Development Agreement with Korean CT&T on Electrical Motors and Drivers
JINZHOU CITY, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrics, suspension products and engine accessories in China, announced that one of its subsidiaries, Jinzhou Wonder Motor Co. Ltd ("Jinzhou Motor"), has entered into a development agreement with Korean CT&T Co. Ltd. ("Korean CT&T") stating that Jinzhou Motor will design and manufacture electric motor and driver products for Korean CT&T's electric vehicles. The products will have the following specifications: Voltage: 48V - 120V; Power: 4kw - 12Kw; Model: Traction motor and wheel-in-motor.
As scheduled in the agreement, Jinzhou Motor will deliver the first sample of traction motors and drivers of 72V, 7Kw to Korean CT&T for road testing by the end of March 2009, while batch deliveries will begin from June 2009. Korean CT&T will purchase, in priority, all motor and driver products developed by Jinzhou Motor according to the agreement, and the total expected purchase volume will be approximately $330 million from 2010 to 2013.
Korean CT&T is a specialized manufacturer of electric vehicles categorized as e-zone, utility vehicles for country clubs, and c-zone, including two- and four-seater family cars, sightseeing cars, golf-course carts and those used for police patrols, etc. Its main manufacturing facilities are located in Korea, China and Canada.
Wonder Auto has been dedicated to the research and development of core components of electric vehicles for years. Foreseeing the great potential of new energy automobiles (including electric vehicles and hybrid vehicles), the Company founded Jinzhou Motor in early 2007, so as to become one of the few suppliers of core components for new energy vehicles in the world. The Company has invested $1.1 million in building up the capacity of Jinzhou Motor. By June 2009, the expected annual production capacity will be about 400,000 sets of electric motors and drivers.
Mr. Qingjie Zhao, Chairman and Chief Executive Officer of Wonder Auto, said: "The electric motor products for this Korean customer is just an extension of our starter products, which is in line with our strategy of developing new products by sharing existing resources. It also represents our strategic decision of providing core components for the new-energy auto market, including electrical and hybrid vehicles, which, no doubt, will contribute to the sustainable and fast growth of Wonder Auto."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrics, suspension products and engine accessories. Wonder Auto was ranked second in sales revenue in the China market for automotive alternator and starter in 2007. With respective 5 different series and over 150 models of alternators, 70 models of starters, various suspension, engine related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both domestically and internationally. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., Tianjin FAW Xiali Automotive Co., Ltd, Shanghai VW and Weifang Diesel Engine. For more information, please log on http://www.watg.cn .
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For further information, please contact:
Lydia Zhao
Assistant CFO
Wonder Auto Technology, Inc.
Tel: +86-10-8478-5339
Cell: +86-130-2118-4792
Email: lydiaz@watg.cn
Yechon Xie
Investor Relations Manager
Wonder Auto Technology, Inc.
Tel: +86-416-266-1186
Cell: +86-137-0006-1685
Email: ycxie@watg.cn
