{
  "docId": "019dd923-622c-750b-8b96-835a69513742",
  "docSlug": "c47ae4d76596",
  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "pageNumber": 15,
  "pageCount": 47,
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  "density": "balanced",
  "nDataPoints": 12,
  "notes": "The slide uses a forensic accounting approach to reconcile cash flow data with reported farm investments, alleging fraud.",
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    {
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      "kind": "callout",
      "text": "Based on FY16 numbers, we calculated an average per farm CapEx spend of approximately RMB 107 million (see Table 3 below), suggesting that the dairy farm CapEx inflation increased in FY16",
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    {
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      "kind": "metric",
      "text": "Avg. PP&E per Dairy Farm: 107",
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      "kind": "paragraph",
      "text": "In FY16, there was less non-dairy farm investment and construction activity... Huishan's Liquidity Appears to be on the Knife's Edge, it has Dubious Assets, and its Reported 1H17 Cash Flow is Almost Certainly Fraudulent.",
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      "kind": "paragraph",
      "text": "Liaoning government documents accord with our estimates. Our review of publicly accessible Liaoning Province environmental impact reports... We believe Huishan reported inflated numbers for these reports to win greater support from local officials.",
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      "kind": "table",
      "text": "Table 3 data rows including Cash Flow for PP&E, Capex, and derived calculations for average PP&E per dairy farm.",
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      "kind": "title",
      "text": "Table 3: Dairy Farm Capex Spend Based on PP&E Based on Changes in Cash Flow FY16",
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