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.

After a ten-month suspension, REXLot released a clarification announcement that reads more like apoorly-conceived mystery novel where never-before-seen subsidiaries are created out of thin air with purported business operations that clearly don’t exist. China seems to be the only place in the corporate world where trucks full of original documents can gomissing, and undocumented and wholly-illusory business units can be passed off as real.Even more impressive is that REXLot hopes investors will take its rambling clarification announcementseriously, when after nearly a year, it has been unable to tap its purported HK$1.1 billion in cash to payoff the CBs it has long-since defaulted on.

This report presents new and additional evidence that REXLot’s Welfare CTG business is a mere fractionof what the Company claims and that its recently published clarification announcement is purposelymisleading.