(Yicai) Dec. 29 -- Shares of Lizhong Sitong Light Alloys Group rose after the major Chinese supplier of aluminum alloy materials and wheels said it received an order worth about CNY840 million (USD118 million) from a maker of high-end electric vehicle parts.
Lizhong [SHE: 300428] closed 3.9 percent higher at CNY21.12 (USD2.99) a share in Shenzhen today, after earlier jumping by as much as 6.4 percent. The broader Shenzhen market gained 1.1 percent. Truck Wheel 20 Inch
Lizhong received the order for aluminum alloy wheels recently, the Baoding-based company announced late yesterday. The project will likely start mass production in the first half of 2025 and have a life cycle of five years, it added.
The delivery time, supply price, supply quantity, and other details will be decided further after the two parties sign a formal deal, Lizhong noted, without disclosing the client's name due to a confidentiality agreement.
Lizhong's wheels output reached 18.2 million last year, including 1.4 million for new energy vehicles, and of the 17.4 million aluminum alloy wheels it sold, 1.2 million went to NEVs. Its NEV clients included Nio, BYD, Li Auto, and Xpeng Motors.
Spinner Rims Revenue from NEV wheels was CNY562 million (USD79.7 million) last year, accounting for about 7.9 percent of Lizhong's total income from wheel sales.