“Specialized, Specialized and New” enterprises in the Greater Bay Area are deployed in ASEAN. How does the “living water” of finance drip irrigation into the real economy?

21st Century Business Herald reporter Hu Lu reported from Shenzhen

With the continuous expansion of the application of digital hand-painting in comics, games, graphic illustration, architectural design, 3D animation, and film and television production, Shenzhen Hanwang Youji’s digital drawing boards and handwriting boards have become popular products on cross-border e-commerce platforms.

The cross-border e-commerce market in Southeast Asia is one of the core business markets of Shenzhen Hanwang Youji. “We plan to develop online business in the Philippines, Malaysia and other places, and at the same time adopt the agency layout in other regions such as Vietnam and Cambodia.” Mao Aihua, chief financial officer of Shenzhen Hanwang Youji Technology Co., Ltd., told the 21st Century Business Herald reporter.

For Hanwang Youji, cross-border capital settlement, exchange rate exchange, and risk hedging are daily problems. “In carrying out cross-border business, it involves the exchange of some small currencies such as Vietnamese dong and ringgit, which sometimes brings us some trouble.” Mao Aihua said that the ASEAN market sometimes has obvious exchange rate fluctuations, so the exchange rate of Hanwang Youji Risk management puts forward higher requirements.

The electronic product supply chain service company Xindatong, which started in Shenzhen, is also facing similar challenges.

“Entrusting the payment of foreign exchange and completing the payment within one hour after domestic collection is the commitment of Xindatong to customers.” Zhang Qingyong, general manager of Shenzhen Xindatong Supply Chain Management Co., Ltd., said that this is also the way to win in the electronic product supply chain. At present, Xindatong is actively seeking a channel that can realize exchange rate payment at the fastest speed in order to maintain its core advantages.

The Guangdong-Hong Kong-Macao Greater Bay Area has nurtured many high-quality growth enterprises similar to Hanwang Youji and Xindatong. The good foundation of innovative manufacturing, capital interconnection, cross-border market and other factors have made the Guangdong-Hong Kong-Macao Greater Bay Area initially form a high-quality growth enterprise cluster.

However, under the influence of the complex economic situation, large and medium-sized companies and small and medium-sized enterprises are facing various challenges, including supply chain, exchange rate risks caused by intensified two-way fluctuations in foreign exchange, capital liquidity, and high financing costs.

The cross-border potential of “specialized, specialized and new” in the Greater Bay Area

Fast, accurate and stable, the nib is sensitive, no lag, no delay. These are user experience reviews using digital hand-drawn tools.

According to Mao Aihua, the closer the digital hand-painting tool is to the traditional handwriting experience, the more users can create as they wish, which puts forward higher requirements on the sensitivity, followability and control of digital brushes and drawing boards.

As the world’s leading provider of digital handwriting technology solutions, the wireless passive electromagnetic touch technology mastered by Hanwang Youji is the core technology of digital painting products, which constitutes the commercial moat of Hanwang Youji in this field, and has achieved high growth in recent years. The annual profit reaches RMB 100 million. At present, Hanwang Youji’s digital handwriting products have carried out digital marketing in more than 130 countries and regions, covering more than 20 cross-border e-commerce platforms and independent station marketing networks in the global market, and 25 warehousing logistics and service agencies. In 2021, Hanwang Youji will be selected as a specialized, special and new enterprise in Guangdong Province, and in 2022, it will be selected as a national-level specialized and special new “little giant” enterprise.

Shenzhen Hanwang Youji Technology Co., Ltd.

At present, China has become the world’s largest cross-border e-commerce market. Customs statistics show that in 2021, China’s cross-border e-commerce imports and exports will be 1.98 trillion yuan, an increase of 15%; of which exports will be 1.44 trillion yuan, an increase of 24.5%.

According to a report released by the Boao Forum for Asia Research Institute in July this year, China’s cross-border e-commerce exports to ASEAN increased by 98.5% in the first half of this year.

Relying on geographical and policy advantages, as the hub of China’s cross-border e-commerce, specialized, specialized and new enterprises in the Greater Bay Area play a pivotal role in the transformation process of regional and global trade digitalization.

Mao Aihua said that compared with the previous titles of innovative and high-tech enterprises, the specialization and new “little giant” industries have received greater support from policies and funds, sometimes even much higher than the former.

