SY’s 2024 Platform-based Tech Revenue Surges 100%

SY’s 2024 Platform-based Tech Revenue Surges 100%, Maintaining 11-Year Profitability and 7-Year Dividend Streak

On March 17, 2025, SY Holdings Group Limited (“SY” or the “Group”, stock code: 06069.HK) announced its annual results for 2024. The report highlights key industry developments, including the 2024 Government Work Report, which emphasises the acceleration of new quality productive forces and the implementation of the “AI+” initiative. As a digital intelligence technology company specialising in “AI + Industrial Supply Chains”, SY has proactively leveraged opportunities arising from large-scale AI models to drive industrial upgrades. The Group offers comprehensive supply chain management solutions, enabling small and medium-sized enterprises (“SMEs”) to secure more orders, boost turnover, and enhance profitability. As of December 31, 2024, SY recorded a net profit of approximately 391 million yuan (RMB, same below), representing a year-on-year increase of 37%.

SY consistently enhances its industrial ecosystem and improves industrial data connectivity, thereby strengthening its dual-driven technology and data model. By employing its “transaction-focused, asset-light” risk control system and business framework, the Group facilitates access to working capital for SMEs while simultaneously promoting cost reduction and operational efficiency.

Within the infrastructure sector, SY employs sophisticated construction site solutions and intelligent procurement service platforms to enhance the digital management of supply chains for core enterprises within the infrastructure segment. These solutions further facilitate the acquisition of real-time transaction data from SMEs suppliers. Through data analysis and smart matching, SY aids suppliers in increasing bidding efficiency and securing access to working capital.

In the pharmaceutical sector, SY specialises in developing supply chain flow management systems tailored for prominent medical distribution companies. These systems facilitate precise monitoring and sophisticated analysis of pharmaceutical flow data and sales trends, thereby empowering distributors to refine their business expansion strategies and optimise inventory management efficiency.

As of December 31, 2024, SY reported total revenue and income from core activities of approximately RMB 919 million. The total cumulative supply chain assets processed by SY exceeded RMB 249 billion, indicating a year-on-year increase of over 29%. The platform has expanded its network to include more than 160 funding partners, reflecting a year-on-year growth of over 24%. Furthermore, the total cumulative number of platform users has surpassed 18,100 clients, representing an increase of more than 18% compared to the previous year.

It is significant to note that SMEs constitute over 96% of the client base, demonstrating a client retention rate exceeding 80%. These initiatives have resulted in an annual sales increase surpassing 60% for the enterprises receiving support, underscoring SY’s critical role in empowering SMEs and enhancing their growth potential.

Guided by its platform-based, technology-driven strategy, SY effectively connects industrial enterprises and financial institutions through its proprietary “SY Cloud Platform”. By utilising big data analytics, extensive data models, and AI-powered risk control, the Group enables the smart matching of quality assets with inclusive financing while providing value-added services such as customer acquisition, data analytics, and inventory management.

As of December 31, 2024, revenue from platform-based technology services amounted to approximately RMB 347 million, indicating a year-on-year increase of 104%. Its contribution to the total revenue increased from 18% in 2023 to 38%, with expectations that it will surpass 50% in 2025E, strengthening its status as the Group’s primary growth engine.

Since its establishment in 2013, SY has achieved 11 consecutive years of profitability, with cumulative net profits surpassing RMB 2.3 billion. The Group plans to distribute a dividend of RMB 0.347 per share, translating to a payout ratio of 90%. Over the past seven years, SY has also distributed cumulative dividends amounting to 800 million, reaffirming its commitment to maintaining a payout ratio of no less than 90% for 2025–26E，and is considering distributing a special dividend during 2025 to continue rewarding investors' support and trust with tangible returns.

Backed by solid fundamentals and significant growth potential, SY has garnered initial coverage from CITIC Securities and TF Securities, along with “Buy” or “Outperform” ratings from CICC, SDIC Securities, and other prominent institutions.

Expanding into Emerging Industries and Tapping on Growth Opportunities

While bolstering its footprint in infrastructure, pharmaceuticals, and commodities, SY is actively branching out into strategic emerging industries, such as e-commerce, robotics, and smart computing services. These sectors hold a combined market potential surpassing RMB 10 trillion, with over 10 million prospective clients, positioning SY for sustained growth and broader market penetration.

