To Incentivize Key Employees to Target a 31% CAGR of Growth in Pro Forma Net Income from 2009 to 2011
Option Strike Price Set at $11.48 per Share
JINZHOU CITY, China, Dec. 1 /PRNewswire-Asia/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electric parts, suspension products and engine components in China, today announced that the compensation committee of the board of directors of the Company has approved an employee stock option award.
As part of the Company's 2008 Employee Incentive Plan (the "Plan"), the Company's compensation committee has approved the grant of 1,674,400 stock options, approximately 5% of total shares outstanding, to approximately 109 eligible key employees and directors which will vest over 3 years upon achievement of certain targeted annual pro forma net income thresholds of US$23 million for 2009, US$34.5 million for 2010 and US$42.3 million for 2011. One-third of the options will vest each year upon achievement of the respective targeted pro forma net income threshold. As approved by the compensation committee, the targeted pro forma net income equals the after-tax net income as reported in the Company's Annual Report on Form 10-K plus any non-cash expenses, including, but not limited to, non-cash compensation expenses resulting from any grant of option award under the Plan, foreign exchange loss resulting from loans denominated in foreign currency and redemption accretion on convertible notes (if any). The awards allow for 5% deviation from the respective pro forma net income threshold. The options have a strike price of $11.48 per share and will terminate at the last business day of the 15th months after the respective vesting date.
Mr. Qingjie Zhao, Chief Executive Officer of Wonder Auto, commented, "This incentive plan will inject great enthusiasm into the management team and key employees throughout the Wonder Auto organization to reach our goal of achieving a compound annual growth rate of approximately 31% in pro forma net income from 2009 to 2011."
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 pro forma net income growth, as well as all assumptions, expectations, predictions, intentions or beliefs 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.
