Kangda New Materials Q1 Net Profit Soars 121.78 Percent Revenue Rebounds Sharply

On April 22, 2025, Kangda New Materials announced its Q1 results, reporting a net profit of 5.4 million yuan, up 121.78% year-on-year, and an adjusted net profit of 2.66 million yuan, a 110.07% increase. Growth was driven by higher sales in adhesive materials, especially for wind turbine blades, resulting in a significant revenue boost and a return to profitability.

In contrast, Kangda’s 2024 annual report revealed a mixed performance. While revenue reached 3.101 billion yuan, up 11.05%, the company posted a net loss of 246 million yuan, down 912.05% year-on-year. Key reasons included asset impairments of nearly 195 million yuan, high costs from new capacity ramp-up, and weak demand in electronics and information materials.

Adhesives remained the core business, contributing 2.252 billion yuan in revenue, up 16.6%, with strong growth in wind energy materials. Sales of wind structure adhesives reached 40,000 tons, and epoxy infusion resins surged 90%, pushing market share to 12%, ranking among the top four in the industry. Overseas projects also progressed toward export readiness.

In electronics materials, Kangda expanded into ceramic tapes and precious metal pastes but was impacted by weak demand in the display panel industry. While the ITO target production line showed technical breakthroughs, revenues declined. Meanwhile, semiconductor materials, including ceria CMP polishing liquid, advanced in R&D but lacked significant revenue contributions.

The electronics technology segment, bolstered by the acquisition of Sain Tech, faced challenges due to limited downstream orders in specialized equipment, constraining growth.