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  "docSlug": "0900eea60013",
  "documentTitle": "New Oriental Education & Technology Group (EDU)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2012-07-18 00:00:00",
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  "notes": "The slide uses a diagram to illustrate the structural difference between a standard company and a VIE, and uses a quote from a BIDU prospectus to contrast with EDU's lack of control.",
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      "text": "Comparison of conventional structure vs VIE structure",
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      "text": "A VIE structure creates the illusion that the shareholders own the underlying business. In reality, management or their designees are the shareholders of the operating business.",
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      "kind": "paragraph",
      "text": "As we will explain in this section, EDU has no such control of its operating company, which we believe is a deliberate attempt to protect Chairman Yu from shareholders.",
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      "kind": "quote",
      "text": "We [the public company] have contractual arrangements with Baidu Netcom [the operating company] and its shareholders pursuant to which... we also have the ability to substantially influence Baidu Netcom's daily operations...",
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