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  "docId": "019dd923-622c-750b-8b95-d44d4f82ec42",
  "docSlug": "637d86f8f55c",
  "documentTitle": "Duoyuan Global Water Inc. (DGW)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-04-04 00:00:00",
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  "notes": "This is a page from a Muddy Waters research report exposing potential fraud by comparing two related entities.",
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      "text": "Muddy Waters is inherently suspicious of companies that hire CFOs without China experience or Chinese language skills.",
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      "text": "Both companies formed numerous subsidiaries after going public and raising money. Forming numerous subsidiaries can make it easier to drain shareholders’ money from the companies.",
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      "text": "Both companies have (or had in the case of DYP) CFOs who had no China experience and who do not speak Chinese. Muddy Waters is inherently suspicious of companies that hire CFOs without China experience or Chinese language skills.",
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      "text": "Both companies claim to sell through networks of independent distributors... Book cookers tend to like purporting to sell to distributors more than to end users.",
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      "kind": "paragraph",
      "text": "DGW claims to have an ERP system to manage its manufacturing processes. The ERP system supposedly tracks all materials and orders, and “integrate(s) all … data and processes into a unified system and use a centralized database to store information.”",
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      "kind": "paragraph",
      "text": "We express no opinion on DGW’s troubled sister company, DYP, other than to note we uncovered that the land DYP claims to own actually belongs to a similarly-named entity 100% owned by DGW / DYP Chairman Guo.",
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      "kind": "quote",
      "text": "“integrate(s) all ... data and processes into a unified system and use a centralized database to store information.” — DGW 20-F",
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      "kind": "source-note",
      "text": "22 20-F, p. 35; 23 The entity that owns the land is Langfang Duoyuan Digital Technology Co., Ltd.; 24 DYP 2009 10-K, p. 2; 25 20-F, p. 36.",
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      "kind": "title",
      "text": "Different Flowers from the Same Garden: DGW and DYP.",
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