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  "documentTitle": "Duoyuan Global Water Inc. (DGW)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2011-04-04 00:00:00",
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  "notes": "This is a research note from Muddy Waters Research exposing potential fraud at DGW.",
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      "text": "The sole manufacturing facility of a rapidly growing company selling one billion RMB of product annually should be a hive of activity with production workers scurrying about, and a bustling shipping and receiving department.",
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      "text": "There is a significant discrepancy between the number of workers DGW claims to have at Langfang and the number it actually does have. We counted approximately 240 employees... Chairman Guo claimed that there are 580 employees.",
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      "text": "Despite having two factory buildings each about 200,000 square feet... there were few signs of human activity. The only significant movements we witnessed took place between 8:20 am and 8:40 am when approximately 240 workers arrived.",
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      "text": "In addition to the foregoing, the forged reports are approximately half the length of the genuine report. The main difference is that the notes to the financial statements in the forged reports are abbreviated.",
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      "text": "We conducted surveillance on DGW's factory in Langfang, Hebei on five occasions between January and April 2011... we witnessed no trucks entering or exiting the factory.",
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      "text": "We conducted extensive surveillance on DGW, during which we saw minimal production, no shipments (in or out), and got the impression that the workforce was largely being paid to be physically present.",
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      "text": "DGW Langfang: Less a Factory and More an Adult Daycare Center — Muddy Waters",
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