Sheng Ye Capital : VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE

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SHENG YE CAPITAL LIMITED

盛 業 資 本 有 限 公 司

(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") on a voluntary basis.

The board of directors (the "Board") of the Company is pleased to announce that on 14 May 2021, China Construction Bank Corporation Shenzhen Branch* ( 中國建設銀行股份有限公司深圳市分行) (the "Bank") has entered into the supply chain fintech platform cooperation agreement with the Group (the "Cooperation").

Under the Cooperation, the Group will leverage on its proprietary supply chain fintech platform to select and recommend high quality borrowers (who are also the customers of the Group's supply chain fintech platform) to the Bank and the Bank will provide a line of facility to these potential qualified borrowers directly by tapping the Group's efficient customer acquisition channels, extensive sector knowledge and proven fintech capabilities. The Group will assist the Bank to assess the quality of the underlying accounts receivables and the repayment ability of each of the potential borrowers with its proprietary data-driven risk control system prior to making a referral to the Bank. The principal amount of the loans to be provided by the Bank to the borrowers shall (i) be based on the amount of the underlying accounts receivables, (ii) not be more than RMB10 million for each loan; and (iii) not be more than RMB1 billion in aggregate.

The borrowers will respectively provide underlying accounts receivables to a member of the Group as security for the loans to be provided by the Bank, and the borrowers will repay such loans to be provided by the Bank with the funds received under the underlying accounts receivables. No fee is payable by the Group or the Bank in relation to the cooperation arrangement under the Cooperation.

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REASONS AND BENEFITS FOR THE COOPERATION

The Group is a leading supply chain fintech platform provider of one-stopSoftware-as-a-Service and financial services solutions for companies within the industry esosystem across the Asia-Pacific. Powered by fintech capabilities and an in-depth understanding of the industries it serves, the Group partners with various funding institutions to offer a range of flexible accounts receivable-based supply chain financing products and corporate services to meet the significant and underserved financing needs of small and medium enterprises (the "SMEs") in the region.

The Board considers that the Cooperation with the Bank will allow the Group to consolidate the relationship with the strategic banking partner on its supply chain fintech platform and to lay a solid foundation which would enable the Group to explore new potential funding avenues to better serve more customers with customized financing solutions. In addition, the Cooperation will allow the Group and the Bank to further strengthen and develop data-driven, tailored and inclusive financing services to support SMEs for their ongoing business development. Further, since the Group will only refer borrowers to the Bank whose underlying accounts receivables are to the satisfaction of the Group after its assessment, the Board considers that the credit risk associated with the Cooperation is remote.

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, 14 May 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 transliteration 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.

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