DANYANG, China, June 6, 2012 /PRNewswire-Asia/ -- Lihua International, Inc. (NASDAQ: LIWA) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, including refined copper products and superfine and magnet wire, as well as copper clad aluminum ("CCA") wire, today announced that on June 1, 2012 the Company completed pre-heating and began producing copper anode on its two newly-constructed smelters. With these smelters on-line, Lihua has increased copper anode production capacity from 35,000 tons to 85,000 tons per year. Total refined copper production capacity has increased from 85,000 tons to 135,000 tons annually. Pictures displaying the production at the new smelters can be viewed on the Company's website at http://www.lihuaintl.com/About_Us/Our_Facility.html.
"The launch of production on our two newest smelters marks a significant milestone for Lihua and an important step forward for China's copper industry. This new capacity will allow us to better address customer demand for our industry-leading pure copper products, which has grown exponentially since we launched copper anode in the third quarter of 2010," said Mr. Jianhua Zhu, Lihua's Chairman and Chief Executive Officer. "We are pleased to have reached this important stage of Lihua's development, which we believe has us poised to take the Company to the next level of growth and success. Our efforts to build out the remainder of the 30-acre site are on track and once complete, will further enhance Lihua's competitive position, expand our product portfolio and increase our value proposition for customers, partners and shareholders."
Additionally, the Company has reiterated its full-year 2012 guidance, which calls for gross profit to be between $93-96 million, and non-GAAP net income between $61-64 million, representing year-over-year growth of 23-27% and 22-28%, respectively. The Company expects that 2012 growth will be largely the result of the additional refined copper production capacity and continued strong demand in China for recycled copper and copper alternative products in end markets that include household appliances, consumer white goods and infrastructure.
About Lihua International, Inc.
Lihua, through its two wholly owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market. Lihua is one of the first vertically integrated companies in China to develop, design and manufacture lower cost, high quality alternatives to pure copper magnet wire and pure copper alternative products. Lihua's products include CCA and refined copper products. Current product offerings include CCA and pure copper wire, copper rod and copper anode. Except for CCA wire, all other products are produced from recycled scrap copper. Lihua's products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in a wide variety of industries including the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. For more information, visit: http://www.lihuaintl.com.
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Safe Harbor Statement
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions including availability of copper or recycled scrap copper, future operating results of the Company, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements.
Please note that information in this press release reflects management views as of the date of issuance.
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SOURCE Lihua International, Inc.