Linklogis Supply Chain Finance
Open Platform of Supply Chain Financial Service
Linklogis Financial Services Co. Ltd
Company Profile
February 2016
Established
June 2016
Series A Financing
June 2017
Series B Financing
December 2017
ABS deals RMB 30 billion+
September 2018
Launched ABS deals Total Issuance of RMB 5
billion+
Series C Financing USD 220 million raised
October 2018
WeChatSubscribing
Accounts“Mini”
ProgramsMobile
PaymentSocial
Media AdsBusinessWeChat
SecurityCapabilities
Fintech Capabilities:The “Seven Weapons” for Building the “Digital Fortress”
Tencent’s technical support Linklogis’ Expertise in SCF
AIBig Data
Cloud Comp.
Operational Expertise
Corporate Risk
Management Data
(Business)
SCF Structuring
Main Enterprise Data:
Social Media, Credit Report. (Consumer)
Web Traffic:“Mini”
ProgramsCapital side-
Tenpay
Asset side-Anchor Clients
Tech Capabilities:
Blockchain and Cloud
Technologies
SCF Platform
Tencent and Linklogis – Joining forces to build Fintech SCF
Fund Providers
• Diversified investment channels • Risk asset off balance-sheet • Improved asset-fund matching
efficiency
√ Asset Providers
• Service cost reductions • Risk-control capability
enhancement• Extensive fund sources
√ Anchors
• Improved cash flow situation• Enhancing supplier
sustainable development
√ Small and Micro Businesses
• Improved financing capacity and reduced cost
• Simplified processes and improved efficiency
√
Business Model - Open SCF platform
Sn
S1S2
S3
S1
S2
Sn
Sn
Sn
Bank
Factoring
Financial Leasing Micro-
financing
Others
Innovative Fintech
FundsRisk Control AssetsOperation
Real EstateConstructionManufacturing
Auto
PharmaceuticalNew RetailCatering
……
Internet financial platform
Bank/Trust/Fund/Broker
Industryfunds
Asset-backed Securities
Anchors Anchors
S3
S3
S4
S3
S2
S3
S3
S2 S3
S2
S2S3
S3S2
S2
S4S4
Fund channels
Provide Funds
PlatformEmpowerment Extend Credit Serve SMEs
Business Model - Product matrix through entire supply chain
AnchorSn S1…… S2
Example: Real Estate companyas Anchor
Real estate development
enterprise
Serving
upstream and
downstream
SMEs in a
supply chain
ecosystem
Provide asset management services for financial institutions with diversified assets
SCF Asset Service
SCF service with anchor’s confirmation
1
Anchor→ S1
Anchor credit-drivenAnchor’s upstream and downstream
Data-driven
2
Anchor→ Sn
Multi-tier Anchor credit-driven
“Weq” ChainSCF service with anchor’s
confirmation based on blockchain technology
3
ABS Re-factoring …… Beneficiary Trust Transfer
Constructioncompany
Steel PlantLogistics Company
TyreDistributor
“Bee”ReceivableReceivable service
with big-data technology
Product Matrix
SCF ABS – Capital Market Funded Programs
We have served more than 60 anchors and issued RMB 182.9BN ABS in China.
58
The credit of an anchor is transmitted along the supply chain to the suppliers at all levels with Weq Chain digital voucher (also “Weq Voucher”)
Weq Chain- Multi-tier SCF Solutions
Business Flow Financing Flow Payment Flow
Tier 1 supplier(S1)
Tier 1 supplier(S1)
Funds Provider(T+3)
Trade background
Apply
2 3
Issue“Weq Voucher”
Multi-level Circulation(S2…Sn)
Hold to maturity
Financing
5
6
4
7Apply
8 Release funds
9 Payment
Payment at maturity
Financing charge
Platform service fee
1
Payment Distribution
BlockchainLedger
Anchor
11
11
11
10
Payment Distribution
Payment Distribution
Bee Receivables – Data Driven Receivables Solutions
Score Card Credit Report
Real time risk alert
•Result runs daily/weekly/monthly•Customized risk alert rules
Pre-Transaction After Transaction
Customized Data Analysis
Business Operating
DataRisk
FilteringModel
Data cross-validation
SME’s credit data
Owner’s social
behavior data
SME owner’s credit data
Automatic Data Collection
•Intelligent Score Card •Customized Credit Report
Chi
nese
Supp
liers
Bee Receivables – Data Driven Receivable Financing
Evaluate an enterprise’s credit based on a combination of data including invoice, payment, tax, legal affairs, and other multi-dimensional data
Customers with potential risk
Credit-writing and approval stage
Asset-monitoringstage
Fraud blacklist
Bad credit record
Abnormal operation
Court Enforcement Records
Credit record monitoringFraud blacklist monitoring
Business condition monitoring
Customers that run into risk abruptlywithout earlier warning signals.
· Tax grade· Tax amount· Tax inspection…
Enterprise
Invoice PBOC
Court
•Dishonest list•Execution •Announcement…
Business Credit Investment
•Investment industry•Investment amount•Investment proportion…
Family
· Children· Spouse· Home address…
Basic Info.
· Age· Gender· Assets…
•Consumption•Travel•Habit
Tax
· Counterparty· Years in Business· Invoice amt…
· Debt amount· Repayment history· External guarantee…
·Credit blacklist·Credit points·Multiple borrowing…
•Business years•Business scope•Shareholder info....
Behavior
Enterprise Owner
Basic Data Transaction Data Government Data Credit Data Behavior Data
Bee Receivables – Data Driven Receivables Solutions
Flexible accounts receivable financing solutions cover various stages of receivables
小微企业金融服务平台
Place Order
Order Confirmation
Goods Delivery
Goods Received Settlement
Invoice Issued
Invoice Verification Payment
Accounts Receivable Pool
*20% *30% *50% *70% *70% *70% *90%
Financing ratio of pooled assets
Check whether the discounted value of
assets can cover the risk exposure
Credit Risk Exposure
Receivablefinancing
1
Repayment 1
…
+ + + - - -Buyer's activities
Seller’s activitiesRepayment
NReceivableFinancing
N
…
Thank youLinklogis Financial Services Co. Ltd