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  "docSlug": "b32b6e967105",
  "documentTitle": "KE Holdings (BEKE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-12-16 00:00:00",
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  "notes": "This slide is part of a short-seller report alleging fraudulent store count inflation by BEKE.",
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      "kind": "callout",
      "text": "We believe BEKE uses these SAIC listed non-physical locations as “ghost stores” as false support for its SEC store counts.",
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      "kind": "image",
      "text": "Photograph of a storefront row with labels A1-7 through A1-11.",
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      "kind": "paragraph",
      "text": "The use of similar but different store names and the extremely vague store location descriptions and addresses is a common theme on BEKE’s platform. For instance, we observed two branches registered to the same street address in the SAIC database. When we visited, we only found one store. Branches 10 and 79 are co-located but presented as distinct and different stores on BEKE’s platform with different store numbers, different branch numbers, and different SAIC business registrations.",
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      "text": "When visited the store, we saw SAIC business license displayed on the wall was for Branch No. 79. However, on the opposite wall, both Branch No. 10's and Branch No. 79's award banners were presented. The agent at the store stated that Branch No. 10 (Store No. 2) was closed and had merged with Branch 79 (Store No. 4).",
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      "text": "All of these branches also filed for their annual reports with SAIC in the past four years and have active current registrations. There was one Lianjia store where we should have found seven. We believe BEKE uses these SAIC listed non-physical locations as “ghost stores” as false support for its SEC store counts.",
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      "text": "However, like the example of Branch No. 2 (Tianyang Cheng No. 2) and No. 15 (Tianyang Cheng No. 6) above, both stores also displayed active transactions even after one was closed and the two seemingly merged. In our collected data from May 25 to Oct 22, we found that Branch No. 10 displayed 13 exiting home and 2 new home transactions, and Branch No. 79 showed 27 existing home and 2 new home transactions, combining to produce a total of 44 home sales.",
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      "text": "Source: Site Visits",
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