Globalization | KEDA Industrial Group Renews Partnership with IFC to Steadily Advance its “Globalization” Strategy

After nearly a year of on-site research, negotiations, and communication, KEDA Industrial Group has recently renewed its partnership with the International Finance Corporation (IFC) to successfully secure a loan project. The loan amount for this project is 200 million euros, with a term of 5 years. Tilemaster Investment Limited & Brightstar Investment Limited, the building materials holding platform of KEDA Industrial Group, act as the borrowers, with KEDA Industrial Group providing guarantees. The funds will primarily be utilized to support KEDA Industrial Group's overseas deployment and meet the capital requirements for the rapid development of its building materials business.
 

It is worth noting that IFC, established in 1956 and headquartered in Washington, D.C., is one of the members of the World Bank Group. As the largest global development institution focused on private economy development, IFC has been operating in emerging markets for nearly 60 years, with offices located in 100 countries. IFC prioritizes the growth of enterprises in developing countries and aims to promote the development of the private economy. Throughout its history, IFC has maintained stringent review standards for financing and loan projects. Financing support is granted only after comprehensive on-site inspections, thorough project research, and in-depth evaluations. Since the initial contact between KEDA's African subsidiary and IFC in 2018, IFC has conducted thorough research and evaluation on the various project companies in Africa. Their assessment includes a comprehensive study of the project companies' contributions to local infrastructure development, job creation, environmental protection, and social responsibility. This collaboration fully demonstrates IFC's recognition of KEDA's building materials projects as significant contributors to local economic development and fulfilling local social responsibilities. It also signifies IFC's acknowledgment of KEDA's strategic layout in the building materials sector and their confidence in the continuous development of KEDA's building materials business.
 
Since 2016, in line with the development strategy of "international capacity cooperation", KEDA has seized market opportunities in developing countries where economic conditions are relatively underdeveloped and infrastructure improvement is needed. The company has proactively extended its business to the downstream building ceramic sector in emerging markets, particularly in Africa. Building upon the successful operation of previous building ceramic projects and considering the urbanization process and demographic advantages in Africa, KEDA has positioned itself as a large-scale building materials conglomerate in Africa. In addition to the production and sales of building ceramics in Africa, the company is gradually undertaking project construction and planning in other building materials sectors such as sanitary ware and building glass. Future plans involve the development of production lines centered around the “large-scale building materials" strategy and the strategic expansion of regional presence to the Middle East, Asia, and South America.
 

The overseas market holds vast opportunities, and Chinese manufacturing has great potential. In the full year of 2022, KEDA Industrial Group achieved total operating revenue of RMB 11.157 billion, representing a year-on-year growth of 13.89%. The net profit attributable to shareholders of the listed company reached RMB 4.251 billion, with a remarkable year-on-year increase of 322.66%. Both core business and investment returns achieved historical best results. Among them, the building materials sector, as the second-largest revenue-generating segment for KEDA, generated a total operating revenue of RMB 3.275 billion in 2022, with operating costs of 1.856 billion yuan and a gross profit margin of 43.33%. The compound annual growth rate of revenue in the past three years was 35.30%, making it one of the company's most important development sectors.
 
 
As an industry leader, KEDA Industrial Group has a solid foundation, a resilient business layout, and strong risk resistance capabilities. It is considered a high-quality asset favored by banks in the current macroeconomic environment. In recent years, the company has been committed to global capital allocation, actively expanding international financing channels, and continuously exploring various financing instruments. Its efforts have been recognized by international investors, including long-term low-interest loans provided by IFC for its African operations in 2020, the successful issuance of global depositary receipts on the SIX Swiss Exchange in July 2022, and the acquisition of a 200 million euros syndicated loan for a 3-year period lent by HSBC in 2023. This renewed collaboration between the company and IFC deepens mutual trust and enhances cooperation and friendship. It provides an opportunity to introduce the company's achievements and future development strategies to Chinese and international banks, expands the company's banking network, and lays a solid foundation for future collaborations.
 
The successful implementation of the loan by KEDA Industrial Group marked a high recognition of the company in the financial market, enhancing its influence on overseas financial institutions and markets. It also helped the company expand financing channels further, optimize financing structures and reduce financing costs, supporting the steady progress of the company's "globalization".
 
The directors and shareholders of KEDA attach great importance to this collaboration and development opportunity. This matter has been previously approved during the 21st meeting of the 8th Board of Directors and the 2022 Shareholders Meeting.