DJ SY Holdings Announces 2023 Interim Results Digital Technology Empowers Inclusive Finance and Platform-Based Services Boost Common Prosperity in the Enterprise Ecosystem
EQS Newswire / 31/08/2023 / 15:14 UTC+8
SY Holdings Announces 2023 Interim Results
Digital Technology Empowers Inclusive Finance and Platform-Based Services Boost Common Prosperity in the Enterprise
Ecosystem
Hong Kong, August 30, 2023 - SY Holdings Group Limited ("SY" or the "Group" or the "Company", stock code: 6069.HK)
announced its interim results for the six months ended 30 June 2023 (the "Period").
In the first half of 2023, the international environment became increasingly complex and challenging, with continuous
fluctuations in global capital markets. However, the Chinese economy gradually stabilized and recovered. Finding
opportunities out of these challenges, SY focused on its principal activities in the digital finance business while
further improving its technology strength and platform-based service capabilities. The Group achieved steady growth by
ensuring the security and stability of the industrial and supply chain ecosystems in infrastructure, medicine, energy
and other sectors, while providing small and medium-sized enterprises (SMEs) with financial services to help them
weather the difficulties, and contributing to the high-quality development of the real economy. Adjusted net profit[1]
was approximately RMB 188 million, an increase of 4.5% year-on-year.
During the Period, the Group posted growth in business scale, revenue, and profit driven by the improving financial
technology capabilities of its inclusive finance business. As of June 30, 2023, revenues from digital financing
solutions increased by 17% year-on-year to RMB 355 million. The daily average supply chain assets balance increased by
53% year-on-year to approximately RMB 12.6 billion. The proportion of the forward factoring business exceeded 92%. The
cumulative supply chain assets processed by the platform was approximately RMB 177 billion, representing growth of 21%
compared with the corresponding period last year; the cumulative number of customers reached 13,655, representing
growth of 20% compared with the corresponding period last year; and the proportion of small and medium-sized customers
exceeded 98%. The Group's total revenue and income from principal activities was RMB 495 million, representing growth
of 28% year-on-year.
With its mission of "driving supply chain efficiency and making finance more inclusive", SY advanced its business in
accordance with the principle of "technology plays a leading role in building an ecosystem", aiming to establish a
collaborative and mutually beneficial supply chain ecosystem.
As of June 30, 2023, the Group achieved technology-related revenue (including revenue from platform-based services and
supply chain technology services) of over RMB 84.06 million, an increase of 184%. In addition, thanks to its strong
technological strength and outstanding contributions in providing targeted services to small and medium-sized
enterprises, SY was selected on CNBC's "Top 200 Global Financial Technology Companies 2023" list.
Advancing the Platform Strategy to Promote the Integration of Industry and Finance
Thanks to the effective implementation of its platform strategy, SY continued to improve synergy with core enterprises
by delivering product innovations and service upgrades in response to customers' needs, which in turn promoted further
integration of industry and finance, and provided a boost to the supply chain ecosystem.
In the infrastructure segment, SY's wholly-owned subsidiary, SY Factoring cooperated with China Railway Capital
Commercial Factoring to integrate the two companies' factoring business systems. SY also completed the development of
customized features for China Railway Capital Commercial Factoring's core business process. The two parties also
increased the scale of their cooperative factoring business to RMB1.5 billion, jointly providing financial support for
China Railway Group Limited to empower industrial development through financing. In addition, SY was invited to attend
the Supply Chain Conference of China Communications Construction Company Limited (CCCC) and officially launched two
customized supply chain inclusive finance products, namely "Delivery Financing" and "Settlement Financing," on CCCC's
cloud e-commerce platform. SY also signed a joint factoring business cooperation agreement with CCCC Commercial
Factoring Limited, a factoring arm of CCCC, laying the foundation for the two sides to deepen their cooperation in
supply chain digital finance.
In the pharmaceutical sector, leveraging the business opportunities of the China-Singapore (Chongqing) Strategic
Connectivity Demonstration Initiative, SY reached a strategic partnership with CQ Pharmaceutical Holding Co., Ltd.
focused on major projects in China's healthcare industry. Through this partnership, SY plans to invest a total of
SGD500 million (approximately RMB2.7 billion) to support the development of enterprises in the Chinese pharmaceutical
supply chain ecosystem by means of equity investment, digital financing, and pharmaceutical supply chain upgrades. In
addition, SY successfully connected with the supply chain system of a leading pharmaceutical distribution company,
expanding its supply chain financing service into a new segment of the pharmaceutical industry.
Strengthening the Forward Factoring Business to Serve SMEs
As a leading supply chain technology platform, SY is committed to improving its ability to connect premium assets with
inclusive financing offerings through its advanced digital technology and efficient intelligent risk control expertise.
In addition, SY supports the stable development of SMEs through its on-going efforts in driving the forward factoring
business.
