JINZHOU CITY, China, June 14 /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 its subsidiary, Jinan Worldwide Auto-Accessory Limited Company ("Jinan Worldwide") will increase its production capacity of engine valves by 13 million units this July, therefore increasing the total annual production capacity of engine valves from 27 million units to 40 million units.
Mr. Qingjie Zhao, Chairman and CEO of Wonder Auto, commented that, "Since Wonder Auto acquired Jinan Worldwide in October 2008, our engine valve business in China has been developing strongly. Its sales have increased 13% from $41.11 million in 2008 to $46.58 million in 2009. We expect that revenue from this business segment for the first half of 2010 will be approximately $32.0 million as compared with $19.85 million in the first half 2009, with an year-over-year increase rate of 60%." Mr. Zhao also commented that, "In the first half 2010, our engine valve business utilized production capacity was at its peak production level and that the newly increased production capacity will establish a solid foundation for our future business development in this business segment. After our successful acquisitions and the sharing of each other's customer base with our newly acquired companies like Jinan Worldwide, Wonder Auto has been able and will continue to further expand its customer base and penetrate new end markets significantly in the future. As a result of this and our other business acquisitions, we achieved around a 44% CAGR growth rate of our sales revenue for the last five years. Finally, the recent development and expansion of our engine valve business has validated our management team's business plan for making successful key strategic acquisitions in China in order to bring more value to Wonder Auto and its shareholders."
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.