Ponzi Scheme?, page-27

My understanding of it revolves around your second point;

- If QIN finances the purchase of materials (wood from growers) using debt, equity or other revenues, that's what most businesses do right?

Many Agri businesses will borrow to harvest their product (or plant if short cycle), the key element is the selling of the harvested product for a price more than you bought if for and a servicing of the debt from the sales.

So if your first point is true and there is cashflow from sales greater than the costs to purchase the product AND debt is being serviced and hopefully reduced, then it is a normal business.