China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

MD, Blue Lotus Research Institute

Gu Jun, CFA

Equity Bottom-Up

<p>We think Muddy Water did not touch the main business part of TAL. Questioning these 2 deals shows MW does not understand the business logic behind the deals ＆ financial numbers, also not have the background knowledge of the private education deal market in China during 2014-2016.</p><p>Not impressed by the part 1. We are looking forward to part 2 and part 3 of MW reports. TAL. Especially if that includes Peiyou course, which is TAL core business.</p>

We think Muddy Water did not touch the main business part of TAL. Questioning these 2 deals shows MW does not understand the business logic behind the deals ＆ financial numbers, also not have the background knowledge of the private education deal market in China during 2014-2016.Not impressed by the part 1. We are looking forward to part 2 and part 3 of MW reports. TAL. Especially if that includes Peiyou course, which is TAL core business.

TAL (TAL：US）—— While We Look into the Muddy Water

TAL Education

TAL (TAL：US）—— While We Look into the Muddy Water