Breaking Down Shenzhen Kedali Industry Co., Ltd. Financial Health: Key Insights for Investors

From its founding in 1996 as a specialist in precision structural parts for lithium batteries and automotive components to its March 2017 IPO on the Shenzhen SME Board (ticker 002850) with a registered capital of 210 million yuan, Shenzhen Kedali Industry Co., Ltd. has scaled into a global supplier with about 9,275 employees by 2025, long-term partnerships with CATL, BYD, CALB, EVE Energy, SUNWODA, Lishen and international clients including Panasonic, LG and Northvolt, and a product lineup spanning prismatic cans, cylindrical and mobile battery aluminum cans, power batteries and precision structural parts; the company's vertically integrated model-R&D, Shenzhen-based manufacturing, robust supply chain and expansion into Germany, Sweden and Hungary-helped drive 2024 revenue of 12.03 billion yuan (up 14.44% YoY) and net income of 1.47 billion yuan (up 22.55% YoY), with approximately 273.77 million shares outstanding, insiders holding 37.33%, institutions 33.83%, a year-to-date share change of +0.69% and a market capitalization of 41.94 billion yuan as of December 12, 2025-signals of why Kedali's Key Account Strategy, focus on high-end technology, and move into advanced semiconductor and IoT applications merit a closer look.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): Intro

• Established: 1996
• IPO: March 2017 - Shenzhen Stock Exchange (SME Board), ticker 002850
• Registered capital at IPO: ¥210,000,000
• Employees (2025): ~9,275

• Product lines:
  • Prismatic cans and mobile battery aluminum casings
  • Cylindrical cans and power battery components
  • Precision structural parts for lithium-ion battery modules and packs
  • Automotive precision stamped and welded parts
• Strategic industrial partners and customers:
  • Domestic: CATL, BYD, CALB, EVE Energy, SUNWODA, Lishen
  • International: Panasonic, LG, Northvolt, Faurecia

• R&D and product engineering: in-house teams design can geometries, thermomechanical solutions and assembly fixtures to meet OEM battery performance and safety specs.
• Manufacturing footprint: automated stamping, forming, welding, laser processing and surface treatment lines enable scale and consistency for prismatic, cylindrical and pouch-related structural parts.
• Quality & certification: mass-production quality systems, material traceability and component-level testing aligned to automotive and energy storage standards.
• Supply model: long-term framework agreements and JIT production for battery cell makers and automotive OEMs, leveraging multi-year purchase volumes and co-development arrangements.

• Volume-based component sales to battery manufacturers and OEMs (primary revenue stream).
• Product premium from custom designs, higher-spec metal treatments and integrated assembly solutions.
• Cost leverage from automation, scale and supplier integration improving gross margins over time.
• Geographic and customer diversification reduces single-customer concentration risk while enabling scale.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): History

• Founded: Early-stage manufacturing focused on precision parts and tooling.
• Expansion: Added automated production lines and quality certification to serve electronics and automotive clients.
• Listed: Trades on the Shenzhen Stock Exchange under ticker 002850.
• Strategy shift: Increasing emphasis on R&D, technical services and higher-value assemblies.

• Ownership structure: Significant insider stake (37.33%) signals management alignment with shareholders; institutional holders (33.83%) provide external validation and liquidity support.
• Market dynamics: A modest 0.69% one-year share increase reflects relative stability rather than high volatility.

• Manufacturing sales - precision components and assemblies sold to OEMs and tier-1 suppliers.
• Value-added services - engineering, customization, and small-series production with higher margins.
• Aftermarket and service contracts - repair, testing and long-term supply agreements.
• Export & domestic mix - revenue diversified across domestic OEMs and international customers.

• Mission: Deliver reliable, high-precision manufacturing solutions while scaling technical capabilities and service offerings.
• Focus: Invest in automation, quality systems, and R&D to move up the value chain and improve gross margins.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): Ownership Structure

• Mission: Develop cutting-edge products and technologies to enhance the quality of human life and lead in advanced semiconductor and IoT applications.
• Values: Innovation, quality, environmental sustainability.
• Market focus: High-end customers via Key Account Strategy (KAS).
• Service emphasis: Value-added assembly services for automotive parts.

