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Fathom China
Matthew Forney
Jun 03rd 2015
Short Report: Lenovo’s Uncertain Mobile Future
One of the world’s largest PC and handset maker has removed the veteran executive in charge of its handset unit amid declining market share.
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Fathom China
Matthew Forney
Jun 02nd 2015
Project A: Jiangsu Hengrui Medicine
Jiangsu Hengrui Medicine (“Hengrui”) is a leading pharmaceutical maker in China. It enjoys a good reputation for producing high-quality generic drugs, and has suffered no debilitating scandals. Hengrui has an unusual relationship with a competitor, Jiangsu Hansoh Pharmaceutical (“Hansoh”), which is run by the wife of Hengrui’s CEO. The two companies seem to work more closely together than is reflected in Hengrui’s published statements.
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Fathom China
Fathom China Team
Jun 01st 2015
Profile: China Huishan Dairy Holdings
Huishan Dairy is one of many firms cashing on China’s surging demand for dairy products. Huishan says much of its growth comes from northeastern China, particularly its home province of Liaoning. We examined Huishan’s operations in Liaoning and found minimal evidence of the rapid growth that the company claims in its public statements.
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Fathom China
Matthew Forney
May 29th 2015
Short Report: Ctrip Staff Error Costs Millions
China’s largest online travel agency blames a staff error for an uninsured service outage that costs millions of dollars.
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Fathom China
Matthew Forney
May 26th 2015
Short Report: JD Accused Of Selling Rotten iPhones
China’s largest online direct sales company faces criticism from the country’s main state-run television station for selling refurbished iPhones that are defective.
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Fathom China
Matthew Forney
May 22nd 2015
Short Report: 58.com On Acquisition Spree
China’s largest classifieds website has spent more than US$1.6 bn to buy a grab bag of companies, and early indications suggest that many mergers are not smooth.
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Fathom China
Matthew Forney
May 06th 2015
Short Report: China Southern Exec Takes A Bogie
China’s punishment of a China Southern executive for golfing with public funds indicates that the Communist Party’s investigation of the airline continues.
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Fathom China
Matthew Forney
May 05th 2015
Short Report: Qihoo caught cheating in global tests
Three of the world’s top security software accreditors have revoked certifications awarded to a leading Chinese software developer in 2015 for cheating on software-performance tests.
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Fathom China
Fathom China Team
May 01st 2015
Profile: Soufun Holdings
Soufun Holdings
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Fathom China
Matthew Forney
Apr 14th 2015
Short Report: Hospital Boycott Could Bleed Baidu
China’s largest search engine risks a double-digit drop in ad revenue thanks to a tiff with the country’s biggest private hospital group.
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Fathom China
Matthew Forney
Apr 05th 2015
Short Report: Source: Hanergy loses key bank deal
A special investigation in a Chinese magazine has revealed that China’s policy lender, China Development Bank, has cut off a line of credit to Hanergy Holding Group, which could deprive the company of funds to purchase equipment from its listed subsidiary, Hanergy Thin Film Power Group.
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Fathom China
Matthew Forney
Apr 05th 2015
Short Report: Hanergy Sells Assets To CFO Of Scammy Firm
A key individual in the purchase of assets from a leading Chinese solar company once served as CFO of a notorious chicken farm that admitted faking revenue before being delisted from the Nasdaq stock exchange.
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Fathom China
Matthew Forney
Apr 02nd 2015
Short Report: JD Accused Of Bogus Orders, Fake Revenue
China’s second largest e-commerce company stands accused of faking revenue by allowing third-party sellers to create bogus transactions.
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Fathom China
Matthew Forney
Apr 01st 2015
Profile: Biostime International Holdings
Biostime is an up-and-coming leader in China’s infant-formula industry. Its has the most successful domestic brand at the high end of the market, and its new medium-priced brand is expanding quickly into lower-tier cities. Chinese consumers like Biostime’s products because they are imported—indeed, many buyers mistakenly think they are French.
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Fathom China
Matthew Forney
Mar 31st 2015
Short Report: Wuxi Pharmatech Plans New Drug
The world’s largest pharmaceutical research lab is preparing to launch its own drug, a move that risks upsetting its big-pharma clients.
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Fathom China
Matthew Forney
Mar 19th 2015
Short Report: Anta’s Weaker Sneaker
China’s leading brand of basketball sneaker has spent tens of millions of dollars on NBA endorsements, and now two NBA stars have switched to other brands to avoid foot injuries caused by shoddy shoes.
