Kaifa Profile PictureShenzhen Kaifa Technology Co., Ltd   (hereinafter referred to as Kaifa), established in 1985, is a large-sized export-oriented and public-listed high-tech enterprise (Stock Code 000021 SZ) specializing in the manufacture of Head Stack Assembly (HSA), meter products, tax-controlling equipment, memory products and electronic products. The company engages in the R&D, manufacture and sales. With Great Wall Technology Company Limited being its controlling shareholder, Shenzhen Kaifa Technology Co., Ltd. is a company under the control of China Electronics Corporation (CEC). Kaifa has branches and R&D teams in Hong Kong, Singapore and the US, over 4300 employees and modern workshops of over 100 thousand square meters, including high-class clean room of over 10 thousand square meters. It is also one of the only two bonded factories in Shenzhen. Kaifa has passed the certification of ISO9001, ISO14001, OHSAS18000 and TL9000 quality management systems, and its leading products comply with the requirements of European Union (EU) Restriction of Hazardous Substances (RoHS) Directive. On the basis of enterprise resource planning (ERP) system, it has successfully developed the factory information system (FIS), the office automation (OA) system, the budget management system, the human-resource management system, and the logistics management system. Besides, it also applies 6 Sigma and Industrial Engineering (IE) and other leading management approaches, which greatly increases its core competitiveness.

Over recent years, Kaifa's operating performance is improved year by year. Its foreign-currency income was US$943 million in 2005, and from January to June, 2006, its business income was US$559 million and realized net profit of US$21 million, respectively increased by 10.18% and 12.87% over the same period of last year, with its net asset reaching US$366 million. Responding to the global IT manufacturing industry moving to China, Kaifa made thorough analysis, and decided to set up Suzhou Kaifa Technology Co., Ltd. in order to provide related services to the clients nearby. In August 2006, Suzhou Kaifa Technology Co., Ltd. Complex Phase 1 with registered capital of US$15 million was completed and put into operation, therefore Kaifa has basically completed its strategic layout in the Yangtze River Delta and Pearl River Delta, which lays solid foundation for sustainable and sound development of Kaifa.

Kaifa, as a large-sized high-tech enterprise emphasizes, independent innovation and increase its investment in technological development. After more than 20 years of development, the company has developed into a base for the industrialization of the results of the National 863 Project, a key engineering technology center of Guangdong Province and a reliability test lab certificated by China National Accreditation Board for Laboratories (CNAL) enjoying significant advantages in terms of products as well as technology. The independently developed automation equipments have helped the Company realize automatic or semi-automatic production of 90% of its magnetic head products. What's remarkable is the improvements the Company has achieved in terms of leading technology in fully automatic production of HSA and the its competence in anti-vibration measures and control of contamination, the high-class clean room, and loaded ion control, make the core competitiveness in HSA manufacture to be outstanding. As a formulator of the standards in the meter industry, Kaifa has ranked itself among the global leading enterprises with its independently developed remote control meters and anti-tamper meters. The company is one of the formulators of the national standards for cashing machines, with its leading technology in the domestic market having granted four outlook design patents and 11 software copyrights.

At present, Kaifa is the second largest manufacturer of HSA in the world, and its occupies more than 10% of the global market shares. Its meter products sell well to Italy, India and other countries in Europe, America and Asia, with its accumulated export exceeding 15 million meters, making Kaifa the largest developer and manufacturer of remote control meters. Kaifa was among the first to obtain the qualification and license for manufacturing of Fiscal Cash Registers (FCR). With an annual capacity of 700 thousand units, Kaifa is the largest FCR R&D and manufacturer in China. In addition, Kaifa was rated one of SSE 100 INDEX Component Stocks consecutively for tenth time and was elected a sample stock for SSE Innovation Index. It ranked among the Top 500 Companies of China, Top 500 Import & Export Companies of China and Top 200 Exporters of China for many consecutive years. Kaifa always operate in good faith and compliance with the laws. It is a member of Shenzhen Credibility Assurance Committee (SCAC), one of 60 Client Coordinator Enterprise by Shenzhen Custom, and one of the first 14 classified customs enterprises that is convenience for company Import & Export.

With the depth-in implementation of the ¡°mainly doing one business and developing diversified businesses development strategy, Kaifa will become greater and stronger manufacturer of HSA , make great efforts to develop its own brand products including meter products and FCR business, and try its best to realize its objective of developing multiple businesses very well simultaneously and become a large IT company that is well known in the world.