Hong Kong, November 30, 2021 – Sheng Ye Capital Limited (“SY” or the “Company”, stock code: 6069.HK, together with its subsidiaries, the “Group”), is pleased to announce that it has signed an agreement for the acquisition of a 40% equity interest in Wuxi Guojin Factoring Limited (“WXGJ”) for RMB 360 million. Upon completion of the acquisition, SY will hold an indirect 80% equity interest in WXGJ with WXGJ becoming a non-wholly owned subsidiary of the Group.

WXGJ was jointly established by Wuxi Tonghui 無錫通匯 (“WXTH”), a subsidiary of the Wuxi Communications Industry Group 無錫交通集團 (“WXCIG”), and Shengzhuo Commercial Factoring, a subsidiary of the SY, as a leading supply chain finance platform with a leading presence in the eastern China region. Leveraging the in-depth cooperation between the shareholders of both parties, WXGJ provides high quality financial services for enterprises in the upstream and downstream segments of the industrial supply chain across smart transportation, engineering construction, new energy vehicles and parts, general aviation, aircraft manufacturing and other emerging industries within the greater transport sector. Following the completion of this acquisition, SY’s overall equity interest in WXGJ will be increased to 80% with the remaining 20% held by WXTH under the control of State-owned Assets Supervision and Administration Commission of the Wuxi Municipal People’s Government. The acquisition will also result in the consolidation of the financials of both SY and WXGJ, which will further expand the Group’s revenue and net profit, increase the Group’s platform assets and further stabilize the Group’s financial performance.

As a shareholder of WXGJ, WXCIG is supportive of the transaction. By harnessing WXCIG’s solid position within the industrial ecosystem and high-quality customer resources, SY is well placed to collaborate with WXCIG to give full play to their expertise in technological innovation and experience to contribute to the digitalization of the local industrial landscape.

In September 2021, SY also deepened its strategic cooperation with the Jiangsu Wuxi Economic Development Zone with the establishment of its eastern China regional headquarters in Wuxi to develop its technology research and development and investment center. Coined as the “IoT capital” of China, Wuxi city is known globally for its industrial technology innovation and is currently home to many Internet-of-Things (“IoT”) companies. As one of the joint advocates for the development of Wuxi, SY’s strategic initiatives in the areas of innovation, technology and industry are also highly aligned with the development plans of the city. The proposed acquisition will not only enable the Group to capture new growth opportunities in the IoT and industrial technology segments, but also allow the Group to leverage WXCIG’s strong position in the industrial ecosystem to boost customer acquisition and business opportunities in the transport and infrastructure segments.