-- To Incentivize Key Employees to Target Annual 40% Growth
For Next Three Years --
-- Option Strike Price Set at $9.00 Per Share --
JINZHOU CITY, Liaoning, China, May 6 /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 that the board of directors of the Company has adopted the 2008 Equity Incentive Plan (the “Plan”).
As part of the Plan, the Company’s compensation committee has approved the grant of 542,000 stock options to certain of its key employees and directors which will vest over the next 3 years upon achievement of targeted annual pro forma net income of US$22 million for 2008, US$30.8 million for 2009 and US$43.15 million for 2010. One-third of the options will vest each year upon achievement of the respective targeted pro forma net income. 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 two non-cash expenses, including the stock option expenses resulting from any grant of Award under the 2008 Plan and redemption accretion on convertible notes (if any). The options have an exercise price of US$9.00 per share and will terminate 15 months after the respective vesting date. Approximately 65 Wonder Auto personnel will receive these options with 42.8% of the options allocated for senior management and directors. The remaining options are allocated to a broad range of Wonder Auto’s staff.
Subject to the approval by the Company’s stockholders at any time within 12 months of this adoption, the Plan authorizes issuance of up to 3.5 million shares and has a term of 10 years unless it is terminated sooner by the board of directors of the Company.
Mr. Qinjie 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 growing pro forma net income by 40% for another 3 consecutive years from 2008 to 2010.”
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 suspension products. Wonder Auto 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, 70 models of starters and various suspension related parts, the Company supplies to a wide range of automakers, engine producers and 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., and Tianjin FAW Xiali Automotive Co., Ltd. For more information, please log on to 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 goal for net income growth 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, 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.