In terms of digital finance, SY exported mature technology systems and platform-based services to local factoring
companies with state-owned enterprise ("SOE") backgrounds in various provinces. Levering the enhanced credit gained its
association with prominent local SOEs and their industry ecosystems, SY reduced capital costs and increased leverage,
which enabled SY to support the real economy by providing financing services to accelerate business expansion. As of
June 30, 2023, the cumulative number of funding partners connected with the SY platform increased to 122, an increase
of 34% year-on-year, underlining SY's position as a preferred partner for financial institutions to provide inclusive
finance services.
In terms of business expansion, SY made major breakthroughs in "e-CNY +" application scenarios by launching the
"largest single Digital RMB factoring transaction of RMB 100 million in the factoring industry" and the "first digital
RMB salary" respectively. SY also actively explored business opportunities related to innovative supply chain finance
application scenarios such as "e-CNY + intelligent contracts". SY Factoring successfully completed the switch to the
Second Generation Credit Reporting System of the People's Bank of China, raising its risk control ability to a new
level. SY completed a Dual ESG-Structured Syndicated Loan facility of RMB 530 million, addressing SMEs' financing
needs. Meanwhile, SY also successfully issued forward factoring asset-backed Securities of over RMB2 billion, with the
fourth tranche having a coupon rate of only 2.7%, a record-low for similar ABS issuances in the Jiangsu region. This
has effectively revitalized the market for high-quality forward factoring assets.
In terms of business layout, with support from the Wuxi Economic Development Zone, SY successfully held the foundation
stone laying ceremony for its eastern China headquarters. When completed, the headquarters will seek to attract
cutting-edge science and technology startups, financial institutions, and top-500 global enterprises in the supply
chain ecosystem, aiming to build an industrial digital ecosystem base integrating scientific innovation, ecological
empowerment, and green development.
SY has always regarded science and technology as the key element of the supply chain, and has continuously enhanced the
linkages between technology and its business. The Shengyitong cloud platform, independently developed by SY,
accelerated iteration by upgrading its digital and intelligent functional modules, such as intelligent registration and
duplication checking, invoice rapid authenticity verification, credit report analysis, and intelligent contract
approval, continuously improving the efficiency of supply chain finance business processing and enhancing customers'
full-process online service experience. As of June 30, 2023, cumulative R&D expenses reached RMB 170 million, and the
Company held a total of 62 R&D national invention patents and software copyrights.
Embracing Sustainable Development and Contributing to Public Welfare
Despite the complex and ever-changing business environment, SY has always adhered to a long-term development strategy,
and actively responded to the UN Sustainable Development Goals. In 2023, SY received another "A" rating from MSCI ESG
Research after receiving its first "A" rating in 2021, ranking near the top among its industry peers globally.
SY remains true to its aspiration of contributing to public welfare and fulfilling its corporate social
responsibilities. In March 2023, the SY Public Welfare Foundation (the "Foundation") organized congenital heart disease
screening and treatments for children with congenital heart disease in the Tibetan regions in Qinghai Province. To
date, the Foundation has sponsored nearly a hundred children to undergo surgical treatment at hospitals. In May, the
Foundation participated in "The Egg Walkathon" to help children in need in central China. In July, the Foundation
jointly hosted the "Little Migratory Birds at Construction Sites Summer Camp" with the Shandong Branch of China
Construction Second Engineering Bureau Ltd.
SY is committed to promoting public welfare and charity. Since its establishment in 2021, the Foundation has engaged in
giving back to society through practical actions, making donations to children in need, aiding industry and rural
revitalization, and supporting youth inspirational programs. Since 2014, employees of the Group have participated in
over 218 public welfare activities, with a cumulative public welfare expenditure of over RMB 10.9 million and a
cumulative volunteering duration of over 3,070 hours, benefitting over 4,400 individuals.
About SY Holdings Group Limited (stock code: 6069.HK)
The Group's mission is to "Drive Supply Chain Efficiency and Make Finance More Inclusive", with a vision to "become
Asia's most reliable supply chain technology platform". The Group has served various national strategic industries
including the infrastructure, medical and energy segments, and is also actively expanding into other strategic emerging
industries. Listed on the main board of the Hong Kong Stock Exchange, SY Holdings is a constituent of the MSCI Small
Cap China Index, Hang Seng Composite Index, Hang Seng Corporate Sustainability Index and is on the Shenzhen-Hong Kong
Stock Connect, Shanghai-Hong Kong Stock Connect. Notable institutional investors in the Group include Temasek Holdings,
China Taiping Insurance, Olympus Capital and Wuxi Communications Industry Group.
Media Contact
SY Holdings Group Limited
Galin Chen
Tel: 0755-6188 0088-842
Email: Galin.Chen@syholdings.com
Christensen China Limited
Stephanie Chen
Tel: +852 2117 0861
Email: stephanie.chen@christensencommcs.com
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[1] Exclude share incentive plan
File: SY Holdings Announces 2023 Interim Results Digital Technology Empowers Inclusive Finance and Platform-Based
Services Boost Common Prosperity in the Enterprise Ecosystem
31/08/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
August 31, 2023 03:14 ET (07:14 GMT)
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