Chapter i · Context & Demand
Why We Must Build a "Fund Pool" Now
Once the first batch of investor funds is in place, we need a compliant, reusable, and transparently distributable vehicle for fund operations — that vehicle is the Middle East dedicated fund pool.
Three Key Drivers
Working Capital Demand
≥ CNY 20M / mo
Baseline · CNY 50M by month 6 · CNY 100M by month 12
Investor Requirements
Monthly Dividend
24-month lock-up · target 12-18% annualized
CogoLink Supply
Credit + Channel
In-pool compliant assets can secure 40-60% advance credit
Our Investor Onboarding Cadence
| Batch | Timing | Investor Amount | Purpose |
|---|---|---|---|
| Batch 1 | T + 30 days | CNY 5M | Pilot pool · 3-5 clients · order-splitting business |
| Batch 2 | T + 90 days | CNY 15M | Formal pool launch · CNY 20M monthly turnover base |
| Batch 3 | T + 180 days | CNY 30M | Scale-up · pooling · joint credit line of CNY 50M with CogoLink |
| Batch 4 | T + 365 days | CNY 50M | Full scaling · SOE-endorsed orders onboarded |
Core Tension: Our investor cash alone (≤ CNY 50M / first year) cannot sustain CNY 20M monthly baseline turnover. CogoLink's credit leverage must be layered on top (40-60% advance against in-pool compliant assets) — this is the fundamental reason for the "fund pool" design.
Why Traditional Bank Credit Lines Won't Work
- Multiple, Dispersed Entities · Xingyao Jinbo (mainland) + Hong Kong virtual company + future AIFC joint venture — banks do not accept "cross-entity credit lines"
- Short-term, High-frequency · Each transaction closes T+2 to T+7 — bank credit lines have a minimum 3-month cycle
- Order-Splitting Scenario · Bank compliance does not accept "contract order splitting" business
- Middle East Trade Background · Banks apply extremely high KYC due diligence thresholds for Dubai / Saudi Arabia
- No Collateral, No Physical Assets · We run an asset-light operation, making bank collateralization difficult
Chapter ii · Reference Model
Bank Note Pool Business · Bank Note Pool
The bank note pool is a mature supply-chain finance instrument in China: enterprises deposit their fragmented commercial bills and bank acceptance drafts into a bank "pool"; the bank grants a 60-90% credit line against the compliant note value in the pool; the enterprise gains early access to funds; and the bank earns management fees + discount spread + derivative deposits.
Core Mechanics of the Note Pool
Rolling
Dynamic Pool
New notes in · matured notes out · pool floor never empties
Aggregation
Fragmented → Pooled
Centralized management of small, high-frequency notes · cost amortization
Credit Line
60 - 90%
Issued as compliant in-pool note value × coefficient
Duration
6 - 12 months
Revolving line · no maturity liquidation
Win-Win for Bank and Enterprise
Bank-Side Returns
- Management Fee: 0.1 - 0.3% of pool size / year
- Discount Spread: credit rate − funding cost, 2-4%
- Derivative Deposits: in-pool margin + derivative demand deposits
- Batch Custody: single client covering multiple transactions, reducing marginal cost
- Sticky Relationships: pooled clients have extremely high retention, unlikely to churn
Enterprise-Side Value
- Monetize Fragments: fragmented management of small notes is costly; pooling automates it
- Early Credit Access: no need to wait for notes to mature — 60-90% immediately available
- Flexible Duration: revolving line, drawn on demand
- Lower Finance Cost: discount rate is typically lower than short-term loans
- Compliant & Transparent: bank custody, clean books
Mapping to a "Middle East Trade Fund Pool"
| Bank Note Pool | → | Middle East Trade Fund Pool |
|---|---|---|
| Commercial Bill / Bank Acceptance | → | Client advances + accounts receivable under contract (PI / commercial invoice) |
| Bank as custodian | → | CogoLink as the pooling channel (leveraging its license + system) |
| Enterprise deposits notes | → | Yidian Lingxi imports real Middle East business flow |
| Bank credit line 60-90% | → | CogoLink advance credit 40-60% (conservative start) |
| Discount spread | → | Channel spread + credit rate + tax settlement share |
| Notes returned at maturity | → | Client collection → in-pool settlement → residual rollback |
Key Insight: The essence of the bank note pool is "using aggregate pool credit to replace single-transaction credit" — packaging 100 small fragments into one pool shifts from "transaction-by-transaction due diligence" to "pool-level due diligence", causing marginal costs to plummet. This logic can be directly transplanted onto cross-border payment channel business.
