Sep. 29, 2020
Three issues. Please read until end. #1 Payment going through GSX platform shows a different co.name: baijia Tech co, not baijiahulian. Both companies have same tax registration #. Is the fraud trying to transfer assets or another way to continue cheat to hide from investigation? #2 $GSX undisclosed subsidiary Baijiayuntu technology Ltd.'s only business is specialized brushing, it owns 天校 and 微狮 Screenshots of $GSX Wuhan brushing tool U盟 clearly shows how to profit from revenue divergence (brush). The screenshots also say both institutes and individual instructors can own a revenue divergence sub-sale operation line. One of the screenshots of U盟 says: union system owners are in charge of revenue re-sale managers, courses re-sale profit sharing, percentage set-up etc.,function real practice work administrator. #3 GSX official WeChat acct sent 4 promotional course link today, immediately all end with "the activities are over.” Normally these links last 30 minutes but they were clicked immediately and didn’t work. This means the promotional courses are no longer offered. It's odd because when you join the WeChat acct, the app sent the links they were all immediately clicked all. Prior to today, It was noticed some of the links said "the course is over", but never all of these. On Sun, Sep 27, 2020 at 11:03 PM Fusajiro 'Joseph' Yamauchi wrote: Apologies for additional email but two new points: Photo 1 below shows that two tutors confirmed GSX started to default salaries payment In July. The tutor said in 1st paragraph: "even salary not paid, all depends on drawing a big cake to feed hunger." Photo 2 We have watched many http://genshuixue.com and http://gaotu100.com courses, vast majorities of gaotu courses including its star-teacher Guodong Chen and Suai Zhou have less than 10 students commented during whole promotional class; attached is a screenshot of http://genshuixue.com course just finished this morning, the teacher left the classroom before half scheduled class time after confirmed with tutors that no student left in the classroom. Note July -September is best time for recruiting students therefore bring in cash flows. Schools have restarted after September so there would be very minimal of new enrollment activities thereafter. On Sat, Sep 26, 2020 at 9:54 PM Fusajiro 'Joseph' Yamauchi wrote: Hello, I would like to highlight to the Independent Audit Committee & Deloitte four instances of improper behaviour by GSX: 1. Fake LinkedIn profiles: GSX has attempted to boost their LinkedIn employee count by creating fake profiles. This has been alleged by others but I found more proof - 4 specific instances where they used 'stock photos' of models or actors. Please see attached PDF. 2. GSX Class Offerings: GSX is allowing students to register for a class that already started on August 2nd and there already had 12 sessions (picture below; yellow circle). This is unethical. In addition, they are collecting money *7 months* ahead of a class that starts April 21, 2021. (picture below; red circle). Finally they list "A total of 16 eligible classes" being offered but only 12 are listed below (please note, there was no additional page). 3. Allegations of Payroll Improprieties: See below screenshots of alleged GSX employees discussing that employee social contributions have not been paid. They are accusing their employer of cheating on their payroll surcharge remittance. I cannot say with certainty the accuracy of these comments but feel it's imperative that they be investigated considering all of the other improprieties that have been discovered. 4. Class size discrepancies: GSX number 1 star-teacher wrote that each class has only 30 students. Larry Chen said himself in 2017 that each small class was aimed to have 25-30 students but according to GSX earnings report, each small class has over 300 students. Picture for Bullet Point 2 Pictures for Bullet Point 3 Picture for Bullet Point 4