CGN International Financial Leasing Co (CGNIFL) broke a record with its business exceeding 10 billion yuan ($1.47 billion) since its establishment in Shenzhen's Qianhai economic zone on Nov 8, 2013.
The company has achieved external revenue of more than 600 million yuan and total external profits of 240 million yuan, and grown into a leading player in the domestic financial leasing industry with prominent professionality in the field of clean energy.
Its registered capital has leapt to $250 million from an initial $15 million in less than four years.
The financial leasing industry entered an era of rapid development in 2007 and experienced a surge in 2015, thanks to the government support. By the end of 2016, China had more than 7,100 financial leasing enterprises, which were mainly engaged in aviation, shipping, electric power, transportation, and public utilities.
In order to emerge from the fierce competition at the beginning, CGNIFL worked out a development strategy featuring marketization, differentiation, specialization and internationalization. It launched subsidiaries and branches in Tianjin, Beijing, Shanghai, and Shenzhen, forming an overall layout in developed areas in China.
Relying on CGN’s influence and technological advantages, the company focuses on fields such as clean energy, environmental protection and energy conservation to serve customers inside and outside CGN through direct leasing, leaseback and vendor leasing.
CGNIFL has set up its own control systems for credit risks, market risks and operation risks by referencing the risk control systems of banks and industry benchmarks. It also has established good cooperative relations with State-owned commercial banks, joint-stock banks and foreign financial institutions.
In addition, CGNIGL brought in the largest cross-border RMB loans from Hong Kong to Qianhai in 2014 and a 3 billion-yuan low-cost fund abroad in 2016 after rounds of negotiations with the State Administration of Foreign Exchange and domestic and foreign banks.
Up to now, the company has drawn more than 4 billion yuan in foreign funds through cross-border RMB settlements and foreign debt, with its credit granting businesses totaling 15 billion yuan.
In just three and a half years, CGNIFL has progressed in risk control, business expansion, and financing ability, laying a solid foundation for the CGN’s stable and rapid development.