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  "documentTitle": "ANTA Sports Products Limited (2020.HK)",
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  "presentationDate": "2019-07-08 00:00:00",
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      "text": "However, this is a charade. In the substantial majority of cases, the owners of these distributors are merely proxies for ANTA Chairman Ding Shizhong.",
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      "text": "As ANTA planned for a 2007 IPO, a more nefarious strategy took hold. ANTA insiders realized that they could create the illusion of independent distributors... Individuals then formed new entities that did not use the ANTA name.",
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      "text": "However, this is a charade. In the substantial majority of cases, the owners of these distributors are merely proxies for ANTA Chairman Ding Shizhong... ANTA executives frequently refer to this arrangement as a 'left hand-right hand relationship'.",
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      "text": "ANTA claims that its ANTA brand distributors are arms-length parties... ANTA also recognizes revenue at the point of sale to distributors.",
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      "text": "We organized this report in three sections. In A, we explain how the fraud works. In B, we show the extensive paper trail that demonstrates Anta's control of 25 Tier 1 distributors and two smaller distributors. C is the Appendix.",
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      "text": "ANTA began as a manufacturer of sneakers for other brands... ANTA's controlling shareholder used his capital to invest in a network of distributors to give the brand traction.",
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      "text": "ANTA's Executive Director with responsibility for sales, Wu Yonghua. Four former senior managers of ANTA and one former manager of a major distributor then expressly stated in interviews that ANTA controls the distributors.",
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      "text": "ANTA executives frequently refer to this arrangement as a “left hand-right hand relationship” (“左手跟右手的关系”), with ANTA the ListCo being the “right hand”, and the distributors being the “left hand” — ANTA Executives.",
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      "text": "4 ANTA Prospectus, p. 87... 5 Conversation with ANTA investor relations... 6 ANTA 2018 Annual Report, p. 90... 7 See infra",
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