2008 Anticipated Total Sales Could Exceed US$140 Million
With Over $20 Million in Net Income
JINZHOU CITY, China, Nov. 26 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical and suspension parts in China, today announced its largest supply contract to date for a foreign auto company. According to the contract, Wonder Auto is expected to supply approximately 800,000 automotive alternators to a Shanghai-registered international auto parts procurement center over the next three years. All alternators supplied through this contract are expected to be exported overseas to a major global automotive manufacturer. The contract value is projected to be approximately $11 million per year and approximately $32 million over the three-year contract period.
Mr. Qingjie Zhao, Wonder Auto’s Chairman and CEO, commented, "This contract marks one of the most exciting milestones yet in the current stage of Wonder Auto’s continuing growth. Our selection to supply this major global auto parts center is another indicator of our growing reputation for delivering high-quality, cost-effective products in large quantities. This new contract complements our recent agreement to supply the European aftermarket and the opening of our Detroit office as we position Wonder Auto as an emerging force in the global auto parts marketplace.
“With this large new customer and the other new and existing customers, we are optimistic that our anticipated sales in 2008 could exceed $140 million, with over $20 million in net income,” Mr. Zhao concluded.
Wonder Auto’s guidance for the year to end December 31, 2007 is for sales to exceed $100 million with net income of more than $13.5 million.
Wonder Auto has already sent the initial 1,000 alternators in the contract to the international auto parts customer and received payment.
About Wonder Auto
Based in Jinzhou City, Liaoning Province, China, Wonder Auto Technology, Inc. specializes in design, development and manufacturing of automotive electrical parts and suspension products. In 2006, the Company was the second largest alternator and starter producer in the China market. With respective 5 different series and over 150 models of alternators, 70 models of starters and various strut rods and shock absorber rods, the Company supplies a wide range of automakers, engine producers and tier one auto parts suppliers both in domestic China and overseas. 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. and ArvinMeritor, Inc. 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, those concerning our anticipated contract value and expected financial results for 2007 and 2008 as well as 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, 2006 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:
Yuechun Xie
Investor Relations Manager,
Wonder Auto Technology, Inc.
Tel: +86-416-266-1186
Email: ycxie@watg.cn
Kevin Theiss
Investor Relations,
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacy Dimakakos
Media Relations,
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
