{ "docId": "019dd923-622c-750b-8b97-7713cb2db73c", "docSlug": "db6aaeefee70", "documentTitle": "CPI Property Group (CPIPGR)", "authorId": "51_Muddy_Waters", "authorName": "Muddy Waters Research", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2023-11-21 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 9, "pageCount": 51, "prevPage": 8, "nextPage": 10, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "Uses a direct quote from financial statements to highlight a contradiction in disclosure practices.", "elementsJson": [ "headline_text", "paragraph", "screenshot", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b97-7713cb2db73c/9", "deckHref": "/decks/019dd923-622c-750b-8b97-7713cb2db73c", "deckJsonHref": "/decks/019dd923-622c-750b-8b97-7713cb2db73c.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-7713cb2db73c#slide-9", "components": [ { "bbox": null, "kind": "callout", "text": "But that important fact of common control wasn't disclosed at the time of the sale in 2014. We doubt this was an oversight.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f3-714d-84ba-87d40abfa217", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.75, "w": 0.48, "x": 0.49, "y": 0.14 }, "kind": "paragraph", "text": "CPI PROPERTY GROUP\nLand bank projects, Czech Republic\nOn 15 November 2017 the Group acquired two real estate projects that can be used for future residential developments.\nThese acquisitions were recognized as a property asset acquisitions as the acquired companies do not constitute business as defined by IFRS.\nThe first project, with land plots of approximately 55.8 thousand sqm, is located in an attractive part of Prague 9. The 100% stake in company Polygon BC, a.s. was acquired for the purchase price of CZK 956 million (app. EUR 37.2 million). The company was acquired from companies controlled by the major shareholder of the Company and the acquisition is accounted for as a common control transaction.\nAs at the date of acquisition, the identifiable assets of the acquired company represent investment property in the amount of EUR 37.3 million, cash and cash equivalents acquired in the amount of EUR 8 thousand and other non-financial current assets acquired in the amount of EUR 4 thousand. The carrying value of the identifiable liabilities at the date of acquisition represents other both financial and non financial current liabilities in the amount of EUR 49 thousand.\nThe net identifiable assets of subsidiary acquired at the date of acquisition amounted of EUR 37.2 million. The net cash outflow connected with the acquisition amounted to EUR 37.2 million.\nThe second project, with land plots of approximately 395 thousand sqm, is located in Řitka, approximately 30 kilometers southwest of Prague.\nThe Group acquired 100% stake in company MQM Czech, a.s. the company was acquired for the purchase price of CZK 352 million (app. EUR 13.7 million). The company was acquired from companies controlled by the major shareholder of the Company and the acquisition is accounted for as a common control transaction.\nAs at the date of acquisition, the identifiable assets of the acquired company represent investment property in the amount of EUR 13.7 million and cash and cash equivalents in the amount of EUR 8 thousand.\nNet identifiable assets of subsidiary acquired at the date of acquisition amounted of EUR 13.7 million. The net cash outflow connected with the acquisition amounted to EUR 13.7 million.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "324e1f1c-326a-415e-95c4-0c4256c13d4d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.42, "x": 0.03, "y": 0.19 }, "kind": "paragraph", "text": "When CPI PG repurchased the holdcos three years later, it disclosed the transaction as a \"common control transaction\", obviously because Nemecek, now the seller, had been acting as a proxy for Vitek. But that important fact of common control wasn't disclosed at the time of the sale in 2014. We doubt this was an oversight.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4ef53b3e-e930-4c51-b474-04abe2818a98", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The company was acquired from companies controlled by the major shareholder of the Company and the acquisition is accounted for as common control transaction. — CPI Property Group (Financials 2017)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-70f3-714d-84ba-89034c5f95ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.35, "x": 0.03, "y": 0.91 }, "kind": "source-note", "text": "1 CPI PG Consolidated Financials 2017, Pg. 48.\n2 See right, from CPI PG Consolidated Financials 2017, Pg. 48.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "63daacc8-49a6-4e11-b7c6-d13c4d671a8d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.75, "x": 0.03, "y": 0.04 }, "kind": "title", "text": "CPI PG Obscured the Related-Party Nature of the Sale", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f1528fce-7291-46eb-bf42-c0f9e292b1bb", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 51, "from": 7, "beatId": "710bc55b-2a40-47b4-94c4-ec2b7d194a9a", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The majority of the document's slides are labeled as expose_contradiction, indicating a focus on revealing inconsistencies and questionable actions.", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }