China Silian Instrument Group joint venture state-owned small loan company

Guidance: Yesterday, Chongqing Chongqing Import & Export Credit Guarantee Co., Ltd. and China Silian Instrument & Meter Group Co., Ltd. jointly established a 100 million yuan joint venture "Chongqing North New District Xinlian Industrial Finance Small Loan Co., Ltd." officially opened. It is reported that there are more than 3,000 small and medium-sized enterprises in the supply chain of Silian Group, and most of them are private enterprises. They are faced with higher interest costs because they do not have high credit ratings and cannot meet the conditions for bank lending.

Another small loan company was established! Unlike other small loan companies, this is a pure state-owned small loan company. Yesterday, the two municipal state-owned key enterprises --- Chongqing Import and Export Credit Guarantee Co., Ltd. and China Silian Instrument and Meter Group Co., Ltd. jointly established a joint venture of 100 million yuan "Chongqing North New District Xinlian Jiarong Microfinance Co., Ltd." (Hereinafter referred to as "Xinlian Production and Financial Lending") officially opened its business and became Chongqing's first pure state-owned microfinance company.

Designed for corporate loans on the supply chain

According to the deputy director of the Financial Office Kuanglu, since Chongqing launched the pilot program for small loan companies in May 2008, there are 131 microfinance companies in the city so far, with a registered capital of 12.17 billion yuan and a cumulative loan of 41.7 billion yuan (about 4 yuan). 10,000 loans.

Unlike ordinary small loan companies, which are different from all SMEs in the business scope, Xinlian Small Credit Company specializes in serving upstream and downstream companies in the supply chain of Silian Group.

According to the reporter’s understanding, the establishment of the Xinlian-financed small loan is an innovative and beneficial attempt under the current management system. It not only created a precedent for the city’s state-owned capital to enter the microfinance industry, but also created a “guarantee company’s core group”. "Loan Company"'s new industrial financial model has opened up a new and effective way to ease the financing difficulties of SMEs in the current situation.

The establishment of Xinlian Lianrong Lending will open up an efficient and cost-effective financing channel for SMEs in the supply chain of Silian Group, which will enhance the supporting capabilities of the entire industry chain. This is also a situation that is highly tightened at the monetary level. Next, it has created a more effective model for breaking the financing problem of SMEs.

Create innovative industrial financial model

Silian Group has more than 3,000 small and medium-sized enterprises in the supply chain, and most of them are private enterprises. The annual capital needs are at least 500 million yuan. They are unable to meet the conditions for bank lending due to low credit rating and insufficient mortgage assets. Small loan company financing is also facing higher interest costs.

The Xinlian Production and Finance Small Loan, which was established through the “guarantee company core group small loan company” model, will combine the resources and technical advantages of the three to solve the problem of risk identification, monitoring, disposal and cost that are difficult to solve by the general small loan companies. It provides efficient, quick and low-cost financing services for SMEs in these supply chains to solve their financial difficulties in production operations and technological transformation.

Eliminate development shortcomings

For Silian Group, the establishment of Xinxun Production and Small Credit will help protect the order of Silian Group's production and sales, and help it build China's largest billion-scale LED industrial chain.

According to the reporter’s understanding, Silian Group will purchase billions of yuan worth of goods from its upstream supporting companies each year. Once the supporting enterprise’s capital turnover is not smooth, it will not be able to provide kits in time. Silian Group will inevitably increase procurement costs and affect the supply to downstream enterprises. The quality and progress of the goods.

Therefore, the solution to the funding problem of the supporting enterprises is actually to supplement the liquidity of the Silian Group, guaranteeing its normal production and sales order, thereby enhancing the supporting capabilities and market competitiveness of the entire industry chain, and contributing to the Silian Group. Build the largest scale LED industry chain in China and achieve the top five global automation instrument strategic goals.

As far as the import and export guarantees are concerned, the establishment of Xinlian Furong Microloan has started the prelude to its group development and will promote its profitability model with better benefits, controllable risks, and sustainable development. Xinlian Lianrong Microfinance is the first subsidiary established by import and export guarantee investment, and it is also an important attempt to change its single profit model. At the same time, this will also change the business expansion model of the guarantee company solely relying on the increase of outlets, change the original decentralized horizontal expansion into a concentrated vertical expansion, and also be an exploration and innovation of the development model of the guarantee company.

Yesterday, Zhang Zujun, general manager of Chongqing Import and Export Guarantee Co., Ltd. and chairman of Chongqing Xinlian Jiarong Microfinance Co., Ltd. received an exclusive interview with reporters and talked about the establishment of Xinlian Rongrong, which was considered by Zhang Zujun as a pioneering initiative. The risk is not as high as people think.