The Group has established partnerships with prominent cross-border e-commerce platforms in China and Southeast Asia, facilitating the global expansion of “Made in China” products and enhancing cross-border shopping opportunities. As of December 31, 2024, SY has extended billions in financing to numerous e-commerce merchants, resulting in over 100% growth in Gross Merchandise Volume (“GMV”) and creating a new revenue stream for the Group.

SY has engaged in a strategic collaboration with Singbada, a global leader in flexible apparel supply chain solutions, to expedite the overseas expansion of Chinese garment clusters and cross-border platforms. Under this partnership, SY will assist Singbada in establishing smart factories in Turkey, Southeast Asia, and Morocco while catering to e-commerce giants such as SHEIN, Temu, Cider, and PatPat. This collaboration is anticipated to generate a business scale nearly amounting to RMB 10 billion, thereby reinforcing SY’s pivotal role in advancing the global growth of China’s apparel supply chain.

Furthermore, SY has collaborated with Southeast Asia’s largest e-commerce platform to initiate cross-border supply chain financial services, enabling Chinese sellers to enhance their targeted overseas marketing strategies. This partnership is anticipated to reach millions of sellers and unlock RMB 100 billion in business potential, further solidifying SY’s presence in the global e-commerce ecosystem.

In robotics, semiconductors, and related sectors, SY has developed partnerships with several esteemed venture capital institutions, further expanding its collaborative network encompassing “fund + industry + finance”. The Company is actively engaging with prominent humanoid robotics enterprises to investigate opportunities for industrial ecosystem cooperation. By leveraging supply chain financing to augment production scale and sales performance, SY aspires to establish a comprehensive “industrial investment – ecosystem service empowerment” value chain, fostering synergistic growth throughout the industry.

Embracing the AI Era and Driving Industrial Digitalization

Artificial intelligence and big data are pivotal in driving technological and economic progress in the digital economy. SY has significantly ramped up its research and development (R&D) investment, with cumulative expenditures exceeding RMB 250 million. R&D personnel comprise 30% of the workforce, while the Group holds 80 patents and software copyrights covering advancements in data, models, and computing. Recognising its leadership within the industry, SY has been listed among the Forbes China Top 50 Financial Technology Influential Enterprises, thus reinforcing its commitment to innovation and technological excellence.

The “SY Cloud Platform” now integrates domestic open-source models, including DeepSeek, while concurrently exploring the applications of other models such as ChatGPT, Llama, Qwen, Doubao, and ZhipuAI. By leveraging industry-specific training data, SY’s extensive models enhance the accuracy of financing services, optimise intelligent supplier management, automate workflows, and facilitate data-driven decision-making. These advancements further augment the Group’s AI-driven capabilities.

In the field of smart computing, SY has secured computing power resources from the Wuxi Economic Development Zone. Leveraging the capabilities of the Xuelang Computing Power Center, the NVIDIA Intelligent Computing Center, and the Sugon Advanced Computing Center, SY can provide a maximum intelligent computing power exceeding 1,000P (PetaFLOPS), enabling quadrillions of floating-point operations per second.

Previously, SY executed a strategic cooperation framework agreement with the Wuxi Economic Development Zone, establishing its East China headquarters and creating a hub for an industrial digital ecosystem. In anticipation of future developments, SY intends to collaborate with internet data center (“IDC”) service providers to explore opportunities in cloud-based intelligent computing services, further enhancing its high-performance computing capabilities and digital innovation transformation.

Leveraging its considerable computing capabilities, SY’s AI models are set to enhance data analytics, asset matching, and risk management. The Group aims to improve operational efficiency by 50% by 2025E and increase the assets under administration per employee. SY seeks to empower SMEs with advanced market analysis, order acquisition, and cost management by developing an industrial AI agent and integrating a decade’s worth of accumulated data. These advancements will further bolster SY’s technology service revenue, thereby solidifying its leadership in AI-driven industrial solutions.

Looking ahead, artificial intelligence is set to play a pivotal role in transforming industries across China. This exciting shift could potentially unlock trillions in growth within the intelligent economy. SY is committed to harnessing its “connecting industrial ecosystems with AI-powered digital services” strategy and working with SMEs to help them thrive and gain a competitive edge in the ever-evolving digital landscape.