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  "docSlug": "4e8802588ba6",
  "documentTitle": "ANTA Sports Products Limited (2020.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-08 00:00:00",
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  "pageNumber": 12,
  "pageCount": 92,
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  "slideType": "expose_contradiction",
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  "nDataPoints": 3,
  "notes": "The slide lists 23 entities and provides a narrative argument linking their low margins to potential financial fraud at the parent company level.",
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      "kind": "callout",
      "text": "The low gross and net profit margins the distributors show support our view that ANTA is using its control of those distributors to fraudulently inflate its reported profits.",
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      "kind": "list",
      "text": "List of 23 distributors with English and Chinese names.",
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      "text": "net profit margins: 7% to 8%",
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      "text": "According to the credit reports we received for these entities, their 2017 COGS accounted for approximately RMB 5.5 billion, or roughly one-third of ANTA's total reported revenue. These distributors' credit reports generally show gross margins of only 7% to 8%, and net margins that are close to zero. (See below for a table of credit reports of 23 of the distributors' summary financials.) The low gross and net profit margins the distributors show support our view that ANTA is using its control of those distributors to fraudulently inflate its reported profits.",
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