"Anonymous" Enters Securities Analysis: Alleges Hong Kong's HK$ 8.5 Billion Chaoda Is Next Sino Forest

Tyler Durden's picture

Wondering why you may not have heard of hacking collective Anonymous for a while? Because, as it appears, the ad hoc organization has been busy assembling Anonymous Analytics, a public equity research entity (and we venture to guess focused mostly on the short side) whose motto is "Acquiring information through unconventional means" and follows up with "You should have expected us." Think of them as Muddy Waters on steroids: no regulation, no supervision, no accountability - just pure content, and credibility-driven merit (or, of course, lack thereof): a model which if validated will totally revolutionize the field of public company research. Well, someone who certainly should have expected AnonAnalytics is Chaoda Modern Agriculture, a HK$ 8.5 billion market cap company, or on par with Sino Forest from its pre-fraud days, which as Anon alleges is one of "Hong Kong Exchange’s largest, and longest running frauds." As the below report demonstrates, Anon has presented a serious case to prove just that stunning allegation, and if ultiamtely validated, the outcome for stock longs will be very unpleasant: "Theoretically, Chaoda may be worth HK$0.60 per share (currently Hk$2.50) derived from a blended NAV and DDM approach. However, based on the evidence in this report, as well as information we have decided not to release, we believe Chaoda may face delisting." If proven correct, this report will have an even greater impact on capital markets than Muddy Waters take down of Sino Forest, as it will finally integrate the two formerly completely disparate worlds of hacking and software analysis, opening up a world of very concerning possibilities for the world's public companies.

Key highlights:

Chaoda has an extensive history of deceiving investors and shareholders. Since its IPO, there have been several resignations by auditors, executives, and directors. We provide proof that management has consistently lied about the reasons behind these resignations. We further show that management has time after time misled investors about the Company’s capital requirements. To this end, management has assured shareholders that the company was sufficiently capitalized, only to tap the capital markets – often within several weeks.


Rounds of financing are required because Chaoda is overstating its cash balance, exaggerating its revenue, and falsifying its financial statements. We show that reported revenue numbers make no sense and provide statistical proof as to the improbability of Chaoda’s reported margins.


Much of the money that is raised is transferred out of the Company by management and third parties. These transfers are carried out under the cover of grossly inflated capex spending, and related party transactions. We provide proof that payments made to a ‘major supplier’ owned by the CEO are simply being transferred to a shell company with no business operations and de minimis assets.


Furthermore, we show that the CEO has used shareholder money to invest in risky projects without commensurate returns. One of these projects was a poorly operated orange plantation (Asian Citrus) that even Pepsi Co. found too risky. While this project robbed shareholders of high returns, they enriched the CEO through similar related party transactions.


Finally, we show that Chaoda is paying another fraudulent company to provide it with positive marketing exposure. In a bizarre twist worthy of a mystery novel, this saga involves Nobel laureates and some of the Western world’s most renowned academics.


Theoretically, Chaoda may be worth HK$0.60 per share (currently Hk$2.50) derived from a blended NAV and DDM approach. However, based on the evidence in this report, as well as information we have decided not to release, we believe Chaoda may face delisting.

Full report (pdf)

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Deadpool's picture

more bear raids with global reach

magpie's picture

the way things are going, people would even buy into a CCP IPO - a fine ETF idea

Pladizow's picture

Has Anon learned to fight crime with crime?

Reminds me of the Bat-Man movie where the Joker lights the mountain of cash on fire - http://www.youtube.com/watch?v=2TJ3Yv_vgUc

Michael's picture

LULZ = For Shits and Giggles

Anonymous has no organizational structure and no leader. It's tha kind of thing that makes the oligarchs heads explode. Sort of like the Norwegian Knights Templar movement.

CrazyCooter's picture

I disagree; I think they are mostly, if not all, "insiders". The internet has largely been to the benefit of the little guy, as the "elite" controlled the media.

Doesn't it make sense that the "elite" can benefit from the internet as well?

What better way to (1) take out a company that won't toe your line, (2) destroy a person's credibility, or (3) herd the lemmings over a cliff once some street cred is provided. On top of all that, I don't doubt the information is accurate; I am saying the vehicle that is anoymous has intentions which are not clear at this time.

Eventually there will be the internet crack down once the dirty work is done, the money made, countries broken, and the pleebs plunged into information darkness.



Pink's picture


Not trying to pick you're comment apart, I agree that this report could be released by an insider with the intention of torpedoing competition. However, to assert that the "vehicle that is anonymous has intentions that are unclear" simply makes no sense. By it's nature, a vehicle can't have an intention. The intention is solely attributed to the individual presently acting upon a vehicle. In the case of an anonymous collective, we can only speculate on intentions. And for the most part, the acts of the Anonymous collective usually is just for the lulz or social justice. Personal gain is eliminated outright.

CrazyCooter's picture

When I was a kid, we used to put shit in a paper bag and put it on peoples front porches, set it on fire, bang the door (usually someone known by someone involved).

To my surprise, no one ever fell for it; they side-scootted it off the wood to the ground and went back in side.

Why does this matter? Your post is a flaming bag of shit. I will just let it burn. Those old fuckers, they had it all figured out. Not sure why kids (like me) couldn't ever figure that out...

