• Our extensive due diligence, accounting analysis, and review of Chinese SAIC filings suggests to us that WUBA is an accounting house of cards with little economic substance. • We believe that WUBA has failed to disclose that its biggest acquisition Ganji, acquired for $2.8bn, has seen its revenue plummet by over 95% since the acquisition by WUBA. • Our fundamental analysis of WUBA shows that the company’s core business is facing numerous headwinds, including an unfavorable environment for housing and job market. These issues are only emphasized by the recent health crisis in China. • While WUBA raises money from US shareholders on the back of what we believe to be fraudulent financials, insiders at the company are getting rich.

• New reports from China suggest that WUBA is going to decrease its headcount by at least 20%; This supports our belief that the company faces strong economic headwinds as it is reliant on an active real estate and job market in China. • WUBA failed to respond to the allegations we raised in our report, but recent management changes seem to imply that WUBA is trying to cover its tracks. • We noticed that another long-term director of WUBA recently resigned from his position. • WUBA is unusually late in the fling of its 20F statement. We belief the impact from the quarantine might be devastating to WUBA’s business.