ZHANGZHOU, China, November 17, 2011 /PRNewswire-Asia/ -- China Zenix Auto International Limited (NYSE: ZX) ("Zenix Auto" or "the Company"), the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sale volume, today announced that in January 2011, Zenix Auto introduced its patented "Bridge Arc" wheel, which is based on the new architectural design concept borrowed from the legendary thousand-year-old stone bridge in Northern China. This new product features heightened strength with substantially lighter weight. The standard steel wheel for heavy-duty trucks weighs 50 kilograms while "Bridge Arc" wheels weigh only 40 kilograms. This weight reduction benefits wheel producers with raw material savings and truck operators with fuel consumption savings. Together with the standard tubeless products, Zenix continues to expand its market share in the growing aftermarket wheel sector in China.
Since its debut in early 2011, the "Bridge Arc" designed wheels have received positive reviews from drivers and logistic companies which are plagued by rising fuel prices. In May, after collecting feedback from commercial vehicle operators, Zenix began increasing its marketing effort to pursue additional aftermarket opportunities. The Company held a number of seminars on the merits of this new design at industry events. Due to the "Bridge Arc" wheel's proven functionality and cost-saving benefits, monthly unit sales experienced robust growth from approximately 3,500 units in April 2011 to nearly 60,000 units in October 2011. To adjust for the raw material price rise in 2011, the average selling price of the "Bridge Arc" wheel for the Chinese domestic aftermarket also increased from RMB 551 in January 2011 to RMB 580 in October 2011.
Mr. Jianhui Lai, Chairman and CEO of China Zenix, commented, "The early success of the 'Bridge Arc' wheel is another important example of how Zenix wins market share with the product strategy of improving wheel performance to aide the end users. Despite sluggish commercial vehicle and wheel demand in the Chinese OEM truck market, the aftermarket sector has proven its resilience as China has millions of trucks and other commercial vehicles operating on the road, many of which are using incumbent wheel models hindering fuel efficiency. While we are pleased with the 'Bridge Arc' wheel's rapid growth in the Chinese aftermarket, we strongly believe that the future of the Chinese OEM and export markets is just starting."
About China Zenix Auto International Limited
China Zenix Auto International Limited is the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume. With a large intellectual property portfolio, the Company offers more than 230 series of tubed steel wheels, tubeless steel wheels, and off-road steel wheels in both the aftermarket and OEM market in China and internationally. Zenix Auto's customers include group members of a number of large PRC commercial vehicle manufacturers, and it also exports products to over 70 distributors in 30 countries worldwide. With five large, strategically located manufacturing facilities in multiple regions across China, the Company has an aggregate annual production capacity of approximately 12.5 million units of steel wheels as of December 31, 2010. For more information, please visit: http://www.zenixauto.com/en.
Safe Harbor
This announcement contains forward-looking statements. These statements are made under 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," "confident" and similar statements. Among other things, the revenue guidance and quotations from management in this announcement, as well as Zenix Auto's strategic and operational plans, contain forward-looking statements. Zenix Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees. Statements that are not historical facts, including statements about Zenix Auto's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including our ability to successfully develop new tubeless steel wheel products and the planned introduction of aluminum wheels; our ability to expand our distribution network; overall growth in the aftermarket and OEM market in China and elsewhere, which depends on a number of factors beyond our control including economic growth rates and vehicle sales; and changes in our revenues and certain cost or expense items as a percentage of our revenues. Further information regarding these and other risks is included in our filings with the United States Securities and Exchange Commission, including our final prospectus dated May 11, 2011. Zenix Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Zenix Auto undertakes no duty to update such information, except as required under applicable law.
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