Linklogis Supply Chain Finance

Open Platform of Supply Chain Financial Service

Linklogis Financial Services Co. Ltd

Company Profile

February 2016

Established

June 2016

Series A Financing

June 2017

Series B Financing

December 2017

ABS deals RMB 30 billion+

September 2018

Launched ABS deals Total Issuance of RMB 5

billion+

Series C Financing USD 220 million raised

October 2018

WeChatSubscribing

Accounts“Mini”

ProgramsMobile

PaymentSocial

Media AdsBusinessWeChat

SecurityCapabilities

Fintech Capabilities：The “Seven Weapons” for Building the “Digital Fortress”

Tencent’s technical support Linklogis’ Expertise in SCF

AIBig Data

Cloud Comp.

Operational Expertise

Corporate Risk

Management Data

(Business)

SCF Structuring

Main Enterprise Data:

Social Media, Credit Report. (Consumer)

Web Traffic:“Mini”

ProgramsCapital side-

Tenpay

Asset side-Anchor Clients

Tech Capabilities:

Blockchain and Cloud

Technologies

SCF Platform

Tencent and Linklogis – Joining forces to build Fintech SCF

Fund Providers

• Diversified investment channels • Risk asset off balance-sheet • Improved asset-fund matching

efficiency

√ Asset Providers

• Service cost reductions • Risk-control capability

enhancement• Extensive fund sources

√ Anchors

• Improved cash flow situation• Enhancing supplier

sustainable development

√ Small and Micro Businesses

• Improved financing capacity and reduced cost

• Simplified processes and improved efficiency

√

Business Model - Open SCF platform

Sn

S1S2

S3

S1

S2

Sn

Sn

Sn

Bank

Factoring

Financial Leasing Micro-

financing

Others

Innovative Fintech

FundsRisk Control AssetsOperation

Real EstateConstructionManufacturing

Auto

PharmaceuticalNew RetailCatering

……

Internet financial platform

Bank/Trust/Fund/Broker

Industryfunds

Asset-backed Securities

Anchors Anchors

S3

S3

S4

S3

S2

S3

S3

S2 S3

S2

S2S3

S3S2

S2

S4S4

Fund channels

Provide Funds

PlatformEmpowerment Extend Credit Serve SMEs

Business Model - Product matrix through entire supply chain

AnchorSn S1…… S2

Example: Real Estate companyas Anchor

Real estate development

enterprise

Serving

upstream and

downstream

SMEs in a

supply chain

ecosystem

Provide asset management services for financial institutions with diversified assets

SCF Asset Service

SCF service with anchor’s confirmation

1

Anchor→ S1

Anchor credit-drivenAnchor’s upstream and downstream

Data-driven

2

Anchor→ Sn

Multi-tier Anchor credit-driven

“Weq” ChainSCF service with anchor’s

confirmation based on blockchain technology

3

ABS Re-factoring …… Beneficiary Trust Transfer

Constructioncompany

Steel PlantLogistics Company

TyreDistributor

“Bee”ReceivableReceivable service

with big-data technology

Product Matrix

SCF ABS – Capital Market Funded Programs

We have served more than 60 anchors and issued RMB 182.9BN ABS in China.

58

The credit of an anchor is transmitted along the supply chain to the suppliers at all levels with Weq Chain digital voucher (also “Weq Voucher”）

Weq Chain- Multi-tier SCF Solutions

Business Flow Financing Flow Payment Flow

Tier 1 supplier（S1）

Tier 1 supplier（S1）

Funds Provider（T+3）

Trade background

Apply

2 3

Issue“Weq Voucher”

Multi-level Circulation（S2…Sn）

Hold to maturity

Financing

5

6

4

7Apply

8 Release funds

9 Payment

Payment at maturity

Financing charge

Platform service fee

1

Payment Distribution

BlockchainLedger

Anchor

11

11

11

10

Payment Distribution

Payment Distribution

Bee Receivables – Data Driven Receivables Solutions

Score Card Credit Report

Real time risk alert

•Result runs daily/weekly/monthly•Customized risk alert rules

Pre-Transaction After Transaction

Customized Data Analysis

Business Operating

DataRisk

FilteringModel

Data cross-validation

SME’s credit data

Owner’s social

behavior data

SME owner’s credit data

Automatic Data Collection

•Intelligent Score Card •Customized Credit Report

Chi

nese

Supp

liers

Bee Receivables – Data Driven Receivable Financing

Evaluate an enterprise’s credit based on a combination of data including invoice, payment, tax, legal affairs, and other multi-dimensional data

Customers with potential risk

Credit-writing and approval stage

Asset-monitoringstage

Fraud blacklist

Bad credit record

Abnormal operation

Court Enforcement Records

Credit record monitoringFraud blacklist monitoring

Business condition monitoring

Customers that run into risk abruptlywithout earlier warning signals.

· Tax grade· Tax amount· Tax inspection…

Enterprise

Invoice PBOC

Court

•Dishonest list•Execution •Announcement…

Business Credit Investment

•Investment industry•Investment amount•Investment proportion…

Family

· Children· Spouse· Home address…

Basic Info.

· Age· Gender· Assets…

•Consumption•Travel•Habit

Tax

· Counterparty· Years in Business· Invoice amt…

· Debt amount· Repayment history· External guarantee…

·Credit blacklist·Credit points·Multiple borrowing…

•Business years•Business scope•Shareholder info....

Behavior

Enterprise Owner

Basic Data Transaction Data Government Data Credit Data Behavior Data

Bee Receivables – Data Driven Receivables Solutions

Flexible accounts receivable financing solutions cover various stages of receivables

小微企业金融服务平台

Place Order

Order Confirmation

Goods Delivery

Goods Received Settlement

Invoice Issued

Invoice Verification Payment

Accounts Receivable Pool

*20% *30% *50% *70% *70% *70% *90%

Financing ratio of pooled assets

Check whether the discounted value of

assets can cover the risk exposure

Credit Risk Exposure

Receivablefinancing

1

Repayment 1

…

+ + + - - -Buyer's activities

Seller’s activitiesRepayment

NReceivableFinancing

N

…

Thank youLinklogis Financial Services Co. Ltd