Transformation Pressures Revenue; Shengye: Expects Synchronized Growth in Income and Profit by 2026

The Daily Economic News Reporter | Zhao Jingzhi The Daily Economic News Editor | Wei Weny

On the evening of March 17, supply chain financial technology company Shengye (HK06069, stock price HKD 10.04, market value HKD 10.7 billion) released its full-year 2025 performance report. The company achieved approximately RMB 903 million in main business revenue and profit for the year, down 1.7% year-over-year; net profit was about RMB 483 million, up 23.6%, marking 12 consecutive years of profit growth.

In recent years, Shengye has continuously promoted its “light asset, platform-based” strategic transformation, gradually reducing reliance on its own funds and instead linking with external capital providers such as banks through its platform to offer supply chain financial technology services to small and micro enterprises. The Daily Economic News reporter (hereinafter referred to as “the reporter”) noted that in 2025, Shengye’s technology service revenue reached RMB 474 million, accounting for over 50% of main business revenue, reaching 52%.

On the afternoon of March 18, during Shengye’s 2025 annual performance briefing, Shengye’s Chief Strategy Officer Yuan Ye pointed out that the platform-based strategic transformation increased the company’s overall gross profit margin from 61% to 73%, and the net profit margin for the first time exceeded 50%, reaching 53%.

Regarding dividends, Shengye’s board of directors proposed a final dividend of HKD 0.4047 per share and approved a special dividend of HKD 0.2319 per share. Based on this, Shengye’s total dividend payout in 2026 is expected to exceed RMB 678 million. As of the performance release date, the dividend yield exceeds 7%.

At the performance briefing, Yuan Ye told the reporter that during the platform transformation process, the company’s revenue in 2024 and 2025 declined mainly due to the disposal of a factoring company in 2024. The revenue of that factoring company reached RMB 450 million in 2025, and its removal from the balance sheet caused a temporary impact on the revenue structure. “This impact was largely absorbed last year, and future revenue and profits are expected to recover in tandem.”

The reporter also noted that in 2025, Shengye expanded its core fields of pharmaceuticals, infrastructure engineering, and commodities by vigorously developing two innovative businesses: e-commerce and overseas expansion.

Regarding e-commerce, Yuan Ye stated at the briefing that Shengye has reached strategic cooperation with leading platforms such as Shopee, Xiyin, and Kuaishou. The cumulative platform service business scale in the e-commerce sector exceeded RMB 6 billion, a growth of over 4.4 times compared to the same period last year.

For overseas services, Yuan Ye pointed out that in 2025, Shengye invested about RMB 800 million in supporting companies’ overseas expansion. “Whether it’s small and micro enterprises or some large high-end manufacturing companies, when they go abroad with their products, they face not only issues with capital recovery cycles but also challenges in managing counterparty credit risks. When the amounts are smaller, real-time currency exchange management is also a challenge,” Yuan Ye said. Shengye will also develop one-stop supply chain services around warehousing, logistics, and exchange rate management.

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Cover image source: Daily Economic News Media Library