Sheng Ye Capital : VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE

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SHENG YE CAPITAL LIMITED ସุ༟͉Ϟࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6069)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

This announcement is made by Sheng Ye Capital Limited (the "Company", together with its subsidiaries, the "Group") to provide its shareholders and potential investors with the latest business development of the Group.

On 15 March 2021, SY Factoring Limited* ( ସุਠุڭଣϞࠢʮ̡ ) ("SY Factoring"), a wholly-owned subsidiary of the Company entered into a syndicated loan facilitation agreement (the "Agreement") with various parties, including but not limited to Mega International Commercial Bank Co., Ltd.* ( Ίᔮ਷ყਠุვБٰ΅Ϟࠢʮ̡ ) and Bank SinoPac* ( ͑ᔮਠุვБٰ΅Ϟࠢʮ̡) (collectively, the "Banking Syndicate"). Pursuant to the Agreement, SY Factoring, inter alia, obtained a loan of RMB525 million from the Banking Syndicate for a period of two years (beginning from the date of the first drawdown, and such date shall be no later than three months after date of the Agreement) for the purposes of being used by the Group to provide financing to its customers (the "Cooperation").

This Cooperation is also the first-of-its-kind in the People's Republic of China ("PRC") involving offshore financing within the commercial factoring sector, reaffirming the Banking Syndicate's confidence in the Group's business and its future outlook.

REASONS AND BENEFITS OF THE COOPERATION

The Group is a leading supply chain digital technology platform in the PRC. Powered by fintech and an in-depth understanding of the industries it services, the Group offers a range of flexible account receivable-based financing products and corporate services to meet the vast financing needs of underserved small and medium enterprises (the "SMEs") in the PRC. The loan will allow the Group to optimize its capital structure, further diversify its funding sources and strengthen its offshore financing capabilities. It will also accelerate the Group's initiative of further developing relevant technologies to stay competitive through enhancing its offering to SMEs in the PRC.

This Cooperation will also position the Group favourably to benefit from the gradual macro-economic recovery since the impact of COVID-19 last year, allowing it to better serve the increasing number of online customers through the provision of customized digital financing solutions.

The Group remains committed to becoming a leading supply chain digital technology platform across the Asia-Pacific and will continue to explore alternative funding sources as well as collaboration opportunities with more offshore funding partners in the loan facilitation segment so as to facilitate its expansion plans.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Sheng Ye Capital Limited

Tung Chi Fung

Chairman

Hong Kong, 15 March 2021

As at the date of this announcement, the Board comprises two executive Directors: Mr. Tung Chi Fung and Mr. Chen Jen-Tse; and four independent non-executive Directors: Mr. Hung Ka Hai Clement, Mr. Loo Yau Soon, Mr. Twoon Wai Mun, Benjamin and Mr. Fong Heng Boo.

The English translation of the Chinese name(s) in this announcement, where indicated with "*", is included for information purpose only, and should not be regarded as the official English name(s) of such Chinese name(s).

If there is any inconsistency in this announcement between the Chinese and English versions, the English version shall prevail.