{
  "docId": "019dd923-622c-750b-8b96-8fb17e36fe49",
  "docSlug": "02b460a1c4f6",
  "documentTitle": "Man Wah Holdings (1999.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-06-16 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 12,
  "pageCount": 17,
  "prevPage": 11,
  "nextPage": 13,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "The slide presents a forensic accounting critique of a company's tax filings, specifically questioning the timing and validity of a High-Tech Enterprise (NHTE) tax preference.",
  "elementsJson": [
    "bullet_list",
    "paragraph",
    "screenshot",
    "quote_block"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-8fb17e36fe49/12",
  "deckHref": "/decks/019dd923-622c-750b-8b96-8fb17e36fe49",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-8fb17e36fe49.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-8fb17e36fe49#slide-12",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We therefore feel that the tax inconsistency issues remain as a red flag.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-e6e9-749a-ba87-6bccd651a92e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.26,
        "w": 0.52,
        "x": 0.24,
        "y": 0.48
      },
      "kind": "image",
      "text": "Official Chinese government document regarding NHTE status",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6a09628e-82be-4ff1-8342-f4995b9ce9fb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.79
      },
      "kind": "paragraph",
      "text": "The company responded as follows regarding the timing of its preference: “By the time the Company published its results for the financial year ended 31 March 2013 (“FY2013”), endorsement by the tax bureau was not received...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0732099d-28d5-48a5-a871-f032e773b65b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.42
      },
      "kind": "paragraph",
      "text": "We first noted that Man Wah Furniture Manufacturing (Huizhou) received preliminary approval for the NHTE preference in Jan 2013, retroactively effective to January 1, 2012:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3f17d4ab-28fa-4fb2-a1a6-2f5539581398",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.72,
        "x": 0.14,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "sloppy book cooking in that MWH forgot to post-facto match its SAICs with what it was saying in the HK filings. Disclosure timing is suspicious... Huizhou should not have qualified for NHTE... Failure to renew the qualification is odd.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5808a5d0-b6b1-45c2-a7af-24f41a4630fa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.26
      },
      "kind": "paragraph",
      "text": "The company’s response fails to explain a) why it only claimed the preference for a stub year... b) discrepancies in the application... c) how it could have utilized the NHTE preference... d) why... MWH did not renew it after 2014.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a1aaf8bd-b61e-4a0c-b340-61c53824790b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "By the time the Company published its results for the financial year ended 31 March 2013 (“FY2013”), endorsement by the tax bureau was not received. The Company, for the sake of prudence, made tax provision for the relevant PRC subsidiary on the basis of a tax rate of 25%. During the financial year ended 31 March 2014 (“FY2014”), the PRC — Man Wah Holdings",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-e6e9-749a-ba87-6de708d4f725",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.15,
        "x": 0.14,
        "y": 0.39
      },
      "kind": "title",
      "text": "A. Timing Issue",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "83b98d4c-6c40-4b18-8de1-fd128bd5a21a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c36429b7-90e2-437f-ab6b-b70467d1b5c3",
      "evidence": "The slide explicitly identifies 'sloppy book cooking' and 'red flag' inconsistencies in tax filings.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 17,
      "from": 6,
      "beatId": "e4447fc4-2572-43a5-8167-c63c5babbc68",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document presents several contradictions and inconsistencies in ManWah's financial statements and tax filings",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 15,
      "from": 10,
      "beatId": "7ec2318b-2ccd-450f-9c86-cf9388482ad3",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Appendix Data",
      "beatSlug": null,
      "evidence": "The document presents supporting data and calculations for the inconsistencies found",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}