Groundbreaking Success! China's 1st Intellectual Property Asset-Backed Securities Issued by a Scientific Research Institutions Successfully Launched

Recently, the "CNNC Factoring 2025 first tranche Intellectual Property Asset-Backed Securities(ABS)," with the Nuclear Industry Physical and Chemical Engineering(IPCE) Institute of China National Nuclear Corporation (CNNC) as the intellectual property holder, was successfully issued on the Shanghai Stock Exchange. The inaugural issuance scale was 21 million yuan, with a term of 3 years, and an interest rate of 2.15%, setting a record low for similar projects of the same duration. This marks the first intellectual property ABS issued by a scientific research institution in China. The special ABS has successfully revitalized "dormant" patents and innovatively solved the problem of "monetization" of intellectual property rights in scientific research institutes.

The special ABS, launched in October 2024, is jointly implemented by the IPCE and CNNC Commercial Factoring Co., Ltd. It uses the intellectual property rights related to high-precision vacuum electric adjustment devices held by the IPCE as basic assets, with the IPCE serving as a financier/technical support organization.

The successful implementation of this special ABS is not only a major breakthrough for CNNC in the field of intellectual property financial innovation, but also marks a groundbreaking success in the ABS of intellectual property rights of scientific research institutions, opening up a valuable innovation path for the deep integration of scientific research and finance, realizing the transformation from "intellectual property" to "assets", and forming a virtuous cycle in which "R&D creates cash flow, and cash flow facilitates R&D in turn".

The high-precision vacuum electric adjustment device developed using this intellectual property is mainly used for the precise adjustment of key process parameters in the field of isotope separation. The device has long relied on imports. After years of technical research, the IPCE has completed independent design and development and realized engineering applications, with overall performance reaching the international leading level.

Intellectual property ABS is an innovative way to achieve financing by issuing marketable securities based on the expected future returns of intellectual property. As an important scientific research institute of CNNC, the IPCE has many high-value and high-quality intellectual property rights. Under the support and guidance of the group company and local intellectual property-related departments, the intellectual property ABS project was implemented to achieve effective asset revitalization. The project innovatively uses financial tools, conducts systematic exploration around the value chain of "technology evaluation-asset confirmation-capital transformation", vigorously promotes technology-finance and industry-finance coordination, and provides strong support for broadening channels and accelerating the process of sci-tech achievement transformation.

The above information is provided for reference purposes only and does not constitute investment advice.