SHENYANG, China, June 19 /PRNewswire-Asia/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR; "A-Power" or "the Company"), a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, today announced it has received official meeting minutes of the Shenyang Municipal Government dated June 8, 2009, to agree to form Shenyang Power Group ("Shenyang Power"), with A-Power as lead investor and subsidies from the city of Shenyang.
According to the meeting minutes, Shenyang government has approved in principle the establishment of Shenyang Power, a local DG industry alliance, to be established with $147 million (RMB 1 billion) in registered capital, of which 60% will be provided by A-Power, 20% from Shenyang Ruida Investment Co., the investment arm of the Shenyang Government, and the remainder from companies and research institutes participating in the alliance. In addition, Shenyang government will provide a total of $14.7 million (RMB 100 million) from the city's Industrial Development Fund to subsidize the entities joining Shenyang Power. The subsidies will be disbursed in installments, and the first installment, about $6 million (RMB 40 million), is expected to be received by Shenyang Power by the end of June 2009.
A-Power is planning on selecting a site in Shenyang to host Shenyang Power's headquarters, the construction of which is expected to begin by the end of this year.
About A-Power
A-Power Energy Generation Systems Ltd. ("A-Power"), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy market and has built China's largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German Fuhrlander AG and Denmark-based Norwin, and a total annual production capacity of 1,125MW. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies. For more information, please visit http://www.apowerenergy.com .
Safe Harbor Statement
This press release may contain forward-looking statements. Any such statement is made within the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and other similar statements. Statements that are not historical facts, including statements relating to anticipated future earnings, margins, and other operating results, future growth, construction plans and anticipated capacities, production schedules and entry into expanded markets are forward-looking statements. Such forward-looking statements, based upon the current beliefs and expectations of our management, are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements, including but not limited to, the risk that: our manufacturing and assembly of wind turbines will entail significant amounts of working capital and if we cannot satisfy these working capital requirements the growth and development of our wind turbine business could suffer materially; our limited operating history and recent entrance into new markets and the wind turbine business may make it difficult for you to evaluate our business and future prospects; if we do not manage our growth successfully, our growth and opportunity to maintain and increase profitability may be hindered or impeded, as well as other relevant risks detailed in our filings with the Securities and Exchange Commission, including those set forth in our annual report filed on Form 20-F for the fiscal year ended December 31, 2007. The information set forth herein should be read in light of such risks. We assume no obligation to update the information contained in this press release, except as required under applicable law.
A-Power Energy Generation Systems Contact:
Mr. John S. Lin
Chief Operating Officer
A-Power Energy Generation Systems
Email: john@apowerenergy.com
Mr. Valentine Ding / Mr. Dixon Chen
Investor Relations
Grayling
Tel: +1-646-284-9412
Email: valentine.ding@us.grayling.com
dixon.chen@us.grayling.com
