KB Global's Revenue Evaporates, Losses Mount Amid Related Party Dependence

TL;DR

**KB Global is a zombie company with zero revenue and mounting debt; avoid at all costs.**

AI Summary

KB Global Holdings Ltd reported a significant decline in revenue and an increased net loss for the nine months ended September 30, 2025. Revenue from software development services, which was $180,028 for the nine months ended September 30, 2024, dropped to $0 for the same period in 2025, indicating a complete cessation of its primary revenue stream. Consequently, the company's net loss widened to $40,149 for the nine months ended September 30, 2025, from $15,581 in the prior year, representing a 157.6% increase in losses. Total assets increased to $88,616 as of September 30, 2025, from $50,317 at December 31, 2024, primarily driven by a substantial increase in 'Amounts due from related parties' to $44,939 from $0. However, current liabilities also surged to $398,190 from $320,971, largely due to 'Amount due to a related party' increasing to $176,887 from $23,661. The company continues to operate with a substantial shareholders' deficit, which deepened to $(309,574) from $(270,654) over the period, highlighting severe financial distress and reliance on related party financing.

Why It Matters

KB Global Holdings Ltd's complete lack of revenue in the current period, coupled with escalating losses and a deepening shareholder deficit, signals extreme operational challenges and raises serious going concern questions for investors. The significant increase in both receivables from and payables to related parties suggests a complex financial structure heavily reliant on internal funding, which could obscure true financial health and competitive standing. For employees, the absence of revenue indicates an unstable future, while customers might question the long-term viability of a software development service provider that isn't generating sales. The broader market should view this as a cautionary tale regarding companies with undefined tickers and heavy related-party transactions, especially those based in jurisdictions like the Cayman Islands and operating in China, where regulatory oversight can be opaque.

Risk Assessment

Risk Level: high — The company reported $0 in revenue for the nine months ended September 30, 2025, a drastic decline from $180,028 in the prior year, indicating a complete loss of its primary business function. This, combined with a net loss of $40,149 and a shareholders' deficit of $(309,574), demonstrates severe financial instability and a high risk of business failure. The significant increase in 'Amount due to a related party' to $176,887 from $23,661 further highlights reliance on external, potentially unsustainable, financing.

Analyst Insight

Investors should immediately divest any holdings in KB Global Holdings Ltd, given the complete cessation of revenue and escalating losses. Prospective investors should avoid this company entirely due to its severe financial distress, lack of a clear business model, and heavy reliance on related-party transactions, which present significant transparency and solvency risks.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$88,616

total Debt

N/A

net Income

$(40,149)

eps

N/A

gross Margin

N/A

cash Position

$324

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue (For the nine months ended September 30, 2025, down from $180,028 in 2024, indicating a complete loss of sales.)
• $(40,149) — Net Loss (For the nine months ended September 30, 2025, a 157.6% increase from $(15,581) in 2024.)
• $(309,574) — Shareholders' Deficit (As of September 30, 2025, deepening from $(270,654) at December 31, 2024, reflecting severe financial distress.)
• $176,887 — Amount Due to a Related Party (As of September 30, 2025, a significant increase from $23,661 at December 31, 2024, highlighting reliance on related party financing.)
• $44,939 — Amounts Due From Related Parties (As of September 30, 2025, up from $0 at December 31, 2024, indicating increased internal lending.)
• $324 — Cash and Cash Equivalents (As of September 30, 2025, a sharp decline from $3,253 at December 31, 2024, indicating dwindling liquidity.)
• 130,097,000 — Ordinary Shares Outstanding (Consistent number of shares, indicating no new equity issuance to offset losses.)
• 0% — Effective Tax Rate (For the nine months ended September 30, 2025 and 2024, due to accumulated tax losses and a full valuation allowance.)

