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  "documentTitle": "Orient Paper Inc. (ONP)",
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  "presentationDate": "2010-07-22 00:00:00",
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  "notes": "This is a page from a Muddy Waters research report on Orient Paper (ONP).",
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      "text": "According to MW’s report, this is overstating the actual revenue by more than 27 times and 40",
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      "text": "July 22, 2010 Muddy Waters, LLC Page 3 See important disclaimer at back.",
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      "text": "The paper manufacturing firm that is established by Liu Zhen Yong was reverse merged on March 2007 onto the US OTCBB market. In December 2009, it was allowed to trade on the AMEX, and this man hailing from Liu Zhuang of Xu Shui County, Liu Zhen Yong, rang the closing bell that day in January 2010.",
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      "text": "In the report published by MW, when two of their researchers visited the factory on 5 January 2010 this year, they ascertained that the factory's machines are \"old and poorly maintained\" and released photos of the manufacturing equipment they took. After seeing the photos, a person working in the paper manufacturing industry remarked to this reporter that the manufacturing conditions in the photos are similar to the operating conditions seen in the paper manufacturing factories of the early 1990s.",
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      "text": "After this in 2000 and 2002, the company separately signed land agreements with villages neighboring its main plant (Wu Ji Village & Nan He Shou Ying Village) to acquire an additional 40 mu (approximately 290,000 sq. ft.) of land nearby the land occupied by the original printing factory. This area of land is now the company's main manufacturing area. In addition, according to Liu Zhen Yong himself, \"The company has built 80 mu (approximately 580,000 sq. ft.) of production facilities,\" in the industrial area of the county along Ju Li Road.",
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      "text": "After the report was published, on 30 June, ONP's stock price dropped greatly. As of 20 July, ONP's stock price has continued to fall, with the share price ending at US$5.26 that day with a fall of 7.07%.",
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      "text": "In Hebei Province, Xushui County, south of the city, about three kilometers down a village-town highway is one of the main manufacturing plants of ONP. In 1996, Liu Zhen Yong registered Hebei Baoding Orient Paper Milling Co., Ltd (henceforth referred to as HBOP). Before this, Liu once worked in a printing factory for seven years, and the company's listing information provided also stated that in the late 1980s, he was the Deputy Director of a Liu Zhuang Cast Iron Factory.",
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      "text": "In sharp contrast to this, ONP reported in their past two years annual reports that the Company's revenue is around US$65.2 million and US$102 million. According to MW's report, this is overstating the actual revenue by more than 27 times and 40",
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      "text": "This reporter travelled onsite to investigate ONP's operation facilities in China. After verifying with representatives from the Company, I discovered that there are many dubious points of contention regarding ONP's actual operating income and their related transactions. There exists a gap between the company's actual tax situation and the figures provided by the listed company. Their main supplier and the Company have not disclosed that their transactions are related party transactions, and this main supplier has had almost no revenue for several years.",
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      "kind": "title",
      "text": "Profit Mystery: \"Most taxes paid in Beijing\"",
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