Changhong Environmental Protection (Lee & Man China) | Waste paper recycling invoicing cleared in 40 minutes

Enterprise overview

Jiangxi Changhong Environmental Protection is a key resource recycling enterprise in Jiangxi Province, mainly engaged in the recycling of renewable resources such as waste paper and waste plastics, with an annual recycling volume of over 100,000 tons and a service radius covering Central and South China; its core upstream partner is Guangzhou Lee & Man Paper (a leading domestic paper recycling group), with annual transactions between the two parties reaching RMB 120 million. Changhong collects scattered waste paper through offline recycling outlets and a mobile mini-program, sorts and bales it, and sells it to Lee & Man for deep processing. Transactions are priced by weight (waste paper recycling price: RMB 1,500-2,500/ton).

Business pain points

• Manual invoicing is inefficient: A single invoice takes 40 minutes to process (requiring manual matching of contract, weighbridge ticket and payment order), and a 5-person finance team at full capacity handles only 50 orders per day on average, far below the actual business volume of 200+ orders per day;
• Prominent compliance risks: individual recyclers account for more than 60%, cannot provide compliant input invoices, and the comprehensive tax burden rate climbs from 8% to 13%; 30% of orders have inconsistent information across the three documents, facing the risk of false invoicing audits;
• Poor supply chain collaboration: the settlement cycle with Lee & Man is as long as 30-45 days, capital turnover is slow, and there is a lack of real-time data sharing, with annual dispute handling costs of 800,000 yuan.

Solutions

• Launch the resource recycling reverse invoicing compliance system: provide "ID card scan-code invoicing" for self-employed individuals to solve the input VAT invoice problem
• Automatic verification of transaction authenticity through three-document comparison of contract/weighbridge ticket/payment order
• The reverse invoicing module presets the 2023 VAT immediate refund rules for comprehensive resource utilization, ensuring enterprises enjoy all benefits they are entitled to
• Connect with Liwen for digital settlement and data sharing. The solution has applied for 2 patents and can be quickly replicated to categories such as waste plastics and scrap steel

Results achieved

• Compliance risk reduction— Automatically verify transaction authenticity, expected to avoid RMB 2 million-level tax penalties annually
• Increase efficiency and reduce costs——Labor + dispute costs saved by 1.5 million yuan/year, capital turnover acceleration releasing 5 million yuan in cash flow
• Strategic Synergy——Deepen digital cooperation with Lee & Man Paper Manufacturing, striving to become its exclusive supplier in core regions (order volume +30%)