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/.
