JINZHOU, China, March 30, 2011 /PRNewswire-Asia-FirstCall/ -- Wonder Auto Technology, Inc. ("Wonder Auto" or "the Company") (Nasdaq: WATG), a leading manufacturer of automotive electrical parts, safety products, suspension products and engine accessories in China, today announced that its subsidiary, Jinan Worldwide Auto-Accessory Limited Company ("Jinan Worldwide"), was awarded the "Leading Engine Valve Company of Chinese Automobile Parts Industry" by the China Association of Automobile Manufacturers ("CAAM") in the first quarter 2011. In the same period, Jinan Worldwide was awarded "Provincial Enterprise Technical Center" by the local government.
Wonder Auto acquired Jinan Worldwide in October 2008 and Jinan Worldwide's profits have consistently increased since that time. Jinan Worldwide's sales revenue is expected to exceed RMB 0.4 billion in 2010. The management team is optimistic that Wonder Auto's investment in acquiring Jinan Worldwide will be recovered within 3 years from the date thereof.
Jinan Worldwide has been in the engine valve industry in China for over 50 years and is one of the industry leaders in terms of its research and development capabilities, as well as manufacturing capacity. Jinan Worldwide has been granted "National-Level New Product Award" three times and "China National Auto Industry Award of Science and Technology Progress" several times in its history. Jinan Worldwide counts some of the top-tier international and domestic manufacturers as its customers, such as US Ford, Shanghai Volkswagen, Tianjin Toyota, BYD, Geely, Chery and Dongfeng Cummins. Jinan Worldwide's annual output of engine valves and tappets is consistently one of the largest in China, and it has also been a leader in terms of market share for some time.
Chairman of Wonder Auto, Mr. Qingjie Zhao commented: "Management is pleased with the performance of Jinan Worldwide and the synergies that have been realized from the integration of Jinan Worldwide into Wonder Auto. The success of Jinan Worldwide demonstrates the potential benefits of the "Organic Growth + Acquisition" business strategy in the current Chinese auto industry. We believe that Jinan Worldwide will create more synergies with other Wonder Auto businesses going forward and bring shareholders greater returns."
Safe Harbor Statement
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among other things, statements regarding Jinan Worldwide's expected profits for 2010; statements regarding the synergies between Jinan Worldwide and other Wonder Auto businesses; statements regarding shareholder returns; statements regarding the potential success of the Company's "Organic Growth + Acquisition" business model; statements regarding the Company's ability to recover its investment in Jinan Worldwide; statements relating to the Company's expectations regarding the market for its automotive products; the Company's expectations regarding the continued growth of the automotive industry; the Company's beliefs regarding the competitiveness of its automotive products; the Company's expectations regarding the expansion of its manufacturing capacity; the Company's expectations with respect to increased revenue and earnings growth and its ability to increase production volumes; the Company's future business development, results of operations and financial condition; competition from other manufacturers of automotive electrical products; the Company's ability to integrate acquired subsidiaries and operations into existing operations; market conditions affecting the Company's equity capital; the Company's ability to successfully implement its selective acquisition strategy and changes in general economic conditions. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "expect," "may," "should," "anticipate," "future," "intend," "is/are likely to," "proposed," "estimate" or similar expressions. Such information is based upon assumptions and expectations of the Company's 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 the Company's control and based upon premises with respect to future business decisions, which are subject to change. The Company does not undertake to update the forward-looking statements contained in this press release. 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 the Company's most recent Quarterly Reports on 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and the Company's 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 current report and in the attachments is as of the date of this press release.
About Wonder Auto
Wonder Auto Technology, Inc. is a Nevada holding company with operating subsidiaries in China primarily engaged in the business of designing, developing, manufacturing and selling automotive electric parts, automotive safety products, suspension products and engine components. Our products include alternators and starters, airbags, pretensioners and steering wheels, engine valves and tappets, and rods and shafts for use in shock absorber systems. We have been manufacturing alternators and starters in China since 1997, and according to CAAM, in 2009 we ranked second and fourth in sales revenue in the Chinese market for automobile alternators and starters, respectively. Our subsidiary Jinzhou Jinheng has been designing and developing airbags for over 10 years. We believe that we were the largest Chinese brand airbag manufacturer in terms of sales volume in 2009 and the biggest Chinese pretensioner manufacturer. Our subsidiary Jinan Worldwide has been producing engine valves and tappets for over 50 years. We believe we are now one of the largest manufacturers of engine valves and tappets in China in terms of sales volume. Our subsidiary Jinzhou Wanyou is supplying rods and shafts to suspension system manufacturers worldwide. We believe that we are one of the largest independent suppliers of rods and shafts for suspension system manufacturers in the world in terms of sales volume.
Our products are used in a wide range of passenger and commercial automobiles, and we are especially focused on the fast-growing small- to-medium sized engine passenger vehicle market. We sell our products primarily within China to well-known domestic and international automobile original equipment manufacturers, or OEMs, engine manufacturers and automotive parts suppliers. We are increasingly exporting our products to international markets.
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SOURCE Wonder Auto Technology, Inc.