{
  "docId": "019dd923-622c-750b-8b96-0238cb402647",
  "docSlug": "0900eea60013",
  "documentTitle": "New Oriental Education & Technology Group (EDU)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2012-07-18 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.7070758,
  "pageNumber": 3,
  "pageCount": 97,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 5,
  "notes": "The slide uses a 'gotcha' transcript to frame the subsequent fraud allegation.",
  "elementsJson": [
    "quote_block",
    "paragraph",
    "bullet_list"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-0238cb402647/3",
  "deckHref": "/decks/019dd923-622c-750b-8b96-0238cb402647",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-0238cb402647.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-0238cb402647#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "New Oriental Education & Technology Group Inc. (\"EDU\") is lying to shareholders about its store growth and financial performance.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-e6ec-7186-b7c5-fc2233655623",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.7,
        "x": 0.12,
        "y": 0.85
      },
      "kind": "list",
      "text": "37.0% revenue CAGR built on 29.1% store count CAGR from FY2006 to FY2011. Capital expenditures since going public of approximately $104 million. 19.5% enrollment CAGR. 41.0% teacher and 39.8% non-teacher employee count CAGRs.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cbe8a8a3-8131-40ed-9bc5-07af2569741f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.09,
        "y": 0.54
      },
      "kind": "paragraph",
      "text": "New Oriental Education & Technology Group Inc. ('EDU') is lying to shareholders about its store growth and financial performance. As is typical of many of the frauds we have witnessed in China, how EDU actually conducts its business differs materially from what it tells investors.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1f2fea33-54b9-4bc3-8cbf-150bdb61ea90",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.8,
        "x": 0.09,
        "y": 0.07
      },
      "kind": "quote",
      "text": "Q: 'How many? I'm sorry.' Hsieh: 'It's six hundred and fifty.' ... Hsieh: 'Correct. Absolutely correct. That's how we control the quality.'",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "52bc65d2-9cc0-409e-8f8d-cac31a6cb310",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“Yeah. Over six hundred. About six hundred and fifty. We own everything.” — Louis Hsieh",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-e6ec-7186-b7c6-00d409c2f215",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.1,
        "x": 0.09,
        "y": 0.51
      },
      "kind": "title",
      "text": "Introduction",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f1ec5b03-5248-433e-a645-7152d94b4e5b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "6e2b5f4a-a33e-4650-ae0f-e565a69f1dea",
      "evidence": "The slide explicitly accuses the company of lying to shareholders and gaming audit confirmations.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 4,
      "from": 1,
      "beatId": "f06f255d-12a0-40c9-916b-876ae6b0c94d",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Call to Action",
      "beatSlug": "overcoming-monster-the-call",
      "evidence": "The executive summary and introduction pages set the tone for the report",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}