Summary of the Conference Call for 联易融科技 Company Overview - 联易融科技 is a leading supply chain financial technology solution provider in China, with a service asset scale of RMB 411.2 billion in 2024, representing a year-on-year growth of 28% and a market share of 21.1%, ranking first in the industry [2][3][5]. Financial Performance - Revenue for 2024 reached RMB 1.03 billion, up 19% year-on-year, with a gross margin increase to 70%, reflecting a 36% growth in gross profit, which outpaced the growth rates of scale and revenue [2][3]. - The company has a cash reserve of RMB 5.1 billion and a price-to-book ratio of only 0.3, indicating a high safety margin and significant undervaluation relative to its market value of over RMB 30 billion [3]. Business Segments - The company operates through three main business segments: Core Enterprise Cloud, Financial Institution Cloud, and Cross-border Cloud [2][7]. - **Core Enterprise Cloud**: Achieved a steady growth of 34%, with multi-level circulation business accounting for over 60%, growing by 52% year-on-year [2][7]. - **Financial Institution Cloud**: Expanded from payable ABS to receivable ABS, doubling transaction volume, with the WindLink AI agent product contributing over RMB 20 million in revenue [2][8]. - **International Business**: Collaborated with cross-border e-commerce platforms like Amazon and Shopee, establishing offices in the UK, India, the US, and Singapore, and forming a joint venture with Standard Chartered Bank [2][9]. Technological Innovations - The company has been deeply involved in blockchain technology, developing the underlying chain Be Trust and launching digital trade token platforms (DTT) and asset-backed tokenization platforms (ABT) to enhance global supply chain trade efficiency [4][12][14]. - The DTT platform allows conditional payments through smart contracts, while the ABT platform tokenizes real-world assets for investment [15][17]. Market Position and Strategy - The company plays a crucial role in connecting core enterprises, financial institutions, and small and micro enterprises, with a customer retention rate of 99% [5]. - Future strategies include deepening cooperation with digital banks and exploring digital token projects in the Web 3.0 space, while expanding international markets [10]. Regulatory and Market Outlook - The company is preparing to support various stablecoins, which are expected to play a significant role in trade finance, enhancing payment conditions and integrating with accounts receivable financing [23][27]. - The development of stablecoins is anticipated to create new service opportunities and enhance the efficiency of cross-border trade [24][25]. Key Partnerships and Projects - Significant collaborations include projects with Standard Chartered Bank and participation in initiatives like Project Dynamo and Project Guardian, focusing on asset tokenization and trade finance [13][21]. Conclusion - Overall, 联易融科技 is positioned strongly in the supply chain finance sector, with robust financial performance, innovative technology applications, and strategic international expansions, while also preparing for the evolving landscape of digital currencies and stablecoins [2][10][27].

Industry Overview and Market Size - The supply chain finance industry in China integrates logistics, information flow, and capital flow to alleviate financing gaps, especially for SMEs. The scale of supply chain basic assets is projected to grow from 127.2 trillion yuan in 2020 to 133.9 trillion yuan in 2024, with a compound annual growth rate (CAGR) of 9.1%. Accounts receivable account for over 40% of the main asset types. The supply chain finance market size is expected to increase from 22.7 trillion yuan to 41.8 trillion yuan during the same period, with a CAGR of 13.5% driven by AI technology and loose monetary policy [1][2][18]. Core Development Trends - Technological empowerment is deepening, with AI models enhancing review efficiency by 95% and reducing labor costs. Blockchain technology improves data transparency and asset transfer efficiency. The rise of treasury management models is optimizing resource allocation and enhancing collaboration in supply chain finance. Policy support is strengthening, with initiatives aimed at promoting inclusive finance and alleviating financing pressure on SMEs [2][3][4]. Technology Applications and Market Pain Points - Traditional supply chain finance faces challenges such as information silos and high risk control difficulties. Technological solutions using big data and blockchain enhance risk control accuracy and transaction efficiency. The penetration rate of third-party technology solutions is expected to rise from 5.2% in 2020 to 11.7% in 2024, with a forecast of 20.2% by 2029 [3][4][5]. Competitive Landscape and Leading Companies - The supply chain finance technology service providers in China include third-party platforms, financial institutions, and core enterprise affiliates. By 2024, five major institutions, including Lianyi Rong and Ant Group, are projected to hold 74.2% of the supply chain ABS/ABN market, with Lianyi Rong leading at a 29.2% market share [4][5][6]. Future Outlook - The supply chain finance technology sector is expected to evolve towards intelligence and ecosystem integration, driven by the expansion of emerging industries and continuous policy support. The integration of technologies such as AI, blockchain, and IoT will further optimize risk control models and expand service coverage [5][6]. Summary - Overall, the Chinese supply chain finance technology industry is progressively building an efficient and transparent ecosystem through technological innovation and model upgrades, providing significant support for the development of the real economy [6].

Core Insights - The People's Bank of China and six other departments issued a notification to regulate supply chain finance, effective from June 15, 2025, which aims to strengthen supervision while allowing space for digital innovation [1][3] - The notification addresses three core issues in supply chain finance, including establishing a comprehensive debt monitoring mechanism, limiting the payment term for electronic receivables to a maximum of one year, and prohibiting forced high-interest financing for chain enterprises [3] - The policy encourages commercial banks to develop diversified supply chain finance models and explore "supply chain de-centralization" innovations, providing a policy interface for technology companies to enhance financing accessibility for small and micro enterprises [3][5] Industry Developments - Microbanking technology company WeBank has been focusing on inclusive finance for ten years, with its "invoice chain loan" solution resonating with the policy direction, helping 17 banks achieve decentralized credit granting and providing over 30 billion yuan in financing to 20,000 small and micro enterprises [4] - The digital innovation effectively addresses the dual challenges of traditional supply chain finance by avoiding excessive credit risk from core enterprises and reducing the high costs of rights confirmation for chain enterprises [4][6] - The new regulations are seen as a catalyst for the standardized development of the industry, with WeBank positioning itself as a licensed credit institution and focusing on various supply chain sectors such as exports, liquor, e-commerce, government procurement, and pharmaceuticals [5] Future Outlook - The company anticipates that the number of small and micro enterprises it assists could grow from 10 million to 20 million over the next three years, driven by ongoing policy benefits [5] - The integration of a comprehensive risk control system is necessary for banks to achieve batch credit granting, leveraging WeBank's accumulated client base of over 300 banks and differentiated scoring models for small enterprises [6] - The collaboration between regulatory frameworks and technological innovation is expected to balance the development of supply chain finance, contributing to new financial services for the real economy [6]