On the morning of April 21, 2024, the Industry Development Department of China Machinery Industry Federation (referred to as "China Machinery Federation") and China Construction Machinery Industry Association (referred to as "Association") successfully held an experience exchange meeting in Beijing on "Adjustment and Optimization of Credit Sales Counterguarantee Model for Construction Machinery Products". Zhao Junping, Deputy Director of the Industry Development Department of China Machinery Federation, Wu Peiguo, Secretary General of the Association, Yang Zhifang, Secretary General of the Association's Agent Working Committee, and 24 industry representatives from financial institutions, insurance companies, construction machinery manufacturers, and agents participated in this meeting.
At the meeting, representatives from various financial institutions shared their practices and existing problems regarding the unsecured nature of construction machinery products. Representatives from various construction machinery manufacturers and agents respectively introduced the current situation of credit sales for enterprises. Yang Zhifang introduced the progress of the previous stage of work, and Wu Peiguo gave a concluding speech. The meeting was chaired by Zhao Junping.
Wu Peiguo pointed out in his speech that promoting the credit sales model of engineering machinery products to be guaranteed by manufacturers and agents through the China Machinery Federation and Association is not only an important task to implement the achievements of the China Machinery Federation Party Committee's theme education activities, but also necessary for promoting the high-quality development of the engineering machinery industry. Since June 2023, the association has done a lot of foundational work in this area. The purpose of organizing an experience exchange and sharing meeting this time is to provide industry enterprises with multi-channel options for de guarantee from a market-oriented perspective, and promote the process of de guarantee.
Wu Peiguo emphasized that in order to promote this work well, firstly, it is necessary for industry enterprises to further unify their thinking, improve their understanding, and from the perspective of cultivating and accelerating the development of new quality productive forces and promoting high-quality development of the industry, under the principle of marketization, strengthen the idea of both focusing on the current and planning for the long term, and actively choose a credit sales model that guarantees. Secondly, all market entities should strengthen cooperation, work together, and actively explore cooperation models with controllable risks, reasonable costs, and equal responsibilities and rights among all parties. It should be noted that after 20 years of development and accumulation, financial institutions have gained a deeper understanding of industry customers and product profit models. Domestic credit construction is gradually improving, and with the continuous improvement of digital technology, the construction machinery and equipment used in the market can be controlled in real time. Currently, the environment and technical conditions for manufacturers to guarantee are becoming more and more mature. Thirdly, the association will continue to create conditions for the advancement of this work. For example, financial institutions are concerned about issues such as the lack of evidence for the valuation of second-hand mobile phone disposal. The association has initiated a project to develop a group standard for the "General Technical Specification for Testing and Evaluation of Second hand Equipment in Construction Machinery". Next, the group standard for second-hand mobile phone appraisers will be developed; For example, regarding the issue of information release on market development, the association officially released the Construction Machinery Market Index, which includes 7 categories of products, starting from April 2024. The association will also actively promote financial institutions that guarantee good credit sales for manufacturers in the industry.
Yang Zhifang introduced the phased progress of the association's work on credit sales counter guarantee issues in the construction machinery industry. Since June 2023, the association has conducted multiple rounds of research and developed relevant proposals and work plans. The purpose of this conference is to promote and popularize some excellent financial institutions and high-quality counter guarantee cases at the industry level.
Chen Su, General Manager of the Factory Finance Center of Jiangsu Financial Leasing Co., Ltd., Wang Xu, General Manager of the Construction Machinery Business Department of Minsheng Financial Leasing Co., Ltd., Wang Shangen, General Manager of the Construction Business Department of Haifa Baocheng Financial Leasing Co., Ltd., and He Wenbin, General Manager of the Business Department of Wanjiang Financial Leasing Co., Ltd., represented the financial leasing companies in exploring and sharing the anti guarantee model for construction machinery based on their respective work situations. The main focus is on the obstacles encountered in the past credit sales process of construction machinery, opportunities for conducting unsecured business, obstacles encountered in conducting unsecured business, unsecured operation mode, future trends, and as a financial service institution, how construction machinery manufacturers can cooperate to better promote unsecured business. As pioneers in the unsecured field in the industry, several representatives combined their work practice to deeply explore the obstacles encountered in promoting the unsecured model from multiple dimensions such as customers, host manufacturers, and agents. Based on the future trend of implementing unsecured in the construction machinery industry, they called on manufacturers, agents, and financial institutions to play their respective strengths, return to their respective positions, and jointly achieve efficient and high-quality development. At the same time, it is hoped that the association will lead the construction of a second mobile phone evaluation mechanism, forming a price mutual recognition platform between financial institutions, manufacturers, and agents, in order to reduce the evaluation costs in the disposal process of second mobile phones and form a virtuous cycle.
Representatives from several host manufacturers from XCMG, Sany, Zoomlion, Liugong, Lingong, Volvo, and Divanlun also shared their views on unsecured business and the cooperation they hope to achieve in the future. In their speeches, representatives stood from the perspective of host manufacturers and pointed out the contradictions between promoting unsecured business and pursuing market share, gross profit margin, and sales volume, as well as the essential differences between financial institutions and manufacturers in customer selection. At present, manufacturers still need to further transform their thinking to cooperate with financial service institutions to vigorously promote the implementation of unsecured business. At the same time, host manufacturers hope to leverage the power of associations to build macro and micro level data sharing, refine data to upgrade risk control systems, and reduce risk control costs.
Through the sharing and communication at this meeting, the attendees gathered consensus and firmly believed that the development of the construction machinery industry is inevitable for manufacturers and agents to have no guarantees. In the future, the China Machinery Association will work together with the association to further promote the unsecured model in the construction machinery industry, and strengthen communication and interaction with industry enterprises and financial institutions. By expanding communication channels, we will jointly promote the value return of different institutions in the industry and promote the healthy development of the construction machinery industry.
