On March 9, Shenzhen Kedali Industry Co.Ltd(002850) ( Shenzhen Kedali Industry Co.Ltd(002850) , SZ) announced that the company plans to set up a wholly-owned subsidiary in Nanchang, Jiangxi Province with a self raised capital of 1 billion yuan to build the phase I project of precision structural parts such as power batteries of new energy vehicles.
It is understood that the main products of Shenzhen Kedali Industry Co.Ltd(002850) are lithium battery precision structural parts and automobile structural parts. It is the largest supplier of Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) , SZ) cell shell.
Earlier, in the three trading days of March 3, March 4 and March 7, Shenzhen Kedali Industry Co.Ltd(002850) share price fell successively, with a decline of more than 20%. On the evening of March 7, Shenzhen Kedali Industry Co.Ltd(002850) issued the announcement on abnormal fluctuations in stock trading, which said that the company’s recent operation was normal and the internal and external business environment had not changed significantly.
Regarding the establishment of Jiangxi subsidiary, Shenzhen Kedali Industry Co.Ltd(002850) said that this is the purpose of the company to further expand the market of precision structural parts of power batteries of new energy vehicles, improve the company’s capacity layout, better meet the capacity supporting needs of customers and enhance the overall strength of the company.
expand production or meet the capacity supporting needs of customers
Shenzhen Kedali Industry Co.Ltd(002850) is a leading enterprise in the field of lithium battery precision structural parts. Lithium precision structure refers to the cell shell (including shell and top cover), which is used for the packaging of cylindrical battery and square battery. It is considered to be the “fifth largest” main material of power battery.
In the announcement on the establishment of a wholly-owned subsidiary of Jiangxi and foreign investment, Shenzhen Kedali Industry Co.Ltd(002850) said that in order to further improve the company’s capacity layout and meet customers’ capacity supporting needs, in combination with the industry development trend and the company’s strategic planning, The company plans to invest and establish a wholly-owned subsidiary in Jiangxi Nanchang Economic and Technological Development Zone, and invest in the construction of Shenzhen Kedali Industry Co.Ltd(002850) Jiangxi Nanchang new energy vehicle power battery and other precision structural parts phase I projects with self raised funds of no more than 1 billion yuan.
For the purpose of this foreign investment, Shenzhen Kedali Industry Co.Ltd(002850) said that it is to further expand the market of precision structural parts of new energy vehicle power batteries, improve the company’s production capacity layout, better meet customers’ production capacity supporting needs and enhance the company’s overall strength.
Shenzhen Kedali Industry Co.Ltd(002850) also said that the implementation of the project will further expand the effective production capacity of the company’s new energy vehicle power battery precision structural parts, the scale advantage will reduce the company’s product unit R & D and production costs, and the company’s overall profitability will be improved accordingly, which is conducive to improving the company’s economic benefits and enhancing the company’s core competitiveness, It has a positive impact on the company’s financial situation and operating results.
In 2021, Shenzhen Kedali Industry Co.Ltd(002850) performance increased significantly. According to the performance forecast of 2021 released by the company, the company is expected to realize a net profit of 520 million yuan to 570 million yuan during the reporting period, with a year-on-year increase of 191.09% – 219.08%, and a deduction of non net profit of 490 million yuan to 544 million yuan, with a year-on-year increase of 205.42% – 236.33%.
In this regard, Shenzhen Kedali Industry Co.Ltd(002850) said that it benefited from the rapid development of the new energy vehicle industry, the customer demand for the company’s power battery precision structural parts continued to increase, and the production and sales of the company’s power battery precision structural parts continued to grow steadily. At the same time, it also benefits from the improvement of the company’s capacity utilization and management efficiency.
2021 is a year of rapid development of China Shanxi Guoxin Energy Corporation Limited(600617) automobile. According to the data of the National Bureau of statistics, the output of Shanxi Guoxin Energy Corporation Limited(600617) vehicles reached 3.677 million in 2021, a year-on-year increase of 145.6%.
The sharp increase in the output of new energy vehicles has also driven the demand for lithium battery precision structural parts. In this field, Shenzhen Kedali Industry Co.Ltd(002850) has a certain scale advantage.
According to a research report of Xiangcai securities, there are few players in the lithium battery precision structure industry. In Shenzhen Kedali Industry Co.Ltd(002850) 2020, the lithium battery precision structure business achieved an operating revenue of 1.74 billion yuan, far exceeding Jinyang shares, Ningbo Zhenyu Technology Co.Ltd(300953) ( Ningbo Zhenyu Technology Co.Ltd(300953) , SZ) and other competitors in scale.
previously, the share price fell successively
Earlier, in the three trading days from March 3 to March 7, Shenzhen Kedali Industry Co.Ltd(002850) share price fell one after another, with a limit on March 4, while the intraday declines on March 3 and March 7 were 5.8% and 9.14% respectively.
On the news side, there was a rumor that ” Contemporary Amperex Technology Co.Limited(300750) and some lithium iron phosphate manufacturers reduced their production schedule in March”. But then Contemporary Amperex Technology Co.Limited(300750) refuted the rumor.
According to a research report of Xiangcai securities, Shenzhen Kedali Industry Co.Ltd(002850) has cooperated with Contemporary Amperex Technology Co.Limited(300750) for many years and has always been the largest supplier of Contemporary Amperex Technology Co.Limited(300750) cell shell.
In fact, not only Contemporary Amperex Technology Co.Limited(300750) , Shenzhen Kedali Industry Co.Ltd(002850) ‘s customers cover most mainstream power battery enterprises at home and abroad Shenzhen Kedali Industry Co.Ltd(002850) in the 2020 financial report, the company once said that it had established long-term and stable strategic cooperative relations with leading Chinese manufacturers such as Contemporary Amperex Technology Co.Limited(300750) , AVIC lithium battery, Eve Energy Co.Ltd(300014) ( Eve Energy Co.Ltd(300014) , SZ), Sunwoda Electronic Co.Ltd(300207) ( Sunwoda Electronic Co.Ltd(300207) , SZ), Byd Company Limited(002594) ( Byd Company Limited(002594) , SZ), Lishen, Ruipu energy and other well-known foreign customers such as LG, Panasonic, Tesla, northvolt, Samsung and Faurecia.
Despite the wide range of customers, Shenzhen Kedali Industry Co.Ltd(002850) is highly dependent on the top five customers. In the above financial report, Shenzhen Kedali Industry Co.Ltd(002850) said that the company’s sales to the top five customers were 1.506 billion yuan, accounting for 75.85% of the total annual sales.
