(Yicai Global) July 3 — Shares in Guangdong Hongtu Technology Holdings soared by the exchange-imposed limit today after the Chinese developer and operator of aluminum alloy die-cast equipment said that the world’s largest set of machinery that makes very large molded components for new energy vehicles, which it developed together with a partner, is now in operation.
Hongtu’s share price [SHE:002101] closed up 10 percent at CNY21.54 (USD3) today.
The 12,000-ton intelligent die-casting equipment, co-developed with precision machinery maker L.K. Technology Holdings, started operations on June 30, the Guangdong province-based company said today.
The new equipment is expected to bring in many more orders as automakers turn to integrated structural parts to reduce costs. The one-time die casting of car chassis components can replace the time-consuming assembly of parts by stamping and welding, greatly reducing labor costs, auto weight as well as manufacturing expenses.
The duo have already started work on an even bigger set of equipment. Hongtu is linking arms with Hong Kong-based L.K. Tech to develop 16,000-ton smart die-casting cells, so as to maintain its leading status in the sector, Hongtu said, citing the deal inked by the two parties at the inauguration ceremony on June 30.
Hongtu, which counts Xpeng Motors, Tesla, BYD and Nio among its customers, said in May that it planned to raise CNY2.2 billion (USD303.3 million) in a private placement of new shares.
The proceeds would be used to build production bases for large-sized NEV structural parts in the auto hub of Wuhan in central Hubei province, in its homebase of Zhaoqing, southern Guangdong province and in Tianjin, near Beijing. The funds will also be used to enhance R&D of new products and to replenish working capital.
Editor: Kim Taylor