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  "documentTitle": "Orient Paper Inc. (ONP)",
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  "authorName": "Muddy Waters, LLC",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-07-22 00:00:00",
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  "notes": "The slide presents a forensic analysis of financial reporting inconsistencies, specifically highlighting the gap between ONP's public claims and AIC/tax bureau data.",
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      "text": "Therefore, HBOP's profits and tax situations are the key to determining whether ONP falsified its results.",
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      "text": "revenue: 452 million yuan",
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      "text": "This reporter has gleaned from a tax bureau insider that HBOP's actual financial situation has a considerable gap from what is reported by the listed company... the corporate income tax paid in the four quarters that year alone is over 20 million yuan (US$2.9 million) and the net profits exceed 60 million yuan (US$8.8 million).",
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      "text": "When asked about the discrepancies... Liu Zhen Yong explained over the phone, \"The sales of the company's products are largely conducted by another subsidiary company located in Beijing.\" ... \"even though the company does not own any shares in those companies, there is an agreement to receive shares of their profits.\"",
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      "text": "But according to the AIC archived financial reports that ONP released, its 2008 revenue stands at 452 million yuan (US$66.2 million), which is close to the figures reported by the listed company.",
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      "kind": "paragraph",
      "text": "If such a unique network of relationships indeed exists, then the nexus lies in a company called \"Beijing Orient Paper Sales Company.\" According to Liu, the legal representative of that company is he himself, and it is registered in Beijing's",
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      "kind": "paragraph",
      "text": "In the Company's materials, ONP claimed that He Bei Bao Ding Oriental Paper Milling Co. Ltd. (\"HBOP\") is its operating subsidiary firm in China... Therefore, HBOP's profits and tax situations are the key to determining whether ONP falsified its results.",
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      "kind": "paragraph",
      "text": "However, evidence given by both sides has resulted in the matter being shrouded in mystery... According to the information provided, the company's 2008 revenue stands only at 16.32 million yuan (US$2.4 million).",
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      "text": "The sales of the company's products are largely conducted by another subsidiary located in Beijing. — Liu Zhen Yong",
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      "text": "July 22, 2010 | Muddy Waters, LLC | Page 4",
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