JINZHOU CITY, China, June 28 /PRNewswire-Asia-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or "the Company"), a leading manufacturer of automotive electrical parts, suspension products and engine accessories in China, today announced that it has signed strategic cooperation framework agreements with two of four major state-owned commercial banks.
As one of the best local companies, Wonder Auto developed its business steady and rapidly supported by the local state-owned commercial banks, and maintained superior relationships with banks. Therefore, Wonder Auto was recognized as a strategic customer of the local big-four state-owned banks and signed the framework agreements with two of them recently. The agreements stipulate that the commercial banks will support the Company's operation with sufficient cash flow. Meanwhile, when the Company faces major M&A opportunities, the banks can provide the Company with up to 50% of the size of the M&A as long-term loans.
Wonder Auto's Chairman and CEO, Mr. Qingjie Zhao commented that: "China's auto industry entered into a fast-developing period with huge growth potential. In the following years and decades, some industrial leaders, such as Wonder Auto, are facing a lot of M&A opportunities. The strategic framework agreements with the commercial banks will lay a solid foundation for Wonder Auto's fast growth in the future as well as for the potential M&As."
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, suspension products and engine components. Wonder Auto ranked second and third in sales revenue in the Chinese market for automobile alternators and starters in 2008, respectively. Wonder Auto's products are used in a wide range of passenger and commercial automobiles with special focus on the fast-growing small- to medium-engine passenger vehicle market. For more information, please log on http://www.watg.cn .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected 2009 financial results, our expected financial performance in 2010 and future strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the continued growth of the automobile market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believe," "expect," "may," "should," "potential," "continue," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" or similar expressions. Such information is based upon assumptions and expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions and expectations are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release, except as required under applicable law. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov . All information provided in this press release and in the attachments is as of the date of this press release.
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SOURCE Wonder Auto Technology, Inc.