Key Players & Entities

• KB Global Holdings Limited (company) — Registrant and parent company
• Kesheng Global (HK) Limited (company) — Wholly-owned subsidiary of KB Global Holdings Limited
• Suzhou Keju Enterprise Management Consulting Limited (company) — Wholly Foreign-Owned Enterprise (WFOE) and subsidiary of Kesheng HK
• Beijing Kezhao Technology Co., Ltd. (BJKZ) (company) — Variable Interest Entity (VIE) controlled by Suzhou Keju
• SEC (regulator) — Securities and Exchange Commission
• $180,028 (dollar_amount) — Revenue for nine months ended September 30, 2024
• $0 (dollar_amount) — Revenue for nine months ended September 30, 2025
• $40,149 (dollar_amount) — Net loss for nine months ended September 30, 2025
• $176,887 (dollar_amount) — Amount due to a related party as of September 30, 2025
• $309,574 (dollar_amount) — Total shareholders' deficit as of September 30, 2025

FAQ

Risk Factors

• Revenue Collapse and Widening Losses [high — financial]: Revenue from software development services dropped to $0 for the nine months ended September 30, 2025, from $180,028 in the prior year. This led to a significant increase in net loss to $40,149 from $15,581, a 157.6% deterioration.
• Deteriorating Liquidity and Shareholder Deficit [high — financial]: Cash and cash equivalents plummeted to $324 from $3,253. The shareholders' deficit widened to $(309,574) from $(270,654), indicating severe financial distress and an inability to cover liabilities with equity.
• Heavy Reliance on Related Party Financing [high — financial]: Amounts due to a related party surged to $176,887 from $23,661, while amounts due from related parties increased to $44,939 from $0. This highlights a critical dependence on related party funding for operations.
• Cessation of Core Business Activity [high — operational]: The complete disappearance of revenue from software development services suggests a fundamental issue with the company's core business operations or market demand for its services.
• Increasing Operating Lease Expenses [medium — financial]: Total lease expenses increased to $6,440 for the nine months ended September 30, 2025, from $3,059 in the prior year, adding to the company's cost burden.

Industry Context

The software development services industry is highly competitive, with companies often differentiating on specialized skills, project management, and client relationships. Recent trends include a shift towards cloud-based solutions, AI integration, and agile development methodologies. Companies in this sector are susceptible to economic downturns that reduce IT spending and project pipelines.

Regulatory Implications

As a publicly traded entity, KB Global Holdings Ltd is subject to SEC regulations and accounting standards. The significant financial distress and related party transactions may attract increased scrutiny from regulators regarding financial reporting accuracy and corporate governance.

What Investors Should Do

1. Monitor related party transactions closely.
2. Evaluate the sustainability of operations.
3. Assess the risk of further dilution or debt.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported $0 revenue and a net loss of $40,149, a significant deterioration from the prior year.
• 2024-09-30: Nine months ended September 30, 2024 — Reported $180,028 in revenue and a net loss of $15,581.
• 2025-07-03: Lease renewal for office space — Indicates ongoing, albeit short-term, operational commitments despite financial distress.
• 2025-10-31: Expiration of a short-term lease agreement — Another short-term operational commitment that may require renewal or cessation.

Glossary

Shareholders' Deficit

A negative shareholders' equity, meaning the company's liabilities exceed its assets. (Indicates severe financial distress for KB Global Holdings Ltd, with a deficit of $(309,574) as of September 30, 2025.)

Amounts due from/to related parties

Monies owed to or by entities or individuals connected to the company through ownership, control, or common management. (Highlights KB Global Holdings Ltd's significant reliance on related party financing, with a large increase in amounts due to a related party.)

ASC 842

Accounting Standards Codification Topic 842, which governs lease accounting. (Explains why short-term operating leases (term of one year or less) are not recognized on the balance sheet for KB Global Holdings Ltd.)

Valuation Allowance

A reserve against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. (Explains why KB Global Holdings Ltd has a 0% effective tax rate, as accumulated tax losses are offset by a full valuation allowance.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, KB Global Holdings Ltd has experienced a catastrophic decline in revenue, dropping from $180,028 to $0. This has directly led to a substantial increase in net losses, which grew by 157.6% to $40,149. While total assets have increased due to related party receivables, current liabilities have also risen, and the shareholders' deficit has widened, indicating a worsening financial position and increased financial distress.

