JD Century Accounts Receivable Asset Securitization Research

With the development of society and the progress of science and technology,the variety of goods is increasingly rich,the industrial chain is increasingly perfect,and the market competition faced by enterprises is also increasingly fierce.In the face of fierce market competition,credit sales as an effective strategy to increase the sales of enterprises,its importance is increasing.In recent years,the outbreak and recurrence of the COVID-19 pandemic have made it more difficult for enterprises to manage in the process of fighting the epidemic and resuming production and work,and the importance of credit sales as an effective strategy to improve the bond between enterprises and their current customers has increased again.In this context,credit sales strategy is widely used by enterprises,and the formation of a large number of accounts receivable inventory assets,resulting in accounts receivable inventory assets in urgent need of activation.The state attaches great importance to this problem and has successively issued relevant policies to encourage enterprises to develop receivables asset securitization business.In 2016,the government put forward to accelerate the development of receivables securitization business by issuing policies starting from industrial enterprises and giving play to the leading force of industry in the national economy.It then expanded into manufacturing in 2017 to support manufacturing powerhouses.Subsequently,small and micro enterprises also received attention.From 2017 to 2019,the special action work plan of accounts receivable financing for small and micro enterprises was released to support the transfer and registration of accounts receivable basic assets for small and micro enterprises.In recent years,with the outbreak and recurrence of the epidemic,the country has paid more attention to this issue,and issued the opinions on further revitalizing the stock assets and expanding effective investment in 2022,actively promoting enterprises to revitalize the stock receivables assets through asset securitization business,and promoting the sound development of enterprise investment and financing.This requires enterprises to actively carry out receivables asset securitization business,and make good use of its positive role,deal with the risks brought by it.Based on this,this thesis selects the enterprises that adopt credit sales strategy all year long and actively practice receivables asset securitization business as the research object,in order to provide reference for other enterprises.Taking JD.com Century Trade Co.,Ltd.as an example,this thesis selects the operating and financial situation of the company before and after the Securitization of accounts receivable business as data,the thesis uses the case study method to analyze the motivation of the company’s Securitization business and the effectiveness of the Securitization business based on the principle of financial effects.Finally,on the basis of a theoretical explanation of the credit risk,risk isolation and operational risk of the accounts receivable Securitization,the company conducted an in-depth scan of the accounts receivable Securitization business,identify the risks in the operation of the business process,and put forward the corresponding countermeasures.Through the analysis and research of the receivables asset securitization business of Beijing Jingdong Century Trading Co.,LTD.,it can be seen that it is necessary for Beijing Jingdong Century Trading Co.,Ltd.to carry out the receivables asset securitization business in the competitive market environment.It has brought the active effect of revitalizing the stock assets,improving the solvency,improving the profitability and alleviating the cash flow pressure.The company should actively carry out the receivables asset securitization business.At the same time,while the company pays attention to the positive effects,it also needs to pay attention to some risks.Risk issues including the credit risk of underlying asset pool,circulating purchases during the period of priority interest coverage ratio less than risk,SPV mixed by the lack of independence,insufficient degree of true sale the isolation of risk,the original rights and interests of the bankruptcy risk,credit enhancement of single associated risk,interest rate volatility risk and financing cost.In this regard,this thesis puts forward optimization suggestions.Suggested the company improve its accounts receivable quality maintenance and tracking system,strengthening the flexibility and increase priority interest cover ratio,diversification of SPV qualification recognition and optimal selection ability,expanding the scope of the investors in order to enhance the degree of true sale,promote corporate leverage,reasonable and comprehensive profitability,increase credit enhancement methods,improve the optimization of enterprise Capital cost management system.It is hoped that it can provide reference for other enterprises’ receivables asset securitization business,promote its benign development,further promote enterprises to revitalize the stock assets of receivables for expanding effective investment and reproduction,and achieve sustainable development.