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  "documentTitle": "New Oriental Education & Technology Group (EDU)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "presentationDate": "2012-07-18 00:00:00",
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  "notes": "The slide uses a dual-axis line chart to contrast EDU's rising revenue against the declining revenue of its subsidiaries (Hewstone & Decision).",
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      "text": "In contrast, Muddy Waters sees significant SAIC filing discrepancies – particularly in the revenue line – as important indicators of fraud.",
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      "text": "It would seem that because EDU reported overall revenue growth during this period, the two subsidiaries' revenue would grow due to increased license fee revenue. This was not the case though.",
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      "text": "As we discuss in EDU's VIE: All Hat and No Cattle, it appears that EDU allowed four of the licensing agreements to lapse on January 1, 2011; therefore, SAIC numbers through CY2010 would capture the license revenue...",
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      "text": "Some have criticized the use of SAIC financials as a means of detecting fraud. Perhaps the most vocal criticism has come from Benjamin Wey of New York Global Group.24 New York Global specializes in bringing China companies to the U.S. markets via reverse merger. The FBI raided Mr. Wey's office in January 2012.25 In contrast, Muddy Waters sees significant SAIC filing discrepancies – particularly in the revenue line – as important indicators of fraud.",
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      "text": "Muddy Waters is not the first firm to note a discrepancy between EDU's U.S. and SAIC filings. OLP Global (\"OLP\") cited declining revenue in EDU's VIE entity, New Oriental China (\"NOC\"), to challenge EDU's reported revenue and profit in OLP's November 17, 2011 report...",
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      "text": "24 http://www.prnewswire.com/news-releases/benjamin-wey---a-china-experts-views-on-understanding-saic-and-sec-filing-discrepancies-for-us-listed-china-based-companies-103869893.html\n25 http://www.cnbc.com/id/46153498/FBI_Raids_Chinese_Reverse_Merger_Shop.",
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      "text": "Combined Total Revenue (US $000s)",
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