July 9, 2024 – SY Holdings Group Limited (“SY Holdings” or the “Group”; Stock Code: 6069.HK) announced that it has entered into a strategic investment agreement valued at RMB 300 million with an integrated enterprise specialising in e-commerce supply chain services and innovative healthcare investments (the “Target Company”).
The agreement also includes a contingent consideration of up to RMB 500 million, payable in shares, cash, or a combination thereof, contingent upon the Target Company achieving its performance targets for fiscal years 2024 and 2025.
This investment marks a significant step in SY Holdings’ strategic expansion into two high-growth industries: cross-border E-commerce and biomedical technology. According to market research, the global cross-border e-commerce market, valued at USD 1.5 trillion in 2023, is projected to grow to USD 7.9 trillion by 2030, representing a compound annual growth rate (CAGR) of 20%. China continues to lead in this sector, with over 100,000 cross-border E-commerce enterprises operating across more than 220 countries and regions, generating over USD 327 billion in annual trade volume—a tenfold increase over the past five years. Southeast Asia has emerged as the fastest-growing regional market, recording USD 113.9 billion in transaction volume in 2023 and achieving consistent year-over-year growth of 18.6% over the last three years.
The Target Company brings to the partnership a robust ecosystem of strategic alliances with top-tier Chinese and Southeast Asian e-commerce platforms, along with operational supply chain service models and early-mover advantages in logistics and trade financing. SY Holdings aims to leverage these capabilities to provide working capital solutions for small and medium-sized enterprise (SME) merchants, potentially shortening payment settlement cycles by 30% to 50%. The Group also intends to capitalise on China’s policy-driven export growth initiatives, including the recently issued nine-ministerial guidelines promoting overseas warehouse expansion.
In the healthcare sector, the Target Company has demonstrated a strong track record in biopharmaceutical and medical device investments, supported by a network of pharmaceutical partnerships. This strategic collaboration is expected to enhance SY Holdings’ relationships with key healthcare players, improve targeted customer acquisition by over 25%, and broaden the scope of its medical supply chain financing offerings.
From a financial standpoint, the investment is projected to immediately diversify revenue streams and contribute an estimated 15% to 20% of SY Holdings’ projected revenue for 2025. In addition, operational synergies are anticipated to result in a net margin improvement of 8% to 12%. The Target Company’s asset base, exceeding RMB 1.2 billion, is expected to further strengthen the Group’s balance sheet.
“This investment is fully aligned with China’s national strategy to foster new drivers of foreign trade,” said a spokesperson from SY Holdings. “It accelerates the execution of our platform strategy, supports disciplined capital deployment, and is expected to be immediately accretive to earnings while reinforcing our high-dividend policy.”
Moving forward, SY Holdings will continue to pursue organic growth within its core sectors—namely infrastructure, healthcare, and energy—while actively exploring strategic mergers and acquisitions to expand its service capabilities. The Group remains committed to leveraging technology across all supply chain verticals, further diversifying its portfolio, and capitalising on emerging market trends to drive long-term shareholder value through sustainable growth strategies.
