GSX Techedu Inc. (NYSE: GSX) (“GSX Techedu” or “GSX”) is portrayed as a rising star in China’s online education space, having seen its stock more than triple since its NYSE IPO in June 2019. • GSX reports financials to the SEC that we believe are simply too good to be true. Our extensive research including review of PRC Credit Reports, SAIC filings, and web analysis indicate to us that GSX’s success is actually based on a fraudulent scheme.

The company gave multiple conflicting responses to allegations leveled by us, and later by other short sellers. In the meantime, we procured what we deem further definitive evidence that demonstrates GSX’s false and misleading statements. We have continued our research and analysis, and have discovered what we believe is comprehensive first-hand data that originates from GSX themselves that shows the real enrollment count of students, as opposed to calculations that derive this number. In our opinion, this amounts to definitive proof of GSX’s fraud, and shows that GSX publicly claimed student enrollment count and revenue are inflated by approximately 900%. Our report contains technical instructions and a video guide showing how anyone can replicate our findings. We urge investors and regulators to look into this matter in immediately because GSX will likely try to cover up its tracks now that we have exposed the methodology of its fraud.

In February 2020 we published our first critical report about GSX. Today, over year has passed, and many investors have come to see GSX for what it is. Many excellent reports were published over the last year by multiple reputable sources, making GSX the probably most exposed fraud in recent history. Unfortunately, regulators and auditors seem still reluctant to do the right thing. We strongly believe that it is within the auditors and regulators responsibility to ultimately remove GSX from a US stock exchange; In this report we focus on the issues that are within the scope and responsibility of the auditor to investigate. We also strongly believe that failure to investigate these issues will have serious consequences for GSX’s auditor Deloitte. We also shares our thoughts on the recent trading environment, and GSX’s role at the center of systematic issues in today’s capital markets.