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Fathom China
Matthew Forney
Mar 16th 2015
Short Report: Qihoo Is Hot For Coolpad
Qihoo’s acquisition of a mobile-phone handset maker looks expensive, and Qihoo has a history of failed cooperation with handset makers.
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Fathom China
Matthew Forney
Mar 02nd 2015
Project A: Fuyao Glass Industry Group
Fuyao Glass is China’s biggest maker of glass for automobile windows and windshields. The family-controlled company has been run since its inception by its charismatic chairman, Cao Dewang. The upcoming transition from the 69-year-old Cao to his oldest son is the single biggest question mark hanging over the company.
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Fathom China
Matthew Forney
Mar 02nd 2015
Project A: Nari Technology Development
Nari Technology Development (“Nari”) provides software that lets machines communicate with each other over long distances. Nari’s bread and butter is software to help run electricity grids. It also provides software to railway systems, including the Beijing subway. Nari is part of a massive state-run company, State Grid, that provides electricity to most homes and businesses in China. State Grid is by far Nari’s biggest customer, which may...
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Fathom China
Matthew Forney
Mar 01st 2015
Profile: Hanergy
Hanergy Thin Film Power Group (“HTF”) is a much maligned company owned by China’s richest man. It produces equipment that makes thin-film solar panels. HTF sells nearly all its equipment to its parent company, Hanergy Holding Group (“Hanergy Holding”), which makes solar panels and sells them back to HTF for use on rooftops or solar farms. Such circular dealings leave many questions, including whether either company produces in quantities that it...
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Fathom China
Matthew Forney
Feb 15th 2015
Short Report: Communist Party Hits SOEs
The Communist Party has targeted top state-owned enterprises, many of which are listed overseas, for anti-corruption investigations.
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Fathom China
Matthew Forney
Feb 13th 2015
Short Report: Alibaba Faces Down The Government
Alibaba seems to have been the victim of a regulator’s overreach but the company’s subsequent angry, high-profile dispute with key officials will likely hurt its future prospects.
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Fathom China
Fathom China Team
Jan 23rd 2015
Short Report: VIE Rule Changes Spell Headaches
China is proposing rule changes that will affect foreign companies using a tricky corporate structure, called a variable-interest entity (VIE), to evade bans on investment in protected industries, including the Internet and education. The new rules should be good for Alibaba Group and Baidu, and bad for just about every other company using a VIE.
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Fathom China
Matthew Forney
Jan 21st 2015
Short Report: Bosideng Suffers Down Times
China’s largest down-feather apparel company has shut down thousands of retail outlets amid a difficult executive handover.
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Fathom China
Matthew Forney
Jan 12th 2015
Short Report: JD Chairman’s Messy Romantic Life
The chairman of China’s second-biggest e-commerce company is embroiled in tabloid-like scandals thanks to his high-profile breakup with a much younger woman.
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Fathom China
Matthew Forney
Jan 08th 2015
Short Report: Rumor: Jumei Covers Up Smuggling
Summary
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Fathom China
Matthew Forney
Jan 01st 2015
Profile: Youku Tudou
Youku Tudou (Cayman) (“Youku”) is China’s best-known online video site. Do not confuse its services with those of YouTube, which provides mostly user-generated content like home videos. Youku is more like Netflix in emphasizing TV shows and movies. Youku faces serious new challenges. Increased competition has bid up the cost for premium content that viewers demand. Its most formidable competitors are part of big, rich conglomerates, whereas...
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Fathom China
Matthew Forney
Dec 18th 2014
Short Report: Dangerous Bacteria In Yurun Meat
China’s most scandal-plagued butcher contends with evidence that its meat contains dangerous levels of harmful bacteria.
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Fathom China
Matthew Forney
Dec 12th 2014
Short Report: Qihoo Audit Chair Quits
China’s most scandal-plagued butcher contends with evidence that its meat contains dangerous levels of harmful bacteria.
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Fathom China
Matthew Forney
Dec 12th 2014
Short Report: Xunlei Ad Service Shut For Porn
China’s Internet watchdog has shut a key advertising service for racy content, including naming the pop singer who most likes sex in cars.
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Fathom China
Matthew Forney
Dec 06th 2014
Short Report: Rumor: Kaisa Group Chair Implicated In Graft
Chinese regulators have blocked the sales of more than 1,500 housing units built by a leading property developer amid rumors that the company’s chairman has been implicated in a bribery scandal.
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Fathom China
Matthew Forney
Dec 04th 2014
Short Report: Game Over For Shanda Games Founder
One of China’s leading game developers faces an uncertain future after its founder sells his stake and quits the board.
