{
  "docId": "019dd923-622c-750b-8b96-4fec9c84ee4f",
  "docSlug": "1b5057c3a25e",
  "documentTitle": "Superb Summit International Group Limited (1228.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2014-11-20 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 8,
  "pageCount": 18,
  "prevPage": 7,
  "nextPage": 9,
  "slideType": "other",
  "function": "analyze_data",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "The text highlights regulatory risks and competitive disadvantages for JFT compared to major SOEs like Shenhua.",
  "elementsJson": [
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-4fec9c84ee4f/8",
  "deckHref": "/decks/019dd923-622c-750b-8b96-4fec9c84ee4f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-4fec9c84ee4f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-4fec9c84ee4f#slide-8",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The bottom line is that coal liquefaction is a challenging technology. While JFT might be a nice consulting gig for Mr. Jin, JFT is not even close to playing in the top tier of major projects in China - and almost certainly never will be.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee37-76cb-8480-a30be19bc2dd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "The major trend in China now is toward the gasification of coal, which is a process that is more complex and capital intensive than liquefaction.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "095f6890-72d6-4e6d-a126-e466b39b48c2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.68
      },
      "kind": "paragraph",
      "text": "A recent National Energy Agency regulation prohibits construction of coal liquefaction plants with capacities lower than one million tons per year. We understand that this regulation will likely be enforced reasonably strictly.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0968bf9d-2163-4430-b63d-684799dcfebb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.28
      },
      "kind": "paragraph",
      "text": "JFT’s revenue model is to charge up to 20% of the gross project value as its fee. However, JFT must pay a significant amount of the fees to third parties because of its reliance on outsourcing.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0add027f-608c-4b41-89d3-960a4661074d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.15
      },
      "kind": "paragraph",
      "text": "Even though Mr. Jin Jun runs JFT and is its only revenue generator, he has never appeared as an owner of its shares. Instead, his son and a Ms. Zhang Manxia were the only shareholders prior to “Mr. Ng” purchasing 80% of JFT.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0f4a8dde-7bc7-400d-a1a6-2516865734ea",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.36
      },
      "kind": "paragraph",
      "text": "Coal liquefaction has limited potential for growth and is dominated by much larger and heavily capitalized players. The core technology for coal liquefaction has existed for over 100 years... Shenhua has completed numerous demonstration projects...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "11ab9b8c-31ed-4578-8886-0ffa035a4a88",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "commercial scale. The first project was only 5,000 tons per year (100 barrels per day), another 10,000 tons per year (200 barrels per day), and the largest is approximately 100,000 tons per year (2,000 barrels per day).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "715cbe3a-9dc8-46bb-bba0-876f1e3a614a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.61
      },
      "kind": "paragraph",
      "text": "The bottom line is that coal liquefaction is a challenging technology. While JFT might be a nice consulting gig for Mr. Jin, JFT is not even close to playing in the top tier of major projects in China – and almost certainly never will be.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e42bb971-a748-42c5-a190-db3afffe149b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.4,
        "x": 0.11,
        "y": 0.86
      },
      "kind": "source-note",
      "text": "7 http://www.csclc.com.cn/ens/gsxx/fengs/2010-12-20/292.shtml\n8 http://www.nea.gov.cn/2014-07/25/c_133510624.htm",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ebe74487-03ee-4052-aa17-a880cc2ee6b3",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 9,
      "from": 3,
      "beatId": "2c71ae55-844b-4fd3-8ee8-b70985715b4a",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "The document presents several examples of Superb Summit's questionable business practices, including false claims of acquisitions and inflated financials",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Hook",
      "parentBeatSlug": "hook"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}