The Group’s factoring business is conducted through Jiangsu Goldbond Factoring Co., Ltd., a wholly-owned subsidiary of the Company.
The Group provides customers with funds secured by, amongst others, their accounts receivable, and offers them accounts receivable management services, which include review of documents relating to the accounts receivable, collection of the accounts receivable, and reports regularly to customers on matters concerning their accounts receivable. In return, the Group receives interest income as well as professional fees for the services rendered.
The factoring business has recorded satisfactory results since its commencement of business, with a focus on account receivables due by large state-owned enterprises or listed companies.
