Offering a Helping Hand to Environmental Protection Enterprises: A Documentary on the Lubi Branch’s Support for the Development of Kaili Xintai Melting Materials Co., Ltd.

The Lubie Branch of Guizhou Kaili Rural Commercial Bank is located in the Industrial Park of the Lubie Economic Development Zone in Kaili City. The branch actively supports the local “agriculture, rural areas, and farmers” economy while providing high-quality financial services to enterprises within the park. Since its establishment in 2013, the Lubie Branch has provided credit funding support to all corporate clients, individual business operators, and surrounding farmers in the park. Among them, Kaili Xintai Melting Materials Co., Ltd. (hereinafter referred to as “Xintai Company”) successfully overcame difficulties and achieved robust growth with the assistance of the Lubie Branch, becoming a premium client of the branch and serving as a model for the development of small and micro enterprises in the park.

　　Xintai Company was established in December 2003. It is a key investment attraction enterprise of the Kaili Municipal Government and also a designated key protected entity in Qiandongnan Prefecture. Its main products are calcium aluminate powder (commonly referred to as calcium aluminate powder and bauxite powder), which is used as a raw material essential for the production of polyaluminum chloride. This product finds wide application in areas such as drinking water treatment, industrial water treatment, and wastewater treatment. As the country intensifies its environmental protection policies, the company has seized new development opportunities. After several twists and turns, on March 26, 2012, Xintai Company signed an Investment Agreement with the Kaili Municipal Government for the relocation and capacity expansion project of its calcium aluminate powder production facility, with an annual output of 200,000 tons. From that moment onward, the company embarked on a new chapter of growth and development.

Visiting the head of Xintai Melting Materials (left)

　　Hope lies ahead, and everything is about to get back on track—this should be a cause for great joy. Yet the head of Xintai Company is deeply worried. Due to the massive scale of the earlier relocation and reconstruction project, the company has poured a substantial amount of its funds into fixed-asset construction, leaving only a minuscule sum to keep the business running. To address the funding shortfall, the company’s leader has tried applying for loans from the Big Four banks as well as from the local bank in Kaili—but each time, the applications have been repeatedly rejected because the requirements were simply too high.

　　One day in September 2013, the Lubbi Branch of Guizhou Kaili Rural Commercial Bank set up a booth in the Lubbi Industrial Park to promote its banking services. With a bit of hesitation, Zhu Zongxing, the deputy general manager of Xintai Company, came by to inquire about loan services. He spoke frankly to the staff: “Our company’s factory premises are now basically completed, but due to excessive initial capital investment, we currently lack funds to purchase essential equipment and finish constructing the remaining parts of the plant. We sincerely hope that your bank could provide some support so that our company can start production as soon as possible.” To help the Lubbi Branch gain a deeper understanding of the company’s difficulties, Deputy General Manager Zhu promptly invited the branch’s account manager to visit Xintai Company for an on-site investigation and provided a detailed explanation of the company’s construction progress.

Finished Goods Warehouse

　　As the Lubiji Branch deepened its understanding of Xintai Company, it came to believe that, under the guidance of national policies, the company would enjoy promising prospects. Consequently, the branch promptly initiated a series of loan approval procedures and, on October 30, 2013, successfully granted the company a three-year fixed-asset loan amounting to 10 million yuan, earmarked for equipment purchases and factory construction. Finally, everyone at Xintai Company heaved a great sigh of relief and enthusiastically threw themselves into enterprise development. In May 2014, the company successfully began production. Vice President Zhu remarked with heartfelt gratitude: “You truly are a solid backing for small businesses. With Kaili Rural Commercial Bank by our side, we feel completely secure.”

　　Thus, with the assistance of the Lubi Branch, Xintai Company embarked on a path of vigorous development. First, it utilized 150 mu of state-owned land that had been leased to build a single kiln external pre-decomposition rotary kiln production line measuring φ2.8 × 50 meters, with an annual production capacity reaching 200,000 tons of calcium aluminate powder—double the capacity of its previous production line. Subsequently, the company invested in the construction of 14 environmentally friendly facilities, effectively recovering and controlling dust particles, thereby virtually eliminating any external discharge of dust. As its business performance gradually became evident, Xintai Company promptly settled its loan interest payments every quarter and proactively raised funds ahead of time whenever loans came due, enabling it to repay the entire principal amount in one lump sum. As a result, the company has earned an excellent reputation.

　　At the end of 2016, during the peak sales season, with a large volume of product orders, rising employee wages, and increased demand for raw materials, Xintai Company once again faced a liquidity gap. Once again, the company’s management immediately turned to the Lubiji Branch. After carefully assessing the company’s actual situation and taking into account the goal of maximizing customer benefits, the Lubiji Branch extended to Xintai Company another three-year, maximum-amount mortgage-based working capital loan, with each loan amounting to 13 million yuan, specifically designed to support the company’s cash flow.

First-phase production line

Phase II pilot production line

　　With the revitalization of its capital chain, Xintai Company’s corporate profits have grown rapidly, and its management has become increasingly demanding in terms of product quality. To achieve product transformation and scale expansion, Xintai Company’s second-phase polyaluminum chloride production line was basically completed in June 2017 and is currently undergoing trial operations. This line will enable the production and sale of finished polyaluminum chloride products. Meanwhile, the company’s third-phase production line is also under construction and is scheduled to begin formal operation by the end of August this year.

　　Looking at the company’s development over time, since receiving credit support from the Lubiji Branch three years ago, Xintai Company has seen its performance grow steadily year after year: At the start of production in 2014, it immediately turned a profit, with total revenues reaching 42.7985 million yuan and net profit standing at 682,100 yuan; in 2015, total revenues climbed to 60.1125 million yuan, yielding a net profit of 1.6281 million yuan; and in 2016, total revenues reached 87.2863 million yuan, generating a net profit of 6.3388 million yuan. As of June 2017, in just the first half of the year, the company had already achieved business revenues of 41.2153 million yuan and a net profit of 2.7410 million yuan. These steadily improving figures reflect not only the growing value of the enterprise itself, but also the confidence that the Lubiji Branch and various enterprises in the industrial parks have in their future development.

Environmental protection facilities

　　Guizhou Kaili Rural Commercial Bank will, as always, remain true to its market positioning, vigorously supporting “agriculture, rural areas, and farmers,” small and micro enterprises, and communities. We will provide convenient, flexible, and efficient financial services to the broad customer base in the Lubibi Economic Development Zone, making the zone’s economy increasingly vibrant and the region’s development ever more prosperous.