Shenzhen Kaifa subsidiary secures $1.57b in credit, gains IPO boost

Shenzhen Kaifa Technology (SZSE:000021) announced its financial performance for the first quarter of 2025, posting CNY 3.36B in revenue and a net profit attributable to shareholders of CNY 178.92M, an increase of 46.91% compared to the previous year. Significantly, its subsidiary, Shenzhen Kaifa Technology (Chengdu), secured substantial credit facilities totaling approximately CNY 10.7B from various banks to bolster its operations. Furthermore, the IPO of the Chengdu subsidiary has led to a notable increase of CNY 9.15M in the minority shareholders’ equity, reflecting newfound investor confidence. Simultaneously, the company has completed the risk assessment of its connected party, China Electronic Finance Co., Ltd., with the conclusion that it has good control over its finances, credit, investments and internal audit protocols, and that as of March 31, 2025 it had no major flaws related to money, credit, investment, audit, information or risk protocols. The increase in cash from the financing activities has led to strong gains in cash on hand for the company. In this quarter the company had to amend its accounting for trading income, derivatives and foreign currency conversions to reflect these transactions.