Chapter iii · ME Fund Pool Design
Middle East Dedicated Fund Pool · Middle East Fund Pool
The pool's assets are our real Middle East trade fund flows (client advances · accounts receivable · in-transit split orders · tax settlements pending posting); the pool's liabilities are investor principal + CogoLink credit; the pool's returns come from channel spread + tax settlement share + FX spread + credit spread.
Composition of In-Pool Assets
| Asset Class | Business Scenario | Compliance Grade | Advance Ratio |
|---|---|---|---|
| Client Advances | AED / USD already received in Hong Kong Virtual Account (VA) | L1 · Highest | 60% |
| Accounts Receivable under Contract | Proforma Invoice (PI) · commercial invoice · bill of lading complete | L1 · Highest | 55% |
| In-Transit Split-Order Funds | First and second review completed · channel matching completed | L2 · Medium | 40% |
| Tax Settlement Pending Posting | Hong Kong tax settlement initiated · sub-account settlement incomplete | L2 · Medium | 35% |
| Non-standard business | Documentation being made compliant · risk-control intervention | L3 · Low | 0% (excluded from pool) |
The Three-Tier Pool Structure
Short-term Pool · T+0 - T+7
50%
High liquidity · client already paid · instant channel matching
Mid-term Pool · T+8 - T+30
35%
In-transit split orders · tax settlement posting · sub-account settlement in progress
Buffer Pool
15%
Contingency for refusal-to-pay · channel failure · emergency turnover
Fund Flow Illustration
Typical Scenario: Dubai client USD 1M trade payment · order splitting
- Client sends USD 1M AED → Hong Kong Virtual Account (VA) (entered pool as L1 client advance)
- Pool immediately advances 60% (USD 600K) as credit to partner supplier — supplier receives funds T+1
- Remaining 40% split: routed via Hong Kong Money Service Operator (MSO) for tax settlement · via Lianlian order splitting · via CogoLink settlement
- All funds settled by T+5 → pool repays credit + clears interest spread
- We receive: channel spread + document service fee + tax settlement share + credit spread differential
- Investor receives at month-end: pool net returns × dividend ratio
- CogoLink receives: credit spread + channel usage fee + service fee
Key Control Mechanisms
- In-pool compliant asset ratio ≥ 85% (L1 + L2) · non-standard assets excluded
- Single-client concentration ≤ 20% · risk dispersion
- Duration mismatch ≤ 30 days · average in-pool duration < 15 days
- Buffer pool 15% hard reserve · emergency disbursement
- Monthly audit · jointly reconciled by Grace Team + CogoLink
- Tripartite escrow account: Xingyao Jinbo · CogoLink · investor representative
Chapter iv · Value to CogoLink
Why CogoLink Should Take This Deal
This is complementary cooperation. CogoLink has the license, the system, and the funding capability, but lacks a stable, real business base and Middle East customer acquisition capability; we have Middle East resources, real orders, and Daona's order-splitting mechanism, but lack a compliant channel and credit leverage. Combined, we are a perfect fit.
CogoLink's Five Pain Points
| Pain Point | Current State | Cost Impact |
|---|---|---|
| Fragmented single transactions | High volume of small, high-frequency transactions · each independently due-diligenced | OpEx / revenue ratio > 40% |
| Difficulty acquiring ME clients | Language · culture · high compliance threshold · no on-the-ground team | CNY 80K - 150K acquisition cost per client |
| Duplicated trade authenticity due diligence | Each document set verified independently · no client-level reuse | DD time 15 hours / transaction |
| Idle channel capacity | System and license in place but monthly volume runs below capacity | Fixed costs cannot be amortized |
| Lack of stable base clients | Top-tier client churn → revenue volatility | Unstable annual performance |
The Solution from Yidian Lingxi × Daona Tech
| CogoLink Pain Point | Our Solution | Quantified Value |
|---|---|---|
| Fragmentation | Daona Tech's order-splitting mechanism · scientifically splits large orders into medium-sized orders that CogoLink's channels can absorb | Reduces CogoLink's per-unit processing cost by 40% |
| ME customer acquisition | CHAI on the ground in Dubai · YUJ brand endorsement · onboarding 3-5 new clients per month in batches | Zero acquisition cost · client increment = 60 / year |
| Trade authenticity | Platform-based KYC / KYB / UBO · one-time DD · multi-transaction reuse · structured data | DD time reduced to 3 hours / transaction |
| Idle channel | Stable monthly baseline volume · first year CNY 20M / mo → CNY 100M / mo | Annual volume contribution > CNY 600M |
| Lack of base clients | 24-month binding cooperation · SLA guaranteeing minimum monthly turnover | Stable core revenue · predictable financial model |
CogoLink Commercial Revenue Forecast
Credit Spread
CNY 3-5M
Y1 · average pool CNY 30M × credit rate 8-10%
Channel Usage Fee
CNY 8-12M
Y1 · volume CNY 600M × 0.15-0.2%
Service Fee · Management Fee
CNY 1-2M
Y1 · pool size × 0.2-0.3%
Y1 Total Revenue Contribution
CNY 12-19M
Pure incremental · does not consume CogoLink's existing capacity
Core Narrative: CogoLink does not need to hire new staff or redo Middle East ground operations; it only needs to plug idle capacity + credit capability into our pool, locking in CNY 12-19M of pure incremental revenue in Y1, with Y2 - Y3 growing exponentially with pool size.
