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  "docSlug": "02b460a1c4f6",
  "documentTitle": "Man Wah Holdings (1999.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-06-16 00:00:00",
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  "notes": "This is a research note page focusing on financial transparency and potential accounting irregularities.",
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      "text": "Investors should demand far greater explanation of this series of transactions.",
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      "text": "Are these loans properly kept off the balance sheet (and the cash flow statement)? If “yes”, are these transactions adequately disclosed?",
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      "text": "Regardless, taking the company at its word leads to a very large question though. What was the purpose of these transactions? Why would the company borrow USD onshore against completely encumbered deposits, approximately 85% of which was supposedly in USD?",
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      "text": "MWH’s response is that RMB 35 million of the RMB 45 million loan was provided by a MWH entity through a PRC bank as an entrustment loan, and the debt was therefore accurately reflected. We lack the information to test this claim, other than to point out that at the time, MWH only owned 55% of Remaco. MWH is claiming that, in contrast, MWH provided 77.8% of the loan.",
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      "text": "We pointed out that in 2015, consolidated subsidiary Remaco borrowed RMB 45 million (HK$56.8 million) per the PBOC credit report. Man Wah only disclosed one fixed-rate loan, which was for HK$12.5 million from a related party.",
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