Shenzhen Kedali Industry (002850) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥5.45 billion, up 10.75% year-over-year; net profit attributable to shareholders was ¥648 million, up 27.38% year-over-year.

• Gross margin for lithium battery structural parts was 23.61%, with the segment accounting for 96.26% of total revenue.

• Cash flow from operating activities surged 234.76% year-over-year to ¥1.92 billion.

• R&D investment increased 13.41% year-over-year to ¥293 million, with 78 new patents granted, totaling 449 patents.

• The company expanded production capacity domestically and internationally, including new bases in Shenzhen and the US.

Financial highlights

• Operating income: ¥5.45 billion, up 10.75% year-over-year.

• Net profit attributable to shareholders: ¥648 million, up 27.38% year-over-year.

• Basic and diluted EPS: ¥2.40, up 10.60% and 11.11% year-over-year, respectively.

• Gross margin for lithium battery structural parts: 23.61%.

• Total assets at period end: ¥17.27 billion, up 0.28% from year-end 2023.

Outlook and guidance

• The company expects continued growth driven by the expansion of the new energy vehicle and energy storage sectors.

• Ongoing investments in R&D and production capacity are expected to support future revenue and profit growth.