{ "docId": "019dd923-622c-750b-8b95-ec74aa763d31", "docSlug": "8ca84392a2b7", "documentTitle": "Focus Media Holding Ltd. (FMCN)", "authorId": "51_Muddy_Waters", "authorName": "Muddy Waters", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2011-11-29 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 3, "pageCount": 12, "prevPage": 2, "nextPage": 4, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 16, "notes": "The slide uses a table to highlight the discrepancy between FMCN's reported figures and external industry reports, specifically calling out a 1,758.2% market share claim.", "elementsJson": [ "paragraph", "comparison_table", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b95-ec74aa763d31/3", "deckHref": "/decks/019dd923-622c-750b-8b95-ec74aa763d31", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-ec74aa763d31.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-ec74aa763d31#slide-3", "components": [ { "bbox": null, "kind": "callout", "text": "This obviously fraudulent overstatement of its movie theater network size shows that it has a habitual problem making truthful statements about the scale of its businesses.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf59-ab7b87a10b65", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "FMCN Market Share: 1758.2%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf59-b3eb1ebae75d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.84, "x": 0.08, "y": 0.68 }, "kind": "paragraph", "text": "The 20-F passage below gives the inflated screen numbers, and warns that much of the $85.8 million FMCN spent on cost of movie theater network sales may be overstated.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "25cfad47-fa53-43d7-bcd7-0f8e189cfc58", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.84, "x": 0.08, "y": 0.325 }, "kind": "paragraph", "text": "This obviously fraudulent overstatement of its movie theater network size shows that it has a habitual problem making truthful statements about the scale of its businesses. The below table compares FMCN's claimed network size versus the number of movie theaters in China.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5737b6ee-1873-48e3-aa21-045074093953", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.76, "x": 0.12, "y": 0.75 }, "kind": "quote", "text": "Movie theater and traditional outdoor billboard network. The cost of revenue for our movie theater and traditional outdoor billboard network increased 101% from $28.5 million in 2007 to $57.3 million in 2008.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9187ab92-6371-4e3f-89b5-3f37360aa7a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The cost of revenue for our movie theater and traditional outdoor billboard network increased 101% from $28.5 million in 2007 to $57.3 million in 2008. The increase is primarily attributable to...increased leasing costs associated with time we rent on movie theater screens as a result of an increase in the number of theaters we lease in our network from 10,930 in 2007 to 27,164 in 2008. — 2008 20-F", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf59-ae48ffeb94da", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.64, "x": 0.18, "y": 0.55 }, "kind": "source-note", "text": "(1) 2008 FMCN 20-F, p. 72. (2) 2009 FMCN 20-F, p. 38. (3) 2010 FMCN 20-F, p. 39. (4) Industries Development Reports of China Radio, Movie and Television published in 2011, 2010, and the Annual Development Reports of China Culture Industries published in 2011.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff608f3d-fd8a-49d9-aec9-a3902cc793f0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.64, "x": 0.18, "y": 0.395 }, "kind": "table", "text": "FMCN Theater Network vs. China Total", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "72c8b0f5-3949-4a73-a566-9414d288a219", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.84, "x": 0.08, "y": 0.305 }, "kind": "title", "text": "III. FMCN previously claimed to have market share in the movie theater business of 1,758.2%.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "705087b3-d8e3-433f-992c-f98bc068f8a2", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "b9acad39-7c02-4dc2-8ffa-0f5846e32ab9", "evidence": "Direct comparison of company claims vs external data to prove misrepresentation.", "confidence": 0.95 } ], "arcBeats": [ { "to": 5, "from": 2, "beatId": "fdc41b39-eed0-4cf0-a23b-4f967ee8316d", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The document presents multiple examples of alleged contradictions in FMCN's financial reporting and governance practices.", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }