HAID Group establishes offshore Corporate Treasury Centre (CTC) in Hong Kong to support overseas expansion plans
Addressing financial challenges on the rise as overseas businesses expand at full speed
Guangdong HAID Group Co., Ltd. (“HAID Group”) is an agricultural and animal husbandry high-tech enterprise specialising in the R&D, production and sales of aquatic products and livestock feed, which it develops for whole industrial chains while providing integrated technical service solutions for farmers. As a global enterprise operating over 600 overseas subsidiaries, the Group faced multiple challenges, including decentralised working capital, multicurrency risks and high bank financing costs. To realise its rapid expansion plans, it needed to centralise capital, financing and risk management, establish an offshore financing platform, strengthen links with overseas financial institutions, and seize financing opportunities in overseas inter-banking and bond markets.
Establishing HAID’s CTC in Hong Kong for its tax advantages
Hong Kong's conducive business environment has made it HAID Group’s destination of choice. “We believe that Hong Kong fulfils all our conditions and is the preferred location for our global treasury centre,” said Ding Bao Li, Treasury Director of HAID Group. “In addition, Hong Kong talents are well known for their professional competency, strong sense of responsibility, excellent comprehensive ability and high work efficiency, which will play an important role in realising the Group's global ambition.”
Choosing DBS as HAID’s bank partner for its strong treasury capabilities
When it came to choosing a bank partner for its CTC, HAID Group took several factors into consideration. On top of assessing the bank’s values, assets, treasury capabilities and development potential, the Group looked at its existing relationship with the bank and whether the bank had other successful collaborations with prominent CTCs in Hong Kong.
In 2022, DBS was recognized as the Best Bank in Hong Kong by four prestigious institutions - Euromoney, Asiamoney, FinanceAsia, and Bloomberg Businessweek. Additionally, for 14 consecutive years from 2009 to 2022, DBS has been recognized as the Safest Bank in Asia by Global Finance, and has also been acknowledged as the 2023 Greenwich Quality Leader for Cash Management in Hong Kong. With the outstanding reputation in the region, DBS is deemed well-positioned to align with HAID Group's international strategic direction. By partnering with DBS on the capital management and credit financing business of its CTC and procurement centre in Hong Kong, the Group would be able to boost credit financing for its Mainland Chinese and South East Asian investment projects.
HAID joins hands with DBS to accelerate overseas expansion
HAID International, the overseas CTC of HAID group, was established in 2018. The treasury centre is mainly responsible for undertaking the group's overseas treasury business and overseas subsidiaries’ cross-border capital pool lending business. It is also tasked with managing interest rate risks, offering support on working capital loans and credit guarantees, as well as providing consulting services on exchange rate risks and global investment projects.
DBS’s Treasury Advisory and Solutioning team worked closely with HAID Group in the setting up of its CTC by providing consulting and advisory services around strategic planning and end-to-end treasury transformation. To support the Group’s global procurement business in accelerating its expansion across high-quality, low-cost markets such as South East Asia, North America and South America, DBS also provided the Group with trade financing solutions to meet its needs.
Ding Bao Li said, “After many years of collaboration, DBS and HAID Group are broadening and deepening the scope of our shared partnership. We are very satisfied with DBS’s service quality and efficiency. We look forward to even more meaningful collaborations in the future.”
Source: The Hong Kong Monetary Authority and InvestHK – Corporate Treasury Centres in Hong Kong New Opportunities and Case Studies