{
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  "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": 23,
  "pageCount": 47,
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  "density": "dense",
  "nDataPoints": 15,
  "notes": "Includes footnotes referencing external sources and internal interviews. The slide uses charts to establish the economic incentive for the alleged fraud.",
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  "slideHref": "/slides/019dd923-622c-750b-8b96-835a69513742/23",
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  "components": [
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      "kind": "callout",
      "text": "Through an undisclosed related party transaction, we estimate Huishan Chairman Yang Kai stole at least RMB 150 million of assets.",
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      "kind": "chart",
      "text": "Smaller farms slaughtered cows to sell beef",
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      "kind": "chart",
      "text": "Beef price has been rising faster than raw milk",
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      "text": "Through an undisclosed related party transaction, we estimate Huishan Chairman Yang Kai stole at least RMB 150 million of assets. In December 2014 (over one year post-IPO), Huishan transferred a subsidiary with at least four cattle farms to a party who is almost certainly a proxy for Chairman Yang.",
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      "kind": "paragraph",
      "text": "Chairman Yang and his wife own Liaoning Muhejia Livestock and Technology Co. Ltd. (“Muhejia”). As explained next, Muhejia used a proxy to take at least four farms from Huishan. Muhejia has had five names in two years, which we believe is an attempt to conceal this (and possibly other) improper transaction.",
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      "kind": "source-note",
      "text": "Source: Euromonitor, Macquarie Research, November 2013",
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      "kind": "source-note",
      "text": "Source: National Bureau of Statistics, Macquarie Research, November 2013",
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      "kind": "title",
      "text": "Huishan Chairman Appears to Have Stolen Assets Worth at Least RMB 150 Million Through an Undisclosed Related Party Transaction",
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      "evidence": "The report reveals various instances of Huishan's fraudulent activities",
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