In the workshop of Xiamen SET Electronics Co., Ltd., the workers skillfully operate the equipment. The automated production line is running at full capacity, smoothly carrying out processes such as processing, polishing, and inspection… After the automation upgrade, half of the tasks can be completed by machines, resulting in an overall efficiency improvement of 2.5 times.
For over a decade, Industrial Bank has been SET’s main lending partner. From industrial property mortgage loans, manufacturing credit enhancement fund loans, technological innovation fund research and development loans, to investment-loan linkage, we have been together all the way, helping the company grow from a small producer of fuses to a national-level specialized and innovative “Little Giant”.
Currently, Fujian is at a critical juncture of transitioning from a major industrial province to a strong industrial province. Accelerating the promotion of new industrialization is the only way to achieve high-quality development. Industrial Bank, as a leading financial force, is committed to embracing "new initiatives". It continues to enhance financial supply optimization, vigorously promoting the transformation of Fujian's manufacturing industry towards high-end, intelligent, and green development, thereby contributing to the new strides in Fujian's industrialization. As of the end of November, Industrial Bank’s loan balance in the provincial manufacturing sector amounted to 111.3 billion yuan, including mid-to-long-term manufacturing loans of 59.8 billion yuan, a 33% increase since the beginning of the year.
Boosting transformation and upgrading through intensified efforts
“From starting out in the hardware and building materials industry, to becoming the largest sanitary ware company in the country, and further advancing into the comprehensive promotion of digital transformation, the company’s growth in every stage over the years has been inseparable from financial support.” The head of the Industrial Finance Department of Jomoo Group Limited said. Now, walking into the 5G smart factory of Jomoo, the production information management system is seen in every workshop, and the production line operates 24 hours a day without stopping. Various types of robots operate in an orderly manner on the assembly line, with only a few workers monitoring the equipment.
Since the beginning of this year, Quanzhou has improved the policy system of “fiscal policy + financial tools” and established a “Technology Innovation Fund” with a total scale of 15 billion yuan, providing low-cost financing support for technological research and development of industrial enterprises included in the white list. In response to the transformation and innovation needs of Jomoo Group, Industrial Bank has issued a “Technology Innovation Fund” loan of 54 million yuan to further enhance the company’s innovation capabilities.
According to reports, to accelerate the technological transformation of enterprises in Fujian Province and promote industrial upgrading, the Department of Industry and Information Technology and the Department of Finance of Fujian Province have jointly introduced special policies to support financing for technological transformation projects in Fujian Province, providing interest subsidies for eligible technological transformation projects. As of the end of November, Industrial Bank has accumulated the use of technology transformation financing support for 133 special service enterprises, with a total amount of 7.777 billion yuan, ranking first in the province.
Fujian Deer Technology Corp., located in Shanghang County, Longyan City, is a national high-tech enterprise dedicated to the development, production, and sales of fluorine-containing electronic gases and a full range of fluorine-containing new materials. It possesses independent core technology for producing ultra-clean high-purity semiconductor wet electronic chemical materials. At the beginning of this year, Deer Technology intends to use its advantage in fluorine-containing electronic new material technology to transform and expand the annual output of 3,600 tons of new energy materials projects. The project requires credit support with an investment of 440 million yuan.
We have provided an immediate credit of 240 million yuan for technological innovation discounted loans to significantly reduce financing costs, and opened bank acceptance drafts and provided bill discounts. It is expected to save the enterprise 3 million yuan in financial expenses each year.” The person in charge of Industrial Bank Longyan Branch introduced, “Moreover, not only do companies need quality verification when selling products to downstream customers, but we also break through the conventional approach by providing quality guarantee letters through branch coordination and tailor-made strategies for each client to help them smoothly introduce the products to their customers.”
Technical transformation is an important driver for promoting new industrialization. Industrial Bank utilizes its headquarters’ advantages to deeply cultivate Fujian’s characteristic industries and provide services for enterprises’ technological transformation and upgrading. As of the end of November, Industrial Bank has cumulatively provided financing services of over 10 billion yuan to nearly 200 companies in industries such as new energy, new materials, and electronic information, using provincial and municipal technological improvement policies.
