(Yicai Global) July 30 -- Gold Cup Electric’s stock price climbed to a more than four-year high after the Chinese cable maker revealed a CNY711 million (USD110 million) plan to double its production capacity of magnet wires for new energy vehicles.

The company’s shares [SHE:002533] surged by the daily limit of 10 percent today to close at CNY8.68 (USD1.34). In the last three weeks the firm’s stock price has gained nearly 70 percent.

Gold Cup will expand the production of NEV electromagnetic wires at its existing production base, the Hunan province-based company said yesterday. It will add 50,000 tons to the current 45,000 tons of annual production capacity by June 2025.

Its unit Gold Cup Electric Electromagnetic Wire will carry out the project, which will have three phases. The first will be completed as soon as October, and will add 7,000 tons a year. When completed, that is expected to boost the firm’s annual revenue by CNY4 billion (USD619.6 million).

The unit has two production bases in Hunan, and it is a leading supplier of flat electromagnetic wires in China. Its products are mostly used in ultra-high-voltage transmission and transformation equipment, high-voltage and new energy vehicle motors, the firm added.

Editor: Futura Costaglione