Wuxi, February 28, 2024 – SY Holdings Group Limited ("SY Holdings" or the "Group"; Stock Code: 6069.HK) has announced a transformative capital injection for its subsidiary Wuxi Guojin Commercial Factoring Co., Ltd. ("Wuxi Guojin Factoring"). Following regulatory approval from Wuxi Economic Development Zone's State-owned Assets Office, Wuxi Taihu New City Asset Management Co., Ltd. ("Taihu New City Asset"), a subsidiary of the state-owned Taihu New City Development Group, will invest approximately RMB 570 million to become the controlling shareholder. This strategic partnership will elevate Wuxi Guojin Factoring's net assets to RMB 1 billion, with an ambitious three-year target to achieve RMB 10 billion in business scale – establishing it as Wuxi's premier supply chain finance platform.
The investment comes from Taihu New City Group, Wuxi's core infrastructure developer boasting an AAA credit rating and RMB 20.41 billion in registered capital. The group plays a vital role in urban construction throughout the Taihu New City area. Originally established in 2018 through a partnership between SY Holdings and Wuxi Communications Industry Group, Wuxi Guojin Factoring has demonstrated remarkable growth, expanding its registered capital from RMB 100 million to RMB 300 million while building a high-quality portfolio of RMB 3.7 billion in factoring assets exclusively focused on receivables financing. The company has been at the forefront of financial innovation in Jiangsu province, executing the region's largest digital yuan factoring transaction at RMB 100 million.
Wuxi Guojin Factoring's technology-driven platform has delivered exceptional operational results, having served over 670 small and medium enterprises with cumulative financing exceeding RMB 27.7 billion. The company maintains impeccable asset quality with a 0% non-performing loan ratio and achieved an impressive 16% return on equity in 2023. Its revenue has grown at a remarkable 100% compound annual growth rate since 2018. The platform's excellence has been recognized through prestigious awards including "Best Supply Chain ABS Product" at the 9th Derivative Awards and "Most Popular Originator" at the 8th CNABS Awards.
With the new shareholder's support, Wuxi Guojin Factoring is poised for accelerated growth. The company plans to fully digitize its end-to-end operations using SY Holdings' proprietary supply chain technology, while expanding its infrastructure and healthcare financing solutions by leveraging Taihu New City's extensive project portfolio. The platform aims to maintain its leadership in asset-backed securities (ABS) issuance, building on its recent provincial record of achieving a 2.7% coupon rate.
"This strategic partnership significantly advances our RMB 1.6 billion investment commitment to Wuxi, which includes our ongoing East China Headquarters project," stated SY Holdings. "By combining Taihu New City Group's substantial resources with our financial technology expertise, we will deliver greater access to inclusive financing solutions, directly supporting Wuxi's 'Industry Strong City' development initiative."
The capital injection represents a major milestone in SY Holdings' regional expansion strategy and reinforces its position as a leader in supply chain finance innovation. The enhanced platform will play a crucial role in supporting Wuxi's economic development while providing vital financial services to small and medium enterprises across the region.
