Optimizing the capital chain of small, medium and large-sized enterprises with finance as the link;

Expanding the service chain of small, medium and large-sized enterprises with platform carriers as the support.

——Requirements of 11 departments including the Ministry of Industry and Information Technology for promoting the collaborative innovation by small, medium and large-sized enterprises

As an important means of serving industrial chain development and supporting industrial upgrade, supply chain finance has played a key role in solving the difficulty in financing and the high cost of financing for small and medium-sized enterprises.

Since 2021, Far East Horizon has developed and launched a supply chain financial technology platform as one of the main scenes of its integrated services, meanwhile promoting its knock-out product “Yuan Xin”—by creating standardized electronic receipt for rights confirmation which supports financing and instalments and effectively revitalizing high-quality credit of core enterprises, it solves financial difficulties for various small and medium-sized enterprises of the industrial chain. Up to now, there have been over 120 core enterprises and more than 240 suppliers on “Yuan Xin,” its clients covering multiple industries including healthcare, people’s livelihood, transportation, etc. 

Supply chain finance is not new. It provides systematic financial solutions for clients mainly by integrating information such as logistics, capital flow and information flow during the transaction process. Nevertheless, traditional supply chain financial services have quite a few problems: difficulty in transmitting high-quality credit of core enterprises, low information transparency in the transaction process, high credit risk of enterprises, and difficulty in proving the authenticity of transactions. These problems are like barricades on a new road—despite good infrastructure and green lights all the way, vehicles still cannot pass unimpededly, which have undoubtedly made it considerably more difficult and less efficient to reduce the financing cost of enterprises.  

On the basis of its rich experience accumulated in serving real economy, Far East Horizon starts from the industrial chain perspective, and finds that the key to unobstructed supply chain financial services is to realize “rights confirmation” for core enterprises. As a main node of the supply chain, a core enterprise is an imponent hub for linking up suppliers, and some are even connected to hundreds and thousands of suppliers with intricate and complex transactions. For suppliers, the “difficulty in financing” is ultimately attributable to the “difficulty in rights confirmation” of core enterprises.

In response to this problem rises “Yuan Xin”—Far East Horizon’s customized solution. Based on core enterprises’ payables to suppliers, it provides supply chain information services including digitalization of creditors’ rights and complete online process operation, and establishes standardized electronic receipt for rights confirmation which supports financing and instalments, so as to “transmit” the low financing cost that used to be enjoyed by core enterprises only to suppliers at various levels of the industrial chain. “Yuan Xin” satisfies the needs of small and medium-sized enterprises for quick collection of receivables and improvement of capital turnover efficiency, featuring safety, efficiency and convenience.

Those advantages of “Yuan Xin” are only a tip of the iceberg. It is supported by the Company’s profound understanding of the industrial chain as well as its strong technological strength. Far East Horizon’s dual advantages in financial services and industry operations are a perfect fit for supply chain finance’s dual attributes of finance and industry. “Yuan Xin” continues to explore the capital needs of core enterprises and upstream & downstream industries, superimposes scenario control means, and explores individual requirements in real transaction scenarios with the power of technology, which not only effectively helps industrial chain suppliers to reduce financing cost and revitalize movable property resources, but also lowers the difficulty of credit examination and approval and realizes precise customer identification for financial institutions, thereby promoting the development of the overall industrial chain in practice.

Healthcare is among the first batch of industries that Far East Horizon sets foot in. Through over two decades of strenuous efforts, the Company’s service mode and investment scale have become and remained a benchmark for China’s healthcare industry. Undeniably, in the aspect of supply chain finance, the medical industry’s pain points are quite prominent. To resolve the dilemmas faced by micro, small and medium-sized medical circulation enterprises, Far East Horizon’s “Yuan Xin” services decide to begin from exploration of the healthcare industry.

In terms of capital business, a certain Grade A tertiary hospital has been cooperating with the Company for 7 years. It is a high-level academic hospital integrating medical services, teaching, scientific research, disease prevention, and health, with over 2000 beds available and more than 500 million yuan of annual income.

With the continuous deepening of cooperation, Far East Horizon has keenly perceived the hospital’s special need—in addition to conventional capital for investment, it also needs operating capital for procurement. The inadequacy of the hospital’s operating capital directly affects the dates of payment to its suppliers, resulting in the suppliers’ pressure of advances and urgent need for collection of receivables; meanwhile, the hospital itself also needs an interest-free product which can postpone payment dates to increase cash flow.

As always, Far East Horizon puts clients first and strives to solve the urgent needs of its clients immediately. To cope with the dilemma faced by the hospital, based on the existing foundation of “Yuan Xin” and an accurate grasp of the characteristics of the medical industry’s supply chain and the financing needs of various transaction links, Far East Horizon soon launched “Yi Xin” targeting the healthcare industry with the customized “1+N” mode, and imbedded it into the business chain with support from the credit of the hospital as a core enterprise. As a result, it has successfully satisfied the capital needs of upstream enterprises of the industrial chain. 

The online operation of “Yi Xin” has rendered the time arrangement of hospital clients more independent and convenient, and spared them the trouble of repeated offline operation, which both shorten the overall process chain and increase the capital spending efficiency, so as to guarantee more speedy collection of receivables for suppliers. As of now, this tertiary hospital has included over a dozen of suppliers into the “Yi Xin” network with nearly 30 orders placed.   

It has been merely a year since the launch of “Yi Xin” by Far East Horizon, but more than 300 hospitals and suppliers have already completed registration. This has provided efficient financial support for small and medium-sized enterprises of the industrial chain, and “Yi Xin” is also gradually becoming a payment habit and supply chain management tool for various hospital clients of the Company.

Besides application in the medical industry, by means of grafting onto various basic industries of social economy which the Company has delved into, customized products of “Yuan Xin” are also taking root in fields including people’s livelihood and electronic information one after another. Through constant optimization of services with subdivided products derived through the core platform, it drives the development of enterprise in the chain with core enterprises.   

By linking up numerous enterprises, Far East Horizon boosts their development with precision, and “putting clients first (customer-oriented)”is the underlying logic of its continuous evolution. The Company will keep deepening its cooperation with enterprises, give play to its unique advantages and comprehensive strength in supply chain finance, and develop more customized products on the basis of “Yuan Xin.” By promoting the integration and collaboration of various enterprises of the industrial chain, driving finance with industry while boosting industry with finance, and “irrigating” real industries by “drip feed” with “financial running water,” Far East Horizon contributes its unique strength to industrial upgrade and development.

Fly higher and farther with shared wings