• We believe HEBT is the quintessential example why we need tighter disclosure and auditing regulations for US listed Chinese companies. We believe HEBT has engaged in egregious wrongdoings that should result in immediate delisting. • HEBT’s stock price has skyrocketed on the back of recent private placements at ever higher prices. These are touted as confirmation of the company, because outside institutional investors are willing to buy at a substantial premium to market price. We discovered that the investors seem to be in fact undisclosed related parties, and we doubt the shares were even paid for! It seems this is a scheme designed to portray real interest in the stock and push the price artificially higher.