices.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "67cc389f-af51-420f-8132-0e77bce7dcc0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.76,
        "x": 0.12,
        "y": 0.46
      },
      "kind": "paragraph",
      "text": "According to its most recent business license, Shuang Xing had only been capitalized with equity totaling $439,000. Not coincidentally, Shuang Xing's 2008 audited financial statements show that its fixed assets had a total gross value of $439,000. The same statements show that the depreciated value of the fixed assets at the end of 2008 was only $387,000.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "770381c7-0f21-47b6-9642-769d42724915",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.76,
        "x": 0.12,
        "y": 0.26
      },
      "kind": "paragraph",
      "text": "Thus, either ONP is purchasing a line (at far lower capacity than claimed) and misappropriating most of the $26.9 million; or, ONP is not purchasing any line and misappropriating all of the $26.9 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a87d2b59-1eac-40ee-9e31-8c657b73cee7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.76,
        "x": 0.12,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "In October 2009, ONP raised a net amount of $4.9 million, of which $4.6 million was to be used as a down payment to purchase two digital photo paper coating lines purportedly owned by He Bei Shuang Xing Paper Co. Ltd. (\"Shuang Xing\") for $13.6 million. However, our due diligence shows that Shuang Xing's tangible assets were worth no more than a few hundred thousand dollars. (We would not be surprised if ONP did not acquire these assets at all.)",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f07c7a78-ae6d-4e6e-9950-2bb891d24f33",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.76,
        "x": 0.12,
        "y": 0.68
      },
      "kind": "source-note",
      "text": "6-12: Footnotes detailing sources like 8-K, Form 10-K, and PRC legal inspection procedures.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6f8a43b9-c54d-4def-96b6-dc7f28895e97",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.76,
        "x": 0.12,
        "y": 0.13
      },
      "kind": "table",
      "text": "Company Name, URL, Rough Quotation (USD); Henan Qinyang First Paper Machine Ltd., http://www.qyyj.com.cn/index.asp, $4.4 million; Henan Sheng Qinyang Shijinling Ji Xie Co. Ltd., http://www.jinlingjx.com/, $4.4 million; Shandong Sky Paper Machinery Co. Ltd., http://www.haitianjx.com/About.asp, $7.3 million; Shandong Zhucheng Jinridong Papermaking Machinery Factory Co. Ltd., http://www.ridong.com/, $7.3 million; Jiangsu Huadong Papermaking Machinery Factory Co., http://www.kszlzz.com/Info/index.asp?id=4, $7.3 million",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3370f8ae-1fc4-4a79-ad4e-70784e950447",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.45,
        "x": 0.12,
        "y": 0.32
      },
      "kind": "title",
      "text": "October 2009 Raise and Digital Photo Paper Assets",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9e3434c7-bf06-4d03-a4f0-1bf4a1099079",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.76,
        "x": 0.12,
        "y": 0.1
      },
      "kind": "title",
      "text": "Chinese Manufacturers' Quotations on Highest Capacity 5.6m Corrugating Medium Production Lines",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cb596806-0169-4e23-ae7e-4b3c6fde00ef",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "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
}