Centralized supervision of warehouse business

Ⅰ. Background of centralized supervision of warehouse business:

At present, most of the self-owned brand dealers are small and medium-sized enterprises with the relatively weak financial strength of their own and external financing capacity. Besides, most of them are in the period of business growth with a large demand for inventory financing business. Therefore, it is difficult to carry out social financing by themselves, making them need financial service support from manufacturers. According to statistics, 70% of dealers need such business to enlarge their capital scales, improve their inventory structures, reduce their financing costs, relieve their financial pressure in the operation, and promote the sales of their physical products. In the future fierce and vigorous development of auto finance, the centralized supervision of warehouse will create more business demands inevitably.

Ⅱ. Development history:

With four years of development, as for the third party pledge supervision project of automobile finance in China Capital Logistics, there have been more than 1,200 projects in total so far, covering all provinces in China (not including Hong Kong, Macao, and Taiwan). Since 2019, the logistics financial center has been striving for innovation. It launched the first project for centralized supervision of automobile warehouse in Wuhan, Hubei province. Through the continuous improvement of business management structure, the establishment of risk control management system, and the promotion of information system construction, an innovative model of "Internet of Things + Storage + Supervision" has been formed preliminarily.  

Ⅲ. Service contents:

Services for centralized supervision of warehouse, in-store supervision service, warehousing supervision service, vehicle logistics service, customer resources connection, distribution assistance service, warehousing service, vehicle logistics service, distribution assistance service, and financial resources connection.

Ⅳ. Financial institutions in cooperation:

The logistics financial center has carried out the centralized supervision of warehouse business with nearly 15 financial institutions (non-banks) and has completed the system requirement assessment with three financial institutions (non-banks). The transfer to online operation will improve the business efficiency greatly and make the cooperation between both parties closer to a certain extent.

Ⅴ. Storage parties in cooperation:

to ensure the smooth development of the centralized supervision of warehouse business, the logistics finance center chooses the co-tenant for storage that has a business cooperation relationship with China Capital Logistics in this project firstly. At present, it has carried out 60 projects of centralized supervision of warehouse business in total nationwide, covering 40 cities in 22 provinces and autonomous regions.  

Ⅵ. Scope of business:

The logistics financial center has been carried out business in 20 cities such as Jinan, Taiyuan, Zhengzhou, Chengdu, and Urumqi. There are 60 projects in cooperation in total. By October 2020, there had been 4,380 vehicles in storage under supervision, with over 1,000 commercial vehicles per day on average. The automotive brands in cooperation include DFG RENAULT, NISSAN, KIA, JAC, ROEWE, SAIC MG, SAIC-GM BUICK, SAIC-GM Chevrolet, FAW Volkswagen, FAW Mazda, Hong Qi, and GWM.

Ⅶ. Information construction:

The supervision business for auto finance pledge has been carried out with the intelligent control mode of "Internet + Internet of things + Intelligent monitoring + Supervision", achieving the multi-dimensional data analysis of financial institutions, vehicle management, brands, regions, and so on. The risk prevention and control model has been built to realize effective supervision.

(1) According to the goal of the company's information system construction and the supervision business characteristics of the third-party auto finance pledge, the logistics finance center develops the business operation system for auto finance pledge supervision. The system builds its architecture from three aspects, market, operation and risk, centering on three control stages, before, during, and after the process. The main modules are the information sharing module, business information reminder module (60 items), early warning of business operation risk module (30 items), and data analysis module.

(2) Intelligent monitoring equipment system for pledging vehicles

Ⅷ. Risk control management:

The first-level risk pre-control of pledged assets is carried out through remote video inspection.

Ⅸ. Comparative advantages with conventional supervision business:

The fully closed vehicle management has higher security, the storage and logistics businesses extend further, and the informationization degree is high. The Online operation has been adopted, and some direct connections have been completed.