Tag: Sheng Ye Capital

Sheng Ye Capital Selected for Inclusion in Hang Seng Composite Index

Sheng Ye Capital Limited (“Sheng Ye Capital” or the “Group”; Stock code: 6069), a fintech-driven supply chain financial services provider offering accounts receivable financing and other related solutions mainly in the energy, construction and medical sectors in the PRC, has announced that subsequent to its inclusion as a constituent of the MSCI China All Shares Small Cap Index in 2018, the Group has also made the list of constituent stocks for the Hang Seng Composite Index effective 9 March 2020 with the approval from Hang Seng Indexes Company Limited. This inclusion reflects the unanimous recognition from a number of professional organisations for the Group’s constant efforts and outstanding results in raising its business standards since listing. The Group is also a constituent of the following Hang Seng indexes:

– Hang Seng Stock Connect Hong Kong Index
– Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index
– Hang Seng Stock Connect Hong Kong SmallCap Index
– Hang Seng SCHK Mainland China Companies Index
– Hang Seng SCHK ex-AH Companies Index

As an important indicator of performance in Hong Kong’s stock market, constituents of the Hang Seng Composite Index are carefully selected through a strict process. Based on the Index Methodology of Hang Seng Composite Indexes, listed companies are included in the Index only if they are in the pool of the eligible Universe and meet both the Market Value Requirement and Velocity Requirement. The inclusion of Sheng Ye Capital in the Hang Seng Composite Index not only represents the investment community’s appreciation of the business development, financial position and prospects of the Group, but also reflects the Group’s market capitalisation and liquidity attaining market-leading levels since the transfer of its listing from the GEM to the Main Board in October 2019. Sheng Ye Capital’s market capitalisation reached as high as HK$7.23 billion after it was listed on the Main Board. As at 21 February 2020, its total market capitalisation amounted to HK$5.74 billion.

Sheng Ye Capital is a fintech-driven supply chain financial services provider and is also Mainland China’s first commercial factoring company to be listed on the Main Board of the Stock Exchange of Hong Kong. Its strategic shareholders include the Singapore sovereign fund, and a US-renowned private equity and Global 500 insurance company from China. In recent years, Sheng Ye Capital’s business results have achieved steady growth. In 2016, 2017 and 2018, its income amounted to RMB119 million, RMB215 million and RMB470 billion respectively and its net profit was RMB48 million, RMB89 million and RMB212 million respectively. The CAGR of its net profit in the past three financial years exceeded 100% and its historical bad debt ratio maintained zero. Moreover, the CAGR of its total number of customers in the past three financial years reached 190%. As at 30 June 2019, the total number of customers was more than 3,200.

Inclusion within several international authoritative indexes reflects the capital market’s trust and recognition of the strengths of Sheng Ye Capital. Looking ahead, the Group will keep strengthening its core competitiveness in areas of experience in industry, IT, information analysis and diverse financing channels, as well as its industry expertise and customer demand. The Group will also embrace innovative technologies, develop comprehensive cooperation models and financing channels, and continuously optimise products and services, so as to provide better and more efficient supply chain financial services to upstream and downstream customers and reward investors with brilliant results.

Mr Tung Chi Fung, Chairman and Executive Director of Sheng Ye Capital, said, “The inclusion of Sheng Ye Capital among eligible shares for the Shenzhen-Hong Kong Stock Connect will allow us to generate greater interest from Mainland investors and stimulate investment in the Group, hence help improve our trading volume and attract wider attention to a certain extent. We are confident in the Group’s future growth and will continue to contribute to the development of supply chain finance in China and create long-term value for shareholders.”

About Sheng Ye Capital Limited (Stock code: 6069)
Sheng Ye Capital Limited is a professional enterprise financial services provider offering accounts receivable financing and other related solutions mainly in the energy, construction and medical sectors in the PRC. According to Frost & Sullivan Report, the Group ranked first in terms of factoring business turnover for the year ended 31 December 2018 among all third party commercial factoring companies registered in the PRC. It has a strong capital base with its principal operating subsidiary in the PRC having a registered capital of US$200 million. Sheng Ye Capital was successfully listed on GEM of The Stock Exchange of Hong Kong Limited in July 2017, and transferred its listing to the Main Board in October 2019. Since 2018, the Group has been included as one of the constituents within several international authoritative indexes, including MSCI China All Shares Small Cap Index and Hang Seng Composite Index. For more information about Sheng Ye Capital, please visit: http://www.shengyecapital.com/.

