{ "docId": "019dd923-622c-750b-8b95-d44d4f82ec42", "docSlug": "637d86f8f55c", "documentTitle": "Duoyuan Global Water Inc. (DGW)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2011-04-04 00:00:00", "orientation": "portrait", "aspectRatio": 0.7070758, "pageNumber": 17, "pageCount": 21, "prevPage": 16, "nextPage": 18, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 7, "notes": "The slide uses a map to highlight the discrepancy between reported distributor counts and actual findings in the Shanghai region.", "elementsJson": [ "paragraph", "map" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b95-d44d4f82ec42/17", "deckHref": "/decks/019dd923-622c-750b-8b95-d44d4f82ec42", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-d44d4f82ec42.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-d44d4f82ec42#slide-17", "components": [ { "bbox": null, "kind": "callout", "text": "This would be highly unusual for a company of appreciable scale in China, and directly contradicts the map of DGW's purported distribution contained in its 20-F and F-1 in which Shanghai and its neighboring provinces have 23 distributors.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0934-771a-b7a9-ab0dd1a449ba", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.5, "x": 0.25, "y": 0.34 }, "kind": "image", "text": "Map of DGW distribution regions in China with counts per region.", "attrs": null, "subkind": "map", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c5ce7b5d-fe35-4443-95c0-b3ec08d00b0c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.215, "w": 0.764, "x": 0.118, "y": 0.118 }, "kind": "paragraph", "text": "We met with DGW marketing manager Liu Huanzhen attempting to buy water treatment equipment. He informed us that we would have to place orders through one of DGW's distributors. He did state that DGW has 80 distributors. We asked him for a referral to a distributor, and he refused to provide any names or contact information. In other words, it appears to be impossible to become a DGW client. In a separate inquiry we made to a DGW sales employee, we specifically inquired as to whether there was a sales office or distributor in the greater Shanghai with which we could work. The employee told us that DGW had neither in the Shanghai area. This would be highly unusual for a company of appreciable scale in China, and directly contradicts the map of DGW's purported distribution contained in its 20-F and F-1 in which Shanghai and its neighboring provinces have 23 distributors.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4342dc22-71fa-4e0d-9540-089e4015d2c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.764, "x": 0.118, "y": 0.79 }, "kind": "paragraph", "text": "www.muddywatersresearch.com/wp-content/uploads/2011/04/DGWSalesOffices.pdf", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "97665015-900a-406a-b413-0d879bc0eecc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.764, "x": 0.118, "y": 0.67 }, "kind": "paragraph", "text": "Referring to the SAIC files, we searched online for DGW sales offices in various cities. We found websites and listings on B2B sites, including Alibaba, for purported DGW sales offices. We then called ten of the offices we found through these sources. The numbers either were disconnected or the people answering the telephones had never heard of DGW. We provide screen shots of the 10 webpages with the contact information for the sales offices as a download from our website at:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d0ff7267-789b-4b62-bb79-050130e5d823", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.118, "y": 0.86 }, "kind": "source-note", "text": "Courtesy of DGW's 2009 20-F, p. 36.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9884f655-4522-452e-acda-3e2606b31eb7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "57c902f6-e0fe-4d96-9ba1-8ef618ddaebc", "evidence": "The slide systematically documents field research to disprove corporate claims.", "confidence": 0.9 } ], "arcBeats": [ { "to": 21, "from": 17, "beatId": "5af8849d-b9b4-4c1e-a118-da97d93b54f7", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Victory", "beatSlug": "overcoming-monster-the-victory", "evidence": "The document concludes by presenting evidence of DGW's improper transactions and financial discrepancies.", "position": 3, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 17, "from": 16, "name": "Anchor", "slug": "18-anchor", "bestFor": "Pricing discussions, negotiation, budget requests", "matchId": "c27ceeba-f238-4fac-90e1-ee41ddd59ad0", "evidence": "The document uses evidence of DGW's purported distribution and related party transactions to anchor its claims.", "position": 2, "objective": "To anchor the evidence of DGW's improper transactions", "structure": "The Extreme Option (The Anchor) -> The Flaws of the Extreme -> The Balanced Proposal", "confidence": 0.7, "description": "Set a high reference point to make your actual proposal seem reasonable and attractive" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }