(Yicai) May 9 -- Shares of Lizhong Sitong Light Alloys Group soared after the major Chinese supplier of aluminum alloy materials and wheels said its Tianjin unit received an order potentially worth CNY1.4 billion (USD193.8 million) from two well-known overseas carmakers.

Lizhong [SHE: 300428] closed up 8.7 percent to CNY21.55 (USD2.98) a share in Shenzhen today, after earlier soaring by as much as 10.4 percent.

Tianjin Lizhong Wheel was named the designated supplier of aluminum alloy wheels for the international carmakers' two new projects, Lizhong announced yesterday. 

One of the projects, set to start mass production in the second half of 2026 and last for four to five years for a luxury car maker, is expected to rack up about CNY210 million (USD29.1 million) in sales, Lizhong noted. The other project, with mass production to begin next April and last for five years, will likely bring about CNY1.2 billion in sales, it added.

Securing the orders will positively impact Lizhong's operating performance over the next several years, it said, without disclosing the clients' names due to confidentiality agreements. 

Lizhong is one of China's largest suppliers of aluminum alloy wheels, with its output reaching 21.5 million last year and around 53 percent of such wheels going to overseas customers. It supplied 4.03 million wheels to its new energy vehicle customers, including China's Nio, BYD, Li Auto, and Xpeng Motors, last year.

Operating revenue from Lizhong's aluminum alloy wheels was CNY8.8 billion in 2023, accounting for around 38 percent of its total income. The Baoding-based company has two aluminum alloy wheel plants in Thailand and is also building a factory in Mexico. 

Editor: Martin Kadiev