{
  "docId": "019dd923-622c-750b-8b96-aa4b5c012f2a",
  "docSlug": "aa7e6c3950ac",
  "documentTitle": "TAL Education Group (TAL)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-13 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 25,
  "pageCount": 71,
  "prevPage": 24,
  "nextPage": 26,
  "slideType": "appendix_data",
  "function": "analyze_data",
  "density": "dense",
  "nDataPoints": 48,
  "notes": "The slide details the methodology for verifying financial amendments by comparing SAIC filings against third-party credit reports.",
  "elementsJson": [
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-aa4b5c012f2a/25",
  "deckHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a#slide-25",
  "components": [
    {
      "bbox": {
        "h": 0.06,
        "w": 0.763,
        "x": 0.118,
        "y": 0.092
      },
      "kind": "paragraph",
      "text": "This annual report only provides the value of the numerical changes, not what line items in the financials were amended. By comparing these numbers to the SAIC financials and a third-party credit report, we could verify with a high degree of confidence that the post-change numbers matched the final 2016 figures. The eight changes were:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "881eb1e6-91ea-429d-9b1b-1f79887dbc37",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "It is important to note that the SAIC financial are reported in units of ten-thousands or “万元”. This is a normal practice in China; however, the credit reports often display the data in thousands.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b2-736e-8e66-ba2ea3da13cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.375,
        "x": 0.122,
        "y": 0.35
      },
      "kind": "source-note",
      "text": "Units: Rmb millions and US$ millions. Source: CY2016 DFRL financials and credit report. FX rate: 6.67",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2b84cae1-bdd3-4431-bf8b-f73eec0b517e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.763,
        "x": 0.118,
        "y": 0.805
      },
      "kind": "source-note",
      "text": "It is important to note that the SAIC financial are reported in units of ten-thousands or “万元”. This is a normal practice in China; however, the credit reports often display the data in thousands. The DFRL credit report was provided by a Chinese credit monitoring service that has access to more detailed information on the SAIC financials. We are able to verify that the credit reports are using current information by comparing the numbers presented for the major categories (e.g. assets, liabilities, etc.) tie to those in SAIC financials, we assume that the credit report is current and substantially accurate.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8f8b8cbf-2417-4d67-be09-5ac9ee2e8d0c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.16,
        "w": 0.755,
        "x": 0.122,
        "y": 0.185
      },
      "kind": "table",
      "text": "Ref # Item Amended Original Changes (RMB) Amended Original Changes (USD)",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a34d6199-2e65-46c3-8128-8d722ea99b04",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.01,
        "w": 0.42,
        "x": 0.29,
        "y": 0.185
      },
      "kind": "title",
      "text": "Itemization of Amendments in the CY2016 DFRL SAIC Financials",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "753708e7-bf52-4b2f-99b5-4fce8b6d867c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 71,
      "from": 3,
      "beatId": "9de0976e-28e1-420f-a107-b337349d49c9",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document is primarily composed of slides that expose contradictions in TAL Education's financial reports",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 28,
      "from": 5,
      "beatId": "11c13b7b-b36c-475f-9c6c-e855711d459e",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Preempt Rebuttal",
      "beatSlug": null,
      "evidence": "The document anticipates potential rebuttals to its claims",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 71,
      "from": 24,
      "beatId": "f1a1059e-e779-4948-a18b-bd7e979146da",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Appendix Data",
      "beatSlug": null,
      "evidence": "The document includes extensive data and financial reports to support its claims",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 71,
      "from": 2,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "173d833e-f506-46f1-a81b-f0c40e490cd2",
      "evidence": "The document implies that investors who fail to address these discrepancies may suffer significant financial losses",
      "position": 2,
      "objective": "What is the cost of not addressing TAL Education's financial discrepancies?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}