Daona Tech's Order-Splitting Mechanism (Proprietary Moat)
Daona Tech, as the group holding company, serves as the central dispatch hub for Middle East trade business:
- Order Intake: CHAI accepts clients in Dubai → Daona Tech signs at group level (not by individuals)
- Splitting: Based on amount · compliance grade · channel capacity, scientifically splits one large order into 3-5 sub-orders
- Matching: CogoLink takes the primary share (60-70%), other auxiliary channels absorb the rest (20-30%)
- Consolidated Collection: Once all sub-orders settle, Daona Tech consolidates the reporting → delivers reconciliation to the client
Value: CogoLink only handles "the portion covered by its channel capability" — no need to split orders itself, no need to bear full-process risk. This is Daona Tech's proprietary moat as the group's dispatch hub.
Chapter v · Roadmap
Three-Phase Rollout & Commercial Terms
From pilot validation (3 months) → pool operations (6 months) → formal scale-up (12 months+), each phase has a clearly defined scale, terms, rights, and obligations.
i.Phase I
POC Pilot
POC Pilot
0 - 3 months · Pilot Validation
- First batch of investor funds in place: CNY 5M · we bring in batch 1
- Select 3-5 Middle East clients for order-splitting pilot · monthly turnover CNY 5M
- CogoLink provides technical integration + channel trial · no credit line yet
- Validate: trade authenticity due diligence · order-splitting efficiency · tax settlement landing
- Milestone: 30 transactions completed within 3 months · no material compliance issues
ii.Phase II
Pool Operations
Pool Operations
3 - 6 months · Fund Pool Launch
- Additional investor funds in place: CNY 15M · we bring in batch 2
- CogoLink begins advancing 40% credit against in-pool compliant assets · monthly turnover CNY 20M
- Tripartite escrow account opened (Xingyao Jinbo · CogoLink · investor representative)
- Monthly pool audit · Grace Team + CogoLink joint review
- Milestone: pool size CNY 30M at end of month 6 · credit leverage CNY 12M
iii.Phase III
Formal Scale-up
Formal Scale-up
6 - 12 months+ · Formal Pool
- Investor batch 3 · batch 4 in place · cumulative CNY 100M
- CogoLink advance credit ratio raised to 60% · monthly turnover CNY 50 - 100M
- SOE-endorsed orders onboarded (Huineng · Sinopec · Chuanhua)
- Sign formal framework agreement with CogoLink · 24 - 36 month binding
- Milestone: annual volume CNY 600-800M at end of month 12 · pool net returns CNY 15-20M
Core Commercial Terms (Draft · for CogoLink Negotiation)
| Term | Initial Proposal | Room to Negotiate |
|---|---|---|
| Cooperation Term | 24 months initial · renewable 24 months | ±12 months |
| Advance Credit Ratio | L1 60% · L2 40% · L3 0% | Ratio may ramp up in phases |
| Credit Rate | Annualized 8 - 10% (below bank short-term loan) | Decreases with pool size |
| Channel Usage Fee | 0.15 - 0.2% of volume | Tiered downward |
| Management Fee | 0.2 - 0.3% of pool size / year | ±0.1% |
| Exclusivity Clause | 60% of Middle East volume prioritized through CogoLink | Negotiable |
| SLA · Minimum Monthly Turnover | Y1 CNY 20M · Y2 CNY 50M | Adjusted with actual growth |
| Data Sovereignty | Client data belongs to the XJB Digital platform · CogoLink sees only channel-layer data | Non-negotiable |
| Exit Mechanism | 90-day advance notice · 60-day wind-down for already-credited assets | ±30 days |
Investor Return Model
Value Proposition for Our Investors
| Metric | Y1 | Y2 | Y3 |
|---|---|---|---|
| Cumulative Principal Invested (CNY 10K) | 2,000 | 5,000 | 10,000 |
| Average Pool Asset Size (CNY 10K) | 3,000 | 7,000 | 15,000 |
| Annual Turnover Volume (CNY 10K) | 60,000 | 180,000 | 576,000 |
| Pool Net Returns (CNY 10K) | 300 | 1,200 | 3,500 |
| Investor Dividend (60%) | 180 | 720 | 2,100 |
| Annualized Return | 9% | 14.4% | 21% |
Note: Investor dividend ratio 60% · platform retains 40% (used for system build-out · compliance reserves · team incentives). 24-month lock-up · at maturity, may choose to reinvest or exit.
