CBHB (09668) "Nuclear-free but Chain-bound" Supply Chain Finance Solves Financing Difficulties in Poultry Farming

In Pingdu City, Shandong Province, Mr. Li has been engaged in meat duck farming for over twenty years. Recently, he obtained credit funding from the Qingdao branch of CBHB (09668) through convenient online operations without the need for core enterprises to confirm rights. Relying solely on supply records and commercial bills, he solved the long-standing problem of turning around receivables. Mr. Li's experience is not an isolated case. Pingdu is a core area for poultry farming in Qingdao, with over 1,500 large-scale livestock and poultry farms, leading the city in meat duck output year after year. Leveraging leading enterprises in the industrial chain, the local area has formed a complete integrated industrial chain that includes breeding of superior breeds, large-scale farming, and deep processing of slaughtering, with over a thousand upstream small and medium-sized farmers. However, under traditional financing models, the cumbersome process of offline confirmation for each receivable by leading enterprises sharply contradicted the "short, frequent, and urgent" funding needs of the farming industry. The "Haina Pool + Commercial Invoice" supply chain finance solution launched by CBHB Qingdao branch breaks this predicament with its innovative "uncored but not unchained" model. Chain Obstruction: Receivables Stuck Trapping Upstream Micro Enterprises Mr. Li owns and leases several standardized duck houses, with an annual output of 300,000 white feather meat ducks and annual revenue close to 50 million yuan. However, the capital consumption in the farming industry is continuous and fragmentedcash payments are needed for duckling purchases, feed restocking, veterinary materials, and worker salaries. He has a large amount of receivables from downstream leading enterprises, but the cash conversion cycle seriously mismatches production and operational needs. Traditional financing in the industrial chain requires core enterprises to stamp and confirm each receivable offline, which involves cumbersome and time-consuming communication between upstream and downstream parties. Farmers have urgent and high-frequency funding needs, and prolonged approval cycles often cause them to miss opportunities for restocking and material procurement. Many farmers are forced to downsize, rely on borrowing from friends and family, or take on high-interest short-term loans. With live poultry and farming facilities not available as collateral, ordinary operational loans have high thresholds and limited amounts, making them difficult to match the fast-turnaround characteristics of the industry. Uncored but Not Unchained: Data Enhancement Reconstructing the Financing Closed Loop CBHB Qingdao branch has conducted multiple in-depth investigations in farming villages and towns in Pingdu. Addressing the pain points of dispersed upstream merchants, frequent capital usage, and misaligned payment cycles, and with support from the head office, they collaborated with leading enterprises to organize data from various stages of the industrial chain, launching the exclusive "Haina Pool + Commercial Invoice" solution. The core innovation lies in "uncore"breaking the rigid requirement for individual confirmations and additional guarantees. Leading enterprises provide core data from the industrial chain and optimize payment settlement methods. CBHB conducts online cross-verification of supply ledger, acquisition documents, commercial invoices, and other multidimensional trade certificates, allowing farmers to submit financing applications online by simply uploading materials, without needing to repeatedly connect with leading enterprises for confirmation. The efficiency of lending has significantly improved, accurately matching the high-frequency funding rhythm of the poultry industry. In the past, I was stuck with receivables and couldn't cash them in quickly when I needed to buy feed. I had to either shrink my scale or borrow money at high interest. Now, I can handle everything online, and the funds arrive quickly. Mr. Li has used all the financing to purchase ducklings, stockpile feed, and renovate old duck houses, steadily expanding his farming scale. In terms of risk control, not unchained runs throughout the entire process. All financing corresponding to commercial invoices is issued by leading enterprises, with each transaction backed by legitimate meat duck acquisition business, and the trade background is traceable throughout. CBHB has set up a dedicated fund return channel, with funds directly deposited into a bank account upon the maturity of commercial invoices, forming a closed-loop flow of "transactionlendingrepayment," thus avoiding diversion risks from the source. This solution relies on the stable operation and timely payments from leading enterprises, achieving a balance between simplifying the process and stringent risk control. As of now, the "Haina Pool + Commercial Invoice" model has been successfully implemented and accelerated in the field of livestock and poultry farming in Pingdu. This "data-enabled, industry-finance integration, convenient and inclusive" supply chain finance solution has opened up low-cost financing channels for thousands of small and medium-sized farmers and provided a replicable model for stabilizing and solidifying the industrial chain.