We Believe Hebron Technology Co., Ltd. (HEBT) is an Insider Enrichment Scheme without Economic Basis

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• 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.

• SAIC filings indicate that HEBT’s legacy financials are completely overstated; For example, from 2016 to 2018, the total SAIC revenues are 80.5% lower compared to SEC financials. Total SAIC shareholder’s equity during this period is 93.7% lower compared to SEC reported number. Our supsicions were confirmed by site visits; Locals told us only about 20 people work at HEBT’s valve business.

• HEBT disclosed, however untimely, in its recent 20F and press release two arms-length acquisitions. Our due diligence reveals that the acquired companies are mostly dysfunctional, and were in fact sold to HEBT by insiders who lined their pockets on the deals.

• These deals also show other major red flags. For example, Beijing Hengpu was supposedly acquired by HEBT from a third party per SEC disclosure. The real sellers are actually related to HEBT’s biggest shareholder. Half a year after the transaction was supposed to be consummated, we still find no share pledge from Beijing Hengpu’s shareholders to HEBT. In short, HEBT paid for a company it did not even acquire!

• The company’s IPO underwriter, former and current auditor show major red flags.

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