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  "docSlug": "c47ae4d76596",
  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "notes": "The slide uses a combination of financial analysis and investigative research to allege fraudulent reporting practices.",
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      "kind": "callout",
      "text": "While the company purportedly saved RMB 1,646 in annual feed costs per cow, it lost RMB 2,208 in sales per cow, which equals a net marginal loss of RMB 562 per cow.",
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      "text": "net marginal loss per cow: RMB 562",
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      "kind": "paragraph",
      "text": "We estimate that since its IPO, Huishan inflated CapEx for dairy farm construction by RMB 893 million to RMB 1.6 billion. Our conclusions are based on our investigators visiting 17 Huishan cow farms...",
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      "kind": "paragraph",
      "text": "Our analysis of financial data reported by Huishan shows that revenue decreases from lost sales exceed the cost savings from altering feed rations, corroborating these expert opinions.",
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      "kind": "quote",
      "text": "significant profit opportunities can be lost in the false pursuit of reducing input costs — Marginal Thinking: Making Money on a Dairy Farm, WCDS Advances in Dairy Technology (2006)",
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      "kind": "source-note",
      "text": "25 Marginal Thinking... 26 Huishan FY16 Annual Report... 27 Huishan FY16 AR...",
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      "text": "Table 3: Change in Feed Costs and Sales per Milkable Cow After Feed Adjustment",
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      "kind": "title",
      "text": "We Estimate Huishan Inflated Dairy Farm CapEx by as Much as RMB 1.6 Billion",
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