JINZHOU CITY, Liaoning, China, Oct. 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 on October 1, it entered into an agreement to acquire the control stake of Jinan Worldwide Auto Parts Company ("JWAA").
Wonder Auto will pay a total cash consideration of RMB80 million for 65% in JWAA. The price will be adjusted downward or upward if JWAA's audited net income for the 12 months ended December 31, 2008 is lower than RMB19.48 million, or higher than RMB22.88 million. JWAA is currently the largest engine valve and tappets manufacturer in China. Its customers include some well-known automakers and engine manufacturers, including Shanghai VW, Tianjin Toyota, Ford Motor of the U.S., FAW Auto, Chery Auto, Geely Auto, Cummins Engine, Weifang Diesel Engine, and Shanghai Diesel Engine.
Mr. Qingjie Zhao, Wonder Auto's CEO and Chairman, commented, "The acquisition demonstrated our integration strategy of increasing market share by sharing the customer resources. Through the acquisition, we expect our current products to penetrate into JWAA's main market -- the Chinese diesel engine market, and JWAA's product to penetrate into Wonder Auto's main market -- the Chinese gasoline engine market. The acquisition will not only diversify our products offerings, but also further strengthen our market competitiveness with the resources sharing."
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 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 expected synergy with JWAA 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.
For further information, please contact:
Lydia Zhao
Assistant CFO
Wonder Auto Technology, Inc.
Tel: +86-10-8478-5339
Mobile: +86-130-2118-4792
Email: lydiaz@watg.cn
Yechon Xie
Investor Relations Manager
Wonder Auto Technology, Inc.
Tel: +86-416-266-1186
Mobile: +86-137-0006-1685
Email: ycxie@watg.cn
