(Yicai Global) Feb. 2 -- China’s Dingsheng New Materials has received a large order for power battery aluminum foil from South Korean battery giant LG Energy Solution.

Hangzhou Five Star Aluminum, a subsidiary of Dingsheng, will supply LG Energy and its three China units with 61,000 tons of aluminum foil for batteries in the next four years, the Zhenjiang, Jiangsu province-based aluminum processor said late yesterday.

The order is worth about CNY2.4 billion (USD350 million) based on an average CNY38,710 (USD5,765) a ton for similar products on Jan. 31 that commodity index provider Mysteel published on its website.

In recent years, Dingsheng has been adjusting some of its plants to make aluminum foil for power batteries, with the move resulting in better financial results. On Jan. 30, the company said it expects 2022 net profit to have soared 214 percent to 237 percent to between CNY1.4 billion and CNY1.5 billion, thanks to higher output of high margin aluminum foil products.

Dingsheng’s sales of aluminum foil for batteries used in energy vehicles jumped 132 percent to 55,700 tons last year from 2021, bringing revenue of CNY1.8 billion, a 171 percent gain to account for about 10 percent of total income, according to its annual trading report. The profit margin soared to 29.6 percent.

Shares of Dingsheng [SHA: 603876] closed down 1 percent at CNY50.57 (USD7.53) today, after gaining as much as 2.5 percent in morning trading.

Editor: Futura Costaglione