Sheng Ye Capital Limited Transfers Listing to and Commences Trading on Main Board of HKEX

On 24 October, Sheng Ye Capital Limited (“Sheng Ye Capital” or the “Group”, stock code: 6069.HK), a professional enterprise financial services provider offering accounts receivable financing and other related solutions mainly in the energy, construction and medical sectors in the PRC, has transferred its listing from GEM to the Main Board of The Stock Exchange of Hong Kong Limited (“HKEX”), adopting the new stock code “6069”. As the first commercial factoring company in the PRC to get listed on the Main Board of the HKEX, Sheng Ye Capital is well-positioned to capture future business opportunities, capitalizing on a greater awareness and acceptance of the “Sheng Ye” brand among investors.

Sheng Ye Capital has been principally engaged in the provision of factoring services; sales of factoring assets; and other services since its founding in 2014. Under the factoring services segment, the Group primarily generates interest income for financing provided to its factoring customers, with that financing secured by their accounts receivables. Under the sales of the factoring assets segment, the Group records a gain that is equal to the excess of the consideration received and receivable over the book value of the factoring assets as that value was recorded prior to the transfer. In addition, the Group also generates income through fees for its provision of guarantee services, consulting services, information technology services and miscellaneous services principally including accounts receivables management services without financing. The Group has a strong capital base with its principal operating subsidiary in the PRC – SY Factoring Limited having a registered capital of US$200 million, which provides assurance and confidence to the Group’s customers and financiers with its strong financial position and business commitment.

Investment Highlights
Encouraging Financial Performance with Growing Income from Factoring and Other Services
During the Track Record Period, the Group recorded an outstanding financial performance with the income from factoring and other services rising at a CAGR of approximately 99.1% to approximately RMB118.7 million, RMB215.3 million and RMB470.4 million for each of the years ended 31 December 2016, 2017 and 2018 (the “Track Record Period”). The significant increment was mainly attributed to the increase in revenue from factoring services driven by the successful expansion of the factoring business of the Group with the support of the net proceeds from the Global Offering of GEM Listing in 2017, the top-up placing, bank and other borrowings, as well as an increase in gain on sales of factoring assets due to a rising market demand. Along with the expansion of the factoring business, the Group’s profit for the year rose at a CAGR of approximately 110.1% amounting to approximately RMB48.0 million, RMB88.8 million and RMB211.9 million for each of the years ended 31 December 2016, 2017 and 2018.

Broader Shareholding Base and Recognition from Investment Community to Support Business Growth
In July 2018, Sheng Ye Capital completed a top-up placing arrangement and received active engagement of three subscribers, namely Taiping Trustees Limited, Olympus Capital Asia and Pavilion Capital Pte Ltd, with subscription comprising up to approximately 73% of the total share placement. Sheng Ye Capital received total net proceeds of approximately HK$819.5 million from the subscription and the funds raised provide further strong support for the development of the Group’s online factoring platform and factoring operations. The completion of such a large-scale financing provided Sheng Ye Capital with additional funding for fueling future business growth and at the same time broadened the Group’s shareholder base. The Group was included as one of the constituents of MSCI China All Shares Small Cap Index in May 2018, clear evidence of its strengths and widespread appreciation of its business development and future prospects among investors.

Continuously Growing High-quality Customer Base Focusing on the Energy, Construction and Medical Industries
Sheng Ye Capital has been providing factoring and other services to suppliers of established corporates which are Fortune Global 500 or State-owned Enterprises in three main strategic and non-cyclical industries, reflecting a high quality and reliable customer base. As at 30 June 2019, the Group had served over 3,000 customers across the entire country and is still expanding.

Advanced Online Factoring Platform “Sheng Yi Tong” for Integrated Factoring Services
To facilitate the further development of its factoring business and better serve its customers who engage the Group’s factoring services, Sheng Ye Capital has launched its own online factoring platform, “Sheng Yi Tong” in November 2016. Currently the platform can perform a variety of functions in relation to the Group’s factoring business, whereby Sheng Ye Capital can promptly assess and approve the factoring loan application of customers, and, at the same time, carry out all-in-one risk management and monitoring services on this self-developed online factoring platform. Sheng Ye Capital will continue to invest in and upgrade its online factoring platform as well as to enhance the security and backup features of the platform to better serve its factoring business in the forthcoming years with the enhancement expected to be completed in the financial year ending 31 December 2020.

