中孚实业宣布扩产300万只轮毂

Core Viewpoint - The investment by Zhongfu Industrial in the aluminum alloy wheel project highlights the growing demand for lightweight materials in the electric vehicle market, despite the financial challenges faced by its subsidiary [1][2][5]. Investment Details - Zhongfu Industrial's wholly-owned subsidiary, Guangyuan Linfeng Aluminum Materials, plans to invest CNY 259 million to construct a project for producing 3 million aluminum wheels [1][3]. - The project will be executed in two phases: the first phase involves producing 2 million wheels with an investment of CNY 94.6 million, while the second phase will produce 1 million wheels with an investment of CNY 47.4 million [3]. - Upon full production, the project is expected to generate an annual sales revenue of CNY 1.182 billion (approximately CNY 1.046 billion excluding tax) and a profit of CNY 30.46 million [3]. Financial Performance - Zhongfu Industrial reported a 63.25% increase in net profit for the first three quarters of 2025, driven by improved profitability in its electrolytic aluminum business [2][6]. - Despite the profit increase, the company's cash flow from operating activities significantly declined by 59.69% to CNY 314 million, raising concerns about cash flow management amid large capital expenditures [6][7]. Market Context - The aluminum alloy wheel market is characterized by high order concentration and intense price competition, posing risks to the new investment project [2][6]. - The project aligns with Zhongfu Industrial's strategy to enhance its competitive edge in the aluminum wheel sector by leveraging its existing industrial synergies [4]. Subsidiary Challenges - Guangyuan Linfeng Aluminum Materials has faced continuous losses, with a net loss of CNY 9.67 million reported for 2024 and further losses in 2025 [5]. - The reliance on self-raised funds for the CNY 259 million investment raises concerns about the subsidiary's financial sustainability and ability to manage its cash flow effectively [5][6].