{
  "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",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 20,
  "pageCount": 47,
  "prevPage": 19,
  "nextPage": 21,
  "slideType": "precedent_table",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 18,
  "notes": "The slide argues that reported costs are inflated compared to industry expert and internal bidding estimates.",
  "elementsJson": [
    "paragraph",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-835a69513742/20",
  "deckHref": "/decks/019dd923-622c-750b-8b96-835a69513742",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-835a69513742.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-835a69513742#slide-20",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We estimate that in aggregate, Huishan inflated farm CapEx by as much as RMB 1.6 billion.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b64-7193-87f6-68c1c8a335b0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "CapEx inflation: RMB 1.6 billion",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b64-7193-87f6-6cb970cb2666",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.76,
        "x": 0.12,
        "y": 0.11
      },
      "kind": "paragraph",
      "text": "That four such farms were built, but subsequently transferred out of the Group's control they likely do not appear in the total number stating in each reporting period for the number of standardized farms that the Company is operating.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "58f946bb-2f9e-4a14-9e65-9610a101a748",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.76,
        "x": 0.12,
        "y": 0.23
      },
      "kind": "paragraph",
      "text": "We estimate that in aggregate, Huishan inflated farm CapEx by as much as RMB 1.6 billion.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "976fe1a9-9dc4-4f13-bd8b-39fc90e64247",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.76,
        "x": 0.12,
        "y": 0.85
      },
      "kind": "paragraph",
      "text": "Utilizing the upper end of these ranges of cost estimates (RMB 60 million), the construction CapEx for the 31 new \"standard\" farms was inflated by RMB 893 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b89d69e6-8d5d-470b-b84a-df5e47f18cfa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.42,
        "w": 0.74,
        "x": 0.13,
        "y": 0.41
      },
      "kind": "table",
      "text": "Table comparing various cost sources and their respective RMB million estimates.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b828e0f4-7245-41ef-a338-cf75ff605d08",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.5,
        "x": 0.25,
        "y": 0.408
      },
      "kind": "title",
      "text": "Table 4: Range of Construction Cost Estimates",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9246ca05-c56b-480d-abbe-58969a8fa022",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "737d5272-818b-427b-82bf-5952a1dee685",
      "evidence": "The slide systematically compares reported financial data against external expert estimates to prove inflation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 6,
      "beatId": "2bac2cc3-a51c-491f-82ab-fd7af7c67a46",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The report presents various contradictions in Huishan's financial reporting and operations",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}