QIFA

History

2024

Payment on exchange-traded bonds for 5.78 million rubles

On September 23, 2024, KIFA PJSC announced the payment of the next coupon on bonds of the 001R-01 series (ISIN: RU000A106EV9). The amount of payments to bondholders amounted to 5.78 million rubles or 28.92 rubles per bond.

This is the fifth payment of coupons on bonds of the 001R-01 series: the total amount of coupons paid as of September 23, 2024 is 34.7 million rubles, and taking into account the first partial repayment of the face value in June 2024 - 74.7 million rubles.

The company placed the debut issue of exchange-traded bonds in the amount of 200 million rubles in June 2023. The coupon rate is 14.5%, coupons are paid quarterly. The term of circulation of bonds is 3 years.

Timely and full payments on bonds are a confirmation of the reliability and solvency of KIFA PJSC as a securities issuer. Starting from the debut issue of bonds in 2023, we strictly fulfill our obligations to the holders of KIFA bonds, which is also accompanied by the disclosure of financial and operating results as part of the company's aspirations for maximum transparency. The funds raised during the placement of bonds were invested by us in the development and support of clients of the KIFA platform through financing supply chains, which contributes to the strategy of intensive business growth of the company, which is the flagship of digital B2B trade between Russia and China, - said Irina Afonina, General Director of PJSC KIFA.

Appointment of Irina Afonina as CEO

KIFA on September 19, 2024 announced the appointment of Irina Afonina as general director. Read more here.

Opening the IPO Application Book

On July 25, 2024, PJSC KIFA announced the price range as part of the initial public offering (hereinafter referred to as the IPO or the "Offer") of ordinary shares (hereinafter referred to as the "Shares") and the start of accepting applications for participation in the IPO on the Moscow Exchange.

PJSC "KIFA" sets the indicative price range of Shares to be offered to investors as part of the IPO at the level from 92 rubles. up to 110 rubles. per share and opens a book of preliminary address applications for participation in the placement. Collection of applications will begin from 10:00 Moscow time on July 25, 2024 and will end at 15:00 Moscow time on August 7, 2024. The start of trading is scheduled for August 8, 2024. The placement of KIFA Shares will be held on the Moscow Exchange, from August 8, 2024, the Company's Shares are included in the Second level of the List of Securities Admitted to Trading in PJSC Moscow Exchange, ISIN RU000A108ZF3, the trading code is QIFA.

The supply volume of the initial issue of KIFA Shares will not exceed 18.5 million units. The free-float Share shall not exceed 30%. The placement will take place in the format of 100% -cash-in, investors will be offered Shares issued as part of the additional issue. The funds from the placement will be used to finance the investment program to accelerate the development of KIFA's business: creating digital trade hubs, expanding functionality and automating processes on a digital platform, strengthening the team, as well as inorganic business growth.

KIFA intends to use a mechanism for stabilizing the price of Shares in the amount of no more than 15% of the Offer volume for a period of at least 30 days from the date of the start of the placement of Shares on the Moscow Exchange. The Company and the controlling shareholder of LLC "Scientific and Technical Development of KIFA SYLU (Beijing)" agreed to a lockup period of 180 days from the date of the start of the offering of Shares, taking into account some ordinary exceptions.

The offer is available to qualified and unqualified investors - individuals as well as institutional investors. Applications for participation in the IPO can be submitted through any broker providing access to the purchase of shares in the "Placement: Address Applications" trading mode on the Moscow Exchange. Parameters for submitting applications are published on the official website of the Moscow Exchange.

In addition to the special business model for the Russian market - the cross-border B2B e-commerce - the investment attractiveness of KIFA is due to the stable growth of key financial and operational indicators. According to the results of the first quarter of 2024, trade turnover (GMV) increased by 54% (YoY) to 1.5 billion rubles, revenue increased by 54% (YoY) and reached 1.3 billion rubles. In addition, June 2024 was a month of records for us. For the first time, the monthly turnover of the KIFA platform exceeded 1 billion rubles, showing an increase of more than twice to the monthly average at the beginning of the year. Private-Trade service turnover amounted to more than 950 million rubles in June 2024, having more than doubled compared to the same period in 2023. Also, a record growth in turnover was demonstrated by a relatively new platform service - KIFA helps Chinese manufacturers access B2C-Marketplaces in the Russian Federation, providing full support for related processes. In June 2024, the turnover for this service increased 7 times compared to June 2023. Thus, we expect further growth in financial and operational indicators and are confident that Russian investors will show active interest in the KIFA IPO, "said Sun Tianshu, founder of the KIFA platform and Chairman of the Board of Directors of the Company.

Entry into the Russian equity capital market is a new stage in the history of KIFA. The funds raised during the placement will give our company an impetus to development and will allow us to implement a large-scale investment program within the framework of the approved strategy. The goal of KIFA is to provide the most comfortable conditions for Russian and Chinese participants in foreign trade, which will favorably affect the economic ties between Russia and China, will contribute to the growth of trade between the two countries, will give us the opportunity to increase our share in the digital B2B trade segment between the Russian Federation and China and invariably demonstrate the improvement of key indicators. This is positive for both KIFA's business and our investors, "commented Kyle Shostak, Deputy Chairman of the Board of Directors of the Company.

Approval of a three-year option program for employees and board members

PJSC KIFA, operator of the B2B digital trade platform of the same name between Russia and China, on July 19, 2024 announced plans to introduce an option program for employees and members of the company's board of directors.

At the end of June 2024, the company approved a three-year option program, which comes into force after the admission of KIFA PJSC shares to trading on the Moscow Exchange and an IPO.

For its implementation, the only shareholder of KIFA PJSC - Scientific and Technical Development of KIFA SYLU (Beijing) LLC - in early July 2024, an option pool was allocated in the amount of about 2.5 million shares, which is about 5% of the current authorized capital, equal to 50 million shares.

The declared option pool will be on the balance sheet of KIFA Capital LLC, a subsidiary of KIFA PJSC, which is the administrator of the option program.

It is important to note that the planned option program does not dilute the shares of shareholders after the IPO, since it involves funding exclusively at the expense of the shares of the sole shareholder of PJSC KIFA - LLC Scientific and Technical Development of KIFA SYLU (Beijing) - before the IPO.

As the goals of the option program are indicated:

• remuneration of members of the Board of Directors,
• attracting and retaining the best qualified specialists in the position of top management,
• aligning the financial interests of the participants in the option program with the long-term interests of the company's shareholders.

Plans to introduce an option program for employees are a reflection of the company's aspirations to comply with the best world practices in terms of corporate governance, commented Kyle Shostak, Deputy Chairman of the Board of Directors of KIFA PJSC. - The main purpose of the option program will be to attract and retain the best qualified personnel, as well as remuneration of members of the company's Board of Directors. I am convinced that the exercise of the option will be an excellent motivating factor for many years of fruitful work of existing employees and attracting new digital talents, which, along with a strong corporate culture, will contribute to the growth and development of our business at a faster pace. At the same time, I would like to draw the attention of potential investors of the company that despite the fact that the program will come into force after the company's placement on the Moscow Exchange, the option pool is allocated before the placement of the company's only shareholder from the current shares - this is how we excluded the dilution of the share of new shareholders after the IPO.

Earlier, KIFA announced its intention to conduct an IPO on the Moscow Exchange, within which it will offer investors shares of an additional issue. It is planned that trading in shares will begin before the end of the summer of 2024, and the share of the company's shares in free float (free-float) will be up to 30%. The inclusion of shares in the second level of the quotation list of securities admitted to trading on the Moscow Exchange is expected.