{
  "docId": "019dd923-622c-750b-8b96-df2e90b02e3e",
  "docSlug": "5d07cd85d779",
  "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": "2019-07-15 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 6,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 1,
  "notes": "The slide uses a Q&A transcript to highlight a contradiction between management statements and alleged business practices.",
  "elementsJson": [
    "paragraph",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-df2e90b02e3e/3",
  "deckHref": "/decks/019dd923-622c-750b-8b96-df2e90b02e3e",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-df2e90b02e3e.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-df2e90b02e3e#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The most logical conclusion by far is that ANTA intended to lie to investors about its ownership of Fila stores.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0931-74b9-a32f-8c561bcd3cdb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.7,
        "x": 0.15,
        "y": 0.42
      },
      "kind": "paragraph",
      "text": "The above is of course consistent with what ANTA stated in response to Blue Orca Capital / Soren Aandahl's presentation. On a response conference call, CFO Lai Shixian was reportedly asked whether ANTA was considering doing wholesale for Fila, and responded that: 'We have no plan for Fila to engage in wholesale... We will continue to operate Fila's self-operated model.'",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1e1c7846-5f09-4595-8f81-351bc8d99068",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.7,
        "x": 0.15,
        "y": 0.71
      },
      "kind": "paragraph",
      "text": "Through a sock puppet, ANTA management addressed the obviously corrupt and improper transaction by stating that the international brands retail business was doing poorly, as evidenced by its losses, and that the recipient was an independent party. This was a new, rapidly growing business that was ahead of plan in terms of sales. One would think that even the least switched-on sock puppet would understand that new, rapidly growing businesses often report losses. This is not a valid reason for the disposal. Instead, it shows that ANTA insiders stuffed the public company shareholders with losses necessary to scale the business before taking it for themselves.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "64effa73-61c2-44cf-a566-e9d23736c23d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.7,
        "x": 0.15,
        "y": 0.1
      },
      "kind": "paragraph",
      "text": "A: Um yes. We own the brand and we sell the product directly to the customers... Q: Ok, and all of those are self-operated? A: Yes...And for Fila managing the inventory is slightly easier because we own the retail.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aa592760-578a-4cd7-a2b0-62f33256b4a7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.7,
        "x": 0.15,
        "y": 0.58
      },
      "kind": "paragraph",
      "text": "The would seem to have been a pretty opportune time to disclose that ANTA does engage in some wholesale business under the Fila brand. The most logical conclusion by far is that ANTA intended to lie to investors about its ownership of Fila stores. The Fila financials should not be relied upon.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b3a823a2-a273-48fa-abec-cb9a4bde6044",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "We have no plan for Fila to engage in wholesale... We will continue to operate Fila's self-operated model. — CFO Lai Shixian",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0931-74b9-a32f-902df54d008a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.7,
        "x": 0.15,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "2 In Anta's 2018 full year annual results presentation slide #22 indicates 1652 Fila stores. 3 http://www.sohu.com/a/247126682_313170 4 Anta 2007 AR, pp. 31, 36, 37; Anta 2007 Interim Report, p. 21",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "61072fdf-8657-41d1-8c0b-7c1577d0aac4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.7,
        "x": 0.15,
        "y": 0.67
      },
      "kind": "title",
      "text": "Lie 2: The disposal of Shanghai Fengxian and its subsidiaries was proper.",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "abefa77a-8f49-4e61-b803-9633639b8599",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "14908639-63df-4b7b-8b9f-f3b37922bffc",
      "evidence": "The slide explicitly labels a section 'Lie 2' and argues that management misled investors.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 5,
      "from": 3,
      "beatId": "3a39269e-b97c-4b37-a5f0-e23a7f7572bf",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "Detailed analysis of the contradictions in ANTA's disclosures",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 6,
      "from": 2,
      "name": "The Reveal",
      "slug": "05-the-reveal",
      "bestFor": "Product launches, strategic pivots, unexpected findings",
      "matchId": "83659462-e9a3-4344-9d06-1ece923d3362",
      "evidence": "The report builds up to a reveal of ANTA's alleged lies and contradictions",
      "position": 0,
      "objective": "Expose contradictions in ANTA's disclosures",
      "structure": "Setup the Question -> Build Suspense -> The Big Reveal",
      "confidence": 0.8,
      "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}