(Yicai) Oct. 9 -- Lizhong Sitong Light Alloys Group, a Chinese supplier of aluminum alloy materials and wheels, has received orders worth a total of CNY5.5 billion (USD778.5 million) from two well-known automakers.

Lizhong’s plants in China’s Hebei province, Mexico, and Thailand received notifications from an international carmaker and a leading new energy vehicle manufacturer to become their designated supplier of aluminum allow wheels, the Hebei-based company announced yesterday.

The order from the foreign automaker, which will start mass production early next year and last for 10 years, is expected to bring Lizhong about CNY5.2 billion in sales. Meanwhile, the order from the NEV giant will kick off mass production in May next year and last for five years, likely bringing the firm sales of CNY290 million (USD41 million).

Lizhong has received aluminum alloy wheel orders from foreign carmakers worth a total of about CNY16 billion (USD2.3 billion) since May.

Last year, Lizhong produced 21.5 million aluminum alloy wheels, over half of which were supplied to overseas customers. According to its 2023 earnings report, its aluminum alloy wheel business logged CNY8.8 billion in revenue last year, accounting for 38 percent of the total.

Lizhong’s shares [SHE: 300428] were trading down 6 percent at CNY19.23 (USD2.73) as of 1.40 p.m. in Shenzhen today. They had surged 50 percent since China’s central bank introduced a large stimulus package to boost the economy on Sept. 24 as of yesterday.

Editor: Futura Costaglione