Built on long-term, deep client relationships, YUJ operates an integrated online-offline supply-chain platform for Middle East building materials, layered with a Business Loop (procurement advance + bankers' acceptances) and a Capital Loop (bulk-import agency payment) to form a cross-border industrial capital-circulation system serving the SCO region's trade & investment facilitation and local-currency settlement.
Strategic positioning: YUJ is positioned as a cross-border industrial supply-chain and capital-circulation infrastructure operator for the SCO region—built on long-term, deep client relationships, operating an integrated online-offline supply-chain platform for Middle East building materials, layered with dual financial capabilities: a Business Loop (procurement advance + bankers' acceptances) and a Capital Loop (bulk-import agency payment). Unlike traditional trading-hub models that lack stable supply-demand structures, financial services and digitalization, YUJ directly serves the SCO's core strategic objectives of "trade & investment facilitation, local-currency settlement, supply-chain resilience and digital-economy cooperation."
①
Long-term, deep client relationships
Years of deep engagement with Middle East SOEs and large general contractors, accumulating genuine transaction data and credit profiles—the data and trust foundation for advances, credit lines and BA collection, which fragmented trading hubs cannot replicate.
②
Integrated online-offline supply-chain platform
An online platform (selection / matching / data) integrated with offline operations (overseas bonded warehouses / showrooms / processing / logistics), delivering transparent transactions and traceable fulfilment that ensures certainty of genuine physical delivery.
③
Stable two-sided ecosystem
Supply side: 52 domestic branded suppliers in deep collaboration and continuously expanding; demand side: buyers across 14 countries + SOEs + 1,500 general contractors, forming a sustainable two-sided ecosystem—rather than a low-stability hub with shrinking supply and transient demand.
④
Business-loop financial capability
Provides procurement advances to Middle East SOEs and collects bankers' acceptances (BA), which can be discounted / circulated / securitized—upgrading "trade services" into "trade + finance."
⑤
Capital loop + capital integration + SCO collaboration
BA-settled funds flow back to support domestic bulk-import agency payment, forming a capital circulation; while integrating SWF / PE / insurance / anchor capital, and obtaining policy endorsement through the SCO's four roles.
★
Integrated moat
Client relationships + supply-chain integration + digital platform + financial capability + policy resources form a five-fold systemic barrier that is hard to replicate, supporting the sustainable operation of RMB 25bn in external exposure.
Stable suppliers
52
Domestic branded suppliers
Stable buyers
14 ctry
+ SOEs + 1,500 GCs
Platform form
Online + Offline
Integrated supply chain
Financial capability
Dual-Loop
Business + Capital
02
Which Core Industry Problems Are Solved (Pain Points × YUJ Solutions)
Q2 · Industry Problems Solved
YUJ simultaneously resolves three structural pain points at the industry level: ① the "ghost-town" dilemma of Middle East building-material distribution · ② the financing and fulfilment dilemma of Chinese building materials going global · ③ the efficiency and compliance dilemma of cross-border capital.
Pain Domain ① · The "ghost-town" dilemma of Middle East building-material distribution
Industry pain
Traditional hub status quo Yiwu Mideast market / Dubai Dragon Mart / trade ghost towns
YUJ solution
Value
No stable buyers
Retail / transient clients; demand collapses on volatility
Long-term lock-in of SOEs + GCs + buyers across 14 countries
Advance / credit-eligible
Continuous supplier attrition
Stall tenants leave; increasingly deserted
52 branded suppliers in deep collaboration, continuously expanding
Local-currency settlement + domestic capital circulation + diversified bank pool
Substantially reduced cross-border exposure
Costly financing for domestic importers
Cash-on-delivery agency payment (my103) + low-cost financing via cargo-title pledge
Eased capital lock-up + low cost
Core thesis: YUJ achieves a value-chain step-up from "trade matching" to "trade + supply-chain finance + cross-border capital-circulation orchestration." Most market participants stop at the transaction-matching layer, whereas YUJ—leveraging a stable two-sided supply-demand ecosystem and fulfilment certainty—possesses the qualifications and risk-control foundation to conduct procurement advances, BA aggregation and capital circulation. This is the fundamental differentiation that enables its dual-loop and contributes incremental trade facilitation and local-currency settlement to the SCO region.
YUJ's profitability does not rely on a single trade spread, but on a diversified revenue structure with four stacked layers: "trade + platform + finance + capital." Through the v1.0 → v2.0 → v3.0 evolution, revenue engines expand from a single "trade spread" to 8 engines, with gross margin and revenue quality steadily improving.
