South Beach Spirits Inc (SBES)

[floridany]

What is Cash Loan or Routine Loan?

The most important source for this new company's evaluation is based on this article which is presented to this board in the introduction section:

https://xueqiu.com/8921530968/134537992

The title of this article should be translated as: Zhejiang Panshi IPO to the U.S.: Cash loans contribute more than half of the profits, and secret connection to Lanzhou routine loan principal offender.

So what is the meaning of cash loan in China? According to baike.baidu.com,

https://baike.baidu.com/item/%E7%8E%B0%E9%87%91%E8%B4%B7

Cash loan, short for small cash loan business, is a consumer loan business issued to applicants. It has convenient and flexible borrowing and repayment methods, as well as real-time approval and fast arrival.

Since 2015, cash lending, as an important branch of consumer finance, has begun to rise strongly in China. The first and second tier cities are mainly online, and the third and fourth tier cities are offline.

As of January 2018, the financing channels of the cash loan platform have been completely blocked. In addition to the financing channels of banks and ABS products, the financing channels of the capital market are also tightening.

It is undeniable that "cash loans" can solve the urgent needs of consumers. However, the chaos that breeds it can not be ignored, especially the "cash loan" that has been criticized for the hidden high interest rates. Although some lenders claim "low interest" or even "zero interest", a wide range of service fees, operating fees, overdue fees, late fees, etc. can be converted, and interest rates often reach 400% or even 600%. In addition, under the extensive business model, the bad debt rate remains high, and the violent collection of borrowers' breach of the legal bottom line has disturbed the normal financial order and has adversely affected social stability.

What is Routine Loan (Tao lu dai in Chinese https://baike.baidu.com/item/%E5%A5%97%E8%B7%AF%E8%B4%B7)?

Routine loans are intended to induce or force victims to sign "borrowing" or disguise "borrowing", "mortgage", "guarantee" and other related agreements for the purpose of illegal possession and borrowing private loans, by falsely increasing the amount of loans and maliciously creating defaults. 2. A general name for illegal criminal activities related to arbitrarily determining breach of contract, obscuring repayment evidence, etc., and forming false claims and debts, and using lawsuits, arbitrations, notarization, or illegal possession of victims' property through violence, threats, and other means. [1]

For the "routine loan" joint crime, there is indeed evidence that more than three people constitute a more stringent and fixed criminal organization that has planned and committed the "routine loan" crime and has formed a criminal group. It should be identified as a criminal group [2 ].

The essence of "routing loans" is a real scam under the guise of swindling private loans. "Routing loans" already have the embryonic form of knowledge-based crimes, and even individual legal practitioners have become co-conspirators or "military divisions" of perpetrators, giving them professional "legal guidance", increasing the success rate of "false lawsuits" and obtaining high sums. Proceeds of crime. [3]

To better understand how the routine loan works, please read this typical case:

The Lanzhou routine loan case:

http://www.chinadaily.com.cn/a/201906/26/WS5d137689a3103dbf1432a72c.html

https://www.jqknews.com/news/235447-Lanzhou_cracked_the_routine_loan_case_the_entrance_of_the_loan_platform_after_the_installation_of_the_recipe_App.html

https://www.thestar.com.my/news/regional/2019/06/28/massive-online-loan-scam-busted

The mastermind of the Lanzhou routine loan case is Mr. WANG Shuzheng.

https://news.hexun.com/2019-09-05/198459817.html
http://blog.sina.com.cn/s/blog_19194258d0102yv30.html

8 months from May 2018 to March 2019. Starting from 200 million principals, Wang Shuzheng disbursed nearly 6 billion yuan to 475,000 people, recovered 9.1 billion yuan, and 1.47 billion yuan of outstanding principal. Received direct interest of 3.1 billion, overdue interest of 8.4 billion, cumulative size of 18.9 billion

The author of the article which this board uses as main source of evaluation, calls himself as Inspector financial digest or just inspector. The very first paragraph of the article gives following information:

Panshi Technology estimates that the net profit for 2019-2021 will be 100 million yuan, 450 million yuan and 780 million yuan, with an internal valuation of 7 billion yuan and an estimated market value of 70 billion after listing. However, according to the inspector's understanding, the main source of profit for Zhejiang Panshi is not the Internet advertising business, but cash loans. In 2019, only overseas cash loan business is expected to contribute 50 million yuan in net profit to Panshi. There are also records showing that before 2018, Panshi Technology had been engaged in 714 cash loan business in China

Whoever prepared the introduction page of SBES conveniently left out the highlighted information.

What is 714 cash loan? It is also called 714 Gao Pao Dai in Chinese:

https://baike.baidu.com/item/714%E9%AB%98%E7%82%AE/23351247?fr=aladdin

Here is a portion of its google translation:

714 anti-aircraft artillery refers to those high-interest internet loans with a maturity of 7 or 14 days, which include high “deheading interest” and “overdue fees”. 90% of the 714 anti-aircraft guns are mainly based on the 7-day period. The annualized interest rate of interest has basically exceeded 1500%.

The author of the article provides the evidence that Zhejiang Panshi Information Technology Limited was and is involved in criminal routine loan business and is connected with the busted Lanzhou routine loan case mastermind Wang Shuzheng.

I encourage everyone here carefully read the article in entirety to understand and validate the information the author provides.