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  "docSlug": "4e8802588ba6",
  "documentTitle": "ANTA Sports Products Limited (2020.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-08 00:00:00",
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  "notes": "The slide uses investigative research to link specific individuals (Mr. Hong Yanqing, Mr. Lin Sankuang) to ANTA leadership, suggesting they act as proxies for the company.",
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      "text": "While the shareholding of these two companies is different, we believe that they are intertwined, both with each other and with ANTA’s insiders.",
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      "kind": "disclaimer",
      "text": "61-65 Footnotes detailing SAIC electronic files and specific company relationships.",
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      "kind": "paragraph",
      "text": "Mr. Wu Weixin is the Legal Representative of Jinan Ruili. Mr. Wu Zengqiang is the Legal Representative and 90% shareholder of Jinan Anchuang. The other two shareholders of Jinan Anchuang are Mr. Hong Yanqing and Mr. Lin Sankuang.",
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      "text": "Jinan Ruili and Jinan Anchuang are distributors in Shandong carrying Anta, Anta Kids, and Sprandi product lines. In 2017, Jinan Ruili was a major revenue generator. While the shareholding of these two companies is different, we believe that they are intertwined, both with each other and with ANTA’s insiders.",
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      "kind": "paragraph",
      "text": "As explained above, Mr. Lin Sankuang was identified as a relative of Chairman Ding and an ANTA proxy. Mr. Hong Yanqing is another apparently trusted long-term associate of Chairman Ding and the founding families.",
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      "text": "The sale of an “ANTA” named company to its so-called distributor contrasts starkly with ANTA’s apparent prior policy of requiring distributors who have used the ANTA brand name in their company name to deregister, liquidate, and re-establish themselves anew.",
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      "text": "We permitted the distributors to use the Chinese characters “安踏” (ANTA) as part of their corporate name to reflect the association of 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. — ANTA Prospectus, p. 87",
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