SY Holdings Group Limited (“SY Holdings,” “SY,” or “the Group”, stock code: 6069.HK), a leading supply chain technology platform, today entered into a strategic partnership focused on major projects in China’s healthcare industry with CQ Pharmaceutical Holding Co., Ltd. (“CQP,” stock code: 000950.SZ), a Chongqing-based state-owned pharmaceutical distribution company providing services for the entire pharmaceutical industry. According to the terms of the strategic partnership, SY Holdings will invest a total of SGD500 million (approximately RMB2.7 billion) to deepen China-Singapore pharmaceutical industry coordination, increase capital investment, and expand the supply chain ecosystem.
The strategic parentship was signed in Singapore on July 18, 2023 at the Singapore-Chongqing Business Matchmaking Event & Promotion for Western Chongqing, part of the Singapore-Chongqing Week. The State-owned Assets Supervision and Administration Commission of Chongqing Municipal People's Government organized the event where a number of state owned enterprises (SOEs) from Chongqing met with Singaporean investors looking for investment opportunities to further strengthen Singapore-Chongqing economic cooperation going forward.
In attendance at the signing of the strategic partnership were Mr. Chen Mingbo, Member of the Standing Committee of the Chongqing Municipal Committee and Executive Vice Mayor of Chongqing, Mr. Zhang Junrong, Deputy Director of Enterprise Singapore and Mr. Zong Changqing, Minister Counsellor of the Economic and Commercial Office of the Embassy of the People's Republic of China in Singapore.
The Singapore-Chongqing Week is a symbolic event organized to deepen cooperation and exchange under the third intergovernmental cooperation program between China and Singapore, the China-Singapore (Chongqing) Strategic Connectivity Demonstration Initiative ("China-Singapore Connectivity Initiative"). The China-Singapore Connectivity Initiative is part of China's national strategy to open Western China to investment with Chongqing serving as the primary operational center. Since it was first held in 2015, 256 government and commercial partnership projects and 249 financial service projects have been signed with a total investment of USD25.277 billion and USD30.26 billion, respectively. The program serves as a successful case study for high-quality development under China’s Belt and Road Initiative (BRI).
SY Holdings is a leading supply chain technology platform listed on the main board of the Hong Kong Stock Exchange and backed by notable Singaporean investors including Temasek, Singapore’s sovereign wealth fund. SY Holdings’s stock is included in MSCI index series and the Hang Seng Composite Index, and is eligible for the Shenzhen-Hong Kong and Shanghai-Hong Kong stock connects. This reflects the Company's recognition in international markets. Established by Singaporeans in 2013, SY Holdings has historically focused on the Chinese market to unlock the enormous potential of the supply chains there. The Company offers services to more than 12,700 SMEs in China with cumulative supply chain assets processed by its platform exceeding RMB159 billion. SY is committed to becoming the most reliable supply chain technology platform in the Asia-Pacific region with growth being primarily driven by the Industrial Internet-of-Things and digital financing sectors. SY Holdings remains optimistic about the future growth prospects of strategic industries in China such as infrastructure, healthcare and energy. Since 2017, the Company has focused its efforts on nurturing innovation in geographies such as Chongqing which offers a solid foundation to build a partnership with CQP focused on hospital SPD solutions and promoting supply chain inclusive financing. Over the past decade, SY Holdings has continuously invested in China, with total cumulative investment exceeding RMB6 billion.
As a large SOE, CQP is a pharmaceutical distribution company providing services for the entire pharmaceutical industry supply chain. With more than 200 branches and subsidiaries at all levels, CQP is a leading player in Western China in terms of scale and market coverage, ranking 202 among the top 500 listed companies in China and first among listed SOEs in Chongqing in terms of revenue.
SY Holdings and CQP will leverage their respective resources to cooperate in equity investment, digital financing, and pharmaceutical supply chain upgrading in the healthcare sector, promoting the integration of industry and financing through innovation, and contributing to the development of Chongqing's open economy. In particular, SY will make equity investments in innovative medical services companies with a primary focus on the development of the pharmaceutical distribution industry, biopharmaceutical research and production, and digital upgrades of hospital SPD solutions. Building upon its deep experience in traditional supply chain financing, SY will leverage its digital capabilities for hospital SPD solutions to unlock the value of pharmaceutical industry data and develop innovative, inclusive supply chain financing services. Drawing on its extensive expertise in intelligent software and hardware development, SY will drive the digital transformation of pharmaceutical supply chains including intelligent warehousing logistics, IoT hardware, and supply chain data applications, thus supporting the growth of enterprises in the healthcare supply chain industry.
SY Holding’s spokesperson commented, “2023 marks the 10th anniversary of China’s BRI. Over the past 8 years, the China-Singapore Connectivity Initiative has continuously expanded the scope of collaboration, facilitating efficient exchanges of people, logistics, capital, and information flows across regions which has injected renewed vitality into the BRI. In March 2023, the leaders of China and Singapore agreed to upgrade bilateral relations to an all-encompassing, high-quality and future-oriented partnership. Seizing the opportunity presented by the Singapore-Chongqing Week, we are committed to upholding the high standards nurtured by the China-Singapore Connectivity Initiative. By integrating Singapore's technological and financial advantages with Chongqing's market and industrial strengths, we aim to set a benchmark for projects under the China-Singapore Connectivity Initiative, creating more extensive and deeper collaboration across diverse industries.”
