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  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2016-12-16 00:00:00",
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  "notes": "The slide uses a table to compare cost estimates from three sources (China Dairy Expert A, Huishan Deputy Farm Manager, China Dairy Expert B) to calculate total PPE inflation.",
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      "text": "The most likely use for the “diverted” CapEx was that of an accounting gimmick wherein Management needed to balance inflated sales (and therefore not existent cash) with inflated expenses.",
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      "text": "Incomplete construction at Huishan Wufeng Dairy Erdao Hezi. Photo by MWC investigator.",
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      "text": "CapEx inflation: RMB 1.668 billion",
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      "text": "Dairy Expert B’s estimates were closer to those provided in the construction bidding documents of RMB 30-35 million. Using his high-end estimate and applying it to all 31 farms, the CapEx inflation is estimated to be RMB 1.668 billion.",
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      "text": "The most likely use for the “diverted” CapEx was that of an accounting gimmick wherein Management needed to balance inflated sales (and therefore not existent cash) with inflated expenses.",
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      "text": "Source, Farm Type, Farm Construction Cost, Avg PPE New Farm per Cash Flow Analysis, Per Farm PPE Inflation, QTY, Total PPE Inflation",
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      "text": "New but Incomplete Farms Raise Further Questions about CapEx Spend",
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      "text": "Table 5: Probable Range of CapEx Inflation for 31 New Farms Constructed in FY14~16 (RMB, Millions)",
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