“This kind of support is especially reflected in the Greater Bay Area, where the emphasis on specialization, specialization, and innovation is higher than in other regions.” Mao Aihua said that as a specialized, specialized and new enterprise, Hanwang Youji not only benefited from policy subsidies, but also received government support. Mentoring and nurturing. In addition, the Specialized Specialty New tab is a nice bonus when it comes to getting credit-based financial support.

Therefore, Hanwang Youji also has enough confidence to expand its layout, especially in Southeast Asia and ASEAN.

Mao Aihua introduced that Hanwang Youji’s development strategy in Southeast Asia is divided into two levels. First of all, in the areas that can be covered, such as the Philippines, Malaysia, Singapore, Indonesia and other places, Hanwang Youji also cooperates with offline agents while developing online business. In areas not covered by Vietnam, Cambodia, etc., Hanwang Youji adopts an “agent” approach to market layout.

Mao Aihua said that in the process of Hanwang Youji expanding the ASEAN market, DBS Bank gave Hanwang Youji great support and cooperation in credit extension and business development.

“We have an extensive network in the RCEP region and the ASEAN region, which is why many companies choose DBS Bank.” said Wang Weiqiang, Head of Banking, Medium and Small and Medium Enterprises, DBS Bank (China) Co., Ltd. The largest bank, DBS, relying on its parent bank’s network advantages in ASEAN, supports domestic enterprises to go out and invest overseas, through DBS China to issue counter-guarantee guarantees in the form of local transfer, including performance guarantees, payment guarantees, quality guarantees, fully support Mainland enterprises have successfully developed projects and procurement in ASEAN. “Companies who are currently or plan to develop business in these regions are eager to cooperate with us.”  

John WONG

In the first quarter of this year, ASEAN replaced the EU for the first time as China’s top exporter. According to data released by the General Administration of Customs of China, in the first eight months of this year, China’s imports and exports to ASEAN increased by 14% year-on-year, and its imports and exports with other members of the Regional Comprehensive Economic Partnership (RCEP) increased by 7.5% year-on-year.

“Winning with speed”, accompany the whole cycle of digitalization

Even if it has a considerable scale in the industry, for Hanwang Youji, the challenges and troubles brought by exchange rate risks are not small.

“It is very important to develop cross-border e-commerce business and win quickly.” Mao Aihua said that Hanwang needs to make rapid efforts to complete the layout of e-commerce sales channels in the global market as soon as possible; this is not an easy task for a traditional company that is known for its technological advantages. There are many new propositions to face – such as the management and settlement of funds in dozens of currencies around the world.

“The exchange of small currencies such as Vietnamese dong and ringgit sometimes brings us some troubles and surprises.” Mao Aihua explained that Hanwang Youji needs a convenient platform to open up the channel for small currencies to be exchanged for US dollars.

 “Forex management is a very professional job.” Mao Aihua said, “Our cross-border e-commerce business mainly relies on third-party payment platforms to complete online payments. Through DBS Bank’s digital foreign exchange management platform and services, we Being able to manage positions and risks effectively gives us more confidence to promote Hanwang’s digital painting products to the world.”

“The exchange rate fluctuations in ASEAN countries are sometimes very obvious. Enterprises receive small currency currencies, and the exchange costs are high and time-consuming.” Wang Weiqiang introduced, “We are familiar with local laws and regulations and business environment, and provide digital foreign exchange management services to solve the pain points of enterprises. , to guide enterprises to establish a neutral awareness of exchange rates and improve their ability to respond to foreign exchange risks. SMEs in the Greater Bay Area have a high degree of acceptance of digital solutions. This year, the proportion of digital foreign exchange transactions of our SMEs in the Greater Bay Area has reached 77%.”

Shenzhen “Xindatong” Supply Chain Management Co., Ltd. also has the problem of exchange rate “speed”. The company focuses on electronic product supply chain services. Its business scope covers electronic product import customs clearance, cargo warehousing, logistics and distribution, Hong Kong collection (delivery) and other services. Its business network covers large cities such as Beijing, Shanghai, Guangzhou and Shenzhen. And Shenzhen has a large standardized self-owned warehouse of 5,000 square feet and 2,000 square meters.

“Customs declaration goods will be delivered to Shenzhen on the same day and delivered the next day; entrusted foreign exchange payment will be completed within 1 hour after domestic payment.” Zhang Qingyong said that this is the company’s commitment to customers. In the past two years, due to the extremely tight supply of electronic parts, it is difficult for Xindatong to quickly complete external purchases and collections, and it is impossible to quickly remit money in the same period, so it is difficult to lock in the supply of some electronic parts.

