I am very glad to meet Meng Lijun and General Manager Meng from Duochang Network at the 2026 SNEC exhibition .
Hi, everybody.
Compared with other industries, what are the typical problems that the optical storage industry will encounter in cross-border trade and how to deal with them?
OK, in fact, from the current market, whether it is photovoltaic or traditional foreign trade, in fact, emerging markets have become a major core engine of growth. In the expansion of emerging markets, like our photovoltaic enterprises , as we all know, the demand for household energy storage in Africa is relatively strong at present, because Africa is short of electricity. At this time, a large number of photovoltaic enterprises may also do some layout in Asia, Africa and Latin America. In these emerging markets, their financial infrastructure is relatively poor, which can easily lead to some difficulties in foreign exchange, foreign exchange settlement, or some frozen funds. There will also be some enterprises desperate, for example, to find some fast track, the so-called parallel market to do some exchange and so on, then there may be some risks, for example, the risks involved in some laws and regulations are relatively large.
Faced with the fact that we need to expand not only the traditional European and American markets, but also the Asian, African and Latin American markets, how can we achieve both? We need a global currency solution, which is our capital reflux solution. Do you have any suggestions for trade activities in these two different types of markets?
OK, in fact, through our 800,000 customers of XTransfer, we did a survey and produced a PMI report of XTransfer. This report shows that some of the existing foreign trade enterprises, including photovoltaic, are actually traditional markets in Europe and the United States, plus emerging markets in Asia, Africa and Latin America, a two-pronged approach. In the traditional European and American markets, the problem of payment may not be very big, so its core issue is how to improve the timeliness and efficiency of payment, which is actually very critical. Second, the traditional market, such as Europe and the United States, whether we are in line with some of their local national policies, qualifications, certification. Because it is the European and American market, it will be relatively rigorous and very professional. I hope you need to pay attention to this point.
For our emerging markets in Asia, Africa and Latin America, I think there are two suggestions. Let's go back to the question just now. For example, in Brazil, its requirements for product certification and qualification are relatively high, and its classification is also very detailed. So do we find some compliance agencies to do some research in advance, and how can I meet the requirements of this product and how to apply for its qualification. The second point is that in these emerging markets, there is a major difference between them and the traditional markets in Europe and the United States. The difference is in the return of capital. For example, when your customer is making a payment, he doesn't actually have so much US dollars, so we usually pay in US dollars, or in offshore RMB. Because we know that the export of photovoltaic enterprises, in fact, its amount is very large, in the case of a huge amount, then the first thing we require is the number of funds, right. At this time, there will be, for example, if you do not have a compliance solution, or a capital solution, you will have a customer to delay the account period, he does not have so many dollars, he will queue in the bank for a week, two weeks, or even a month. For us, in fact, the capital chain is the lifeline of the enterprise, in fact, it is quite important, which needs attention.
In addition to these routine and common problems, are there any problems that are not easy to notice at ordinary times, but are really easy to step on?
OK, I think everyone should be very familiar with the European and American markets. Of course, I just mentioned the European and American markets, some of your qualification certification, product certification and so on, its requirements are relatively high. In the Asian, African and Latin American markets, there are some things that are not easy to notice, such as your quotation, what is your anchor currency, and what is your repayment cycle, because it will face some changes in the exchange rate at any time. Then we may anchor the exchange rate in advance, or something like that. I think if you don't do this, it's very likely that, for example, when you pay the final payment a month later, the money may be much worse when converted into RMB.
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