{ "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": 37, "pageCount": 71, "prevPage": 36, "nextPage": 38, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide presents qualitative evidence (interviews) to contradict a narrative of acquisition, suggesting the business remained under the TAL brand.", "elementsJson": [ "paragraph", "bullet_list", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-aa4b5c012f2a/37", "deckHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-aa4b5c012f2a#slide-37", "components": [ { "bbox": null, "kind": "callout", "text": "When our investigators spoke to teachers present during the period of purported disposal, none thought that the GZ 1-1 or the “Aizhikang” business was acquired by Changing Edu.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-25b2-736e-8e68-d616a1effadd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.78, "x": 0.11, "y": 0.48 }, "kind": "list", "text": "A learning center staff member during a site visit to the Huangsha learning center who was asked whether GZ 1-1 changed hands: [Transcript of Q&A regarding ownership and receipts]", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "171cd19f-3f36-4161-8daa-00dc84d25199", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.78, "x": 0.11, "y": 0.24 }, "kind": "list", "text": "A teacher who worked at GZ 1-1 (2014-2016) and was paid by Xueersi (TAL) throughout the period who was asked about Changing Edu: \"In 2015 [GZ 1-1] used cards to track students... they started using a cell phone app from Changing Edu... then changed back to using a card again.\"", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f6aa81e9-9e88-4f7c-bfab-42603882c3c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.78, "x": 0.11, "y": 0.38 }, "kind": "list", "text": "A teacher who worked at GZ 1-1 (2016) whose contract was signed with Aizhikang / Haoweilai (TAL) who was asked about the Changing Edu acquisition: \"But it was still Aizhikang and part of [TAL]...Guangzhou was independent for a while, unlike other cities, not a branch company.\"", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f75a5e0a-cb50-407e-86e1-e058fc17f741", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.78, "x": 0.11, "y": 0.14 }, "kind": "paragraph", "text": "When our investigators spoke to teachers present during the period of purported disposal, none thought that the GZ 1-1 or the “Aizhikang” business was acquired by Changing Edu. A few stated that the two companies had “a kind of cooperation”. Some described “Aizhikang” as an independent organization, but one that was still under the TAL group brand. Below is a sampling of comments from the interviews with the teachers and heads of learning centers:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2da8c587-0422-4bca-a119-0b4e8cbb1aec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.78, "x": 0.11, "y": 0.09 }, "kind": "paragraph", "text": "GZ 1-1 learning centers. This group includes teachers, staff, parents, Peiyou learning center staff (often located on a different floor in the same building), and building management.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b6dda4ce-7041-4c41-8544-63fd019a598e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“In 2015 [GZ 1-1] used cards to track students, each learning center and student had a card, which showed Xueersi’s brand, then around September 2015 they started using a cell phone app from Changing Edu in place of the card. They used it for about three months and then changed back to using a card again.” — Teacher at GZ 1-1 (2014-2016)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b2-736e-8e68-db10a40d2290", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.78, "x": 0.11, "y": 0.88 }, "kind": "source-note", "text": "92 As was shown in a job advertisement in a prior section, this confusion appears to be because Shujia was specifically marketing itself as “Aizhikang” and misrepresenting itself as being a part of the TAL brand.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "29eca6f7-0234-4f4c-9f9c-3bcb3a3283fe", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "expose_contradiction", "slug": null, "matchId": "b6724a5b-d2ad-462e-b9f2-d20d90f0cf7c", "evidence": "The slide uses interview transcripts to directly challenge the official narrative of an acquisition.", "confidence": 0.9 } ], "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": 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 }