Stringent Risk Management System Tailored to the Characteristics of the Group’s Business Operations
As a specialized enterprise financial services provider offering accounts receivable financing and other related services, it is important that Sheng Ye Capital has effective risk management procedures for identifying and mitigating its operational risks. In this regard, the Group has developed a risk management system specifically tailored to its business operations to manage such risks through comprehensive due diligence on its customers and underlying debtors, independent information review and multi-level approval processes. During the Track Record Period and up to 29 September 2019, the Group did not experience any non-performing assets, nor impairment loss on the Group’s factoring assets, reflecting the effectiveness of its risk management system.

Business Outlook and Future Prospects
Looking forward, the Group will continue to focus on the construction, energy and medical sectors and expand its clientele and factoring assets. The Group considers that the transfer of the listing status from GEM to the Main Board of HKEX can raise awareness and acceptance of the “Sheng Ye” brand among investors, providing greater access to more efficient financing channels both locally and abroad to support its business growth. The Group is also determined to explore new and relatively low-cost financing channels in the future in order to raise funds for growing the business most cost-effectively.

Driven by the supportive national policy in the PRC, Sheng Ye Capital will continue to capitalize on its strengths and core competencies in conducting business. With its advanced online factoring platform “Sheng Yi Tong” and a professional risk management mechanism, the Group will be able to standardize its financial products and customize solutions and offer customers integrated factoring service account receivable financing, account receivable management services and credit evaluation, among other services, helping them secure funding at different stages of their development.

About Sheng Ye Capital Limited (Stock code: 6069.HK)
Sheng Ye Capital Limited is a professional enterprise financial services provider offering accounts receivable financing and other related solutions to customers who mainly engaged in the energy, construction and medical sectors in the PRC. It has a strong capital base with its principal operating subsidiary in the PRC – SY Factoring Limited having a registered capital of US$200 million. Sheng Ye Capital was listed on GEM of The Stock Exchange of Hong Kong Limited (“HKEX”) in July 2017, and it was included as one of the constituents of MSCI China All Shares Small Cap Index in 2018. Sheng Ye Capital transferred its listing to the Main Board of HKEX in October 2019. For more information about Sheng Ye Capital, please visit: http://www.shengyecapital.com/.

Sheng Ye Capital Announces 2019 Interim Results

– Income from Factoring and Other Services Surges 30.0% to RMB237.5 Million
– Healthy Financial Position and Excellent Factoring Business Performance
– Makes Application to HKEX for Transfer of Listing to Main Board to Seize Future Opportunities

Sheng Ye Capital Limited (“Sheng Ye Capital” or the “Group”; Stock code: 8469), a specialised enterprise financial services provider offering accounts receivable financing and other related solutions mainly in the energy, construction and medical sectors in the PRC, has today announced its interim results for the six months ended 30 June 2019 (the “Review Period” or “1H 2019”).

The Group continued to record encouraging results in 1H 2019, with income from factoring and other services amounting to approximately RMB237.5 million (1H 2018: RMB182.7 million), representing an increase of approximately 30.0%. The increase was mainly attributable to an expanded factoring business that was supported by a major portion of proceeds generated from the placing exercise conducted in July 2018 as well as bank and other borrowings. The Group’s profit before taxation increased by 46.7% to approximately RMB160.2 million (1H 2018: RMB109.1 million). Profit after taxation also climbed by 67.0% to RMB124.9 million (1H 2018: RMB74.8 million). Basic earnings per share were RMB14 cents (1H 2018: RMB10 cents).

Notwithstanding the slowdown of the global and PRC economies, the Group managed to raise additional working capital for expanding the factoring operation through shares placing, borrowing and bond issuance. The Group’s revenue in 1H2019 increased by approximately 52.3% to RMB201.6 million (1H 2018: RMB132.4 million). In order to improve cash flow as well as to more effectively manage the Group’s factoring receivables portfolio and fund the factoring business, the Group sold the rights of factoring assets and recorded revenue of approximately RMB35.9 million (1H 2018: RMB50.3 million) from the sales of factoring assets, providing financing support to the factoring business. 

