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April 9, 2012 /PRNewswire-Asia/ --
Lihua International, Inc. (NASDAQ: LIWA) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, including refined copper products and superfine and magnet wire, as well as copper clad aluminum ("CCA") wire, today announced that it is on track to commence production of copper anode on its two new smelters by the end of April. The construction team is currently completing the connection of the recycling system to the smelters and the dedicated power grid. Each of these smelters will add 25,000-30,000 tons of copper anode capacity on an annualized basis, giving Lihua a total of 85,000-95,000 tons of copper anode capacity per year and a total of 135,000 – 145,000 tons of refined copper production capacity per year.
"Despite the recent weakness in Lihua's share price, there have been no developments within the Company that would warrant this level of volatility. On the contrary, our business has never been stronger," said Mr.
Jianhua Zhu, Lihua's Chairman and Chief Executive Officer. "Demand from our primary copper anode customers continues to grow, and the volume demand from our largest customer alone already exceeds our post-expansion production capacity. Several weeks ago, we reported record results for 2011 and guided for year-over-year growth of more than 20% in both gross profit and non-GAAP net income in 2012. We remain confident in Lihua's growth prospects and the fundamental strength of our business. With a number of catalysts that we expect will begin having a positive effect on our business in the near future, as well as continued support from our loyal investors, we believe that our Company's valuation can become more aligned with and better reflect the strength of our business."
Lihua carefully monitors its stock's trading patterns. The Company is currently reviewing recent unusual trading activity and plans to report any suspicious activity to the U.S. Securities and Exchange Commission, as appropriate.