Please drive through.



DormRoom's picture

if zerohedge continues to publish anon reports, they will be visited by the FBI.  It's fairly clear there's a new hedge fund strategy (hedge fund using leverage + "biased investigators that use distort and short PR"):

category: Anon short arbitrage in the options market.

DormRoom's picture

if zerohedge continues to publish anon reports, they will be visited by the FBI.  It's fairly clear there's a new hedge fund strategy: anon short arbitrage in the options market.

stacking12321's picture

what you say!

you stay on your side of border, round-eyes, and we stay on ours!

TravsMom's picture

I would like to delist you, trav

Panafrican Funktron Robot's picture


Story initially broke back in May by Next Magazine.


Just in case anyone is suffering under the delusion that this company isn't a fraud.

FunkyMonkeyBoy's picture

Set them loose on Fort Knox. Fort Knox has ethernet, right?

Come on, think big.

spiral_eyes's picture

I'd love to see what they make of the US 30-year. Here's something for them to start with:

Benny's Fabulous Price-Stability Racketeering Band

fishface's picture

Yeah and the what about the FED

Bernank wants to spy



He deserves the same

ReallySparky's picture

Oh goody, maybe they can get into the FED or GS.  This might get very interesting...

Nascent_Variable's picture

Interesting indeed.

Anonymous is such a huge collective, it probably has people in every major player.  If interns who spend their spare time on the chans start rummaging for sensitive documents at work, you could see some major news breaking out of this group on a regular basis.

Comay Mierda's picture

now I'm really starting to think "Anonymous" is a CIA front

Steaming_Wookie_Doo's picture

Yeah. When AA decides to bust the multitude of evil deals done by GS, JPM, et al, then I might listen. China-bashing is rather passe.

Deadpool's picture

American Airlines? Alcoholics Anonymous? little batteries?

dark pools of soros's picture

you all thought LulzSec was CIA too.. 

CrazyCooter's picture

I don't think anyone can assert anything with certainty and it is clearly foolish to dismiss the notion.



dwdollar's picture

Unfortunately, entities like Anonymous can be easily infiltrated by the CIA.  Fortunately, their decentralized nature means they can never be fully compromised.  You should never fully trust or fully distrust an entity like Anonymous.  One release may be the truth, the next release may be complete dis-info.  Any release is what it is.  You must make up your own mind.  One thing is for sure, you're not going to receive this kind of material on the Thought Vacuum.

jekyll island's picture

Screw these anonymous short sellers who hide behind "research" to justify their attempts to profit by negative attacks.  I laugh when they try to describe their work as altruistic.  They are the next generation pump and dump scamsters, or should I say short and extort scamsters.   They don't care if you get hurt, they are running a money making scheme.  

Habspurg's picture

If you don't believe in the truly free market and the unfettered exchange of opinions, what are you doing on ZH?

Lord Koos's picture

Really, how easy to infiltrate them? 

unclebill's picture

Who knows, soo far they said that the FEDS arrested anonymous people, but they never release any faces at all.....hmmm

hedgehogging's picture

Could it be because they are anonymous??? LOL!!!!

GeneMarchbanks's picture


AA is an unfortunate abbreviation for such a fine organization.

j0nx's picture

They would just scour the earth looking for these guys while the info they discovered would never be acted on. Punish the ones doing the whistle blowing and the truth saying and let the criminals continue to loot. That's how we roll around these parts yo.

zorba THE GREEK's picture

All Chinese companies are suspect. 

Aeonios's picture

I really do hope anonymous gets into the business of whistleblowing on market fraudbezzlement. That would force sovereigns everywhere to put up "great firewalls" and ensure that the pirate party wins majority vote in half the countries in europe.

s2man's picture

What? No link?

SheepDog-One's picture

The sphincter pucker factor just pegged 100 on Wall St.

Smiddywesson's picture

Oops, there goes the Internet.  The Boyz are going to throw the switch.  We can't have this kind of light shined into their closets.

PulauHantu29's picture

Just the facts, Ma'm, just the facts.

Where My Dawg At's picture

These "Anonymous" dudes do so many douchebaggy things I think it will be hard for them to be taken seriously outside of their own circles.

Waffen's picture

there are 6 billion people.  All it takes to be an anonymous front is to do something and say your anonymous.

mvsjcl's picture

One man's douchebaggery is another man's ...errr... ummm... forget it.

Shizzmoney's picture

I hope Fort Knox has ethernet when they get in there.....b/c they sure as hell aint gonna find any gold, thats for sure!

jekyll island's picture

Yes they will, it will be plating over the tungsten bars.  

spanish inquisition's picture

"Acquiring information through unconventional means" and follows up with "You should have expected us."

I did not expect Anonymous Analytics.

mesje's picture

No one expects Spani.... ee... I mean Anonymous Analytics!


mynhair's picture

When will they move on to NFLX?

bankruptcylawyer's picture

wheres reports like this when the stock was 5 bucks in mid april?


seriously , muddy waters, than these guys. enough of this crap. i'm not a short speculator, i've learned that unless youre running the game.....youre getting runned over by it.

fyrebird's picture

Anon running a short racket? This is likely to become bloody, and fast. We're going to find shortly out if anyone out there can bring any kind of game.