[Press Release]

Sheng Ye Capital Completes First Offshore Syndicated Loan in China's Factoring Market, Raising Over RMB 500 million

Hong Kong, 16 March 2021 - Sheng Ye Capital Limited ("SY Capital" or the "Group", HKEx: 6069), China's first commercial factoring company listed on the main board of the Hong Kong Stock Exchange, today announced that its subsidiary, SY Factoring Limited ("SY Factoring" or the "Company"), signed a two-year RMB 525 million offshore syndicated loan agreement with a consortium led by Mega International Commercial Bank ("Mega Bank") and Bank SinoPac. This marks the first offshore syndicated loan in China's factoring market, reaffirming the consortium's confidence in the Group's risk management capabilities as well as its push towards technology leadership, and a platform-based growth strategy.

Mr. Tung Chi Fung, Chairman of Sheng Ye Capital, commented on the cooperation, "We are very honored to be working with the consortium led by Mega Bank and Bank SinoPac. Supply chain financing will continue to be a huge market going forward, and we remain committed to increasing our investments in technology in order to further promote inclusive financing. With the support from the consortium, I believe that this will strengthen our ability to further expand our market share as we continue to serve the small, medium and micro enterprise ("SME") market."

SY Factoring's completion of this inaugural offshore syndicated loan financing not only provides the liquidity for strengthening its capital base, but also serves as an important milestone in terms of further optimizing its capital structure and diversifying its funding sources. Last year, the Group also launched strategic collaboration initiatives with Xiaomi Factoring and Sichuan Xinwang Bank to further expand its funding channels and jointly promote inclusive finance for the supply chain ecosystem.

The Group's strategic initiatives with core blue-chip enterprises and its innovative application of technology provides differentiated and diversified supply chain financial services for SMEs. Over the years, the accumulation of expertise across the infrastructure, medical and energy sectors, coupled with its extensive customer base of more than 7,000 corporate clients including blue chip core enterprises on its platform, has enabled the Group to achieve a cumulative total of over RMB 100 billion in total assets under management. The increasing number of SMEs migrating online for their transactions due to the pandemic has also allowed SY Capital to drive customer acquisition, resulting in an over 80% increase in platform users over the past year. Even amidst the macroeconomic headwinds in 2020, SY Capital successfully leveraged its robust technological capabilities by providing clients with efficient supply chain financial services entirely online, allowing the Group to achieve stable growth as well as recognition by international research institutions and investors.

With the financial backing of this consortium and the gradual improvement in the global macro-economic environment, SY Capital will be better positioned to continue its investment in technology, research and development, accelerating its transformation towards a digital technology platform to "make supply chain finance more efficient and inclusive".

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About Sheng Ye Capital Limited (HKEx: 6069)

Sheng Ye Capital (6069.HK) is China's first supply chain digital technology platform provider listed on the main board of the Hong Kong Stock Exchange. Powered by fintech capabilities and an in-depth understanding of the core industries, Sheng Ye Capital offers a range of flexible financing solutions to meet the needs of SMEs in the region.

Sheng Ye Capital is a constituent 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 6.0 billion (USD 770 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

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