Kada Technology : Trading Update

News Trading Update

18 February 2014

Kada Technology Holdings Limited (AIM:KADA), the China-based provider of components and devices for the IT industry and consumer electronics, today announces an update to its current trading.

As set out in our interim results, in 2013 the Group has experienced challenges in the Solutions Package business and margin pressure in the Electronic Components business. In addition, working capital has continued to be an issue for the business and the Group has felt the force of an increasingly difficult debt market in China during the final months of 2013 and the beginning of 2014. Each of KADA's major lenders has sought to re-negotiate its lending terms with the Company. This is a similar situation to those being experienced by a number of our competitors. This uncertainty over the Company's future availability of debt has materially affected the Company's results in 2013 and its ability to write new business in 2014.The lack of working capital has in turn affected the Company's ability to roll out new products such as the media kiosk project that it had hoped would be a major source of new revenue and higher margins during 2014.

In the short term the Company continues to focus on cash collection and re-negotiating its debt facilities. This will materially affect the Company's profitability during the first six months of 2014 and potentially beyond. The Board is currently reviewing all strategic options and hopes to update its shareholders in due course.

For further information:

Kada Technology Holdings Limited
Paul He Xuebo, Chief Executive Officer	Tel: [phone]
	www.kada-ir.com
finnCap Limited
Geoff Nash / Christopher Raggett	Tel: [phone]