(Yicai) April 8 -- Shares of Lizhong Sitong Light Alloys Group rose after the leading Chinese manufacturer of aluminum alloy materials and wheels said the "reciprocal tariffs" on all US trading partners announced by President Donald Trump last week will only slightly affect its operations, including exports.

After surging by as much as 6.9 percent at one point, Lizhong [SHE: 300428] closed 3.6 percent higher at CNY15.25 (USD2.09) a share in Shenzhen today. The stock plunged 18 percent to its lowest since last September yesterday due to investors' concerns over potential losses from the new tariffs.

While some of Lizhong's products from Mexico, Thailand, and China are exported to the US, most transactions operate under trade terms where buyers fully absorb tariffs, the Hebei province-based company said late yesterday. In addition, the Mexican factory is unaffected by the new tariffs under the United States–Mexico–Canada Agreement, it noted.

Only a small volume of shipments from Lizhong's plant in Thailand, where the company bears partial tariff costs, could face minor financial impacts with a limited direct effect on overall revenue, the firm said, adding that it will take proactive measures, including supply chain adjustments and client negotiations, to mitigate potential risks from US policy shifts.

Lizhong does not export products from its two other core businesses, recycled cast aluminum alloys and functional intermediate alloy materials, to the US, so they are unaffected by the tariff changes, it noted.

Lizhong made 21.52 million aluminum alloy wheels in 2023, shipping around 53 percent overseas, according to its annual financial report. Revenue from its wheel division topped CNY8.8 billion (USD1.2 billion), accounting for 38 percent of its total income.

Editor: Martin Kadiev