Business Review
Sheng Ye Capital has positioned itself as a specialised enterprise financial services provider offering accounts receivable financing and other related solutions to the energy, construction and medical sectors in the PRC. The Group has also sought to strategically expand its factoring service customer base, comprising small and medium-sized enterprises that are suppliers of state-owned enterprises and large enterprises in the abovementioned three sectors. During the Review Period, the Group provided these customers with funds secured by, among others, their accounts receivable, and also offered them accounts receivable management services, including review and verification of documents relating to the accounts receivables, collection of accounts receivable on behalf of customers, and regular reporting to customers on matters concerning their accounts receivable. The Group received interest income and professional fees for the services rendered and also derived income from the sale of rights of the factoring assets.

The Group’s online factoring platform “Easy Factoring” linked up with the enterprise credit reporting system of People’s Bank of China, following which stringent risk supervision will be conducted. This will include examining the background of co-operating enterprises, such as their operation status and credit record, and also implementing risk control on overdue situation as well as examining and verifying customers’ asset information.

Besides, SY Factoring Limited, a subsidiary of the Group, also signed a strategic co-operative agreement with a financial asset trading platform in the PRC, which will combine the strengths of the two parties, leading to resource and system integration and information sharing. 

The Group has been diversifying its financing channels and has achieved notable results. The signing of banking facility agreements with a number of banks this year has also helped the Group to implement an inclusive financial strategy that is promoted by the country.

The Group was included as one of the constituents of MSCI China All Shares Small Cap Index in 2018, demonstrating the widespread recognition that it enjoys for its financial position and business development. The Group believes the inclusion in the Index will enable it to draw greater attention from investors. On the other hand, Sheng Ye Information Technology Service (Shenzhen) Co., Limited, another subsidiary of the Group, was named “National High and New Technology Enterprise” and “Shenzhen High and New Technology Enterprise” by Shenzhen Municipal Tax Service, State Administration of Taxation, Science and Technology Innovation Committee of Shenzhen Municipality and Finance Commission of Shenzhen Municipality.

Prospects
The Group listed on GEM of Hong Kong Exchanges and Clearing Limited (“HKEX”) in 2017, making it the first and only factoring company from the PRC to list in Hong Kong. The listing status and funds raised have undoubtedly enhanced the Group’s brand image, financial position and competitive strength. On 30 April 2019, the Group made an application to HKEX for the transfer of its listing to the Main Board. It considers that the transfer of listing will help raise investors’ awareness and acceptance of the “Sheng Ye Capital” brand and enable it to gain access to more efficient financing channels both locally and abroad to support business growth. 

Looking ahead, the Group will continue to focus on the construction, energy and medical sectors and expand its clientele and factoring assets. With its advanced online factoring platform “Easy Factoring” and professional risk management mechanism, the Group will be able to offer financial products, customised solutions and also integrated factoring services including account receivable financing, account receivable management services and credit evaluation to customers, helping them secure funding during different stages of their development. Meanwhile, the Group will continue to raise its core competitiveness and advance its risk management mechanism and IT system, as well as to explore new and relatively low-cost financing channels so as to drive sustainable business growth in the most cost-effective manner.

About Sheng Ye Capital Limited (Stock code: 8469)
Sheng Ye Capital Limited is a specialised enterprise financial services provider offering accounts receivable financing and other related solutions mainly in the energy, construction and medical sectors in the PRC. It has a strong capital base with its principal operating subsidiary in the PRC having a registered capital of US$100 million. The Group was included as one of the constituents of MSCI China All Shares Small Cap Index in 2018. For more information about Sheng Ye Capital, please visit: http://www.shengyecapital.com/.

Media Enquiries
Strategic Financial Relations Limited
Iris Lee Tel: (852) 2864 4829 Email: iris.lee@sprg.com.hk
Katrina Leung Tel: (852) 2864 4857 Email: katrina.leung@sprg.com.hk
Queenie Chan Tel: (852) 2864 4851 Email: queenie.chan@sprg.com.hk
Fax: (852) 2527 1196