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Fathom China
Matthew Forney
Dec 01st 2014
Profile: China Luxury Still Glitters
Many observers believe that China’s luxury market, caught between the twin pincers of an anti-corruption campaign and an economic slowdown, faces a long-term decline. Our research does not support this view. To the contrary, China’s increasingly sophisticated consumers are spending more on a wide range of luxury products, with a few categories as exceptions. The change from several years ago is that much of this spending has moved overseas,...
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Fathom China
Matthew Forney
Nov 19th 2014
Short Report: Qunar’s Big Hotel Customer Checks Out
China’s leading economy hotel chain, Home Inns, has become the second big company in as many months to stop cooperating with China’s biggest travel search engine, Qunar.
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Fathom China
Matthew Forney
Nov 14th 2014
Short Report: China Modern Dairy Flouts Health Rules
China’s largest raw milk producer faces a government probe after flouting sanitation rules by selling cows infected with bovine tuberculosis. Because all commercially sold milk in China is pasteurized, the risk of infecting humans is small. Of greater concern is that Modern Dairy seems to have played fast and loose with animal-husbandry rules.
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Fathom China
Fathom China Team
Nov 13th 2014
Short Report: Questions Regarding RexLot’s VIE
A key China-based subsidiary of lottery company RexLot appears not to exist.
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Fathom China
Matthew Forney
Nov 10th 2014
Short Report: Changyou CEO Resigns
The star CEO of Sohu’s game unit has resigned amid leadership clashes and plunging profits.
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Fathom China
Matthew Forney
Nov 01st 2014
Profile: Tingyi (Cayman Islands) Holdings
Tingyi (Cayman Islands) Holding
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Fathom China
Matthew Forney
Oct 31st 2014
Short Report: Like Shorting Fish In A Barrel
A bizarre story of US$140m in missing shellfish could pour cold water over all Chinese fishery companies.
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Fathom China
Matthew Forney
Oct 31st 2014
Short Report: Qunar Accused Of Selling Invalid Insurance
China’s state-run television accuses the country’s leading travel search engine of peddling invalid flight-related insurance products.
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Fathom China
Matthew Forney
Oct 27th 2014
Short Report: Boycott Of Soufun Escalates
Amid escalating competition, the largest property brokerage in Beijing has terminated cooperation with China’s biggest real estate website.
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Fathom China
Matthew Forney
Oct 23rd 2014
Short Report: Noodles Boil In Scandal
China’s largest instant noodle maker faces possible repercussions as a tremendous food-quality crisis engulfs its parent company in Taiwan.
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Fathom China
Matthew Forney
Oct 22nd 2014
Short Report: Agile In Crisis
One of China’s leading property developers is wallowing in crisis following the detention of its chairman on suspicion of bribery.
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Fathom China
Matthew Forney
Oct 08th 2014
Short Report: E-commerce Firm Drops Wealth Mgt Product
China’s banking watchdog has canceled the maiden sale of a wealth management product by JD.com, one of China’s leading e-commerce platforms.
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Fathom China
Matthew Forney
Oct 07th 2014
Profile: Great Wall Motor: Off The Road
Great Wall Motor was once considered China’s most promising private car company. It had an excellent reputation, a strong and charismatic founder, a strong position in the fast-growing market for SUVs, and a head start in exporting cars to developed markets. Today, Great Wall risks losing its way.
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Fathom China
Matthew Forney
Oct 01st 2014
Profile: Wuxi PharmaTech (Cayman)
Wuxi PharmaTech (Cayman)
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Fathom China
Fathom China Team
Sep 01st 2014
Profile: Jumei International Holding
Jumei International Holding
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Fathom China
Matthew Forney
Jul 10th 2014
The Crucial Smell Test For Investors In Chinese Companies
With asset prices around the world continuing to rise, low-priced Chinese equities now look extraordinarily attractive to value investors. But investors should not check their skepticism at the border. Many investors in seemingly vibrant Chinese private sector firms have become victims of frauds, often later exposed by short sellers. However, the fear of falling for such scams is no reason to avoid investing in all Chinese firms. Straightforward...
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Fathom China
Fathom China Team
Jul 10th 2014
Profile: Due Diligence: Don't Get Fooled Again
Many investors in Chinese firms check their skepticism at the border, and so have been easy prey for short sellers who benefit from exposing fraudulent companies. This report shows how investors can gain confidence that Chinese companies will be unlikely to come under successful short attacks. Solid due diligence can prevent a lot of pain.
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Fathom China
Fathom China Team
Jul 01st 2014
Profile: Nu Skin Enterprises
Nu Skin Enterprises
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