Profitability conclusion: YUJ's profit structure follows a four-layer progression of "trade scale base + high-margin platform contribution + stable financial spreads + capital-circulation gain." The key v3.0 breakthrough is the capital layer—the same funds are reused across multiple rounds within the dual-loop, generating multi-round returns without additional principal, materially lifting return on equity (ROE) and cash-flow quality while simultaneously scaling regional local-currency settlement and cross-border trade finance.
04
Business-Loop Capability (Platform Advance + BA Collection)
Q4-A · Business Loop
Business Loop: A Middle East SOE places an order → the platform reviews credit and advances payment → YUJ's supply-chain platform stocks and supplies the goods → the SOE issues a bankers' acceptance (BA) to the platform → the platform discounts / circulates / pools the BA → the BA is honored at maturity and funds are recovered. Capital direction is Mideast → China; in essence it leverages YUJ's fulfilment certainty and SOE credit to convert trade flows into financeable BA assets, providing underlying assets for regional cross-border trade finance and local-currency settlement.
Fig. 04-1 · Business-loop process (three roles: SOE Applicant · Platform Beneficiary · Middle East A-rated Issuing Bank)
Served party
Mideast SOEs
Sovereign/quasi-sovereign credit
Payment instrument
BA
A-rated bank + MT760
Capital direction
Mideast → China
Procurement → BA
Platform return
Fee + spread
2-5%
Risk control: Advances only to credit-assessed SOEs; BA must be accepted by Middle East A-rated banks (FAB / NBD / QNB) and verified via SWIFT MT760; single-counterparty exposure is capped and included in a 5-layer counter-guarantee; fulfilment relies on overseas bonded warehouses + BHDP title registration to ensure genuine delivery.
Capital Loop: The Middle East funds settled from the Business Loop (the BA fund pool) are not remitted out but converted into agency-payment platform funds to provide import agency payment to domestic bulk-commodity importers. Clients order on a cash-on-delivery basis (my103 model); upon arrival at port, the platform advances payment, takes the cargo title first and clears customs; after the client pays VAT, it takes delivery and repays in tranches, with principal + returns flowing back to the pool—funds circulate and appreciate domestically.
Fig. 05-1 · Capital-loop process (core controls: take title first · title pledge · release after payment · VAT compliance)
Mideast funder
Stable return
Agency spread + fee
Domestic client
Low-cost financing
COD · eased lock-up
Platform
Spread + fee
Title pledge · controllable
Capital trait
Stays onshore
Avoid FX + sanctions
Risk control: ① Title authenticity—BHDP on-chain title registration + third-party warehouse supervision to prevent double pledging; ② Tranche-delivery discipline—strict "release after payment"; title for unpaid portions is not transferred; ③ VAT compliance—paid by the client per law; the platform does not advance tax; ④ Commodity price volatility—dynamic collateral ratios (stricter for copper / iron ore / crude); ⑤ Duration matching—BA-settled funds matched to agency-payment tenor to prevent liquidity mismatch.
06
Dual-Loop Synergy (Business × Capital · Cross-Border Capital-Circulation System)
Q4-C · Dual-Loop Synergy
Fig. 06-1 · Dual-loop capital-circulation system (Business Loop + Capital Loop · converging at the Platform Hub)
Business Loop × Capital Loop · Synergy Value
Synergy dimension
Business Loop (§04)
Capital Loop (§05)
Capital direction
Mideast → China (procurement payment forms BA)
Fund pool → domestic bulk import (agency pay)
Capital form
BA bankers' acceptance → settled fund pool
Settled funds → agency funds → returns flow back
Core collateral
SOE credit + BA issuing-bank acceptance
Commodity cargo title (B/L / warehouse receipt) pledge
Platform return
Advance service fee + BA discount spread
Agency service fee + import agency-payment spread
Linkage
Platform Hub: BA pool → agency-pay pool; same funds recycled across rounds, funds stay onshore
Dual-loop value: The Business Loop generates a "financeable bankers'-acceptance asset" for YUJ, while the Capital Loop enables the corresponding funds to "appreciate continuously onshore." The two loops close at the Platform Hub, forming a complete capital cycle of "materials export → note settlement → bulk-import agency payment → return inflow"—multi-round reuse of funds with reduced cross-border exposure and FX risk. This marks YUJ's evolution from a "trading entity" to a "cross-border industrial capital-circulation orchestrator," providing substantive support to the SCO region's supply-chain stability and local-currency settlement.
