KB Global Holdings Ltd

KB Global Holdings Limited

Corporate structure

• KB Global Holdings Limited (Hong Kong) wholly owns a Hong Kong subsidiary that holds all equity in a Wholly Foreign-Owned Enterprise (WFOE) in China.
• The WFOE controls Beijing Kezhao Technology Co., Ltd. (BJKZ) through Variable Interest Entity (VIE) agreements.
• Under the VIE structure, the WFOE has substantial control over BJKZ’s operations and is entitled to a fee representing substantially all of BJKZ’s net income. KB Global consolidates BJKZ in its U.S. GAAP financial statements.

Core business

• Provides enterprise-grade digital transformation solutions focused on integrated information management for industrial clients.
• Offers a proprietary Enterprise Digital Management System Integration platform built around five core modules:
  • Enterprise Collaboration System
  • Project Management System
  • Customer Relationship Management (CRM) System
  • Enterprise Resource Planning (ERP) System
  • Financial Data Analysis System
• The platform is configurable and can be delivered as a made-to-order solution. Customers own and register copyright for customized products produced for them.

Products and offering details

• The platform’s capabilities include:
  • Internal collaboration and real-time messaging
  • Project planning, tracking, and resource management
  • Lead, contact, sales pipeline, and customer support analytics
  • Integrated finance, HR, procurement, and supply chain management
  • Data analytics, visualization, forecasting, budgeting, and reporting
• The solution is aimed at industrial clients seeking to unify disparate operational processes.

Market activity and strategy

• BJKZ was established in August 2018 to provide IT development and consulting services.
• The company’s first commercial software delivery occurred in 2024.
• In September 2023, BJKZ entered a development contract with Beijing Kabeilongteng Investment Center to deliver a made-to-order Enterprise Digital Management System Integration configured for the client’s server. Contract price: RMB 1,304,582 (US$180,715). Payment terms: 80% in advance, 10% on completion, 10% one year after acceptance.
• KB Global recorded US$179,613 in revenue from this contract in Q1 2024.
• Strategic priorities include expanding customer acquisition beyond related parties, building recurring revenue streams (including potential subscription models), using successful deliveries as references, controlling costs while scaling, and exploring partnerships with regional technology integrators.

Competitive strengths

• Demonstrated ability to deliver a complex, multi-module enterprise system on a fixed-price contract.
• Low-cost development center in Beijing supported by experienced technical leadership.
• Agile, focused team that enables rapid iteration and customization.
• VIE structure intended to reduce regulatory friction for revenue generation.

Risk management and controls

• A risk management and control division monitors credit, market, operational, and reputational risks; governance aligns with regulatory requirements and product development life cycles.
• Planned IT infrastructure for product sales includes OA, CRM, and Wealth Cloud, with ongoing investments to expand features and scale operations while maintaining service quality.

Corporate offices and facilities

• KB Global and the WFOE: No. 3 Building of No. 1 Jiali Construction Plaza, Floor 13, No. 4th Central Road, Futian, Shenzhen, Guangdong Province, PRC (leased facility; adequate for current needs).
• BJKZ: 191 Second Floor, Block B, Building 1, No. 2 Yongcheng North Road, Beijing (leased facility; RMB 8,000 per year, ~US$1,108).

Financial and operational data

• Revenue from the September 2023 contract recorded in Q1 2024: US$179,613.
• Contract price for the made-to-order project: RMB 1,304,582 (US$180,715).
• The WFOE is entitled to a fee representing substantially all of BJKZ’s net income.
• First commercial software delivery occurred in 2024.

Notable disclosures

• As a smaller reporting company, the firm provides a concise risk factor summary that highlights limited revenue history and dependence on acquiring third-party customers, developing recurring revenue, and insider financial support.
• No unresolved SEC staff comments as of the reporting date.
• Cybersecurity measures include policies, monitoring, security assessments, and employee training; no material breaches reported.
• Not involved in mining or related activities (Mines Safety disclosure not applicable).
• No material legal proceedings currently outstanding.

Key takeaways

• KB Global, via the WFOE, controls BJKZ through a VIE arrangement and consolidates BJKZ’s results in its financial statements.
• The first revenue recognized from a contract occurred in Q1 2024, with a disclosed contract contributing US$179,613.
• The company’s modular platform integrates key business functions for industrial clients and the firm plans to expand recurring revenue models and third-party customer acquisition.