Enhancing the “Green Productivity” of the Economy
The hydraulic grab under remote control “grabbed” the discarded wooden boards into the car, and instantly completed the crushing and disintegration. The on-site demonstration of the mobile crusher for solid waste processing by HuanChuang (Xiamen) Technology Co., Ltd. is truly astounding. Now, with its patented solid waste disposal technology, HuanChuang Technology has served more than 600 environmental protection projects at home and abroad.
“Thanks to Industrial Bank Xiamen Branch for providing us with the first loan during the initial stage of our company and accompanying us in our growth to this day,” said Liu Hui, the person in charge of HuanChuang Technology. “In the early stages of the company, we were unable to provide traditional collateral like real estate due to our small scale, making it difficult to obtain financing from banks.” Industrial Bank Xiamen Branch first provided the company with a 2 million RMB credit line, and has been continuously supporting the company’s technological research and development and factory construction. Over the past seven years of cooperation, the annual sales of the company have grown to 200 million RMB, and it has developed into a national high-tech enterprise and a leading enterprise in Fujian province’s science and technology innovation. The financing support from the Industrial Bank Xiamen Branch has also increased from 2 million RMB to nearly 200 million RMB.
Green is the underlying tone of new industrialization and also the essential question to promote high-quality development. The Action Plan for Promoting Green Economic Development in Fujian Province (2022-2025) proposes to continuously strengthen the energy-saving and environmental protection industry, clean production industry, clean energy industry, ecological environmental protection industry, green infrastructure upgrade, and green service industry.
Walk into the Luofeng Industrial Park in Datian County, Sanming City, where Fujian Keda New Energy Technology Co., Ltd. is constructing a project for the annual production of 50,000 tons of integrated artificial graphite anode. Workers are intensively working on the interior decoration of the workshop and the installation of production lines. The total investment of this project is 347 million yuan, planning to construct 2 sets of 5000-ton/year graphite lithium battery anode material production lines and a 50,000-ton graphite calcination and sintering molding system. It is estimated that after reaching full production, it can produce 30,000 tons of graphite anode material and 50,000 tons of calcined coke annually, having the production capacity of the whole industrial chain “Post-Annealed Coke - Graphitization - Artificial Graphite Anode”.
When Keda New Energy was established, Industrial Bank Sanming Branch took the initiative to provide services. From the start of the project construction to the successful introduction of the global leading negative electrode material company, Btr New Material Group Co., Ltd, to the transformation and upgrading of 15,000 tons of negative electrode material to an annual output of 50,000 tons of graphite, Industrial Bank’s credit to it has expanded from 120 million yuan to 745 million yuan, and it has provided a package of financial services including liquidity loans, supply chain finance, project loans, and investment bank.
Currently, Keda New Energy has grown into a leading enterprise for negative electrode materials in Sanming City, with an estimated combined sales revenue of over 800 million yuan in 2023 and an annual tax payment of nearly tens of million yuan. Recently, the company has successfully acquired another research and development production enterprise of negative electrode materials outside the province, stepping onto the fast track of development.
Fujian is the first national pilot zone for ecological civilization, and green is a beautiful calling card for Fujian. As a pioneer in green finance, Industrial Bank fully leverages its advantages in green finance and strives to promote the organic integration of high-end and green manufacturing. It collaboratively provides services for “carbon reduction, pollution control, afforestation expansion, and growth,” accelerating the green development of the industrial sector in Fujian. As of the end of November, Industrial Bank has provided over 160 billion yuan in green financing in Fujian Province, with over 80 billion yuan in green loans and 4.8 billion yuan in cumulative carbon emission reduction loans, ranking first among financial institutions in Fujian Province.
