DANYANG, China, August 16, 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 reiterated its guidance for the 12-months ending December 31, 2012. Based on the anticipated ramp of production on the Company's newly launched copper anode smelters, Lihua currently expects gross profit of $84 to $87 million, representing year-over-year growth of 11 to 15%, and non-GAAP net income of $54 to $57 million, or 8% to 14% growth over 2011.
Mr. Jianhua Zhu, Lihua's Chairman and Chief Executive Officer said, "I do not believe that the current strength of our business or our future prospects are accurately reflected in Lihua's current valuation. The fundamentals of our business remain strong, and we are poised to continue growing our business both in the near- and longer-term. Our full-year expectations reflect our anticipated growth through 2012 and we will continue to expand our operations and business in 2013 with plans to launch production on our fourth and fifth copper anode smelters, as well as begin producing new CCA cable and wire products. While the current market environment presents a number of challenges, we are committed to building value for our shareholders. Lihua presents a sound growth opportunity and has a compelling story to tell. We look forward to actively engaging the investment community during the balance of the year through dedicated outreach programs with our existing constituency and with potential new investors."
About Lihua International, Inc.
Lihua, through its two wholly owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market. Lihua is one of the first vertically integrated companies in China to develop, design and manufacture lower cost, high quality alternatives to pure copper magnet wire and pure copper alternative products. Lihua's products include CCA and refined copper products. Current product offerings include CCA and pure copper wire, copper rod and copper anode. Except for CCA wire, all other products are produced from recycled scrap copper. Lihua's products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in a wide variety of industries including the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. For more information, visit: http://www.lihuaintl.com.
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Safe Harbor Statement
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions including availability of copper or recycled scrap copper, future operating results of the Company, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements.
Please note that information in this press release reflects management views as of the date of issuance.
Contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
(212) 481-2050
lihua@tpg-ir.com