"Do not break Loulan does not return." In the office of Yang Jingwei, president of Minsheng Financial Leasing Co., Ltd. ("Minsheng Financial Leasing") ship leasing business unit, there is a "resolve book": 2018 Minsheng Financial Leasing Vessel Business Forces Operational Leasing, Assets Trading .

Yang Jingwei frankly said that this made him feel quite pressure, but at the same time full of confidence. “In 2017, our ship leasing business unit achieved a brilliant performance. This year we will overcome all difficulties and complete the board’s request.”

From May 11, 2008, Minsheng Financial Leasing realized the first shipping business of 64 million yuan, and it has been a ship leasing business unit with an asset scale of nearly 40 billion yuan for 10 years.

“This decade is the tenth year of the growth of the Minsheng Financial Leasing Shipping Leasing Division. It is also the tenth year that the Chinese financial leasing industry has entered the international shipping finance industry and has written a lot of money.” Yang Jingwei said.

Ship leasing has become a world-famous card of Chinese-funded enterprises

In 2008, the international financial crisis broke out. In the seven months, the Baltic Dry Index (BDI) fell from more than 11,700 points to 663 points, a drop of more than 94%, and the international shipping financial market was depressed. As a traditional financing channel for the shipping industry, the banking industry continues to withdraw from the market under the pressure of capital and supervision. The development of the shipping industry faces bottlenecks.

Yang Jingwei said that after the outbreak of the global financial crisis, the shipping market quickly fell into a slump, the banking industry tightened its monetary turmoil, and ship financing was extremely difficult. Under the dual pressures of the financial crisis and the market downturn, China's ship finance and leasing industry has risen in reverse, and has begun to enter the world shipping market, opening up new financing channels for the global shipbuilding and shipping industries.

“China’s financial leasing companies, as a unique format, have greatly mitigated the dual impact of the shipping industry on the financial crisis and shipping cycle. Financial leasing companies use their unique dual advantages of 'financing and financing'. Direct rent helps shipping companies to speed up their capacity optimization and upgrades; revitalizes existing company assets with the help of lease-back and leaseback; reduces the asset-liability ratio of lessees through operating leases; and eases funding and risk pressures in downturns that are not available in other financial sectors. "Yang Jingwei pointed out.

With the leap-forward development of the financial leasing industry in China in the past decade, China Shipping Leasing has become a bright business card for Chinese-funded enterprises in the world. A data from the China Banking Regulatory Commission showed that as of the end of March 2017, 23 of the 60 financial leasing companies opened nationwide had carried out vessel leasing business.

After 10 years of hard work, Minsheng Financial Leasing has leveraged its industry-leading expertise to greatly increase the discourse power and industry status of Chinese-funded financial leasing companies in the field of international ship financing. In September 2017, Minsheng Financial Leasing and Maersk Line, ranked first in the global liner industry, completed five 13100TEU container ship operating lease projects. The project has only been used for more than a month since the determination of the transaction intention until the completion of all deliveries. Its ship team has been highly recognized and praised by Maersk Line for its professional and efficient operation during the project's progress.

Because financial leases have the characteristics of separation of ownership and use rights, financial leasing is also very conducive to the development of cross-border leasing operations in the shipbuilding industry, which in turn helps China's ships and marine equipment to go global.

According to incomplete statistics from the China Shipbuilding Industry Association, in 2017 alone, Chinese-funded financial leasing companies have accumulated more than 3 million DWT ships at domestic shipyards, supporting the development of shipbuilding companies and “going out” with financial innovation models. .

With the increasing participation of financial leasing companies in the international market, financial leasing led by Minsheng Financial Leasing Co., Ltd. has actively participated in major international projects and played an active role in supporting the “Made in China 2025” national strategy and promoting international capacity cooperation.

Yang Jingwei said that at present, the world's mainstream shipowners, including oil companies and bulk commodity traders, will consider the Chinese shipbuilding industry when they are doing projects and looking for funds. "China Financial Leasing Company is already in their menu."

Secret Life Insurance Financial Leasing Vessel Trading

Since the establishment of Minsheng Financial Leasing, it has determined the development strategy of focusing on the development of ship leasing business. After ten years, for this sector, why is Minsheng Financial Leasing still confident in its core position?

Yang Jingwei stated that in the target ship, the ship is a natural lease and the cash flow is clear. After the leasing target operates through the SPV, the risk is completely isolated. In terms of transactions, ship inspection, ship price assessment, maritime registration, law, accounting, and auditing involved in the development of ship finance leasing business are well-developed. Therefore, such capital and technology-intensive assets of ships are very suitable for the operation of financial leasing companies. The current shipping market has witnessed a rebound in a number of indicators, the future of the shipping market has great opportunities, in addition, the "Belt and Road" and other national strategies also bring new development opportunities for the ship rental industry.

