The year 2023 was challenging for the global market. Slowing demand from terminal brands, rising inflation and geopolitical  instability compromised the equilibrium of the global economy and supply chains. FENC responded with continued efforts in securing accounts receivable, controlling credit risk exposure and monitoring national risks. The management guidelines are adjusted as appropriate to respond to changes in global risks.

FENC continues to implement the digitization of account management through the integration of big data and AI. In 2023, the Company established the Global Overdue Information Platform and optimized the Global Credit Management Platform and Credit Customer Information Management Platform. The three major digital projects expanded the Company’s ability to determine risks, strengthen risk alert, predict and identify at-risk customer groups and carry out effective overdue collection. FENC’s prudent efforts accomplished zero defaults during the reporting year. Specific measures are listed below:

1. The Global Overdue Information Platform was established to prepare daily compilations of worldwide overdue accounts. Individual alerts are sent with collection status monitored to enhance the efficiency of account collection and refine risk exposure management.
2. The Global Credit Management Platform was optimized to monitor global credit risk exposure and conduct in-depth analysis and data interpretation as a reference for management and decision-making.
3. The Credit Customer Information Management Platform is optimized to enhance comprehensive risk analysis regarding credit customers and integrate national risk dynamics, agency ratings and major news from 193 countries.
4. The List of Countries With Escalated Risks and List of Customers With Unusual Risk Patterns were compiled for control and regular review with limitations regarding credit and transaction terms to help FENC stay up-to-date on geopolitical and economic risks as well as changes in customer operations.
5. Non-performing loans were closely monitored with prompt responses and enhanced collection efforts. The measure helped FENC reduce overdue accounts in arrears for more than three months to 0%.