(Yicai Global) Oct. 27 -- Shares of Chinese battery parts maker Kedali Industry surged to a historic high after the firm, which has boosted its net profit by almost four times this year, said it will invest CNY2 billion (USD310 million) to build two factories in southwestern and eastern China.

Kedali’s [SHE: 002850] stock price rose by the daily limit of 10 percent to CNY164.01 (USD25.70) intraday. The shares are almost 60 percent up this year.

The company will spend CNY980 million (USD153.6 million) to build a plant in Sichuan province and put another CNY1 billion into establishing a production base in Jiangsu province, the Shenzhen-based firm said in a statement yesterday.

Kedali will raise CNY1.6 billion through convertible bonds, it said. Some CNY1.3 billion of that will go into the two projects while the remainder will be considered working capital.

Kedali, one of the earliest domestic manufacturers of lithium-ion batteries' precision structural parts, has advantages in certified products and customer resources, and the new projects should help the firm meet increasing client demand, it added. The company counts Contemporary Amperex Technology, Panasonic, and LG as some of its customers, according to public information.

The casings and caps producer released its third-quarter earnings the same day. In the first three quarters, net profit almost quadrupled to CNY375 million from a year ago due to the booming new energy vehicle sector, according to the report. Revenue more than doubled to CNY3 billion.

Editor: Emmi Laine, Xiao Yi