December 17, 2020 – 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, today announced voluntarily that the Chairman of the Board of Directors (controlling shareholder), Executive Director and core management (collectively the “Management”) intend to acquire additional shares of the Company. Management plans to acquire shares of the Company on the public market with an aggregate amount not exceeding HK$80 million within six months from the date of this announcement (the “Proposed Acquisition Period”) and has no plans to dispose their shares within six months after the expiry of the Proposed Acquisition Period. The intention to increase shareholding by the Company’s controlling shareholder, Executive Director and management demonstrates their confidence in the growth potential and development prospects of SY Capital.
Being a leading supply chain fintech platform, SY Capital has developed a “1+N+Fintech” business model. The Company focuses on the infrastructure, medical and energy sectors, which are generally more recession-resistant and has established strategic partnerships with large blue-chip enterprises. Underpinned by a robust technology platform, SY Capital can convert transaction data sets into actionable credit scores and provide high quality suppliers in the supply chain with effective and diversified supply chain financing solutions. The business model and philosophy of SY Capital is attracting wider attention in the market. Earlier this year, SY Capital was rated “Outperform” by Macquarie and given a “Buy” rating by DBS.
In addition to SY Capital’s business philosophy, investors are also eyeing the current positive development trends of the factoring industry and the Company’s forward-looking strategic plans. Several policies have affirmed the importance of the factoring industry and support from the Chinese government. One example is that China Banking and Insurance Regulatory Commission released Notice 205 in 2019, creating opportunities for third-party factoring companies to expand market share. In addition, the inclusion of a Factoring Contract Chapter in the Civil Code, which will be enforced in January 2021, will also strengthen the foundation for further development of the factoring industry.
Against the backdrop of the Covid-19 pandemic, the Chinese government has encouraged supply chain financial providers to support small, medium and micro enterprises, demonstrating the importance placed on the factoring industry by the government. With the support of government policies and strong market demand, SY Capital’s fintech capabilities and business value have increasingly attracted the attention of international institutions, prompting more in-depth analysis, and leading to growing optimism about the development prospects and growth potential of the factoring market.
Looking ahead, in light of strong market demand, SY Capital will continue to promote the development of an asset-light model and upgrade its supply chain fintech platform. Driven by its robust technology platform, SY Capital will enable enterprises along the supply chain to also transform and upgrade their business models in support of developing a more efficient and high-quality supply chain fintech system. The Company will also continue to promote its mission – to make supply chain finance more efficient and inclusive. It is committed to becoming the most reliable supply chain fintech platform across Asia-Pacific and endeavors to reward investors and customers with outstanding performance for their long-term trust and support.
