[Press Release]

SY Capital Unveils "Dual Engine, One Platform" Growth Strategy

DBS Reiterates Buy Rating on SY Capital - Sees Great Expansion and Growth Potential

Hong Kong, January 27, 2021 - DBS reiterates its buy rating on HKEx-listed Sheng Ye Capital Limited ("SY Capital" or the "Company", HKEx: 6069) following the Company's announcement of its new "dual engine, one platform" growth strategy ("2+1 strategy") on January 22.

Under this 3-year initiative, the Company will deepen its technology leadership by integrating supply chain financing technology and its fintech capabilities to unlock more synergies, as well as to create a more efficient supply chain ecosystem. In addition, the Company will also reinforce its commitment towards enhancing its research and development ("R&D") capabilities, integrating more deeply into the supply chain ecosystem and accelerate its transformation towards being a digital fintech platform.

DBS published a flash report following the announcement and reiterated its "buy" for the Company with a target price of HK$8.90. Key takeaways from the report include:

• Great structural growth opportunity. SY Capital is well-positioned to benefit from China's fast-growing commercial factoring segment, supported by favourable policies to promote small, medium and micro enterprises ("SMEs") financing.
• Substantial balance sheet expansion potential. The strong supply chain financing demand, along with its low leverage ratio, implies good balance sheet expansion potential and hence, profitability.
• Under this new "2+1" strategy, DBS sees following positive catalysts favouring SY Capital in the long-term:
  • Further enhancement of SY Capital's business model driven by technology and usage of data;
  • Better connectivity and integration of supply-demand dynamics within the supply chain financing ecosystem through "Platformisation";
  • Increase sources of funding through SY Capital's integrated model.

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About Sheng Ye Capital Limited (HKEx: 6069)

Sheng Ye Capital (6069.HK) is a leading data-driven supply chain financial services provider in China and the first commercial factoring company listed on the main board of the Hong Kong Stock Exchange. Powered by fintech capabilities and in-depth understanding of the core industries, Sheng Ye Capital offers a range of flexible financing products and corporate services to meet the vast financing needs of underserved SMEs in the region. Sheng Ye Capital aims to become the most reliable data-driven supply chain fintech platform in Asia.

Sheng Ye Capital is part of the MSCI Small Cap China Index, Hang Seng Composite Index and Shenzhen-Hong Kong Stock Connect. The current market capitalization of Sheng Ye Capital is approximately HKD 5.6 billion (USD 720 million). Some of the company's notable institutional investors include China Taiping Insurance, Olympus Capital and Pavilion Capital (a subsidiary of Temasek Holdings).

Media Contact

Sheng Ye Capital Limited

Kaylee Zhang

Tel: 0755-6188 0088-842

Email: kaylee.zhang@shengyecapital.com

Christensen China Limited

Shirley Chan

Tel: +852 2232 3933

Email: schan@christensenir.com