07
Capital Integration Capability (Capital Structure + Instruments + Exits)
Q5 · Capital Integration
YUJ's capital-integration capability operates on three levels: ① a multi-tier equity capital stack · ② diversified financial instruments (turning trade/BA/cargo title into investable assets) · ③ multi-track exits and capital circulation. The BA assets and agency-payment assets generated by the dual-loop are precisely the "high-quality underlying assets" that attract sovereign funds, PE and insurance capital.
① Multi-Tier Equity Capital Stack
Capital tier
Target investors
Role
Stage
Strategic anchor
Middle East SWFs Mubadala / PIF / QIA / ADQ
Endorsement + market access + large capital
Lead in core rounds (A/B)
Industrial capital
Building-material leaders / SOE supply chains / logistics groups
Sourcing / channels / fulfilment synergy
Strategic round
Financial investors (PE)
KKR / Blackstone / Middle East PE / top domestic funds
Capital + governance + Pre-IPO acceleration
Rounds B / C
Insurance / long-term
Insurance AM / pensions / family offices
Low-cost long-term capital matching dual-loop duration
Round C / Pre-IPO
Policy capital
SCO Development Bank / Silk Road Fund / local-currency settlement pool
Policy low-cost funding + endorsement
Throughout (see §08)
② Diversified Financial Instruments (turning business into investable assets)
Instrument
Mechanism
Capital-integration value
JSPF joint surety pool
Multi-bank joint-credit surety pool, amplifying leverage
Uses limited own funds to leverage large procurement
BA Pool + ABS
BA pooled and packaged, issued as asset-backed securities
Activates BA, brings in institutional capital, early recovery
SBLC standby LC
Issued by A-rated banks to enhance cross-border trade credit
Lowers counterparty risk, attracts conservative capital
Creates standardized investable assets for capital markets
Agency-payment asset rights
Transfer of beneficial rights of bulk-import agency assets
Brings in insurance/long-term capital, recycles the pool
Underlying quality
A-bank BA
Sovereign/quasi credit
Leverage
3-5×
JSPF surety pool
Capital circulation
Multi-round
Dual-loop gain
Exit channels
3-track IPO
HK/Mideast/A-share
③ Multi-track exits: The platform can be split into "supply-chain platform (high-valuation tech/platform profile) + financial assets (ABS/REITs-like) + trading entity," each connecting to three listing tracks—Hong Kong / Middle East (Tadawul / ADX) / A-share—complemented by BA ABS and agency-payment rights transfers to achieve capital-circulation exits. The dual-loop's sustainable cash flow underpins high valuation and institutional entry.
08
How to Collaborate with the SCO (4 Roles × YUJ Interface × Roadmap)
Q6 · SCO Collaboration
The SCO provides YUJ with four-fold empowerment—"policy endorsement + policy funding + market access + credit enhancement." In return, YUJ provides the SCO with "deployable digital supply-chain infrastructure + genuine cross-border trade scenarios," forming a complementary "policy—commercial" collaboration.
SCO 4 Roles × YUJ Interface
SCO role
Vehicle
Empowerment for YUJ
YUJ interface
① Policy endorser
SCO summit mechanism / member-state governments
Market access, policy legitimacy, lower political risk
Inclusion in SCO practical-cooperation projects
② Capital provider
SCO Development Bank / Silk Road Fund / local-currency settlement pool
Onshore Capital-Loop circulation + LC settlement pool
Cross-border trade-finance scale
BA note pool RMB 12bn + annual agency-payment flow RMB 22.4bn
Business Loop (advance+BA) + Capital Loop (import agency pay)
Connectivity / logistics infrastructure
Overseas bonded warehouse 30,000 m² + multi-country nodes in GCC/Central Asia
Bonded-warehouse network + BHDP node layout
Digital-economy cooperation
BHDP 12 modules; becomes regional trade digital-infrastructure standard
Consortium-chain title registration + SWIFT gateway + smart contracts
Supply-chain resilience
120 branded suppliers, 300k SKUs of stable supply
Stable two-sided ecosystem + fulfilment certainty
Investment & capacity cooperation
Channels SWF / PE / insurance capital into regional industry
Three-tier capital stack (see §07)
Employment & livelihood
Localized jobs in warehousing / logistics / platform operations
Localized bonded-warehouse and platform operations
Quantified values follow the projection basis in §09–§12 (2030 targets). Each contribution can be tracked within the SCO's annual KPI assessment framework.
