Lihua International, Inc.
Lihua International, Inc. is a copper clad aluminum (CCA) superfine magnet wire producer in China. Magnet wire is the basic building block of a range of motorized appliances and is mainly used for electrical conductivity.
See more information about Lihua International, Inc.
Lihua International's profit soar as Chinese demand drives copper sales
For the fourth-quarter, Chinese-based CCA (copper-clad aluminium) and
copper wire manufacturer, Lihua International (NASDAQ: LIWA) reported a
367% increase in sales to US$51.3m and a 178% increase in gross profit
to US$10.9m.
"In 2009 we more than doubled our annual CCA and
copper wire sales and demonstrated clear growth across key operating
metrics", Lihua chief executive and chairman Jianhua Zhu commented. "We
believe this growth reflects the continued demand for pure copper
alternatives in a broad range of end markets, as well as heightened
contribution from our copper recycling facility, which accounted for
approximately 75% of our total sales in 2009.”
The strong end to
the financial year added to 2009’s substantial growth. Lihua reported a
223% increase in FY09 sales to US$161.5m, leading to FY09 profit growth
of 116% taking gross profit to US$36.2m (FY08: US$16.8m). FY09 net
income improved by 43% to US$16.8m, equating to US$0.88 per diluted
share (FY08: US$11.7, US$0.70), adjusted FY09 earnings (EBITDA)
increased 118.3% to US$33m.
As of December 31 2009, Lihua had
US$34.6m in cash and cash equivalents (FY08: US$26m), and total debt of
US$2.2m (FY08: US$6.1m).
The company launched its copper
recycling business in the first quarter of 2009, and Lihua said the
operation has now become an integral part of its business, enabling it
to capture new market share. Furthermore, the company continues to
expand through its growth strategy.
"In line with our growth
strategy, we continue to expand our business operations. In February we
launched the first two of our 10 new production lines planned for 2010,
which we believe will increase our production capacity by approximately
40%”.
The company anticipates that it will complete the build
out of four additional copper wire production lines during the first
half of 2010.
In 2010, Lihua is targeting gross profit between
US$47.1m and US$48.9m, which would represent year-over-year growth
between 30% and 35%. The company expects that the growth will be largely
the result of continued strong demand in China, particularly from the
household appliance, consumer white goods and infrastructure markets.
Other Lihua International, Inc. news
- Lihua International secures first customer contract for copper anode product with major Chinese copper and metal conglomerate
2010-08-17 - Lihua ramps up copper wire production capacity
2009-10-13
