Lihua is targeting 2011 gross profit of $80.0 million to $82.0 million and non-GAAP net income of $52.0 million to $54.0 million, representing year-over-year growth of 29-32% and 30-35%, respectively. The Company expects that 2011 growth will be largely the result of continued strong demand in China for recycled copper and copper alternatives in the household appliance, consumer white goods and infrastructure markets.Gypsum Crusher Mining Equipment
The Company noted that its current 2011 projections assume one quarter of production and sales contribution from its new copper recycling facility, which is currently under construction and due to be completed and commence production by the fourth quarter of 2011, and no favorable impact on cost of goods sold from the importers’ license for which the Company has applied. Launching production at its new facility in the timeframe currently anticipated, or receipt of its importers’ license from the Chinese government is expected to provide upside to the Company’s current gross profit and non-GAAP net income expectations.
Mr. Zhu added, “We expect that our 2011 performance will build upon the solid foundation that we established during 2010. Construction activity at our new copper recycling facility is proceeding according to schedule, and we remain on track to commence operations at the beginning of the fourth quarter. Despite the tremendous demand from our end markets, we are carefully managing our expansion in an effort to best position Lihua to reach the next level of sustainable, long-term growth. We are excited about what the future holds for Lihua as we move closer to bringing our new capacity on line and make progress toward securing our importers’ license, which will allow us to more efficiently source scrap copper from international suppliers. We believe that the copper market, both in China and throughout the world, is conducive to our continued growth and are confident that Lihua is poised to capture the sizeable opportunity before us.Silica Sand Making Plant
“Demand for copper remains high across all industry segments, and we believe the underlying catalysts are in place to support continued industry-wide growth for the foreseeable future. These growth drivers are coming from both the private sector and government initiatives including China’s 12th Five Year Plan, where guidelines for the metals industry are expected to have a significant influence on copper production going forward. Specifically, the government is imposing new regulations aimed at modernizing production processes and controlling inefficient capacity expansion, with a goal of significantly reducing China’s carbon emissions. Our manufacturing facilities and production processes adhere to the strictest industry and environmental standards, while our recycling technology enables the manufacturing of products that are more cost effective and have a sharply reduced environmental footprint than comparable products sourced from newly mined copper. We are confident that we can leverage these advantages to gain market share as we ramp capacity and these government policies are implemented,” Mr. Zhu concluded.Conference Call and Webcast
Management of Lihua International will host a conference call today, Wednesday, March 9, 2011 at 8:00 a.m. Eastern time to discuss the fourth quarter and full year 2010 financial results.Limestone Quarry and Crushing Plant
Individuals interested in participating in the conference may do so by dialing 1-877-941-2321 toll free in the U.S. and Canada, or 1-480-629-9714 from outside the U.S.