Creating a new digital yuan scenario, SY Technology supports Zhejiang's first “factoring+digital currency” innovation pilot project to manage wage arrears

March 14, Ningbo – SY Holdings Group Limited ("SY Holdings"; Stock Code: 6069.HK) and its partners unveiled an innovative "Factoring + Digital Yuan" solution at Ningbo Yongjiang Laboratory construction site, marking Zhejiang Province's first integration of supply chain finance with China's digital currency (CBDC) for wage protection. The pilot program, developed under the guidance of Ningbo Municipal Government and Human Resources Bureau, represents a significant advancement in labor rights protection through financial technology.

Through its joint venture Ningbo Guofu Commercial Factoring Co. ("Guofu Factoring") with Ningbo Development & Investment Group, SY Holdings collaborated with Agricultural Bank of China Ningbo Branch and SY Information Technology Services (Shenzhen) to create this groundbreaking model. The solution uniquely combines supply chain factoring financing for contractors with digital yuan smart contracts for direct wage disbursement, while utilizing blockchain technology for real-time payment tracking and verification. The launch event saw participation from prominent officials including Ge Ping'an, Vice Director of Zhejiang HRSS Department; Jin Shan, Vice Mayor of Ningbo; and Ye Miao, Director of Ningbo HRSS Bureau, along with executives from major construction firms, financial institutions, and government agencies.

The innovative solution operates through three key mechanisms: First, it provides contractors with timely access to working capital through factoring to meet payroll obligations. Second, it ensures leakproof payments by automatically distributing wages directly to workers' digital yuan wallets, eliminating intermediary accounts. Third, it maintains full transparency by immutably recording every transaction on the blockchain, effectively preventing any potential fund diversion. SY Technology played a crucial role in developing the technical infrastructure, including API integrations with Agricultural Bank's digital yuan system and implementation of smart contract triggers for conditional payments, building on its prior experience with digital yuan applications in charitable donations and salary disbursements.

Through its joint venture Ningbo Guofu Commercial Factoring Co. ("Guofu Factoring") with Ningbo Development & Investment Group, SY Holdings collaborated with Agricultural Bank of China Ningbo Branch and SY Information Technology Services (Shenzhen) to create this groundbreaking model. The solution uniquely combines supply chain factoring financing for contractors with digital yuan smart contracts for direct wage disbursement, while utilizing blockchain technology for real-time payment tracking and verification. The launch event saw participation from prominent officials including Ge Ping'an, Vice Director of Zhejiang HRSS Department; Jin Shan, Vice Mayor of Ningbo; and Ye Miao, Director of Ningbo HRSS Bureau, along with executives from major construction firms, financial institutions, and government agencies.

The innovative solution operates through three key mechanisms: First, it provides contractors with timely access to working capital through factoring to meet payroll obligations. Second, it ensures leakproof payments by automatically distributing wages directly to workers' digital yuan wallets, eliminating intermediary accounts. Third, it maintains full transparency by immutably recording every transaction on the blockchain, effectively preventing any potential fund diversion. SY Technology played a crucial role in developing the technical infrastructure, including API integrations with Agricultural Bank's digital yuan system and implementation of smart contract triggers for conditional payments, building on its prior experience with digital yuan applications in charitable donations and salary disbursements.

Since China's digital yuan pilot launched in 2020, SY Holdings has established itself as a leader in CBDC commercial applications, having executed Zhejiang's first digital yuan factoring transaction, pioneered the industry's first "smart contract + charity donation" implementation, and developed innovative digital payroll solutions. "This initiative perfectly aligns with our 'industrial internet + digital finance' dual-platform strategy," explained a SY Holdings spokesperson. "By leveraging CBDC capabilities, we're addressing critical challenges for SMEs at the most vulnerable points of supply chains."

Looking ahead, the pilot will initially focus on selected Ningbo construction projects before potential expansion across Zhejiang Province. SY Holdings plans to extend this model to other labour-intensive sectors, develop additional smart contract templates for supply chain finance applications, and strengthen collaborations with policy banks to further enhance financial inclusion for workers and small businesses.