Ningbo, September 28, 2023 - SY Holdings Group Limited ("SY Holdings"; Stock Code: 6069.HK) announced today that its joint venture Ningbo Guofu Commercial Factoring Co., Ltd. ("Guofu Factoring") has received regulatory approval from the Ningbo Local Financial Supervision Bureau to increase its registered capital from RMB 200 million to RMB 500 million. This capital injection, led by majority shareholder Ningbo Development & Investment Group ("NDIG"), will significantly expand the operations of Guofu Factoring as Ningbo's sole licensed state-controlled commercial factoring company.
Positioning itself in China's trillion yuan factoring market, Guofu Factoring will capitalize on several strategic advantages. The company will leverage NDIG's extensive industrial ecosystem across Ningbo's comprehensive supply chains, combined with SY Holdings' advanced digital platform that enables complete online solutions. Utilizing its "1+N" business model, Guofu Factoring serves both state-owned enterprises and their small and medium enterprise suppliers. With this strengthened foundation, the company aims to achieve RMB 5 billion in transaction volume during 2024, expand its services from Ningbo throughout the Yangtze River Delta region, while maintaining its impeccable 0% non-performing loan ratio.
Since its establishment in July 2022, Guofu Factoring has demonstrated remarkable operational achievements. The company has served over 170 clients, with SMEs comprising 91% of its customer base. It has processed more than 800 disbursements totaling RMB 4.7 billion in transaction volume. Notably, Guofu Factoring has already exceeded its 2023 revenue target, generating over RMB 70 million in income.
Guofu Factoring has established itself as an industry leader and innovator in Zhejiang province. It became the second licensed factoring company following the CBIRC's regulatory reforms and the first to implement a "Digital RMB + Factoring" solution in the region. The company has pioneered innovative supply chain asset-backed securities (ABS) programs, formed strategic partnerships with major banks and core enterprises, and gained recognition as a model for integrating financial technology with traditional services.
"Guofu Factoring's outstanding performance validates our joint venture strategy with NDIG," stated a SY Holdings spokesperson. "This capital increase will significantly enhance our dual engine 'industrial internet + digital finance' operational model. By leveraging data intelligence, we can better bridge financial services with Ningbo's industrial ecosystems and create greater value for all stakeholders."
Moving forward, SY Holdings plans to continue strengthening its partnerships with state-owned enterprises, scaling its platform service capabilities, and directing financial resources to support the real economy. This capital increase represents a significant step in Guofu Factoring's development and its mission to provide comprehensive supply chain finance solutions throughout the Yangtze River Delta region.