Collaboration Roadmap (3 Phases)
Phase
Timing
Collaboration content
Milestone
P1 Onboarding
2026-2027
Register entity at Qingdao SCODA; join SCO practical cooperation; apply for policy loans
Policy endorsement secured + first policy funding
P2 Scale-up
2027-2028
Connect to LC settlement pool; deploy BHDP nodes in GCC/Central Asia; scale dual-loop
LC settlement live + multi-country nodes
P3 Platformization
2028-2030
BHDP as regional trade digital infrastructure; BA ABS / agency-rights capitalization; 3-track IPO
Regional infra standard + capital exit
Collaboration-mechanism positioning: YUJ is the market-based delivery vehicle for the SCO's strategic objectives—translating organizational policy direction into "operable, profitable and replicable digital supply-chain and dual-loop financial infrastructure"; the SCO in turn provides YUJ with policy funding, credit endorsement and market access. Together they form a public-private partnership (PPP) of "policy objectives—market-based execution," giving YUJ's dual-loop strategy the institutional safeguards to operate at scale and in compliance within a complex geopolitical environment, and delivering measurable contributions to the SCO's core KPIs in trade & investment facilitation, local-currency settlement and connectivity.
09
Deep-Dive Data (Market · Client Funnel · Unit Economics)
Q · Deep-Dive Data
Basis: Data in this and §10–§12 are strategic projections (2026 baseline → 2030 target), denominated in RMB, with key assumptions noted. GMV = total platform matched + self-operated transaction value; net revenue = the platform's actually recognized revenue (take).
Assumptions: SOEs are high-ticket core clients (driving advances + BA); GCs/distributors contribute long-tail GMV and repeat purchases; the 76% GMV CAGR reflects non-linear growth from launch to scale.
Unit Economics (mature state, per client / year)
Metric
SOE client
GC / distributor client
Notes
Annual GMV
RMB 120m
RMB 4.5m
SOEs: high ticket, long cycle
Platform take rate
10%
9%
Trade+platform+finance blended
Annual net revenue
RMB 12m
RMB 405k
= GMV × take
Contribution margin
55%
48%
Financial services lift SOE margin
Annual contribution profit
RMB 6.6m
RMB 194k
= net revenue × margin
CAC
RMB 1.5m
RMB 12k
BD / travel / onboarding
Payback period
~3 months
~8 months
High ticket → fast payback
LTV / CAC
> 18×
> 8×
5-year retention basis
Assumptions: SOE retention 5 years at 90% annual; GC retention 3 years at 75% annual. LTV = annual contribution profit × retained years, discounted.
Data conclusion: YUJ's growth is driven by a dual engine—"a few high-ticket SOEs (driving finance and the dual-loop) + many long-tail GCs (contributing GMV and stickiness)." Per-SOE LTV/CAC > 18× with a payback of only ~3 months; unit economics are highly healthy and form the foundation supporting RMB 29bn GMV and the dual-loop capital scale.
10
Business-Model Modeling (Dual-Loop Quantification · BA Pool / Turnover / Reuse)
Q · Business Model
The core of the business model is "reusing the same funds across multiple rounds via the dual-loop." This section quantifies the Business Loop (BA pool size and turnover) and the Capital Loop (agency-payment scale and reuse), and models how the fund-reuse multiple amplifies returns.
Assumptions: BA pool ≈ external exposure × 48% (SOE acceptance ratio); annual advance flow = BA pool × turns; agency-payment funds come from the onshore-deployable portion of BA-settled funds; reuse rises with risk-control / system maturity.
Assumptions: spreads are net of funding cost; the reuse multiple applies only to the agency-payment spread (multi-round deployment). These returns correspond to the "finance + capital" layers in §03.
Business-model conclusion: The dual-loop converts "RMB 25bn external exposure" into "RMB 12bn BA assets + RMB 8bn recyclable funds," then amplifies via turnover and reuse into "RMB 43.8bn advance flow + RMB 22.4bn agency-payment flow," ultimately contributing ~RMB 1.7bn/yr in financial returns. The key is that funds stay onshore and are reused across rounds—an asset-light lever that drives large flows.
Net revenue uses the platform's recognized-revenue (take) basis, not full GMV. The blended take rate rises from 6% to 11% as finance/capital engines grow in share. The platform shows a classic "front-loaded investment, EBITDA turning positive in year 3" curve.
