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  "docSlug": "2df2f979ea6a",
  "documentTitle": "China Internet Nationwide Financial Services Inc. (CIFS)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-12-20 00:00:00",
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  "notes": "The slide uses investigative findings to challenge the legitimacy of reported financial transactions.",
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      "kind": "callout",
      "text": "It appears to be a non-functioning business to which nobody would lend tens of millions of dollars.",
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      "kind": "image",
      "text": "Four photos of an office building exterior and interior.",
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      "kind": "paragraph",
      "text": "Our investigators visited the office given in Ailirui’s SAIC file, and found that it is unfinished and unoccupied. It appears to be a non-functioning business to which nobody would lend tens of millions of dollars. The following are pictures of its office:",
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      "text": "CIFS appears not to have had the cash necessary to make the loans to Ailirui at the time it purports to have. CIFS discloses Beijing SYX agreeing to lend Ailirui $6.8 million on June 10, 2015 and another $15.8 million on June 15, 2015.",
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      "text": "Beijing SYX’s operating cash flow would have been insufficient to fund the loan. By December 31, 2015, CIFS still had 62.5% of its 2015 revenue outstanding, and its 2015 OCF was only $598,000. That means that Beijing SYX would have had to rely on its capitalization to fund the loan.",
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      "kind": "paragraph",
      "text": "However, Beijing SYX did not have sufficient capitalization as of mid-June to fund such a large loan. CIFS discloses increasing Beijing SYX’s registered capital to approximately $22,556,391 on June 30, 2015. SAIC files show the registered capital increase was effective on July 8, 2015. Therefore, even had Ailirui been a bona fide borrower, CIFS appears not to have had the liquidity to make the loans.",
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      "text": "Footnotes 7, 8, 9 detailing office address, SEC filing references, and legal counsel notes.",
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      "evidence": "The document reveals that Ailirui appears to be a sham counterparty",
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