Supply Chain Finance Research Of CGCOC

With the accelerating pace of "Going out" of Chinese engineering contracting enterprises and the constant participation in the international engineering contracting market competition the overseas engineering contracting market is increasingly becoming the focus of business development of Chinese engineering contracting enterprises.The engineering contracting industry is an industry in which the upstream and downstream of the industrial chain are closely linked and closely coordinated.The competition in today's engineering contracting market is mainly reflected in the upstream and downstream industry chain and supply chain competition around the core enterprises.The core enterprises obtain external finance through their own reputation Institutional credit and financial support optimize the allocation of its own supply chain thereby reducing the cost of the enterprise enhancing the competitiveness of the entire supply chain and enhancing and enhancing its competitiveness At the same time China's engineering contracting industry has begun to take shape and influence in the international engineering contracting market.However there are not many studies related to supply chain financing management of overseas engineering contracting core enterprises in China's current research on supply chain financing and there is no perfect theoretical system.Especially in recent years under the background of the "One Belt One Road"initiative put forward by the state more and more Chinese engineering contracting enterprises have gone abroad to participate in various construction projects in countries and regions along the "Belt and Road".All levels of China also support and encourage Chinese engineering contracting companies to participate in international competition abroad;"Going out" is not only an inevitable trend of China's industrial transformation and upgrading,but also a forward-looking national strategy.However at the same time that engineering contracting enterprises "Going out " CGC overseas engineering contracting enterprises have also encountered many challenges.For example:the phenomenon of arrears or deferred payment of construction funds by overseas project owners is widespread and difficult to solve in a short period of time,and the political and economic risks of the countries in which they are located.The local currency collection of high-level and overseas projects is extremely difficult to convert into currency currencies such as US dollar or Euro and Chinese engineering contractors tend to choose partners,engineering subcontractors and material suppliers in China.It has brought certain pressures on the payment of engineering contracting enterprises in China;these risk factors affect the pace and determination of Chinese engineering contracting enterprises to go abroad;and whether it is construction at home or abroad,it will inevitably require a large number of enterprises.The capital investment facing the difficulty of foreign exchange of funds and the mismatch of domestic payment by partners and suppliers,how to give play to the role of Chinese engineering contracting enterprises as the core enterprises in the entire supply chain,how to use the supply chain financing Tools become a top priority Problem.For Chinese enterprises especially Chinese engineering contracting enterprises,the following two aspects are mainly faced in overseas contracted projects and the entire construction and daily production and operation:The first is the difficulty of local currency exchange:the Chinese engineering contracting enterprises are engaged in The overseas project receiving currency is usually a certain percentage of the local currency of the country where the project is located supplemented by a certain percentage of the US dollar or the Euro The foreign project owners' willingness to pay the full amount of the US dollar euro or RMB currency is not strong and the project payment is often deferred due to the project The contracting industry's own characteristics and the agreement on the construction period in the contract between the two parties Chinese engineering contracting enterprises usually have to carry out the capitalization while ensuring the construction progress while the construction fund is being collected.Second the cooperation of Chinese engineering contracting enterprises overseas projects The partners and suppliers are also mainly domestic enterprises.The settlement currency agreed in the contract signed with the Chinese engineering contracting enterprise is usually RMB the overseas collection of the project is mostly local currency and the domestic payment of the project is often the RMB.It is precisely the failure to form a complete capital between payment Closed-loop payment in addition to projects often longer period more upstream suppliers funding mismatches tend to give Chinese companies a big project contracting of long-term financial pressure.This paper takes the engineering contracting company CGC Overseas Group Company as an example to analyze its motivation and effect in solving the problem of fund collection and payment and implementing supply chain financing.The main contributions are:(1)supply chain financing mode and financing risk Based on the detailed analysis of factors such as supply chain financing,this paper objectively analyzes how Chinese engineering contracting enterprises should cope with the capital problems encountered in the upstream and downstream of the supply chain and provide corresponding countermeasures.(2)Integrating the above-mentioned enterprises in production and management The difficulties and countermeasures are obtained.This paper selects the case analysis of the supply chain financing scheme of the overseas companies in China,and conducts an in-depth analysis of the various influencing factors of the supply chain financing of the overseas companies and the effects of implementing the supply chain financing.Objective conclusions provide experience for Chinese engineering contracting companies to use in supply chain financing to solve financial problems in overseas engineering contracting projects.