Skywin Energy: Digital-Powered Leadership in Global Oil Trade

Internal and External Challenges in Commodity Trading Drive Digital Transformation
While conducting various oil and gas product trades globally, Skywin also faces numerous internal and external challenges. On one hand, the commodity trading industry features long supply chains, significant market volatility, and high financial leverage. On the other hand, internally, the company primarily relied on Excel, email, telephone, and WeChat for communication and collaboration across different regions and departments, resulting in fragmented processes in key areas such as import-export trade documentation and settlement, opaque hedging transactions, complex and cumbersome letter of credit management, lack of monitoring over fund flows, and delayed profit calculations. Skywin recognized that in an environment of increasingly strict compliance and rising capital costs, systematic, real-time, and intelligent management tools would become the “foundational capability” for every trading enterprise. Therefore, it needed to build a digital management system tailored to the commodity trading industry to support the rapid development of its international business.

Highlight Scenario Solutions
Scenario 1: End-to-End Import-Export Trade Collaboration, Accelerating Supply Chain Response
Skywin’s key processes related to import-export trade documentation and settlement previously relied on offline manual records, with fragmented processes and siloed data, making it difficult to meet the refined and traceable compliance management requirements of the commodity trading industry. After comprehensive business optimization, Skywin achieved full-chain collaboration across trade agreements, trade contracts, transaction settlement, and receipts/payments, with the entire process digitized and traceable, reducing information recording and transmission errors and improving supply chain response speed. The Kingdee team also enriched the trade agreement field information in the system based on the characteristics of commodity trading, enabling bilateral trade agreements to clearly record commodity trading-specific information such as futures varieties, pricing dates, premiums/discounts, and settlement pricing bases, providing a basis for subsequent trade execution.

Scenario 2: Hedging Transaction Management, Helping Enterprises Manage Price Volatility Risk Hedging
In commodity trading business, enterprises need to efficiently integrate market information, monitor risks in real time, precisely hedge transactions, and calculate daily profit and loss. For commodity prices and exchange rate information, Skywin employees previously extracted data daily from websites such as Bloomberg, manually recorded it in online documents, and shared it with relevant personnel. Trend analysis and calculations were also done manually, leading to issues such as lagging risk control. Based on Skywin’s hedging transaction management requirements, the Kingdee team provided Skywin with centralized market data management, position aggregation and exposure risk visualization, and semi-automatic spot-futures matching. The system can automatically generate P&L reports and calculate CAP prices based on detailed transactions and daily closing market prices, supporting profit/loss accounting and commodity price risk analysis. This transforms complex trading activities into clear, quantified risk and return data, enabling enterprises to manage and hedge market price risks and reduce the erosion of price volatility on enterprise profitability.

Scenario 3: International Back-to-Back Letter of Credit Management, Supporting Global Trade Settlement
Skywin frequently uses back-to-back letters of credit in settlement (where an intermediary, using the master LC issued by the ultimate buyer as collateral, instructs a bank to issue a sub-LC with similar terms to the supplier). Previously, LC issuance applications, LC receipt, document presentation, and other steps all relied on paper-based manual transmission, prolonging process cycles and prone to errors from oversight. Moreover, there was data isolation between LC processes (issuance, document arrival) and fund management processes (margin, payment/receipt vouchers), making collaboration difficult. After applying the Letter of Credit Management and Fund Management modules of Kingdee AI Suite, Skywin achieved online standardized management of back-to-back letters of credit, including issuance/receipt, document presentation/arrival, negotiation/foreign exchange payment, forfeiting, etc., realizing online circulation and intelligent review. Simultaneously, the LC management process in the system is linked with fund management, supporting margin balance verification, credit pre-occupation, occupation, and release, enabling forward-looking credit risk management and more agile fund planning.

Scenario 4: Comprehensive Fund Budget and Execution Analysis, Stabilizing Fund Flows
Commodity trading involves large amounts of fund inflows and outflows, bringing significant fund flow risks. Previously, Skywin relied on manual daily updates for fund inflow/outflow data. On one hand, fund planning was disconnected from actual business execution (procurement, sales, settlement), making dynamic correlation and real-time control difficult. On the other hand, management could not obtain a real-time, unified global fund view. With the Fund Management module of Kingdee AI Suite, Skywin now collects short-term cash inflow and outflow information online from various business departments during the fund declaration phase, compiles fund receipt and payment plans, and thereby controls receipt/payment business within the cycle. The global fund view provided by the system enables visualization of multi-currency fund account balances based on automatic collection of settlement and payment execution data, helping management personnel monitor account and company fund status in real time. At the end of each cycle, the system analyzes fund plan execution, promptly identifies fund gaps, and proactively adjusts fund arrangements and planning, thereby ensuring the stability of fund flows.

Scenario 5: Transaction-Level Profitability Analysis, Making Profits More Visible
Previously, Skywin’s finance staff calculated profitability in Excel, primarily as static price spreads, making it difficult to accurately and timely allocate and apportion operational and financial costs such as ocean freight, warehousing fees, unloading fees, and capital interest, resulting in blurred true profitability of individual transactions. The Kingdee team reviewed the cost items incurred during Skywin’s trading process, enabling the business profit analysis report in the system to automatically obtain settlement amounts, fees, and other data based on the full-process data of import-export trade, and aggregate and calculate revenue, costs, and profits. This achieves dynamic calculation of profitability at both company and transaction levels, precisely presenting the actual profit of each transaction, providing real-time insights for performance evaluation and improvement.