• Product sales: precision connectors, semiconductor-related components and IoT hardware sold to automotive, industrial and consumer electronics customers.
• Value-added services: assembly and customization for automotive parts and modules commanding higher margins.
• R&D-driven product upgrades: new high-performance products that expand ASP and open premium customer accounts.
• Key Account Strategy: concentrated sales to large clients increases repeat revenue and reduces sales cost per unit.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): Mission and Values

• End-to-end structure: Kedali integrates research & development, precision manufacturing, and direct sales to OEMs and tier‑1 automotive suppliers.
• Product focus: primary products include lithium‑battery current collectors, electrode components, and automotive structural metal parts used in body-in-white and battery packs.
• Manufacturing footprint: core production facilities are located in Shenzhen, Guangdong Province, China, enabling close coordination with domestic EV makers and export logistics to Europe.
• Overseas expansion: established sales and service channels in Germany, Sweden and Hungary to support European OEMs and localize technical support.

• R&D organization: a dedicated R&D center develops materials and process solutions for lithium battery components and stamped/formed automotive structures; R&D headcount ~250 engineers (company disclosure range).
• Raw material sourcing: strategic long‑term procurement from reputable copper, aluminum and steel suppliers; multi‑source policy mitigates single‑supplier risk for critical foils and sheets.
• Advanced manufacturing: automated stamping, laser welding, CNC machining, coating and slitting lines combined with inline SPC (statistical process control) and full‑traceability lot systems.
• Quality certifications: production sites maintain ISO/TS standards and customer‑specific audits from major automotive and battery customers.

• Product sales to OEMs and tier‑1 suppliers: direct supply contracts for battery foils, current collectors, stamped structural parts and subassemblies.
• Value‑added services: engineering design, prototyping, pilot production and co‑development agreements with customers, typically billed as project fees or incorporated into long‑term supply pricing.
• Geographic diversification: domestic Chinese automotive and battery sector sales form the core; exports to Europe (Germany, Sweden, Hungary) account for a growing share of revenue, particularly in high‑precision components.

• High‑precision metal stamping and forming for structural parts, combined with automated assembly lines for battery components.
• Slitting and foil processing lines for current collectors with micron‑level thickness control and tensile property testing inline.
• Quality control: full inspection workflows (incoming material, in‑process, final test) plus accelerated life and environmental testing for battery components.
• Supply chain resilience: inventory buffers for critical foils and dual sourcing for key metals to reduce production interruptions.

• Vertical integration lowers unit costs and shortens development cycles when collaborating with EV and battery OEMs.
• European local presence (Germany, Sweden, Hungary) supports just‑in‑time deliveries and technical collaboration for high‑value customers.
• Continued R&D investment targets higher‑value battery components and lightweight structural solutions to capture margin expansion.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): How It Works

• Core products: prismatic cans, mobile battery aluminum and cylindrical cans, power batteries, and precision structural parts for lithium‑ion batteries.
• End markets: automobiles, new energy vehicles (NEV), portable communications, electronic products, power tools, and energy storage power stations.
• Revenue model: contract manufacturing and product sales under long-term supply agreements with domestic and international manufacturers.

• Volume contracts with EV and battery manufacturers drive recurring sales of battery cans and structural parts.
• Long-term strategic partnerships secure order visibility and support capacity utilization.
• Product diversification across consumer electronics, automotive, and energy storage smooths demand volatility.

• Vertical capabilities in precision stamping, can fabrication and battery cell components reduce supplier risk and cost.
• Scale manufacturing to meet large OEM schedules and price-sensitive consumer-electronics orders.
• R&D and process engineering to improve yield and accommodate new battery formats (prismatic, cylindrical, pouch adapters).

• Established long-term strategic partnerships with leading domestic and international manufacturers that provide stable order streams and support revenue growth.
• Customer mix spans NEV OEMs, battery pack integrators, consumer device makers and energy storage project developers.

Shenzhen Kedali Industry Co., Ltd. (002850.SZ): How It Makes Money

• Primary revenue streams: sale of battery separators/components, precision machining and processing services, and customized assembly/subcontracting for high-end customers.
• Customer base: numerous high-end domestic and international battery manufacturers and EV OEMs attracted by advanced technology and stable quality.
• Market drivers: accelerating global EV adoption and grid storage deployment increasing demand for battery components and specialist processing services.

• Competitive strengths: strong production quality, advanced processing technology, certifications and strategic partnerships with high-end customers.
• Investment in capacity: company plans ongoing expansion of production capacity to meet rising global demand and to secure long-term supply contracts.
• Sustainability & innovation focus: committed to environmentally responsible manufacturing and continuous R&D to improve yield and component performance.