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  "documentTitle": "Man Wah Holdings (1999.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
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  "presentationDate": "2017-06-16 00:00:00",
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  "notes": "Includes footnotes 3 and 4 with Chinese text regarding the Macau office's purpose.",
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      "text": "The company did not dispute these calculations, nor the assessment that Macau has booked profits over 10x those of the Huizhou factory.",
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      "text": "Implied Macau Net Profit: 984",
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      "kind": "paragraph",
      "text": "In the presentation, we also explained that the Macau subsidiary appears to lack substance. PRC customs data shows that the Huizhou entity produces and ships MWH’s exports. However, U.S. customs data almost always show Macau as the consignor.",
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      "text": "The company did not dispute these calculations, nor the assessment that Macau has booked profits over 10x those of the Huizhou factory.",
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      "kind": "paragraph",
      "text": "We wrote “At best, this is likely tax evasion; at worst, similar to China Metal Recycling, the Macau entity is used to overstate profit”. The company’s response in our view was non-substantive.",
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      "kind": "quote",
      "text": "Ok, firstly I just mentioned that we are doing business globally we are selling products to different countries and we need to make sure we comply with tax laws regulations in all countries including China, Macau, other countries including US, UK.",
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      "text": "“Ok, firstly I just mentioned that we are doing business globally we are selling products to different countries and we need to make sure we comply with tax laws regulations in all countries including China, Macau, other countries including US, UK. A lot of countries globally and if some of our transactions are conducted through Macau and we do make sure these transfer pricings are not in breach of any regulation of any countries, not just Macau. And we from time to time will arrange tax health checks” — CFO",
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      "kind": "source-note",
      "text": "3 “澳门那个可能偏财务多一点”\n4 MW: “好象公司有一个澳门公司，对于公司的运作会不会有很大帮助呢?” A: “它主要是用来财务结算方面的。” MW: “好象税收也比较优惠。” A: “财务结算和避税”",
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      "kind": "table",
      "text": "HKS Millions | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017\nReported Tax Exemption | 77 | 100 | 74 | 74 | 117 | 118\nImplied Macau Net Profit | 307 | 399 | 620 | 614 | 975 | 984\nMan Wah Net Profit | 303 | 568 | 977 | 1075 | 1327 | 1759\n% Macau | 101% | 70% | 63% | 57% | 73% | 56%",
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