[Hong Kong, December 26, 2022] – SY Holdings Group Limited ("SY" or the "Group"; Stock Code: 6069.HK) announces the successful establishment of Xiamen Xiangsheng Commercial Factoring Co., Ltd. ("Xiangsheng Factoring") through a joint venture with Xiamen Xiangyu Jinxiang Holding Group Co., Ltd. ("Xiangyu Jinxiang Holding Group"), a fully -owned subsidiary of Xiamen Xiangyu Group ("Xiangyu Group"). Approved by the Xiamen Local Financial Regulatory Bureau, this marks SY's second state-owned enterprise (SOE) joint venture this year following the establishment of Ningbo Guofu Commercial Factoring Co., Ltd., demonstrating the strong replicability of this partnership model.
Xiangyu Group, fully owned by the Xiamen State-owned Assets Supervision and Administration Commission, is a comprehensive investment group focused on supply chain operations with registered capital of RMB 1.776 billion. It oversees more than 500 invested enterprises, specializing in bulk commodity supply chains, urban development, integrated financial services, port shipping, and innovation incubation. In 2021, Xiangyu Group reported revenues exceeding RMB 484.3 billion, ranking 160th on the Fortune Global 500 and holding an AAA credit rating from China Chengxin International Credit Rating. As Xiangyu Group's core financial platform, Xiangyu Jinxiang Holding Group is committed to building an integrated financial service system and investment platform, focusing on industrial finance, consumer finance, and asset management. It supports the group's industrial development while providing diversified financial solutions for upstream and downstream partners, fostering cross-border financial innovation in free trade zones.
SY, a Hong Kong-listed supply chain technology platform, operates through dual business drivers—"industrial internet" and "digital finance"—and has established long-term strategic partnerships with multiple large enterprises. By leveraging big data analytics to bridge information gaps, SY efficiently addresses the financing needs of SMEs. Its platform strategy has gained significant traction, serving over 11,400 clients (up 39% YoY) and processing approximately RMB 146 billion in supply chain assets (up 27% YoY) as of mid-2022.
Xiangsheng Factoring, with registered capital of RMB 300 million, is 57%-owned by Xiangyu Jinxiang Holding Group and 43%-owned by SY. It will combine Xiangyu Group's industrial-financial ecosystem and funding support with SY's advanced platform services and technological capabilities to provide SMEs with diversified digital financial solutions. The joint venture will utilize cutting-edge supply chain technology, big data risk control strategies, and end-to-end asset management services.
SY stated: "We sincerely appreciate Xiangyu Group's trust and are honored to join its industrial-financial ecosystem. By leveraging our respective resources and expertise, we aim to deliver more inclusive supply chain financial services for SMEs. This collaboration is a key milestone in SY's platform strategy, expected to unlock billions in incremental financing and business volume annually."
The establishment of Xiangsheng Factoring underscores SY's ability to replicate its successful SOE joint venture model. Earlier in July 2022, SY partnered with Ningbo Development and Investment Group to form Ningbo Guofu, the first commercial factoring company approved in Ningbo post-regulatory reforms. In 2018, SY co-founded Wuxi Guojin Commercial Factoring Co., Ltd. ("Wuxi Guojin") with Wuxi Communications Industry Group. Wuxi Guojin has become a leading regional supply chain finance platform in Jiangsu Province, achieving a 879% four-year profit CAGR and a mid-2022 ROE of approximately 15%. It recently facilitated SY's issuance of a RMB 3 billion "N+N+N" ABS program, with the first tranche setting record-low rates for medical asset ABS and Yangtze River Delta factoring ABS.
Notably, partnerships with high-quality local SOEs are a cornerstone of SY's platform strategy. By integrating SOEs' robust industrial ecosystems with its proprietary SYT Cloud Platform—offering data services, intelligent registration, and account management—SY enhances its big data risk control and customer acquisition capabilities. Drawing on nine years of experience in infrastructure and healthcare, SY will continue strengthening collaborations with SOEs in East and South China to build a smart supply chain technology ecosystem.
Notably, partnerships with high-quality local SOEs are a cornerstone of SY's platform strategy. By integrating SOEs' robust industrial ecosystems with its proprietary SYT Cloud Platform—offering data services, intelligent registration, and account management—SY enhances its big data risk control and customer acquisition capabilities. Drawing on nine years of experience in infrastructure and healthcare, SY will continue strengthening collaborations with SOEs in East and South China to build a smart supply chain technology ecosystem.
