{ "docId": "019dd923-622c-750b-8b95-bff5e54015f6", "docSlug": "0bfb929e6a0e", "documentTitle": "Orient Paper Inc. (ONP)", "authorId": "51_Muddy_Waters", "authorName": "Muddy Waters, LLC", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2010-07-22 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 7, "pageCount": 8, "prevPage": 6, "nextPage": 8, "slideType": "other", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 8, "notes": "This slide is part of a Muddy Waters research note investigating potential fraud or irregularities in a Chinese company's history.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b95-bff5e54015f6/7", "deckHref": "/decks/019dd923-622c-750b-8b95-bff5e54015f6", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-bff5e54015f6.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-bff5e54015f6#slide-7", "components": [ { "bbox": null, "kind": "callout", "text": "“Dongfang Trading Co. Ltd in the most recent two years almost doesn't have any revenue,” the aforementioned tax bureau insider informed me, “It's just like a shell company.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ed-775b-bcad-424aba2c73f3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.72, "x": 0.14, "y": 0.92 }, "kind": "disclaimer", "text": "July 22, 2010 Muddy Waters, LLC Page 7 See important disclaimer at back.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f9db254-c9cf-4ad7-8c47-0f81da240b31", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.72, "x": 0.14, "y": 0.55 }, "kind": "paragraph", "text": "According to the AIC information, even before the three-year financial review to get listed on AMEX, Liu Zhen Yong’s paper manufacturing plant has announced close to 100 million yuan (US$15 million) output value for several years running.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "120c1c91-971a-468d-9f46-dfda7eebb6b2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.72, "x": 0.14, "y": 0.5 }, "kind": "paragraph", "text": "With regards to these troubles caused by the company’s listing, he firmly believes that \"Some people have ulterior motives.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "379eb052-b83e-4d36-aa4c-f175582111cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.72, "x": 0.14, "y": 0.32 }, "kind": "paragraph", "text": "\"Dongfang Trading Co. Ltd in the most recent two years almost doesn’t have any revenue,\" the aforementioned tax bureau insider informed me, \"It’s just like a shell company.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "59e91b8d-b120-44f0-ae50-32182d9534a0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.72, "x": 0.14, "y": 0.68 }, "kind": "paragraph", "text": "ONP announced on 20 July that they have already hired an American law firm to work closely with the independent audit committee announced on the 16th, to jointly review this incident caused by Muddy Waters.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "825ddfa9-c5d1-4bea-bac7-3eabc8aac6f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.72, "x": 0.14, "y": 0.22 }, "kind": "paragraph", "text": "Not long after Dongfang Trading Co. Ltd was registered, the legal representation was transferred from Li Chen to a man named Li Jian Jun and equity rose to 500,000 yuan. From what this reporter understands, Li Jian Jun is a native of Xushui.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9bbfd0f0-8593-4ad3-8768-3b686033e9c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.72, "x": 0.14, "y": 0.09 }, "kind": "paragraph", "text": "This company’s initial registered capital was 500,000 yuan ($60,500 at the time), with two shareholders. The first shareholder was Liu Zhen Yong, the second was Li Chen. Li Chen once was a Director of ONP but resigned from the post in 2009.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ce535c3b-a223-4b25-9d22-dbc85b5897fb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.72, "x": 0.14, "y": 0.4 }, "kind": "paragraph", "text": "\"My ownership was withdrawn in 2004,\" Liu Zhen Yong responded. During our conversation he did not elaborate much, throwing out utterances such as \"Li Jian Jun comes from Beijing\", \"This is a Beijing company\", and \"Apart from this company, we have suppliers from other places such as Beijing.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d15c9012-9eee-4a56-95ea-3661ad63c14b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Dongfang Trading Co. Ltd in the most recent two years almost doesn't have any revenue,” the aforementioned tax bureau insider informed me, “It's just like a shell company.” — Tax bureau insider; “My ownership was withdrawn in 2004,” Liu Zhen Yong responded. — Liu Zhen Yong; “Li Jian Jun comes from Beijing”, “This is a Beijing company”, and “Apart from this company, we have suppliers from other places such as Beijing.” — Liu Zhen Yong; “Some people have ulterior motives.” — Liu Zhen Yong", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ed-775b-bcad-44667bdb2f6a", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }