Ping An Leasing Boosts Small Biz Growth with Steady Path

From textile mills, electrical appliance factories, and luggage factories with thousands of employees, to manufacturing plants and logistics fleets with hundreds of workers, to decoration companies, processing workshops with dozens of employees, and catering stores, community supermarkets, and photography studios with just a few people... Small and micro enterprises are the most active market entities in China's economic chain. Their business activities are spread throughout every corner of social production and are closely related to the lives of residents.

These small businesses may not be eye-catching, but they are the capillaries of the national economy, occupying a central position in economic activities. Their healthy development plays an important role in promoting economic growth, stabilizing employment, and stimulating innovation.

In the current complex and changing economic environment, the development of small and micro enterprises faces many problems and difficulties. Due to limitations in capital, technology, and talent, the average life cycle of these enterprises is only 3-5 years. This phenomenon hinders the healthy development of small and micro enterprises themselves and the entire economic system.

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To promote the high-quality development of small and micro enterprises, the government continues to introduce a series of favorable policies for enterprises, covering monetary, regulatory, tax incentives, risk sharing, and credit enhancement mechanisms at multiple levels. The China Banking and Insurance Regulatory Commission introduces new measures every year, injecting continuous financial strength into the development of small and micro enterprises by optimizing the financial environment and strengthening support for key areas and weak links.

In recent years, China's small and micro enterprises are showing new vitality. More and more small and micro enterprises have achieved leapfrog development, not only achieving significant growth in business scale but also accelerating on the path of technological innovation and transformation.

Dongguan, located in the C position of the Greater Bay Area, is the "pioneer" of China's manufacturing industry and an "experimental field" for observing the transformation of Chinese manufacturing. Countless small and micro enterprises start and grow stronger from here. Guangdong Zhaoming Electronics Group Co., Ltd. (hereinafter referred to as "Zhaoming Electronics") in Chang'an Town, Dongguan, is one of them.

In 2008, like many manufacturing factories in Dongguan, Zhaoming Electronics started from a small mold factory. With the continuous rise of labor costs and increasingly fierce industry competition, problems such as low technology, high energy consumption, and low product added value became more prominent, and the transformation of Zhaoming Electronics was urgent.

The rapid iteration of electronic devices has driven Zhaoming Electronics to manufacture precision components that meet market demand at different times - some need to be thinner than last year's, and some pursue faster cooling speeds than last year. In 2018, Zhaoming Electronics began to try to transform into high-end manufacturing and aimed at fields with higher technical content and added value - artificial intelligence, computing infrastructure hardware, new energy batteries, etc.

However, the transformation process is not smooth sailing. The first hurdle Zhaoming Electronics faces is the issue of funds. Updating and iterating high-precision precision machine tools, die-casting machines, and other professional equipment means a huge demand for funds. A machine costs millions, and the huge procurement demand for heavy assets has brought challenges and pressure to the operation of Zhaoming Electronics.At this juncture, Zhaoming Electronics is attempting to secure financial support through financial institutions. After comparing various options, financial leasing, with its industry advantage of "financing + leasing," stands out as a highly efficient way to utilize funds. Eventually, they reached a deep cooperation with Ping An Leasing.

Since 2015, Ping An Leasing has completed over 20 financing deals for Zhaoming Electronics, each involving more than a hundred units of new production equipment. This has helped them build an integrated design, research and development, and production capability, forming a full-process production model, which has paved the way for Zhaoming Electronics' transformation and development. During the cooperation, Ping An Leasing has provided rational suggestions for their business decisions through in-depth industry research, helping the company to better control risks.

Today, Zhaoming Electronics is no longer the same as it was before. Its annual output value has increased from tens of millions of yuan to over 1 billion yuan, with an annual growth rate of 30% to 40%. Its integrated design, research and development, and production capabilities have also allowed it to successfully enter the fields of artificial intelligence, computational infrastructure hardware, and new energy batteries.

Walking into Zhaoming Electronics' precision machining factory, one can see rows of large CNC lathes neatly arranged. Employees are busy operating the CNC equipment to process electronic components, including hinges for folding phones, casings, and accessories for new energy vehicle batteries, among dozens of other products. Now, Zhaoming Electronics has become a supplier for leading companies such as OPPO, VIVO, Apple, CATL, and EVE Energy.

Looking back at the development history of Zhaoming Electronics, one can see the hardships and challenges of small and micro enterprises in transforming and upgrading. With the support of financial forces such as financial leasing, Zhaoming Electronics has successfully made the leap from traditional 3C product accessories to high-end precision instrument manufacturing, fully demonstrating the unlimited potential of small and micro enterprises in the new era.

Timing and Empowerment Lead to the Flourishing of Specialized and Innovative Enterprises

Small and micro enterprises in our country have previously faced issues such as low industrial levels and insufficient innovation, resulting in relatively weak core competitiveness and profitability. In the trend of promoting the transformation and upgrading of small and micro enterprises, supporting and cultivating specialized and innovative small and micro enterprises with high-tech capabilities has become an important part of promoting economic and social development.

Ji Kang Screw Manufacturing (Shanghai) Co., Ltd. (hereinafter referred to as "Ji Kang Screw") is such a specialized and innovative small and micro enterprise. Ji Kang Screw focuses on the research and development, production, and sales services of screws and barrels. Not only did they successfully obtain ISO9000 certification in 2020, but they also hold 43 patents, including 8 invention patents and 35 utility model patents, making them a high-tech enterprise, a specialized and innovative enterprise, and a pilot enterprise for patents.

However, funding issues have become the "tiger in the road" blocking Ji Kang Screw's rapid development. At the beginning of 2021, with the rapid increase in order demand, the company urgently needed to purchase advanced equipment to increase production capacity. It was at this critical moment that Ping An Leasing learned of Ji Kang Screw's funding needs. After assessing its technological content, operational status, and business prospects, they provided direct leasing financing services, enabling the rapid deployment and production of the relevant equipment. This alleviated Ji Kang Screw's immediate difficulties and laid a solid foundation for the company to further expand its business scale.

In 2022, to improve product quality, Ji Kang Screw needed to introduce advanced overseas equipment. Ping An Leasing, based on the actual situation of Ji Kang Screw, successfully introduced overseas products through the technical renovation project product, ultimately significantly enhancing their product quality. In 2023, Ji Kang Screw continued to increase R&D investment and required funds. Ping An Leasing once again provided customized financing services, providing strong support for the company's research and innovation.From 2021 to 2023, Ping An Leasing has continuously supported Jikang Screw in solving financing challenges during its development and upgrading process with professional financial leasing services that are "worry-free, time-saving, and cost-saving." Over the two years, Jikang Screw's turnover has increased by as much as 25%. Its outstanding product performance and innovative technology have not only made a name for Jikang Screw in the domestic market but also gradually gained recognition in the international market.

Today, Jikang Screw has become a supplier of core components for high-end equipment in key areas such as intelligent devices, military industry, automotive, and medical fields. Its innovative patented products have not only achieved standardized production but also promoted the improvement of industry standards for related accessories, injecting new quality productive power into China's manufacturing industry.

Looking ahead, as financial leasing integrates deeply with many "specialized, refined, and innovative" small and micro enterprises and continues to explore innovative paths, more hidden champions will emerge, injecting a continuous surge of vitality into economic and social development.

Changing World, Unchanging Symbiosis

In the wave of industrial transformation and upgrading, small and micro enterprises are facing unprecedented financing challenges and urgently need more diversified and flexible financial products and services to promote equipment upgrades. As a unique financial business form, financial leasing, with its industry advantages of "financing + leasing," has become a key force in promoting enterprise innovation and industrial transformation.

In the past, financial institutions have always faced challenges such as high risks, high costs, difficult management, and slow results when providing financial support to small and micro实体 enterprises. How to ensure precise capital allocation while achieving coordinated and sustainable development of the micro economy and financial institutions? Ping An Leasing's approach to solving this problem is to build a "community of shared destiny" with small and micro enterprises.

Adhering to the concept of "focusing on small and micro enterprises, providing professional services," Ping An Leasing provides professional financing solutions for small and micro enterprises in scenarios such as purchasing equipment and upgrading technology through a professional system, processes, and team. It covers the entire lifecycle financing scenarios of small and micro enterprises from inception, growth to maturity, solving the problem of financing difficulties for small and micro enterprises. At the same time, as small and micro enterprises grow and expand, their demand for funds will gradually increase, and financial institutions such as Ping An Leasing will also develop synchronously, progressing hand in hand.

On the path to high-quality development, financial institutions and small and micro enterprises are symbiotically coupled and resonate at the same frequency. Since deploying small and micro business in 2014, Ping An Leasing has cooperated with nearly 30,000 equipment manufacturers, served 31 provinces and cities nationwide, and nearly 70,000 small and micro enterprises.

As the pace of industrial transformation and upgrading accelerates and new and old drivers continue to convert, small and micro enterprises will face more development opportunities and challenges. Looking forward, Ping An Leasing will continue to focus on customers, give full play to the industry advantages of "financing + leasing," explore new service models for the integration of industry and finance, highlight the people-oriented nature of inclusive finance, and moisten thousands of enterprises and households with financial water.