Sheng Ye Capital Limited (“SY Capital” or the “Company”, HKEx: 6069), China’s first commercial factoring company listed on the main board of the Hong Kong Stock Exchange, announced that it signed a strategic partnership agreement for the refactoring of accounts receivables in the medical sector with Xiaomi Commercial Factoring (Tianjin) Co., Ltd. (“Xiaomi Factoring”), a wholly-owned subsidiary of Xiaomi Finance. The partnership will leverage supply chain fintech capabilities to empower small, medium and micro enterprises (“SMEs”) in the medical sector and promote greater stability of the pharmaceutical supply chain during the COVID-19 pandemic.
The medical sector has been one of the focused industries of SY Capital. Over the past 6 years, the Company accumulated a large volume of real-time transaction data and developed deep industry knowledge of the pharmaceutical distribution sector, allowing SY Capital to use its robust digital risk control systems to provide effective and tailored financing solutions to medical suppliers. In addition, as a leading independent supply chain fintech platform, SY Capital recently secured US$50 million credit funding from Dignari Capital Partners, followed by a top-up placement that of US$50 million from internationally renowned investors. The partnership with Xiaomi Factoring will further enhance SY Capital’s ability to provide strong supply chain financing support to SME medical suppliers and promote steady economic growth in the post-pandemic world.
Xiaomi Factoring is a wholly-owned subsidiary of Xiaomi Finance which is the fintech arm of the Fortune 500 technology giant Xiaomi Group (HKEx: 1810). Leveraging Xiaomi’s ecosystem, Xiaomi Finance provides a suite of financing solutions, including supply chain finance, fintech, consumer credit and third-party payment services and continues to grow its supply chain financing business.
The strategic refactoring cooperation with Xiaomi Factoring is a strong testament from a leading fintech player to SY Capital’s fintech capabilities, big data-driven risk management technologies and quality accounts receivable assets. Since inception, SY Capital has focused on the infrastructure, medical and energy sectors, three industries that are more resilient to economic cycles. The Company has also established strategic partnerships with large blue-chip enterprises to achieve in-depth cross-industry expertise. By leveraging transaction data from multiple channels to cross-validate transaction authenticity, SY Capital is able to convert transaction data sets into actionable credit scores and provide high quality suppliers across the supply chain with effective and diversified supply chain financing solutions. SY Capital leveraged its technological capabilities and achieved impressive results. As of June 30 2020, the Company successfully transferred more than RMB90 billion accounts receivables while maintaining a non-performing loan ratio of zero and a loan extension rate of less than 1% during the first half of 2020.
This partnership will allow the two companies to leverage their respective core competencies in supply chain financing and fintech solutions to jointly develop a digital supply chain financing platform for the medical sector, in an effort to support the healthy development of the medical supply chain, while providing efficient and inclusive financial services to more SMEs.