Forge Ahead In the Innovation Battleground
“The company is currently in a fast-growing period, and Industrial Bank has provided timely help!” said Yang Lin, the person in charge of MACROCHIP Technology (Quanzhou) Co., Ltd. In August of this year, at the Fujian Province Industry-Finance Collaboration Bank-Enterprise Matchmaking Quanzhou Session held at the Industrial Bank Quanzhou Branch, the bank signed a contract with MACROCHIP Technology on the spot to provide it with a credit line of 50 million yuan.
Headquartered in Quanzhou Software Park, MACROCHIP Technology is a high-tech enterprise that specializes in the research, development, and production of silicon photonic chips and optical modules for data centers and 5G transport networks. “Chip development is a process that requires a huge investment,” Yang Lin deeply understands this. The entire research and development process, from front-end design, validation, chip testing, to the research and development, testing, and packaging of optical module products... every aspect requires financial investment. With large early-stage investments and a lack of mortgageable assets, how to solve the funding problem has become a major challenge for companies.
“When businesses have demands, we should respond accordingly. We rely on the ‘technology-oriented’ evaluation model to provide a precise profile of MACROCHIP Technology from aspects such as intellectual property patents, technology team and research and development capabilities, industry and technology position, and technology market application. We determine that this company has a high value in its core technology, strong proficiency in technology application and profit-making ability. According to the evaluation results, we offer credit without collateral to provide financial support.” said the relevant person in charge of Industrial Bank Quanzhou Branch.
The “Tech-Flow” credit evaluation system is an innovative initiative by Industrial Bank, in which the bank assesses enterprises based on their attributes as technology-oriented companies. The evaluation process includes multiple dimensions such as intellectual property, invention patents, scientific research capabilities, awards received, as well as industry-academia-research collaborations. The purpose of the evaluation is to help enterprises transform their technological “soft power” into financial “hard currency” for financing, and to achieve a virtuous cycle of “technology-industry-finance” innovation. According to statistics, since the beginning of this year, Industrial Bank’s branches in Fujian Province have provided a total of 27.5 billion yuan in “Tech-flow” financing to over 950 enterprises.
To support Fujian in accelerating the construction of a high-level innovative province and enhancing industrial innovation capabilities, on June 19, 2023, Industrial Bank and the Fujian Provincial Department of Science and Technology signed a strategic cooperation agreement in Fuzhou. Over the next three years, Industrial Bank will strive to provide a total of 100 billion yuan in financing for Fujian’s technology-oriented small and medium-sized enterprises, high-tech enterprises, and the establishment and service of technological innovation enterprises. At the same time, they will collaborate to build a high-level scientific and technological innovation platform, shaping new momentum and new advantages for high-quality development.
Focus on strengthening the position of enterprise innovation and improving the financial services system for scientific and technological innovation, Industrial Bank continuously iterates and upgrades to cater to the differentiated financial service needs of enterprises in different life cycles, providing integrated service solutions of “online + offline,” “commercial banking + investment banking,” and “finance + non-finance.
Looking back on the development and rise of Fujiang Forecam Optics Co., Ltd, the leading domestic optical lens company, Industrial Bank has been accompanying its growth and providing accurate financial services in a timely manner: From completing the mixed-ownership reform in 2006 to providing fund settlement services, to the group’s linkage in 2014, providing integrated investment and loan services through its subsidiaries to help enterprises go public, and to opening a green approval channel in 2020, tailoring financial service solutions for high-end domestic projects in the camera industry. “The financial services of Industrial Bank are like timely rain, helping us to upgrade new technologies, launch new products, and achieve a new enhancement in R&D strength and innovation capability,” said the person in charge of Forecam Corporation.
Technological innovation is an important engine for the development of new industrialization. In recent years, the Industrial Bank has accelerated its layout in new fields, focusing on the development of techfin. It has designated Fujian province as the main base and battlefield for techfin, leveraging its advantages in group operations and adopting a strategy of both commercial investment and financial services. The bank continues to improve its financial services system for science and technology innovation, aiming to transform technological innovation into the “biggest increment” to promote the development of new industrialization in Fujian. The current balance of loans for science and technology innovative small and medium-sized enterprises in the provincial branches of the bank is 35.5 billion yuan, which has increased by 13% since the beginning of the year.