Key Financial Figures

• $0.00001 — 5 billion ordinary shares, par value of $0.00001 per share. On November 20, 2017, Keshe
• $10 m — Suzhou, PRC, with registered capital of $10 million, as a wholly-owned subsidiary of

Filing Documents

• kbglobal_10q.htm (10-Q) — 438KB
• kbglobal_ex31-1.htm (EX-31.1) — 7KB
• kbglobal_ex31-2.htm (EX-31.2) — 7KB
• kbglobal_ex32-1.htm (EX-32.1) — 4KB
• kbglobal_ex32-2.htm (EX-32.2) — 4KB
• 0001829126-25-008781.txt ( ) — 2640KB
• kbglobalcom-20250930.xsd (EX-101.SCH) — 25KB
• kbglobalcom-20250930_cal.xml (EX-101.CAL) — 37KB
• kbglobalcom-20250930_def.xml (EX-101.DEF) — 43KB
• kbglobalcom-20250930_lab.xml (EX-101.LAB) — 162KB
• kbglobalcom-20250930_pre.xml (EX-101.PRE) — 130KB
• kbglobal_10q_htm.xml (XML) — 342KB

Executive compensation

Executive compensation 213,327 244,565 Other 369 369 $ 218,696 $ 294,934 F-9 Note 8 - Related Party Transactions and Balances a. Related party Schedule of related party Name of related party Relationship with the Company Suzhou Kesheng Investment Management Co., Ltd. Ms. Guo Li is common director Guo Li Ms. Guo Li is the director of the Company Beijing Cabelongteng The controlling party of this entity is also a shareholder of the Company Shenzhen Jiecheng Enterprise Management Consulting Co., Ltd ("Jiecheng") Mr. Hu Ziyong, the Company's Chief Financial Officer holds a 60% ownership interest in Jiecheng Sichuan Chuanghe Culture Media Co., Ltd ("Chuanghe") Mr. Hu Ziyong, the Company's Chief Financial Officer serves as supervisor of Chuanghe b. Related Party Transactions No revenue was recognized for the nine months ended September 30, 2025. During the nine months ended September 30, 2024, the Company provided software development services to Beijing Cabelongteng Investment Center (Limited Partnership), a related party, and recognized revenue of $ 180,028 . c. Related party balances The Company had the following related party balances at September 30, 2025 and December 31, 2024: Schedule of related party balances September 30, 2025 December 31, 2024 (Unaudited) Due from/(to) related parties: Shenzhen Jiecheng Enterprise Management Consulting Co., Ltd 25,278 - Sichuan Chuanghe Culture Media Co., Ltd 19,661 - Guo Li ( 176,887 ) ( 23,661 ) The amounts due from/(to) related parties are without interest and due on demand. Note 9 - Commitments and Contingencies During 2025, the Company entered into several short-term operating lease agreements for office space in China. These leases are each for a term of one year or less and are therefore not recognized on the balance sheet in accordance with the short-term lease exemption under ASC 842. In July 2024, the Company leased approximate

Legal proceedings

Legal proceedings There was no legal proceeding in which the Company was a party as of September 30, 2025. Note 10 - Segment Reporting The Company operates as one operating segment, providing information technology (IT) development and consulting services to a broad range of clients across various industries. The Company's primary revenue streams include custom software development, IT consulting, and system integration services. These services collectively account for approximately 100% of the Company's revenue. The Company's Chief Operating Decision Maker (CODM) is its Chief Executive Officer (CEO), who evaluates financial performance and allocates resources based on information presented on a consolidated basis. The CODM uses consolidated net income as the primary measure of financial performance and assesses results by comparing actual performance to historical trends and internal forecasts. Note 11 - Subsequent Event Management has evaluated subsequent events through the date which the consolidated financial statements were available to be issued. There are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, "Subsequent Events." F-11

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations in co

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View this 10-Q filing on SEC EDGAR