Keys to Success · Three Things We Need CogoLink to Do
- License & Compliance Assessment: CogoLink's internal compliance team evaluates whether pooled business falls within its license scope
- Technical Integration: CogoLink's API / SDK integrated into our risk-control system · complete client data flow and credit-trigger events
- Commercial Negotiation: Grace leads · Wendy participates · align terms with CogoLink BD · formal cooperation agreement within 45 - 60 days
The fund pool packages both parties' capabilities and assets into a more valuable joint entity, and shares the profits together.
Next Steps
| Priority | Item | Owner | Deadline |
|---|---|---|---|
| P0 | Internal four-partner review of this proposal · reach consensus | All partners | 7 days |
| P0 | Wendy's initial commercial contact with CogoLink · gauge interest | Wendy + Grace | 14 days |
| P0 | Investor batch 1 (CNY 5M) in place · for pilot pool | Wendy | 30 days |
| P1 | Sign Phase I POC MOU with CogoLink | Grace | 45 days |
| P1 | Tripartite escrow account opening plan (legal + banking) | Grace + counsel | 60 days |
| P2 | Pool operations system requirements document · joint technical review with CogoLink | Grace Team | 90 days |
Chapter vi · BRD
Fund Pool Management System · Business Requirements BRD
This chapter defines the business requirements baseline for fund pool management — clarifying tripartite (Xingyao Jinbo / CogoLink / investor representative) co-managed business objectives, roles & permissions, and core workflows — providing the business anchor for downstream monthly reconciliation, audit trail, and dividend calculation.
Business Objectives
- Visualized pool cockpit: investor principal, L1/L2/L3 assets, CogoLink credit utilization, and buffer pool level visible on a single screen
- End-to-end traceability of every transaction: from investor capital-in → pooling → credit trigger → channel matching → collection settlement → dividend distribution, the full chain is logged
- Tripartite reconciliation automation: Xingyao Jinbo · CogoLink · investor representative — three ledgers aligned T+1
- Compliance-ready: AML/KYC records, per-transaction authenticity evidence, and one-click monthly audit reports
Roles & Permissions
| Role | Primary Responsibilities | Permission Scope |
|---|---|---|
| Grace · Pool Ops | Asset pool-in, channel matching, audit reports | Read/write all modules · approve L1/L2 pool-in |
| Wendy · Investor Relations | Investor capital-in, lock periods, dividend distribution | Read/write investor module · dividend approval |
| Mr. Lin · Risk Control | Non-standard / high-risk asset approval, buffer pool level | Read/write risk module · veto power |
| CogoLink Ops | Channel usage records, credit trigger confirmation | Read-only channel/credit modules · trigger confirmation |
| Investor Rep | Read-only pool cockpit, monthly report download | Read-only · report download |
| Auditor · External Audit | Quarterly / annual audit | Read-only audit logs · report download |
Core Workflow (8 Steps)
- Investor signs · 24-month lock period · funds arrive in batches (Wendy side)
- Asset screening · L1/L2 client advances / receivables / in-transit split orders / tax settlement pending posting flow into the pool
- Pool level refresh · Short-term pool 50% / Mid-term pool 35% / Buffer pool 15%
- CogoLink credit trigger · L1 60% / L2 40% advanced to supplier
- Channel routing · CogoLink 60-70% + Lianlian / Yeepay for overflow
- Collection landing · T+2 to T+7 · channel sub-accounting · tax settlement posting
- Pool revenue calculation · channel spread + credit spread + tax settlement share − operating cost
- Monthly dividend · Investor 60% / Platform 40% · month-end carry-over