{
  "docId": "019dd923-622c-750b-8b97-8456188f4be9",
  "docSlug": "3112e2e7b808",
  "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": "2024-01-22 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.7777778,
  "pageNumber": 47,
  "pageCount": 50,
  "prevPage": 46,
  "nextPage": 48,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "The slide uses a narrative structure to build a case of accounting manipulation by comparing booked gains against physical construction status.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-8456188f4be9/47",
  "deckHref": "/decks/019dd923-622c-750b-8b97-8456188f4be9",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-8456188f4be9.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-8456188f4be9#slide-47",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "we believe all €68.1 million in gains booked prior to any construction start (2017-2021) at both Polygon and MQM seriously abuse if not directly contradict its own accounting policies.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-f5d1-75b6-b073-61f817fafdd2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "development gains: €68.1 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-f5d1-75b6-b073-64168fa49b60",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.67
      },
      "kind": "paragraph",
      "text": "2022’s additional combined €31.9 gains at both Polygon and MQM also seem highly exaggerated. We think that no development gains should have been booked until 2022 at the earliest and even then, the gains should be limited to only what is fully permitted and under construction; otherwise, such large paper gains severely distort CPI PG’s true financial picture.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0d0622da-ff2f-4894-866e-0583d08049d1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "Based on CPI PG’s response that the prior years’ gains were justified on similar grounds – prospects for potential future development – we believe all €68.1 million in gains booked prior to any construction start (2017-2021) at both Polygon and MQM seriously abuse if not directly contradict its own accounting policies.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1a2a15c9-51fa-478c-9108-c0abb670f989",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "Our investigators’ 2023 site visits found only Building C under construction. As our estimates indicate, the 2021 gains likely book most of the revenue for the development. The additional €17.4 million gains booked on Polygon in 2021 are even more questionable.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3b477e45-c50b-4b45-b44f-23ff95a1320c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "Because construction and sales at Polygon BC had not even started in 2021, we regard this gain as very aggressive at the very least. It seems to indicate further efforts by CPI PG to inflate the value of assets on its book.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3f232486-2c77-46a5-b935-6d04a5fc8529",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "We believe the €53.0 million gain booked for Polygon BC in 2021 likely represents most of the future profits to be recognized upon the completion and sale/leasing of multiple, if not all, of the buildings in the complex. Based on online sales price data for the Kolbenova development, we estimate the total revenue from Building C will be ~€80 million. (Naturally, this number excludes construction, development, administrative, or legal costs.)",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e1aab706-cdd3-4bcb-ada5-a22b458a89ab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "1 Calculated from sale and pricing data available at https://klbnypark.cz/en/pricelist and https://www.propertymaps.cz/en/obchody/prague/afi-home-kolbenova-209 and advertised retail space leasing rates of €16/sqm at: https://www.propertymaps.cz/en/obchody/prague/afi-home-kolbenova-209.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff242e7f-02f8-43a3-b39a-3457c1234792",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.85,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "Polygon BC and MQM Czech – Gains Booked Disregard CPI PG’s own Valuation Policies, contd.",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ef4c8785-9d87-41dd-96db-7d14c385f17d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "47907a03-0e8c-4cca-9f85-1b4c0cb6865b",
      "evidence": "The slide systematically compares booked gains against physical construction status to allege accounting manipulation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 36,
      "beatId": "6050a9c8-83b5-49a1-871d-da1dcb45c199",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The final slides summarize the key takeaways and reiterate the thesis.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}