Shenzhen Kedali Industry (002850) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥6.64 billion, up 22.01% year-over-year; net profit attributable to shareholders was ¥769 million, up 18.72% year-over-year.

• Gross margin for the main business was 22.84%, with lithium battery structural parts contributing 96.52% of revenue.

• The company continued to expand R&D investment, with H1 R&D spending up 21.11% year-over-year to ¥355 million.

• Major capacity expansion projects advanced in Hungary, Jiangxi, and Sichuan, with overseas and domestic production bases under construction.

• The company maintained a leading position in the precision structural parts sector for power batteries, serving top-tier global clients.

Financial highlights

• Operating income: ¥6.64 billion, up 22.01% year-over-year.

• Net profit attributable to shareholders: ¥769 million, up 18.72% year-over-year.

• Operating cash flow: ¥1.43 billion, down 25.42% year-over-year due to increased payments for goods and taxes.

• Total assets: ¥20.44 billion, up 7.31% from year-end 2024.

• Basic and diluted EPS: ¥2.81, up 17.08% year-over-year.

• Gross margin for lithium battery structural parts: 23.26%.

Outlook and guidance

• The company expects continued growth driven by strong demand in new energy vehicles and energy storage sectors.

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

• The company is actively exploring new markets, including humanoid robotics, to diversify revenue streams.