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  "documentTitle": "TAL Education Group (TAL)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-13 00:00:00",
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  "notes": "This slide is part of a research note alleging financial manipulation by TAL Education Group.",
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      "text": "The average monthly GZ 1-1 revenue would be at most only Rmb 14.7 million, less than half of the Rmb 32.9+ million draw down needed to cover the difference between our low-end estimate of the deferred revenue’s Rmb ~75 million carrying value and the Rmb 42.1 million shown on the SAIC files as at December 31, 2016.",
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      "text": "Average monthly revenue: 14.7",
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      "kind": "paragraph",
      "text": "Conclusion: With the help of a Changing Edu., a related party, TAL boosted profits and revenues in FY16, FY17, and FY18. The repurchase of GZ 1-1 with its $50.0 million gain was instrumental in adding $37.5 million to the bottom line in FY16 and converting profit compression into profit growth.",
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      "text": "In the spring of 2018, GZ XRS EdTech's CY2017 financials became available. This company, which we believe operates GZ 1-1, reported revenue of only $9.8 million (Rmb 65.8 million). This is much lower than we would expect from the purported deferred revenue of $9.4 million (Rmb 65.2 million).",
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      "text": "The average monthly GZ 1-1 revenue would be at most only Rmb 14.7 million, less than half of the Rmb 32.9+ million draw down needed to cover the difference between our low-end estimate of the deferred revenue's Rmb ~75 million carrying value and the Rmb 42.1 million shown on the SAIC files as at December 31, 2016.",
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      "kind": "source-note",
      "text": "151 TAL 20-F, FY2017, p. F-51... 153 If the $9.4 million in deferred revenue was already adjusted per ASC 850...",
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      "kind": "table",
      "text": "GZ 1-1 Maximum Potential Annual & Average Monthly Revenue Prior to Purported Reacquisition",
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