Research On The Motivation And Effect Of Accounts Receivable Securitization In Construction Machinery Industry

The construction machinery industry is an important part of the equipment manufacturing industry and a pillar industry that promotes the development of the national economy.With the advent of the intelligent Internet era,due to the weakening of China’s demographic dividend and increasingly stringent requirements for environmental protection,the construction machinery industry has accelerated its transformation to automation,digitalization and intelligence,and increased the industry’s investment in research and development for technological innovation.On the other hand,in recent years,China has promulgated a series of policies to provide favorable support for the development of the construction machinery industry,lengthening the boom cycle of the construction machinery industry and promoting the continued release of rigid demand in the industry.In order to expand the scale of sales,enterprises in the construction machinery industry use credit sales strategy,which has led to the widespread problem of large accounts receivable and weak capital liquidity in the industry.Asset securitization provides a new financing channel for enterprises,which can structure the assets with low liquidity of enterprises and sell them in the securities market through credit enhancement,thereby helping enterprises achieve financing,breaking the limitations of traditional financing,and playing an important and positive role in reducing financing costs,revitalizing assets and reducing risks.Especially for the construction machinery industry,which has a large number of accounts receivable,asset securitization has important implementation significance.However,at present,the case studies of enterprise asset securitization mainly focus on the construction industry,financial industry and pharmaceutical industry,and the application research of the construction machinery industry has just started.Sany Heavy Industry is a leading enterprise in the field of domestic machinery manufacturing,which has led the construction machinery industry to create a new financing model,which is of iconic significance in the construction machinery industry,so this paper selects the first phase of Sany Heavy Industry’s asset-backed special plan in 2021 as a case study.After combing through a large number of literature,this paper conducts in-depth research on the accounts receivable securitization case of Sany Heavy Industry through literature research method,case analysis method and comparative analysis method,combined with relevant concepts and theoretical foundations,and then draws conclusions and enlightenment.This paper first analyzes the current situation of securitization in the construction machinery industry,then introduces the overview and operation of Sany Heavy Industry,and after elaborating on the asset-backed special plan,the motivation,effect and risks of this special plan of Sany Heavy Industry are studied from multiple angles.Through the analysis of financing costs,market effects and financial effects,it can be seen that after the implementation of accounts receivable securitization,Sany Heavy Industry’s motivation to improve market effects,reduce financing costs,and provide strategic funds has basically been realized,but at the same time,it is also necessary to pay attention to the risks existing in the underlying assets,special plans and other risks such as policies.Finally,this paper summarizes the enlightenment brought by the successful experience of Sany Heavy Industry Company’s accounts receivable securitization financing,and hopes to provide reference value for the construction machinery industry or other enterprises with excessive accounts receivable scale and large financing needs.