DBS brings digital finance solutions to GBA client’s expansion
The explosive growth of businesses in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) has led to a rapid overseas expansion, with 24 listed on last year’s Fortune 500 list. These China-based, globally-focused corporations require sophisticated digital solutions to effectively manage their supply chain.
TCL is one of these elites - a leading global tech company founded in 1981, the group specialises in smart terminals, semiconductor display and materials, semiconductor photovoltaics and semiconductor materials industries. Headquartered in the GBA with target markets globally, the group operates its own production and Research and Development (R&D) centers onshore and offshore, with products and services offered in more than 160 countries and regions.
The group is currently implementing a global development strategy by leveraging its vertically integrated supply chain – and in 2022, the global shipment of TCL smart screens increased by 0.8% year-on-year to 23.78 million sets, defying downward pressure in the market and making it the second largest smart screen maker in the world.
Global supply chain challenges and solutions in a new business landscape
In 2022, global monetary policies tightened at the macro level as the global economy continued to reel under the impact of the Russo-Ukrainian conflict. With the Federal Reserve hiking interest rates further, inflation did ease in Europe and America – but less so than expected. In the face of such uncertainty, expectations for trade growth became further suppressed.
For a smart tech manufacturer like TCL, any supply chain disruption poses the risk of production shut-down and delivery failure, especially for high-wattage and master control products. With their technologically complex requirements, extended production cycles and long supply chain legs, these products can pose many challenges for mid to long-term resource and inventory management. Enhancing supply chain resilience is thus a crucial strategy in today’s evolving global manufacturing landscape.
Each year, TCL’s 20 global production centers manufacture over 30 million smart screen units, in addition to over 25 million air conditioners, refrigerator and washing machine units in total – and more. This hinges on the company’s strong supply chain ecosystem, which leverages the synergy between its upstream and downstream suppliers. A key component of this ecosystem is TCL’s internally developed online supply chain fintech platform, Jiandanhui. Jiandanhui made use of advanced technologies, such as big data, blockchain and artificial intelligence to create “Four clouds” - Factoring Cloud, Bill Cloud, Credit Cloud, Huike Cloud, providing supply chain fintech solutions for various industries, scenarios and supply chain themes.
These diversified, one-stop digital financial services – made possible thanks to specialist support from TCL’s banking partners – are the key to achieving supply chain resilience and sustaining SMEs along the supply chain.
Case Study – Digital supply chain solution for TCL
The GBA is an important base of operations for TCL, as they operate numerous manufacturing bases and R&D centers in the region. DBS has worked closely with TCL, during which time the bank has been at the forefront of developing innovative supply chain finance solutions to help clients like TCL tackle the challenges of managing a diverse base of upstream suppliers.
Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. As a leading financial services group in Asia with a presence in 19 markets, DBS leverages on its solid digital capabilities to support our clients in their digital transformation regionally and globally.
DBS Hong Kong has been an important partner of TCL since 2010, and supported TCL’s development in various areas such as factoring, trade financing and facility. Recently, the digitalisation collaboration was brought to a new height between DBS GBA team and TCL.
Starting from 2022, DBS has been working with Jiandanhui to explore digital supply chain finance solutions, providing a multi-tier supplier payment services facility and financing. This platform accommodated several eligible anchor buyers as co-borrowers, supporting procurement from onshore suppliers using a professional fintech platform.
Understanding the challenges of supplier financing, DBS knew how important it was to streamline the financing process, from application to approval, to maximise convenience and satisfaction for suppliers. Suppliers appreciated the shortened payment periods and simplified processes, which enabled TCL to enhance supply chain stickiness and resilience while improving productivity across the Group.
“We want to thank DBS for leading the way towards digital transformation in the Greater Bay Area. Their outstanding reach in the Asian market, as well as superior credit rating gives us confidence for deeper collaboration. We are impressed by the bank's secure and comprehensive digital solutions, such as Supplier Payment Services (SPS) support and their advanced API connections. We will continue our partnership with DBS to further promote business digitisation across the GBA.” Zeheng Tong, Chairman, JDH Information Tech (Guangzhou) Co., Ltd - a supply chain finance platform under TCL, said.
Mr. Wallace Lam, Managing Director and Head of Institutional Banking Group at DBS Hong Kong, said, “As the Best Bank in the Hong Kong*, DBS is dedicated to supporting TCL and more GBA clients by advancing their business interests overseas. As DBS was also accorded the Safest Bank in Asia # for 14 consecutive years, we will continue bringing more successes to our clients through our extensive experience, innovative digital solutions, and broad network of connections throughout Asia.”
Create win-win with DBS
Click here to learn more about how DBS collaborates with GBA companies for joint success.
* DBS received ‘Hong Kong’s Best International Bank’ from Asiamoney’s Best Bank Awards 2023, ‘Best International Bank in Hong Kong’ from FinanceAsia’s Country Awards 2023 as well as ‘Bank of the Year – Outstanding Performance’ from Bloomberg Businessweek’s Financial Institution Awards 2023.
# By Global Finance 2009-2022
