Core Insights - The sea cucumber farming industry in Xiapu has grown from negligible beginnings in 2003 to a significant economic pillar, contributing to 30% of China's sea cucumber production with an annual output value exceeding 10 billion yuan [1] - The introduction of warehouse receipt pledge loans has addressed the financial challenges faced by sea cucumber farmers, enhancing their pricing power and profitability [2][3] Industry Development - Xiapu has transformed into a major sea cucumber farming base, overcoming historical limitations and establishing itself as a key player in the "North Cucumber South Farming" initiative [1] - The sea cucumber industry has expanded its scale, with production now accounting for 30% of the national output despite occupying less than 1% of the sea area [1] Financial Innovations - The warehouse receipt pledge loan system allows farmers to use their processed sea cucumbers as collateral for loans, significantly increasing their average loan amount from 300,000 yuan to 1.2 million yuan [3][4] - This financial innovation has filled a critical gap in the financing of the sea cucumber industry, providing necessary credit support during both production and sales phases [3] Market Dynamics - The introduction of warehouse receipt loans has extended the selling period for farmers from 3-5 days to over six months, allowing them to better time their sales according to market conditions [4] - The average profit margin for farmers can maintain above 30% in favorable years due to improved negotiation capabilities [4] Industry Structure Enhancement - The warehouse receipt pledge loan has facilitated the development of a comprehensive industry structure, integrating farming, processing, and cold chain storage [5] - The proportion of sea cucumber processing in the industry chain has increased from less than 40% to over 70%, with the number of cold storage enterprises growing from 2 to 9 since 2014 [5] Growth Metrics - The volume of warehouse receipt pledge loans surged from 85.12 million yuan in 2015 to 1.53 billion yuan in 2024, marking a 95-fold increase [6] - The number of banks offering these loans has expanded to 8, representing 80% of all banks in Xiapu [6] Support Mechanisms - A collaborative model involving banks, government financing guarantees, and storage enterprises has been established to reduce financial burdens on farmers [7] - The "Min Yi Rong" loan code initiative has streamlined the financing process for small and micro enterprises, enhancing access to financial services [8] Broader Impact - As of June 2025, 783 small micro enterprises have benefited from warehouse receipt pledge loans, accounting for 66% of the total loan volume [9] - The model has expanded beyond sea cucumbers to include other agricultural products, establishing a benchmark for inventory pledge loan services in the region [9]