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  "docSlug": "82a540401996",
  "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": "2016-12-19 00:00:00",
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  "notes": "The slide uses a bar chart to visually demonstrate the lack of online presence for Huishan, supporting the narrative of fraudulent financial reporting.",
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      "kind": "callout",
      "text": "Note: Revenue on Huishan's online sales outlets, TMall Taobao and Suning Huishan Flagship, were so small they display as effectively zero.",
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      "kind": "chart",
      "text": "Bar chart comparing revenue across four entities: TMall Taobao, Suning Huishan Flagship, TMall Mengniu, and Tmall Yili.",
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      "kind": "metric",
      "text": "Dairy-related Revenue",
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      "text": "Huishan's 1H17 claims about sales increases due to increased ASPs is, in our view, spurious. Despite the challenging sales environments in 2016 reported by Huishan and competitors, Huishan touts growth in sales and net profit that outstrips its industry peers. However, former Huishan sales staff who focused on Shenyang, the leading city in the region where Huishan does business, told us that Huishan is only able to compete with the likes of Mengniu and Yili by discounting 5% to 10% on comparable products. We subsequently dispatched investigators to local supermarkets who noted that Huishan products seem to be heavily discounted along with those of the rest of the industry.",
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      "kind": "paragraph",
      "text": "In the FY17 interim results report, Huishan appears to be walking back its claims and recalibrating its language. Management refrains from further discussion of any sales miracles and discuss only a 'new 'Internet+' marketing system' for their foray into the East China market. Ultimately we think that Huishan management uses its online presence mainly to put a veneer of national-level presence on a middling, regional enterprise.",
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      "text": "13, 14, 15, 16 footnotes detailing report sources.",
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      "text": "FY17's Sales Fraud is Based on an Incredible Claim of Sharply Rising ASPs.",
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      "text": "E-Commerce Sites - Dairy-related Revenue by URL (RMB)",
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