About this series
Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.
Lenovo – Linking up for a brighter future was first aired on 31 Jul 2023 under the Building Asia with UOB series. Watch how Lenovo and its suppliers benefitted from UOB’s customised supplier financing programme, and how UOB’s ASEAN footprint is helping Lenovo drive its regional expansion.
Hugh Wu (Vice President of Treasury Finance, Lenovo Group):
Good day, Ms. Zheng. Welcome to Lenovo.
Adaline Zheng (Head of Wholesale Banking, UOB China):
Very honoured to be here.
As the number one PC manufacturer in the world, Lenovo’s ability to maintain an efficient global supply chain is critical. Actually, a lot of our parts manufacturers are small and medium-sized enterprises (SMEs) in Asia.
SMEs are open to greater pressures and challenges from various market forces. They often need greater credit access through larger working capital to ensure the efficiency of the supply chain.
Together with Lenovo, UOB developed a customised supplier financing program and under this program, SMEs that are exclusive Lenovo partners enjoy access to preferential financing rates.
This solution is very important to Lenovo. Typically, when suppliers suffer key component or raw material supply shortage and cash flow issues, for them to be able to receive steady cash flow support helps to ensure that the supply chain continues to work seamlessly.
A stable supply chain will also allow Lenovo to achieve a higher production capacity at a faster speed so that we can fulfill the ever-rising global demand for high tech products. In addition, this helps to strengthen the ties between these SMEs and Lenovo for long term cooperation.
We leveraged on Lenovo as an anchor and utilised your credit strength and standing to provide credit support for the SMEs.
UOB’s support towards Lenovo is greatly appreciated. Actually, Lenovo’s Regional Treasury Center (RTC) is in Singapore. This geographical proximity creates a natural affinity for both companies.
UOB’s regional footprint in ASEAN matches Lenovo’s expansion strategy in the region and this makes us an ideal offshore banking partner.
We are very optimistic about Lenovo in Southeast Asia. We hope that new opportunities amidst our expansion into new areas will attract more ecosystem players to become partners under our umbrella.
We note that Lenovo is also increasingly embracing ESG initiatives. Our proprietary sustainable financing framework and specialism in key sectors such as TMT (technology, media and telecommunications) can help simplify and support Lenovo’s ESG journey further.
Greatly appreciated. Thank you. I have the fullest confidence in our cooperation.