{ "docId": "019dd923-622c-750b-8b96-d2366ed75e04", "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", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 32, "pageCount": 92, "prevPage": 31, "nextPage": 33, "slideType": "appendix_disclosure", "function": "expose_contradiction", "density": "dense", "nDataPoints": 4, "notes": "Contains detailed footnotes regarding corporate registration and ownership history.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-d2366ed75e04/32", "deckHref": "/decks/019dd923-622c-750b-8b96-d2366ed75e04", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-d2366ed75e04.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-d2366ed75e04#slide-32", "components": [ { "bbox": null, "kind": "callout", "text": "In part because of the involvement of ANTA proxies Lin Sankuan and Su Weiqing, we believe Li Yuxiong is in substance another manager from ANTA, and is not an independent party.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0396-73da-b90d-2f0f6619bddb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.126, "w": 0.764, "x": 0.118, "y": 0.163 }, "kind": "paragraph", "text": "The first was in April 2011, when Li Yuxiong was appointed as the CEO / General Manager of BJ Jiyuan. In part because of the involvement of ANTA proxies Lin Sankuan and Su Weiqing, we believe Li Yuxiong is in substance another manager from ANTA, and is not an independent party. Further, in a 2012 news article, Li Yuxiong self-identified as the CEO / General Manager of the ANTA Group's Sichuan Branch. At one point, he was the beneficial owner of Chengdu ANTA through a trust arrangement structured in a manner similar to that between Ms. Wang Shuying and Beijing Oriental ANTA. (We doubt the substance of that purported trust, in part because Ding Shiyong was shown to be the contact person for Beijing Oriental ANTA.)", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2adf2c12-7526-4f2c-ac91-fff19cea1ef8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.042, "w": 0.764, "x": 0.118, "y": 0.093 }, "kind": "paragraph", "text": "Over the next few years, BJ Jiyuan made several structure changes and increased its registered capital incrementally from RMB five million in 2006 to RMB 40 million in 2014. Several of these changes were significant.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9644aef3-8247-482b-a2c5-5b068fc5d871", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "We permitted the distributors to use the Chinese characters “安踏” (ANTA) as part of their corporate name to reflect the association of our distributors with us which we considered would facilitate the development of the new markets by such distributors in view of our brand promotion. — ANTA Prospectus", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0396-73da-b90d-31c30247d731", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.3, "w": 0.764, "x": 0.118, "y": 0.608 }, "kind": "source-note", "text": "46 BJ Ji Yuan Shengbao SAIC Hardcopy 变更 1\n47 http://news.sina.com.cn/o/2013-04-24/161226935545.shtml\n48 ANTA Prospectus, p. 84-85\n49 ANTA Prospectus, p. 86-87, According to the prospectus, Beijing ANTA Oriental Sports Goods Co. (Beijing ANTA Oriental), was established in 2001 with a RMB 10 million investment made by Chairman Ding Shizhong and ANTA Executive Director Wang Wenmo an interest-free loan to Wang Shuying, the wife of Mr. Su Weiqing. In the subsequent years, the loan was repaid, and in October 2006, the share interest in Beijing ANTA Oriental was transferred to Ms. Wang. ANTA disclosed that in 2005, Beijing ANTA Oriental was its largest customer. In January 2007, Mr. Su Weiqing closed Beijing ANTA Oriental, replacing it with a new company, BJ Jiyuan Shengbao. Management explains that the reason Chengdu ANTA, Shenyang ANTA and Beijing ANTA Oriental were dissolved and replaced with new entities was due to their registration with the ANTA Chinese name. \"We permitted the distributors to use the Chinese characters \"安踏\" (ANTA) as part of their corporate name to reflect the association of our distributors with us which we considered would facilitate the development of the new markets by such distributors in view of our brand promotion. Now that the ANTA sales network is established in those markets, the relevant entities have been or are in the course of being de-registered or have ceased operation pending liquidation and the replacement entities no longer have the Chinese characters \"安踏\" (ANTA) in their corporate name.\n50 http://www.jinyuqiao.com/beijing/co/662269.htm#contact", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0e656ded-7e81-44fb-b2f0-0319539f44bd", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 90, "from": 4, "beatId": "35040399-ced0-49f3-be43-86667596fb86", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Repeated instances of exposing contradictions in ANTA's statements and practices", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }