SY Holdings Group Limited entered into a strategic partnership focused on major projects in China's healthcare industry with CQ Pharmaceutical Holding Co. Ltd. According to the terms of the strategic partnership, SY Holdings will invest a total of SGD500 million (approximately RMB 2.7 billion) to deepen China-Singapore pharmaceutical industry coordination, increase capital investment, and expand the supply chain ecosystem. The strategic parentship was signed in Singapore on July 18, 2023 at the Singapore-Chongqing Business Matchmaking Event & Promotion for Western Chongqing, part of the Singapore-Chongqed Week.

The State-owned Assets Supervision and Administration Commission of Chongqing Municipal People's Government organized the event where a number of state-owned enterprises (SOEs) from Chongqing met with Singaporean investors looking for investment opportunities to further strengthen Singapore-Chongqing economic cooperation going forward. The Singapore-Chongqing Week is a symbolic event organized to deepen cooperation and exchange under the third intergovernmental cooperation program between China and Singapore, the China-Singapore (Chongqing) Strategic Connectivity Demonstration Initiative ("China-Singapore Connectivity Initiative"). The China-Singapore Connectivity Initiative is part of China's national strategy to open Western China to investment with Chongqing serving as the primary operational center.

Since it was first held in 2015, 256 government and commercial partnership projects and 249 financial service projects have been signed with a total investment of USD25.277 billion and USD30.26 billion, respectively. The program serves as a successful case study for high-quality development under China's Belt and Road Initiative (BRI). SY Holdings is a leading supply chain technology platform listed on the main board of the Hong Kong Stock Exchange and backed by notable Singaporean investors including Temasek, Singapore's sovereign wealth fund.

SY Holdings's stock is included in MSCI index series and the Hang Seng Composite Index, and is eligible for the Shenzhen-Hong Kong and Shanghai-Hong Kong stock connects. This reflects the Company's recognition in international markets. Established by Singaporeans in 2013, SY Holdings has historically focused on the Chinese market to unlock the enormous potential of the supply chains there.

The Company offers services to more than 12,700 SMEs in China with cumulative supply chain assets processed by its platform exceeding RMB159 billion. SY is committed to becoming the most reliable supply chain technology platform in the Asia-Pacific region with growth being primarily driven by the Industrial Internet-of-Things and digital financing sectors. SY Holdings remains optimistic about the future growth prospects of strategic industries in China such as infrastructure, healthcare and energy.

Since 2017, the Company has focused its efforts on nurturing innovation in geographies such as Chongqing which offers a solid foundation to build a partnership with CQP focused on hospital SPD solutions and promoting supply chain inclusive financing. Over the past decade, SY Holdings has continuously invested in China, with total cumulative investment exceeding RMB 6 billion. As a large SOE, CQP is a pharmaceutical distribution company providing services for the entire pharmaceutical industry supply chain.

With more than 200 branches and subsidiaries at all levels, CQP is a leading player in Western China in terms of scale and market coverage, ranking 202 among the top 500 listed companies in China and first among listed SOEs in Chongqing in terms of revenue. SY Holdings and CQP will leverage their respective resources to cooperate in equity and share capital.