After 10 years of professional operation, Minsheng Financial Leasing and Shipbuilding Division has traditional business vessels, offshore engineering equipment, and cold chain logistics as the main business areas, taking into account the integration of the entire industry chain, and providing relevant information for shipowners, shipping companies, and industry chains. The unit provides solutions including product, financing and professional business support.

As of the end of 2017, the shipping division has a total of 286 vessels of various types. Including 87 bulk carriers, 41 container ships, 41 scattered liquid transport (including product oil tankers, chemical tankers, and bituminous ships), 23 navigational projects (including offshore vessels and offshore platforms), and others (including fishing boats And 94 dredgers, with total assets of nearly 40 billion yuan.

In the field of merchant ships, the shipping business department is mainly dry bulk carriers, container liners, and liquid bulk carriers, and closely links the business platforms of shipowners, shipyards, ship brokers, ship design institutes, industry authorities, and other related organizations.

In the field of offshore equipment, the shipping business unit mainly deals in the financial leasing and operating leasing business of mainstream marine engineering equipment in offshore and offshore oil and gas development.

The advantages of internationalization, professional team, and flexible and efficient system have enabled the shipping division to achieve a series of innovations in leasing.

In 2012, the shipbuilding department creatively adopted the shared ownership of ships and opened the door for the financing lease of offshore fishing vessels in China. In 2013, the Shipbuilding Business Unit pioneered the “asset disposal and rent sharing + rent sharing” model, which takes into account not only the affordability of the lessee’s market, but also the foreshadowing of the company’s acquisition of asset disposal proceeds. It is a bold innovation to adapt to market development. In 2015, relying on the long-term lease agreement of France's CMA Group, it ordered three 9400 TEU container ships under China Shipping Industry to support Chinese manufacturing to the international market.

Yang Jingwei stated that in the ten years of development, the operating secret of Minsheng Financial Leasing is to achieve “three unifications”: that is, the organic unity of the three markets of industry, capital, and capital markets.

“In the industry market, our focus is on finding suitable business models and business partners. In the capital market, under the financial lease, ship leasing is used as a means of financing, and the fund business is carried out. In this case, Looking at the common view of the industry, rather than blindly conducting business with the lessee; in the capital market, under the operating lease, focusing on whether the investor and the people's livelihood financial leasing concept are the same, these three unifications make Minsheng Financial Leasing ship leasing business With continued operations, the risks are controllable.”

Assets Trading and Operating Leasing "Road Map"

Although the leasing industry in China has a rapid development momentum, many leasing companies still rely primarily on "sales and leasebacks" in financing leases. Under this model, the lessee obtains funds by selling first and then renting, and the lessor mainly relies on interest spreads to profit.

Yang Jingwei said that the operation mode of such "credit-like" funds could easily cause the leasing companies to fall into the homogenous competition with their peers and banks, not the core capabilities of leasing.

Yang Jingwei disclosed that the company’s board of directors has at least a net profit of RMB 500 million to the vessel leasing business this year. The higher rate of return is imperative for the ship leasing business unit to continuously explore diversified profit models and rapidly increase the operating capacity of the leased assets. Yang Jingwei stated that the business of ship renting and spreads is simple and there are still some profitable opportunities. However, in the ship leasing business sector, there is limited room for development only on financing leases. The next source of force for Minsheng Financial Leasing Vessel Leasing is operating leases.

"Compared with financing leases, operating leases are very different from the degree of project intervention, risk management and control methods, and income acquisition methods. Operational leases can return to the leasing source and reflect the company's professionalism. It is the people's livelihood financial leasing. One of the important features that distinguish it from traditional commercial banks."

In addition to operating leases, Yang Jingwei is also optimistic about asset transactions. Yang Jingwei said that asset trading is an important area for the leasing company's future development. Asset transactions will be the main means by which the people's livelihood financial leasing will realize excess returns in the future.

Yang Jingwei said that after years of professional management, Minsheng Financial Leasing has laid a good foundation in the field of global ship financing. In 2017, the Minsheng Financial Leasing Shipbuilding Sector was the industry leader in terms of scale and profitability when the shipping market was relatively sluggish. What's more important is that Minsheng Financial Leasing has explored many innovative modes of ship financing lease, whether it is China's leasing industry and even global shipping finance are of special significance.

       “Since the ups and downs of the shipping industry, we are still full of confidence in the future. Next, Minsheng Financial Leasing will optimize the structure according to the cyclical changes in the market segments of the large shipping sector, rationally allocate various assets, and continue to strengthen asset management and operating capabilities. ."