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  "documentTitle": "ANTA Sports Products Limited (2020.HK)",
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  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-22 00:00:00",
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  "notes": "The slide highlights discrepancies in margins for Henan Ruili compared to other entities and reconciles 2018 revenue figures.",
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      "text": "In comparing the gross margins of the trading company to Henan Ruili, it is even clearer that Henan Ruili's margins are problematic.",
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      "text": "Net Profit Margin: 2.37%",
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      "text": "Henan Ruili appears to be ANTA's largest purportedly third-party supplier. According to ANTA's 2018 annual report, its largest supplier was 3.5% of purchases. Applying the 3.5% to ANTA's RMB 11.4 billion 2018 cost of sales equals ~RMB 400 million.",
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      "text": "According to Hunan Ruili's Chinese credit report (shown below), the shoe manufacturer's 2018 revenues were just over RMB 434 million, which slightly exceeds the RMB 400 million in purchases estimated from the largest supplier.",
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      "text": "Note that 2018 financials were unavailable in the credit reports accessed for Xiamen ANTA Sports, Xiamen ANTA Industrial, and Changting ANTA Sports Products Co.",
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      "text": "Henan Ruili appears to be ANTA's largest purportedly third-party supplier. According to ANTA's 2018 annual report, its largest supplier was 3.5% of purchases. Applying the 3.5% to ANTA's RMB 11.4 billion 2018 cost of sales (which should be substantially all, but not exclusively purchases) equals ~RMB 400 million.",
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      "text": "Source: Chinese credit reports",
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      "text": "Comparison table of 5 entities across 2015-2017",
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      "text": "Henan Ruili Statement of Profit and Loss: 2013-2018",
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      "text": "Anta Shoe Manufacturers - Comparison of Scale, Rev., Profits, and Margins",
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