BearCaution

1619 Tianhe Chemicals

This report presents substantial,overwhelming, and conclusive evidencethat Tianhe is one of the largest stockmarket frauds ever conceived. SAIC filings and third-party documentsshow that Tianhe generates a fraction ofthe revenues and profits it reports. We present smoking gun evidence thatTianhe does not pay the taxes it claims,and therefore could not have generatedthe profits it claims. Site visits show that most of Tianhe’s SFCcustomers are related parties that shareoffices and overlapping management.

555 Betting on a Pipe Dream

We believe REXLot has made materially false representations to the market. Our analysis of third-party documents, SAIC filings, and market share data shows that REXLot generates only a fraction of the revenue it publicly reports. REXLot’s de minimis interest income suggests its publicly reported cash balance is grossly exaggerated.Since 2010, REXLot has been cumulatively free cash flow negative. REXLot has used convertible bond offerings to finance dividends and acquire suspect companies with no discernable assets or operations.

WU Accounting Concerns and a Tax Black Hole

WU has only missed earnings estimates once since the beginning of 2012, and wefind these consistent earnings beats questionable, especially from a mature company facing secular decline. We have concerns over WU’s accounting as it relates to cost capitalization and believe Management is manipulating earnings to influence its share price. WU’s unusually low tax rates, combined with the nature of a business model,viewed by many as predatory, raise concerns of public policy backlash

404 Error 404: Tenants not Found

We believe the current non-Executive Chairman is using Hsin Chong as his personal dumping ground for problematic and non-revenue generating development properties at the expense of minority shareholders. Site visits and satellite images suggest that Hsin Chong has misled investors about the commercial viability of its two biggest properties. Hsin Chong has been OCF negative in each of 2013, 2014, 2015 and interim 2016, and recently cut its long-standing dividend. We have serious concerns over its substantial debt obligations.

8207 The 30-Minute Trade

Credit China trades at 45x 2017 earnings,which we believe may be due to end-of-day trading manipulation, based on our analysis of intraday trading activity. Additionally, we believe Credit China has misled investors by engaging in a number of questionable transactions. In one example, online evidence suggests that the largest acquisition in Credit China’s public history was from an undisclosed related-party. In another example, we believe a major property purchase wascarried out to funnel money out of the Company and inflate earnings.