SY Holdings Issues Positive Profit Alert for 1H 2025: Net Profit Expected to increase by approximately 20%, Platform-Based Tech Revenue Share Surpasses 50%

Net profit is expected to rise by approximately 20% year-on-year.

The expected increase is mainly attributable to the following:

1. STEADY GROWTH IN PLATFORM SCALE

Through its platform-based development strategy, SY Holdings leverages cutting-edge technologies such as AI Agent to deeply connect industrial ecosystem and data network. By capitalizing on its differentiated risk control model featuring "transaction-focused, entity-light", SY Holdings delivers "abundant, fast, high-quality and cost-effective" platform-based services to support clients' needs in working capital. As at 30 June 2025, the Platform has cumulatively facilitated over RMB277 billion in working capital solutions for its clients, representing a year-on-year growth of over 29%, while the cumulative number of clients served exceeded 19,100, with a year-on-year growth of over 14%. Among them, small and medium enterprises ("SMEs") clients accounted for over 97% of the total, with first-time borrowers making up more than 30%. The Platform has also helped clients reduce financing costs by at least 30%.

2. RISING SHARE OF PLATFORM-BASED TECHNOLOGY SERVICES REVENUE

Through its self-developed "SY Cloud Platform" (the "Platform"), SY Holdings has built an efficient intelligent bridge between the industrial and capital sides, accelerating the expansion of its asset-light operating model. On this basis, the company's platform-based facilitation business accounted for 88% of total volume, while the proportion of revenue contributed by platform-based technology services has exceeded 50%. As of 30 June 2025, the Platform has connected with over 180 funding partners, representing a year-on-year increase of more than 30%. The Platform has become a key strategic partner for financial institutions in advancing their inclusive finance initiatives.

3. BREAKTHROUGH IN AI COMMERCIALISATION

The Platform is deeply integrated with open-source artificial intelligence ("AI") large models such as DeepSeek, Qwen and Doubao. Having undergone training and optimization with high-quality industrial data, the Platform can intelligently match project orders and procurement information based on clients' product characteristics, sales records, production capacity and performance. Meanwhile, leveraging its industrial ecosystem and international market networks, SY Holdings assists ecosystem participants in precisely connecting with overseas demand, enabling them to efficiently carry out marketing, customer acquisition, opportunity seizing, and accelerating their integration into the global industrial supply chain. As of June 30, 2025, SY Holdings leveraged AI technology to deliver value-added services to its clients. Notably, by using AI agents to support clients in securing orders, SY Holdings achieved its first milestone of generating over RMB400,000 revenue through AI-assisted order acquisition.

4. E-COMMERCE: A NEW GROWTH DRIVER

SY Holdings has successfully achieved a breakthrough from scratch in the new e-commerce sector in a short period of time. The company have successfully established a presence on five top-tier e-commerce platforms, unlocking a market with potential exceeding RMB10 trillion and access to over 10 million merchants. Leveraging its robust data connectivity and processing capabilities, SY Holdings empowers emerging businesses by providing actionable insights into key metrics such as sales performance, traffic trends, and inventory turnover. This enables merchants to stay ahead of the curve, predict consumer demands, and identify potential bestsellers with precision. Meanwhile, the company offers flexible working capital facilitation services based on real-time transaction data, helping merchants capitalize on every opportunity to drive growth and create blockbuster products. Additionally, SY Holdings has introduced Be Friends Holding Limited (Stock Code: 1450) as a strategic investor, enabling a rapid entry into the live-streaming e-commerce space. As at 30 June 2025, the cumulative amount of working capital facilitation in e-commerce segment has exceeded approximately RMB2.8 billion, representing an almost eightfold growth year-on-year.

5. AI-DRIVEN EFFICIENCY BOOST

By harnessing the data processing and logical reasoning capabilities of AI large models, combined with ample computing power support from Wuxi Economic Development Zone, SY Holdings integrates and analyses vast volumes of unstructured data such as contracts, documents and public opinions in real time, dynamically generating the enterprise and transaction profiles. This significantly enhances risk control efficiency and avoiding transaction fraud risks. With the strategic investment from a subsidiary of XtalPi Inc. (Stock Code: 2228), SY Holdings receives strong technical support for the development of industrial AI Agents, while deploying innovations such as AI-powered document classification and smart contract review to drive cost reduction and efficiency improvements in collaboration with ecosystem partners. As at 30 June 2025, the per capita working capital facilitated for clients grew by nearly 27%.

6. VENTURING INTO THE ROBOTICS FRONTIER

SY Holdings is a digital intelligence technology company focusing on "AI + Industrial supply chain". In the face of the continuously growing service demand, the company is actively expanding into new tracks such as e-commerce, robotics and AI applications, it aims to assist SMEs in both precisely matching orders and providing differentiated working capital facilitation services. In the robotics sector, SY Holdings has established a strategic collaboration with Stand Robots (Wuxi) Co., Ltd. which is one of the global leaders in industrial intelligent robotics. This forward-looking initiative positions us to swiftly enter emerging industries, laying a solid foundation for sustained growth and innovation over the next decade.At the same time, SY Holdings continues to increase research and development investment and talent cultivation, and has obtained nearly 90 national invention patents and computer software copyrights, covering areas such as data verification, repayment prediction and risk control models.

Up to now, SY Holdings has maintained profitability for 11 consecutive years and implemented a high dividend policy for 7 consecutive years, and has committed to a dividend payout ratio of not less than 90% conduct declaration and payment of dividends with payout ratio of no less than 90% for the financial years ending 31 December 2025 and 31 December 2026. Including the special dividend, the total dividend payout for the financial years ending 31 December 2025 is expected to reach approximately RMB950 million, implying a dividend yield exceeding 8.5%.

Moving forward, SY Holdings will strengthen its industrial ecosystem and data connectivity, continuously enhancing the commercialization of AI Agent and its platform-based technology service capabilities.

Hashtag: #SYHoldings

The issuer is solely responsible for the content of this announcement.