Company wins landmark electric vehicle project mandate with the Danyang City Peoples' Government
JINZHOU, China, April 12 /PRNewswire-Asia-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG; "Wonder Auto" or "the Company"), a leading manufacturer of automotive electrical parts, suspension products and engine accessories in China, today announced that on April 10th, 2010, Wonder Auto has won a pioneering project mandate with the Danyang City People's Government to develop and produce electric vehicles and electric vehicle components in Danyang and neighboring regions in China (the "Danyang City Electric Car Mandate").
Under the Danyang City Electric Car Mandate, Wonder Auto, cooperated with Jinzhou Wonder Alternative Energy Vehicle Technology Co., Ltd. ("Wonder AEV"), has been selected as Danyang City's municipal partner to manufacture, develop, and supply Wonder Auto-branded electric vehicles in accordance with Danyang City's clean energy and municipal public transportation initiatives. The Danyang City Electric Car Mandate encompasses electric taxis and electric buses in addition to electric car components. Wonder Auto will also provide related support in developing electric charging stations in Danyang. The mandate reinforces Danyang City's recently announced intention to focus on electric cars as a primary focal industry in Danyang City.
Danyang City is importantly positioned in China as one of China's most advanced centers for auto and auto part production, across every facet of the auto supply chain industry. Based in the south part of Jiangsu Province, Danyang City (http://www.danyang.gov.cn/ ) is a key city in the Yangtze River Delta and is home to a population of approximately 900,000 persons.
Due to its strategic importance as an auto production center in combination with the early-stage business opportunity in Chinese electric vehicle production, the Danyang City Electric Car Mandate represents a precedent business win for Wonder Auto. The mandate, a pilot electric car program for Wonder Auto outside its Jinzhou headquarters, is the result of many months of discussions in evaluating Wonder Auto's developing expertise in electric car production in combination with Danyang City's social and clean energy initiatives. In particular, the Agreement credentializes Wonder Auto's recently announced and developing capabilities in the Chinese electric car industry.
Under the mandate with Wonder Auto, Danyang City is committed as an electric vehicle customer and development partner of Wonder Auto. Among other features of the mandate with Wonder Auto, Danyang City will provide significant land, human capital, policy support, and funding resources to Wonder Auto's electric vehicle businesses. Danyang City has determined that clean energy and electric vehicle mandates be treated with favorable government policy treatment for socially advantageous and clean energy purposes.
This Agreement follows a similar mandate Wonder Auto won earlier in 2009 with the city of Jinzhou, China. Jinzhou is the city in which Wonder Auto's primary operations are headquartered. The Danyang City Mandate enables Wonder Auto to expand its research and production reach outside Jinzhou into one of the most advanced auto supply cities in China. Meanwhile, Wonder Auto is pursuing comparable discussions with other municipal governments in multiple provinces in China.
The Danyang City Mandate is an important milestone for Wonder Auto. Mr. Qingjie Zhao, Chairman and CEO of Wonder Auto, stated: "Wonder Auto is pleased to announce this landmark agreement with Danyang City. This mandate commemorates Wonder Auto's commercial entry into the early, growing electric vehicle market in China. Wonder Auto sees significant growth potential as it continues to roll out its electric car initiatives in cooperation with municipal governments in China. Wonder Auto is committed to successful implementation to drive business growth in electric vehicle business."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrical parts, suspension products and engine components. Wonder Auto ranked second and third in sales revenue in the Chinese market for automobile alternators and starters in 2008, respectively. Wonder Auto's products are used in a wide range of passenger and commercial automobiles with special focus on the fast-growing small- to medium-engine passenger vehicle market. For more information, please log on http://www.watg.cn .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected 2009 financial results, our expected financial performance in 2010 and future strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the continued growth of the automobile market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believe," "expect," "may," "should," "potential," "continue," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" or similar expressions. Such information is based upon assumptions and expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions and expectations are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release, except as required under applicable law. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov . All information provided in this press release and in the attachments is as of the date of this press release.
For more information, please contact:
Patrick Sun
Investor Relations Manager
Tel: +86-10-8478-5339
Cell: +86-153-1161-1742
Email: ir@watg.cn
