Huang Yunfei's Talk about the Finance and Intelligent Supply Chain

Recently, Value China Net interviewed Mr. Huang Yunfei, CTO of Shanghai Huaneng Electronic Commerce Company. Huang Yunfei talked about many brilliant opinions and authoritative opinions on the industrial Internet, especially in the energy industry, and the intelligent supply chain. Particularly noteworthy is that he has carried out in-depth thinking and exploration of "dual empowerment" from the perspectives of energy and financial innovation, and smart supply chain, as well as the structural relationship between the two. 

Energy supply chain industry has a major feature, that is, the industry and capacity are quite dispersed. The energy internet, which takes an innovative stance, can play an important role.

Huang Yunfei said, "Because we are engaged in a very dispersed industry, there is a need to gather the industry together. Of course, aggregation is not necessarily the way of physical space, so we can use the so-called virtual digital way to optimize from the perspective of informatization and digitalization. At the same time, we can also use modern financial means to provide drip irrigation. "Drip irrigation" is Israel's agricultural technology, is targeted water-saving irrigation.

Huang Yunfei made an interesting analogy, "talking about the"drip irrigation"of finance to the real economy." In the past, it was very difficult for us to do this. Firstly, our overall level of information is not high. Secondly, banks or other financial institutions do not collect enough information related to credit risk for real enterprises. So it depends more on the credit of the enterprise itself, or on the mortgage of movable property. 

For a long time, only with the existence of collateral, can enterprises finance to a certain extent. These are the traditional financial methods.

But in fact, all entity enterprises need financing in the whole economic activities. Fortunately, with the development of the Internet, the emergence of data, with financing conditions scenarios, will be far greater than the existing situation. Specifically, under the scenario of supply chain innovation, it may change from large amount of credit financing to real-time, small-scale transaction credit financing.

"Is this not very like drip irrigation?" Huang Yunfei talks about factoring innovation and excitement. The core of innovative transaction credit is that in the process of transaction and delivery, many static and dynamic real-time statistical data can construct credit. —— In different scenarios, the corresponding risk credit model is constructed by organizing various data. —— And these credits, I believe, will coexist with our original credit system in the future. This is the "biggest change from traditional supply chain finance to modern supply chain finance". Instead of relying on the existence of near-term credit, goods or assets, it becomes a dynamic transaction credit. Transactional credit will inevitably produce more financing scenarios. At the same time, the rating of possible risks varies from high to low in the whole trading links and trading items. Different social funds can be allocated according to their institutions'preferences for risk and the relationship between risk and profit.

There are many scenarios in the original enterprise. When the new supply chain finance is applied, it is actually a credit, and the risk assessment will become a very controllable scenario. Otherwise, without the support of relevant information and data, enterprises can only use high interest rates in order to obtain financing, and lenders can only hedge high risks by demanding high returns. Neither side is in the best condition.

Through the Internet platform, coupled with the Internet of Things, and connecting all the information from the supply side to the demand side, it is possible to create many specific and reliable financing scenarios, which will bring about significant reduction in financing costs and enhance the momentum of the entire industry chain.

Obviously, the so-called "transaction credit", that is, the traditional understanding of credit, has been greatly expanded in the application scenario at least. Secondly, the understanding of assets is also a great innovation. Originally thought assets can only be some fixed objects, but now more evolved to innovative areas such as data assets, credit assets and so on.

"We are now setting up a factoring company to make use of modern financial means to make an innovative attempt in this business. Our goal is not to make a lot of profits from it, but to give more impetus to the industrial chain.

New Energy Finance: Expectations of Innovative Factoring Business

Factoring, also known as collection and guarantee, refers to the receivables generated by the seller based on the sales and service contracts with the buyer, which are transferred to the factoring business (financial institutions providing factoring services) by the factoring business to provide them with financial information, buyer credit evaluation, and so on. Sales account management, credit risk guarantee, account collection and a series of comprehensive financial services. Factoring companies also exist in the traditional market, which is a kind of financing of accounts receivable at the top of the enterprise. Of course, an endorsement of a core enterprise is needed. In the new scenario, especially in the logistics scenario, the factoring of logistics freight, on the one hand, the account period of freight is actually widespread; on the other hand, with the expansion of the whole business scale of enterprises, the demand for factoring is also very common.