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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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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-19 00:00:00",
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  "notes": "The chart uses a bar chart to compare national milk yields against Huishan's claimed yield, highlighting the outlier status of the company's claims.",
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      "text": "China 2012 Average Yield: 5.8 tons; Huishan FY14 Claimed Yield: 9.0",
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      "text": "Global Milk Yield Rates",
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      "text": "milk yield: 9.0",
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      "kind": "paragraph",
      "text": "A significant portion of Huishan’s reported sales are, in our opinion, fake. In addition to the SAT data, our analysis of Huishan’s historical claims about its sales strongly support our view. With our belief that Huishan also reports a massively inflated margin, real profits are therefore much lower than Huishan reports (to the extent they exist at all). Given Huishan’s massive debt, fake revenue, and fake profit margins, Huishan should have a difficult time avoiding a default on its debt.",
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      "kind": "paragraph",
      "text": "numbers should be post-elimination for inter-company sales). After eliminating for internal sales, SAT data shows these four entities only had CY15 sales of RMB 2,352 million. That is 29.4% lower than our adjusted reported CY15 revenue, and 36.2% lower than the SAIC financials.",
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      "kind": "paragraph",
      "text": "We see Huishan as having morphed the story behind its reported revenue to make its fraud more sustainable. When Huishan first went public, the backbone of its fraudulent revenue was claimed massive milk yields. The table below compares Huishan’s claimed FY14 yield of 9.0 tons / cow, versus national averages, including that of China.",
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      "kind": "source-note",
      "text": "National data is respectively from various sources and ranges from 2012 to 2016.",
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      "text": "Table 1: Global Milk Yield Rates",
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      "kind": "title",
      "text": "Evolution of Huishan’s Revenue Fraud",
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