5-Year P&L Forecast (RMB bn)
Line item
2026
2027
2028
2029
2030E
GMV
3.0
7.5
14.0
21.0
29.0
Blended take rate
6.0%
7.5%
9.0%
10.0%
11.0%
Net revenue
0.18
0.56
1.26
2.10
3.19
Gross margin
40%
45%
50%
54%
57%
Gross profit
0.07
0.25
0.63
1.13
1.82
Sales expense
0.08
0.14
0.22
0.32
0.43
G&A expense
0.05
0.10
0.18
0.28
0.39
R&D expense (BHDP)
0.02
0.06
0.10
0.15
0.23
EBITDA
-0.08
-0.05
0.13
0.38
0.77
EBITDA margin
—
—
10.3%
18.1%
24.1%
Net profit
-0.09
-0.06
0.08
0.28
0.58
Assumptions: gross margin rises with the share of high-margin platform/finance engines; expense ratios fall with scale; D&A, interest and tax are simplified to a RMB 0.01–0.19bn gap between EBITDA and net profit.
Fig. 11-1 · Net-revenue mix shifts from "trade-led" to "four-layer balance"; EBITDA turns positive in 2028 and reaches 24.1% in 2030
Sensitivity Analysis · 2030E Net Profit (RMB bn)
GMV \ take rate
9% (bear)
11% (base)
13% (bull)
RMB 23bn (-20%)
0.29
0.42
0.56
RMB 29bn (base)
0.41
0.58
0.76
RMB 35bn (+20%)
0.53
0.74
0.97
Assumptions: net margin moves with take rate and scale (~13–28%). Even in the bear case (GMV -20% and 9% take), 2030 net profit remains positive (RMB 0.29bn)—indicating strong resilience.
EBITDA breakeven
2028
Year 3
2030 net margin
18.2%
RMB 0.58bn net profit
Net-revenue CAGR
105%
0.18→3.19 bn
Finance+capital share
35%
of 2030 net revenue
Financial conclusion: The model shows a "J-curve"—two years of strategic investment (BHDP build-out + client/supplier network), EBITDA turning positive in 2028, and 2030 net revenue of RMB 3.19bn, net profit RMB 0.58bn, EBITDA margin 24.1%. The finance + capital layers contribute 35% of net revenue at the highest margins—the source of valuation premium and counter-cyclical resilience. Sensitivity shows profitability even in the bear case.
12
SCO KPI Status (Dashboard · Achievement Rate · Phase Progress)
Q · SCO KPI Status
Progress on the 9 core SCO-collaboration KPIs is assessed as "2030 target vs. 2026 current." Currently in the P1 onboarding phase, the overall achievement rate is ~35%, consistent with first-year pacing (see §08 roadmap).
9 Core SCO-Collaboration KPIs · Dashboard
KPI
2030 target
2026 current
Progress
Rate
Status
Collaborators (no.)
28
18
64%
64%
Ahead
JSPF PAL (RMB bn)
1.75
0.80
46%
46%
On track
Countries covered (no.)
14
6
43%
43%
On track
BHDP modules live (no.)
12
5
42%
42%
On track
Local-currency settlement share
60%
25%
42%
42%
On track
Overseas bonded WH (m²)
30,000
10,000
33%
33%
Accelerate
Policy loans (RMB bn)
5.0
1.2
24%
24%
Accelerate
BA pool size (RMB bn)
12.0
2.0
17%
17%
Early
GMV (RMB bn)
29.0
3.0
10%
10%
Early
Achievement rate = current / 2030 target. Early-stage KPIs (BA pool, GMV) catch up non-linearly in P2/P3 as the dual-loop scales, so low first-year ratios are expected.
Qingdao SCODA registration ✓ · joined practical cooperation ✓ · first policy funding in progress
P2 Scale-up (2027-2028)15%
LC settlement-pool connection in preparation · GCC/Central Asia nodes being planned
P3 Platformization (2028-2030)0%
Regional digital infrastructure · BA ABS / 3-track IPO not started
Overall weighted rate
~35%
P1 onboarding
Leading item
Collab. 64%
Network forms fast
To accelerate
Bonded WH / policy loans
P1 priority push
Non-linear catch-up
BA pool / GMV
Scale in P2/P3
Next priorities (P1 push): ① Expand overseas bonded warehouse to 20,000 m² (currently 33%); ② Land the first tranche of policy loans at RMB 2.5bn (currently 24%); ③ Bring 3 more BHDP modules live (title registration / SWIFT gateway / smart contracts); ④ Push local-currency settlement share past 40%. These four are prerequisites for scaling the dual-loop.
Six core questions (§01–§08) + Data Cockpit (§09 Deep-Dive Data · §10 Business Model · §11 Financial Model · §12 SCO KPI)
A standalone v3.0 strategic report; the existing evolution document (v1.0 → v2.0 → v3.0) is unchanged. Figures are strategic projections with key assumptions noted.