TAB International Pte Ltd 10, Hoe Chiang Road, #14-06 Keppel Tower, Singapore 089315 Tel: (65) 6236 6520 Fax: (65) 6236 6530 www.theasianbanker.com

Press Release

China Guangfa and Philips awarded The Best Corporate Trade Finance Deal in China for 2018 in The Asian Banker Bankers’ Choice Awards 2018

Beijing, May 23rd 2018- China Guangfa Bank and Philips China received the award for The Best Corporate Trade Finance Deal in China for 2018 in The Asian Banker Bankers’ Choice Awards 2018. The award ceremony was held in conjunction with the prestigious The Future of Finance Summit 2018, the foremost annual meeting for decision makers in the industry in the Asia Pacific region, held at the Aman Summer Palace, Beijing, China.

Standing from left: Bill Chua, International Resource Director, The Asian Banker; Sara Zhang, Supervisor, Financing Department, Philips China; Chen Xingfei, Deputy General Manager, Transaction Banking Department, China Guangfa Bank; David Gyori, CEO, Banking Reports; Foo Boon Ping, Managing Editor, The Asian Banker

Needed an efficient supply chain financing solution to solve increasing account receivables With Philips China (PCI)’s business grew rapidly, its distributors, most were SMEs, required greater capital, but it was difficult to get bank loan easily for SMEs in China. PCI adjusted the sales policy gradually and allow some distributors to own PCI debt, which promoted sales but increased PCI’s account receivables and cash flow. More importantly, as the distributors were located across China, the geographical dispersion and lack of professional risk

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TAB International Pte Ltd 10, Hoe Chiang Road, #14-06 Keppel Tower, Singapore 089315 Tel: (65) 6236 6520 Fax: (65) 6236 6530 www.theasianbanker.com management team increased PCI’s risk. Therefore, PCI urgently needed to set up an efficient supply chain financing solution for distributors so as to alleviate the imbalance.

Provided convenient financing service to distributors Distributors Financing Project (DFP), based on the cooperation between PCI and China Guangfa Bank (CGB), was aimed at the financing service for the distributors of PCI. It provided financing support to the distributors when they purchase goods from PCI. CGB granted the credit line to PCI’s downstream distributors to help them pay to purchase Philips' products. Based on the exquisite project design and the establishment of big data risk control model, the DFP provided convenient financing service to the distributors all over the country. CGB led in-depth study and detailed analysis of the ecological chain make tailoring the financing plan for the distributors possible.

Helped distributor get financing easily with lower financing cost By the end of 2017, more than 40 distributors participated in the DFP. They obtained the credit lines ranged from 2 million yuan to 50 million yuan (USD77,860). The total credit line exceeded 500 million yuan (USD778,659) and the total amount of withdrawals exceeded 800 million yuan (USD1,245,756). The single financing term of distributors in the DFP was up to nine months and the comprehensive annual interest rates was only 7% to 8%, which was much less than the 9% to 12% annual rate of financing from the other funding agencies.

About The Asian Banker

The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The Singapore-based company has offices in Singapore, Malaysia, Manila, , Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services and forums. The company’s website is http://www.theasianbanker.com

For all Leadership Achievement and Bankers’ Choice Awards 2018 photos, please visit https://www.facebook.com/TheAsianBanker/photos/?tab=album&album_id=10156340962649804

For further information on the collaterals for winning , please contact:

Mr. Foo Boon Ping Managing Editor Tel: (+65) 6236 6526 [email protected] www.theasianbanker.com

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