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  "docSlug": "16b80d15dcb2",
  "documentTitle": "Sino-Forest Corporation (TRE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-06-02 00:00:00",
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  "pageNumber": 21,
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  "notes": "This is a forensic research note exposing potential fraud or misrepresentation by the subject company (TRE).",
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      "kind": "callout",
      "text": "Bo Hu was thinly capitalized at the time of entering into the agreement - its registered capital was only $135,000 (RMB one million) at the time.",
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      "text": "Bo Hu was incorporated only one month before TRE entered into this massive contract. See the business license in Appendix E2.\nBo Hu was thinly capitalized at the time of entering into the agreement - its registered capital was only $135,000 (RMB one million) at the time. Obviously Bo Hu was not extending any credit to TRE for the tens of millions of dollars in timber purchases it was likely making at a given time.\nBo Hu's scope of business does not include anything related to forest agency (unlike the Yunnan agent supra). Its scope of business at the time of purportedly entering into the agreement was \"wood products, plywood, glues, paper products, and decoration material (木制品, 胶合板, 胶水, 纸制品, 装饰材料). Bo Hu did not add attempt to anything relevant to forest agency until September 23, 2008. See the application to change the scope of business in Appendix E2.\nBo Hu is incorporated in Guangdong province, and would likely have substantial tax issues operating in Guangxi province (due to incessant competition among tax authorities in China). Further, all companies dealing with wood products must have a wood product permit issued by the forestry bureaus within the provincial jurisdiction. Bo Hu's license is for Guangdong - not Guangxi. See Appendix E3.\nWhile purportedly generating hundreds of millions of dollars in annual revenue, Bo Hu's office was in an apartment building in this apartment complex from August 2008 through sometime in 2009:",
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      "kind": "paragraph",
      "text": "TRE claims to have entered into a master agreement in December 2007 under which (as of December 31, 2010) it has purchased 150,000 ha of plantation for $646.6 million. We are skeptical for the following reasons:",
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      "kind": "title",
      "text": "Guangxi agent: Zhanjiang Bo Hu Wood Co. Ltd. (湛江博虎木业有限公司)",
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