Learn from whom to respond: shorting agencies will seek help from public security organs if they openly forge evidence

category:Finance
 Learn from whom to respond: shorting agencies will seek help from public security organs if they openly forge evidence


According to a short report released on the evening of June 2, Grizzlies are still engaged in large-scale illegal marketing activities.

According to grizzly, you can check the actual number of students and income of each class according to who you learn the API (application program interface) of gaotu class. Based on this, grizzly believes that the income based on the actual number of students is far from the income published in the financial statements by who you learn.

In the response, learn from who to say that the API interface cannot obtain the full amount of data. Learn from who explained that the courses captured by the API interface of gaotu classroom are only available courses at that time point, and the main courses in spring at that time point have been removed from the shelves. The available courses are a small number of spring (lower) courses and other courses with smaller class capacity. The short report only captures 73 paid courses, which is far lower than the actual number of courses provided by gaotu classroom in the second quarter. Secondly, the anti climbing returned by the API interface The number of students encrypted by worm program is not the actual data. As a result, the report has no basis for the companys revenue forecast for the second quarter of gaotu classroom.

According to the public information, learning from whom was founded by Chen Xiangdong, former CEO of New Oriental in June 2014. On March 30, 2015, Huawei announced a round a financing of US $50 million. In June 2019, Huawei listed on the NYSE. At present, with whom to learn, with whom to learn, gaotu classroom, Chengqi business school, Jinyu school, Weishi, babyabc and other brands.

On April 3, the annual report of 2019 was released with who. In 2019, the annual net income was 2114.9 million yuan, a year-on-year increase of 432.3%; the net profit was 226.6 million yuan, a year-on-year increase of 1050.3%; the total number of paid people reached 2743000, a year-on-year increase of 257.6%.

On May 6, we released the unaudited financial report for the first quarter of 2020. According to the report, as of March 31, the net income of learning from others was 1.298 billion yuan, an increase of 382% over the same period of last year; the net profit of non-U.S. GAAP was 191 million yuan, an increase of 406% over the same period of last year; the number of people paying for regular courses reached 774000, an increase of 307% over the same period of last year.

The growth rate of performance is too good to be true, which makes it the target of short selling institutions to learn from.

In February this year, grizzly bear was short with whom to learn, saying that with whom to learn in the application for listing significantly overestimated its profitability. In this regard, Chen Xiangdong, the founder, chairman and CEO of who learn, said at a media communication meeting that all business behaviors and performance data of who learn are based on integrity, never cheat, never exaggerate and whitewash, and can stand the test.

Since April, citron research has issued three short selling reports in succession, saying that there is a phenomenon of order swiping, fictitious number of registered users, and a large number of undisclosed related party transactions. However, after citrons third short report was released on May 7, its share price rose instead of falling, up 4.82% from the previous trading day.

Citron said frankly, with whom to learn the performance too good to be true (too good to be true).

After grizzly bear and citron, muddy water, a well-known short selling organization that kicked out Ruixing coffees financial fraud scandal, also focused on learning from whom. On May 18, it released a short selling report, saying that the proportion of users who learned from whom was as high as 80%.

The company immediately responded that Hunshui lacked necessary knowledge of the operation details of the company. Since 2017, the company has focused on live online classes, making profits continuously. The cash flow continues to be positive, and the cash balance continues to increase, which is totally inconsistent with the situation described in the report.

According to incomplete statistics, who to learn from this year has been short eight times.

After the release of the bears short report, citron and muddy water were both forwarded on twitter, but the shares of learn from who didnt fall. On that day, learn from who closed at $36.97, up 13.37% from the previous trading day.

The following is the response to grizzly bears second short report:

On the evening of June 2, Beijing time, grizzly grizzly, the US short agency, released a second short report on who to learn from, which was full of a large number of fabricated data and statements. We are shocked by this kind of defamation of the company through P-charts and other ways. When counterfeiters become counterfeiters, shorting has become a benign mechanism in the US market and a tool for some people to make improper profits. This malicious behavior has broken through the bottom line of business ethics.

The following is our detailed response to the bear short report:

1. The API interface cannot obtain full data: first, the courses captured by the API interface of gaotu classroom are only available courses at this time point, and the main courses in spring at this time point have been taken off the shelf. The available courses are a small number of spring (lower) courses and other smaller courses, and the short report only captures 73 paid courses, far less than the actual number of courses provided by gaotu classroom in the second quarter; second, the AP The number of students encrypted by the anti crawler returned by I interface is not the actual data. As a result, the report has no basis for the companys revenue forecast for the second quarter of gaotu classroom.

2. There is a fundamental error in the research method of calculating the increment of students through the front desk display coding. The background of the learning system will generate a unique user ID when students register. The front display code is based on the background user ID confusion code. It is not a one-to-one correspondence with the background user ID. the logic of inferring the existence of the background user ID through the front display code is not tenable.

3. Wechat teacher is a live video tool, whose course providers and beneficiaries are mainly teachers and students of other offline institutions, small and medium-sized online institutions besides who they learn from. The homepage of the wechat teacher platform displays the promotion course, and the page content is changed irregularly by the human. It is not the release of the report accusation that enters the zombie state. The accusation of micro division business shows the ignorance of shorting institutions on who to learn business from.

4. In our business operation, we will purchase external services from many parties, including the services related to wechat operation in the procurement part. We believe that wechat is always one of the most effective channels to connect with customers. We checked the bank statement in the shorting report with the most conservative similarity i.e. confirmation method. Of the 68 transactions, only 13 approximately matched payments were found, with a total amount of 279800 yuan, which are normal service purchase transactions. There are a lot of information tampering, P-charts and completely illogical accusations in the report. For example, the bottom left figure on page 16 of the report lists 39 citizens whose birthdays are almost identical. Such blatant slander has gone beyond the bottom line of short selling. On June 2, U.S. time, the share price of learn from others rose by 13.37%. At the same time, the number of shares that can be lent by the market is insufficient, which may result in the compulsory closing of short position holders. In the face of potential huge economic losses, short institutions take risks, openly falsify evidence, learn from who will seek help from the economic crime investigation department of the public security organ. The stock of Larry, the founder of the company, is a class B stock with voting rights. It cant be lent or traded until it is converted into ADR, so the tight position has nothing to do with the company. At present, the dilemma faced by shorting institutions is due to their arrogance and greed. Their behavior of breaking the bottom line should also be despised by the whole capital market. Source: surging news editor: Zhong Qiming_ NF5619

4. In our business operation, we will purchase external services from many parties, including the services related to wechat operation in the procurement part. We believe that wechat is always one of the most effective channels to connect with customers. We checked the bank statement in the shorting report with the most conservative similarity i.e. confirmation method. Of the 68 transactions, only 13 approximately matched payments were found, with a total amount of 279800 yuan, which are normal service purchase transactions. There are a lot of information tampering, P-charts and completely illogical accusations in the report. For example, the bottom left figure on page 16 of the report lists 39 citizens whose birthdays are almost identical. Such blatant slander has gone beyond the bottom line of short selling.

On June 2, U.S. time, the share price of learn from others rose by 13.37%. At the same time, the number of shares that can be lent by the market is insufficient, which may result in the compulsory closing of short position holders. In the face of potential huge economic losses, short institutions take risks, openly falsify evidence, learn from who will seek help from the economic crime investigation department of the public security organ.

The stock of Larry, the founder of the company, is a class B stock with voting rights. It cant be lent or traded until it is converted into ADR, so the tight position has nothing to do with the company. At present, the dilemma faced by shorting institutions is due to their arrogance and greed. Their behavior of breaking the bottom line should also be despised by the whole capital market.