Wonder Auto Enters into Framework Agreement to Deliver Electric Motor for Alternative Energy Vehicles
BEIJING, Oct. 30, 2009 /PRNewswire-Asia-FirstCall/ -- Wonder Auto Technology, Inc. ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electric parts, suspension products and engine components in China, today announced that its subsidiaries Jinzhou Wonder Motor Co., Ltd. ("Wonder Motor") and Jinzhou Halla Electrical Equipment Co., Ltd. ("Jinzhou Halla") have entered into framework agreements with Jinzhou Wonder Alternative Energy Vehicle Technology Co., Ltd., ("Jinzhou AEV"), for the supply of electric motors to Jinzhou AEV for use in its electric and alternative energy vehicles. The Company expects the aggregate value of the agreements to be approximately US$6.13 million.
Under the agreements, Wonder Motor and Jinzhou Halla will supply 6 models of electric motor products (250w, 350w, 600w, 800w, 7kw and 20kw) to Jinzhou AEV. Initial delivery is scheduled to begin in November 2009, with deliveries to continue during 2010. The Company expects to deliver approximately 1,450 units in 2009 and approximately 21,500 in 2010, representing aggregate sales revenues approximately US$0.44 million and US$5.69 million.
Under the agreement, the Company's electric motor will be used in 4 models of Jinzhou AEV's electric vehicles.
1. 2-wheel and 3-wheel light electric vehicles with retail prices ranging
from US$260 to US$500. With a one-charge driving distance of 40km to
70km, these vehicles are positioned as replacements for bicycles and
motorcycles
2. General purposes rural electric vehicle with retail price ranging from
US$4000 to US$6000. With a payload up to 1500kg or 7 passengers, this
type of vehicle has a one-charge driving distance of 100km and can
reach a top speed of 65km/hour. While its retail price is comparable
to that of a gasoline engine vehicle of similar size, its operating
cost is estimated to be US$400 to US$700 lower for every 20,000km
driven. Jinzhou AEV's electric vehicle is positioned as a replacement
or alternative to the estimated 35 million gasoline engine vehicle of
similar size that are currently being used in rural China
3. 2-seat passenger electric vehicle with a retail price of US$2000 to
US$4000 depending on the trim. This model will have a one-charge
driving distance of 100km and a top speed of 55km/hour. The vehicle
weigh less than 450kg excluding battery and its operating cost is
US$0.40/100km or less.
4. Electric taxis with prices ranging from US$4000 to US$8000. With a top
speed of 70km/hour, the one-charge driving distance of these vehicles
are 100km if powered by lead acid battery and 300km if powered by
lithium ion battery. The fuel efficiency of a typical gasoline engine
taxi with a 1.6l engine is approximately 7 litre per 100km which costs
approximately US$6 with the currently retail gas price in China. The
total operating cost for 100,000km driven is approximately US$6500
including fuel and maintenance cost. In comparison, the total
operating cost of the electric taxis for 100,000km driven will be only
approximately US$3000. The electric taxis to be sold by Jinzhou AEV
will ship without batteries. A separate local battery servicing and
maintenance company will operate a citywide network to charge and
replace the electric taxi batteries. Privately owned electric vehicles
may also use this network. Jinzhou AEV estimates that the local
government will initially issue 200 electric taxi licenses on a trial
basis by April 2010.
Mr. Qingjie Zhao, the Company's chief executive officer and chairman, is a 60% owner and serves as the chairman of Jinzhou AEV. The transactions contemplated by the framework agreements were approved by the audit committee and board of directors of the Company.
"We started the research and development of electric motor in 2007 and the entry into the framework agreements is a milestone for Wonder Auto," said Mr. Qingjie Zhao, chief executive officer and chairman of Wonder Auto. "It demonstrates that Wonder Auto's electric motor products are entering into the alternative energy vehicle market which we believe has tremendous growth prospective and will play an important role in the future automobile industry. We believe our electric motor products will be recognized by more and more auto manufacturers and significantly contribute to our sales in the coming years. We anticipate our electric motor products to become one of our main products and to contribute to our continued growth and competitive strength."
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. Wonder Auto's main customers include SAIC GM Wuling Automobile Co., Ltd., Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Co., Ltd., Harbin Dongan Automotive Engine Co., Ltd., Shanghai Volkswagen Co., Ltd., BYD Company Limited, Tianjin Toyota Co., Ltd., Chery Automobile Co., Ltd., Dongfeng Yueda Kia Motors Co., Ltd., Geely Automobile Co., Ltd., and Tianjin FAW Xiali Automobile Co., Ltd. For more information, please log on http://www.watg.cn/.
Safe Harbour 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 the expected sales and revenue from the frame agreements with Jinzhou AEV, our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for alternative energy vehicle, 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," "believes," "expects" or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions 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. The repurchase transaction described herein may not proceed as described, or at all. We do 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 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/.
Patrick Sun Investor Relations Manager Tel: +86-10-8478-5339 Cell: +86-153-1161-1742 Email: IR@watg.cn