Sheng Ye Capital Launches Strategic Partnership with China Railway Factoring to Build Digital Supply Chain Ecosystem for Infrastructure Sector
Hong Kong, February 10, 2021 - 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 that its subsidiary, SY Factoring Limited ("SY Factoring"), entered into a strategic partnership agreement with China Railway Factoring Co., Ltd. ("China Railway Factoring"), the factoring arm of China Railway Capital Co., Ltd. ("China Railway Capital"). The partnership will leverage SY Capital's leading digital technology capability and China Railway Factoring's comprehensive industry resources, to jointly provide factoring services to the small, medium and micro enterprise ("SME") suppliers in the infrastructure industry. Such collaboration will contribute to the quality growth of the infrastructure industry.
During the recent Central Economic Work Conference, China's top leaders reaffirmed the importance of vigorously developing the digital economy and increasing investments under its "New Infrastructure" plan. Digitalization of the infrastructure sector has increasingly become an important topic on the government's agenda. Development on new infrastructure segment also signals China's push towards expanding digitalized services across more areas and deepening its offerings as part of this transformation.
China Railway Capital is a key member of the financial arm of the China Railway Engineering Corporation ("CREC"), which was ranked on the Fortune Global 500 list and the World's 500 Most Influential Brands list in 2020. As one of the largest infrastructure contractors in the world, CREC has participated in and built over two-thirds of China's railway network, 90% of the electrified railway lines, one-eighth of the highway system, and three-fifths of urban rail projects. China Railway Factoring operates the CREC E-credit system (中铁E信), which is the sole supply chain finance platform under CREC, and provides efficient, online financing services with a market-oriented approach, facilitating the growth of the infrastructure business of CREC.
Under the collaboration, SY Capital - through its supply chain technology platform - will provide cutting-edge big data analytics as well as strong operational and technology support to China Railway Factoring, enabling them to explore business opportunities and improve its real-time risk monitoring capabilities more effectively. Leveraging SY Capital's technology capabilities, both companies will jointly provide effective and flexible supply chain finance solutions to China Railway Factoring's extensive and high-quality client base of over 10,000 companies. SY Capital and China Railway Factoring will also extract synergies by combining their resources to jointly explore new supply chain finance services, so as to tap the enormous potential of this RMB hundred billion market.
SY Capital takes a proactive approach towards the diverse financing needs of SMEs, focusing on addressing pain points such as cumbersome paperwork and lengthy processes during the funding application process with traditional financial institutions. By leveraging its proprietary tech platform, sophisticated data-driven risk management system and extensive experience in the supply chain industry, the Company provides clients with comprehensive supply chain finance services. At the same time, the Company continues to commit significant research and development efforts to enhance its online operation efficiency and improve user experience during the application process. Because of its technological strengths, Sheng Ye Information Technology Service (Shenzhen) Co., Limited ("SYIT"), a subsidiary of SY Capital, was also recognized as a national high-tech enterprise and a high-tech enterprise in Shenzhen. SYIT currently holds software product and software enterprise certificates, as well as 28 computer software copyright certificates.
Recently, SY Capital unveiled its "dual engine, one platform" strategy which connects assets, funding partners, credit enhancement institutions and other resource partners under one platform, while at the same time, streamlining processes and upgrading the supply chain ecosystem. On the asset side, the company continues to apply its "1+N+Fintech" business model, by partnering core buyers and SME suppliers within the ecosystem. In addition, by providing SaaS solutions, SY Capital has been able to access real-time industry and transaction data that allows it to intelligently match assets and funds on the platform. On the funding side, SY Capital continues to provide customer acquisition recommendations, data-based risk management, asset operation support and other services to funding partners on the platform. Under this platform-based growth strategy, the Company is better placed to integrate into and become part of the supply chain ecosystem, therefore improving overall efficiency and promoting the inclusive-ness of financing services.
The cooperation between SY Capital and China Railway Factoring not only underscores the strong recognition and trust the two companies have for each other but also allow both parties to further strengthen their research capabilities, enhance service quality and provide customers with more premium and inclusive solutions. Under this cooperation, both companies will also gain deeper insights into industry pain points and jointly develop more supply chain digital financing solutions to address the unmet needs of the infrastructure industry. It will also help boost industry efficiency within the supply chain ecosystem and support the overall growth of the economy.
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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).
Sheng Ye Capital Limited
Tel: 0755-6188 0088-842
Christensen China Limited
Tel: +852 2232 3933
10/02/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group.