{
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  "docSlug": "c47ae4d76596",
  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "pageCount": 47,
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  "density": "dense",
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  "notes": "The chart uses a dual-axis line graph to show trends in production, herd size, and feed availability. The text explicitly accuses the company of 'yield fraud'.",
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      "kind": "callout",
      "text": "Claim of Boosting Margins by Reducing Feed Costs Lacks Credence",
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      "kind": "chart",
      "text": "Dual-axis line chart showing Alfalfa Production, Milkable Cows, Calves, and Est. Available Alfalfa per cow.",
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    {
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      "text": "Alfalfa availability",
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      "kind": "paragraph",
      "text": "We believe Huishan is trying to unwind its yield fraud by claiming changes to its feed mix. If the company were actually reducing yields, Huishan would be losing money in doing so and shrinking its reported margins.",
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      "kind": "quote",
      "text": "In its interim report published in late November 2016, Huishan announced that it deliberately lowered milk yields to 7.8 tons “to further reduce the cost of raw milk and control our production volume.” — Huishan Announcement of Interim Results for the Six Months Ended September 30, 2016 (published 29 November 2016), p. 41.",
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      "kind": "source-note",
      "text": "23 Huishan FY16 Annual Report, p. 14; 24 Huishan Announcement of Interim Results for the Six Months Ended September 30, 2016 (published 29 November 2016), p. 41.",
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      "kind": "title",
      "text": "Claim of Boosting Margins by Reducing Feed Costs Lacks Credence",
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      "kind": "title",
      "text": "Estimated Self-Produced Alfalfa Available for Consumption vs. Production & Herd Size",
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      "evidence": "The slide explicitly labels the company's actions as 'yield fraud' and provides evidence to contradict their public claims.",
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