July 21, 2021 – Sheng Ye Capital Limited (“SY Capital” or the “Company”, HKEx: 6069), a leading supply chain fintech platform, today announced that its subsidiary, Wuxi Guojin Factoring Limited (“Guojin Factoring”), successfully issued RMB 500 million of asset backed securities on the Shanghai Stock Exchange. The program, backed by accounts receivable factoring assets, was managed by Shanghai Guotai Junan Securities Asset Management Co., Ltd., and SY Capital’s subsidiary,Sheng Ye Information Technology Services (Shenzhen) Co., Limited (“SYIT”), will provide end-to-end asset services and IT support for the program.
Guojin Factoring was founded by SY Capital and Wuxi Communications Industry Group Co., Ltd (“Wuxi Communications”) in June 2018, with a registered capital of RMB 300 million. As of June 2021, Guojin Factoring has provided accounts receivable (“AR”)-based financing of more than RMB 6 billion to over 1,000 small, medium and micro enterprises (SMEs). Focused on the transportation, infrastructure, medical and pharmaceutical sectors, Guojin Factoring has provided supply chain financing services to upstream and downstream partners of leading state-owned enterprises, including China State Construction Engineering Corporation, China Railway Engineering Corporation, Chongqing Pharmaceutical (Group) Co., Ltd. and Wuxi Communications. Guojin Factoring is one of the five sponsors that initiated the establishment of the Jiangsu Commercial Factoring Association in May, 2021.
Unlike traditional “1+N” factoring and ABS offerings, which focus on the underlying assets of one enterprise, this ABS offering adopts an “N+N” approach, which encompasses the underlying assets of many different enterprises, and is further secured with multi-dimensional data verification. This special program is an innovative ABS product dedicated to support the development of SMEs. The ABS offering was rated senior AAA with a coupon rate of only 3.6%, the lowest this year among all factoring ABS programs of the same term in Jiangsu Province. This demonstrates the strong support of this ABS program among institutional investors, and the value that SYIT has created through its differentiated end-to-end asset management services.
