(Yicai Global) Aug. 23 -- Shares of Henan Mingtai Aluminum slumped after the Chinese processor of aluminum products said it plans to raise as much as CNY4.035 billion (USD592 million) from a private placement and unveiled positive first-half earnings results.

Mingtai Aluminum [SHE: 601677] closed down 7.5 percent at CNY25.20 (USD3.67) today, the lowest in a month.

The funds will be used to expand capacity of various aluminum materials for lithium batteries to improve the added value of the company’s products, Gongyi, Henan province-based Mingtai Aluminum said in a statement last night.

Under the plan, the main products of the new plant include various aluminum products for lithium batteries that have grown in demand in recent years. They include aluminum foil for battery cathodes, aluminum materials for battery packaging and water-cooled aluminum plates for batteries, with a total annual capacity of 250,000 tons.

But Mingtai did not mention the annual production plans for each of the aluminum products, only that the construction period is expected to be two years, and after the project is finished, the quality, performance and precision of the products will be upgraded significantly. The company’s average annual net profit will be CNY616 million (USD89.76 million).

Mingtai revealed that its existing capacity has been directly or indirectly supplied to A-list new energy vehicle makers, including BYD, Nio, Yutong Bus, and CIMC Vehicles.

The firm’s earnings report said first-half revenue was CNY15.5 billion (USD2.26 billion), surging 44 percent from a year ago. Net profit was CNY1.09 billion (USD159 million), a 29 percent increase. New energy product sales accounted for about 10 percent of income.

Editor: Peter Thomas