“This problem is particularly bothering us.” Zhang Qingyong said that the supply in the global market is tight, and even if a second or half of a second is missed, the inventory may fall into a state of shortage.

Small and medium-sized enterprises with cross-border development needs generally face challenges from supply chains, exchange rate fluctuations, capital liquidity and high financing costs. At the same time, facing the external pressure of digital transformation, enterprises urgently need to improve their digital capabilities. According to the “Digital Readiness Survey” conducted by DBS Bank, 97% of enterprises in Asia Pacific said they are facing external pressure to digitally transform, and the increasing complexity of supply chain is one of the factors driving the change. Affected by the long-term trend of damage to global trade, the demand for digital services to strengthen the supply chain has surged.

“Speed ​​is our competitive advantage.” Zhang Qingyong said, “Since we have connected the import customs declaration service platform with DBS Bank’s application programming interface (API), we have been able to easily achieve the customer commitment of “complete entrusted foreign exchange payment in one hour”. “

According to Wang Weiqiang, since 2017, DBS Bank has launched 12 digital cooperation platforms with digital finance and settlement capabilities. In 2021, 90% of DBS’s supply chain finance transactions in Asia will be conducted through digital platforms. Currently, DBS Bank is continuing to accelerate the digital financing capabilities of the trade platform. In order to help companies cope with the long-term damage trend of trade and geopolitical tensions, DBS Bank will launch five new digital platforms in 2022, with comprehensive capabilities in digital supply chain financing, mainly involving industries such as e-commerce, logistics and commodities . It is reported that the new platform will benefit more than 15,000 Asian SMEs by the end of 2022.

Recently, DBS has continued to leverage its advantages in cross-border financial digitization and launched a package of cross-border financial solutions called “DBS One-stop for the Greater Bay Area”, which provides a more convenient, efficient and flexible package of cross-border financial solutions to ensure the financing of small and medium-sized enterprises in the Greater Bay Area. Global Financial Solutions. “Small and medium-sized enterprises have a very good soil in the Greater Bay Area. SMEs in Shenzhen are innovative, particularly active and flexible. They can seize opportunities more quickly than enterprises in other regions, which is the most obvious for SMEs in the Greater Bay Area. characteristics.” Wang Weiqiang added.

Finance escorts the high-quality development of the real economy

Not far from the Xindatong factory, there is a warehouse belonging to Xiangjiang Electric, where people and goods are equally busy.

As a large-scale exporter of high-quality household products in China, Heungkong Electric is committed to the design and manufacture of electrical and non-electrical household products. More than 90% of its products are sold to European and American countries. At present, Heung Kong Electric has established a number of wholly-owned enterprises across the country, located in Shenzhen, Guangdong, Huizhou, Guangdong, Huanggang, Hubei and Jiangyin, Jiangsu, etc., and has formed a complete industrial chain. Among them, the production base in Qichun County, Huanggang, Hubei is a large-scale standardized industrial park, covering an area of ​​200 mu, involving home appliance production lines, logistics centers, R&D laboratories, etc., providing nearly 1,000 jobs for the local area.

“This is a precise assistance to the country’s rural revitalization goals and tasks, and it has long-term sustainable momentum.” Mr. Pan Yun, chairman of Heungkong Electric, sighed that there is a family behind every employee, and these nearly 1,000 families are the social responsibility of the company . As a long-term financial partner, DBS Bank has cooperated with Heung Kong Electric for over 15 years. Pan Yun said that when doing “international business”, financial partners must have overseas market networks and digital advantages. As the main cooperative bank and main settlement bank, DBS Bank provides Heung Kong Electric with fixed asset loans, export factoring, accounts payable financing, letters of credit and foreign exchange product quotas, etc. Comprehensive financial support.

“Building a modern industrial system, insisting on focusing on the real economy, and promoting new industrialization” is the country’s key strategy, and supporting the development of the real economy is the mission of the financial industry.

“DBS has the genes of serving SMEs, and has a deep understanding of the pain points of SMEs.” Wang Weiqiang said, “SMEs should fully grasp the current window period of digital economy, industrial chain and supply chain development, and green transformation. In the future, DBS Bank will further support technological innovation and industrial upgrading of enterprises, accelerate the promotion of digital transformation, and escort the high-quality development of the real economy.”