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  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "notes": "The slide uses investigative research to challenge the company's claims about operational efficiency and asset valuation.",
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      "kind": "callout",
      "text": "Huishan is making huge prepayments for unspecified raw materials, which given the company's stretched financial position, does not make sense.",
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      "text": "Enough imported alfalfa to feed all Huishan's milkable cows a standard ration (not the current reduced ration) for over three years; Building materials to construct over 50 new farms",
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      "text": "prepayments for raw materials: RMB 1.56 billion",
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      "text": "Another inventory-related oddity is the fact that Huishan claimed no raw milk balances at year-end of FY13 and FY14. Huishan has not mentioned raw milk balances in its filings since then. We believe this is a lie, albeit a strange and unnecessary one, possibly propagated to portray the company as highly efficient.",
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      "text": "Huishan's prepayments for raw materials are highly suspicious, and add to our extreme skepticism about the value of the company's assets.",
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      "kind": "quote",
      "text": "ha[s] always sold or consumed [its] raw milk at the day of milking. — Huishan Prospectus, p. 214",
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