JINZHOU CITY, China, Sept. 13 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical parts in China, today announced that, it has filed an application with the U.S. Securities and Exchange Commission for the withdrawal of its registration statement on Form S-1 that was filed on July 6, 2007 (registration no. 333-144392) for an offering of up to 6.5 million shares of common stock and has determined not to proceed with the registration and sale of its common stock at this time.
Mr. Qingjie Zhao, Wonder Auto’s Chairman and CEO, commented, "We believe that Wonder Auto is undervalued at the current share price. With our solid business performance, recent financial results and future growth outlook, we do not believe it is in our shareholders’ best interest to issue our common shares at the present valuation and dilute our current shareholders. With our internal cash flow and the available bank loan facility, we believe we have adequate capital to execute our current business plan and maintain growth momentum."
Revenue for the second quarter of 2007 ended June 30th, increased to a record $23.6 million, a 25.2% increase over the same period a year ago. Net income in the second quarter increased by 84.2% to $3.8 million from the same quarter in 2006. Basic and diluted earnings per share for the 2007 second quarter rose to $0.16 from $0.12 for the 2006 second quarter. In the 2007 second quarter press release, Wonder Auto reaffirmed its previous guidance for the full year of revenues of $100 million and net income of $13.5 million. As of June 30, 2007, Wonder Auto had $15.2 million in cash, cash equivalents and restricted cash, working capital of $34.1 million and $16.5 million of long-term debt. Shareholders’ equity was $45.8 million as compared to $38.2 million at December 31, 2006.
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 and was ranked second in sales revenue in the China market for automotive alternator and starter in 2006. With respective 5 different series and over 150 models of alternators and 70 models of starters, the Company’s products are suitable for various types of automobiles and most of its products are currently used in passenger cars with smaller engines having displacement below 1.6 liters. 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., and Tianjin FAW Xiali Automotive Co., Ltd. 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 financial need and expected financial results for 2007 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
