Wonder Auto Receives Letter from NASDAQ
JINZHOU, China--March 25, 2011: Wonder Auto Technology, Inc. ("Wonder Auto" or "the Company") , a leading manufacturer of automotive electrical parts, safety products, suspension products and engine accessories in China, today announced that, as expected, it received a notification letter from the NASDAQ Stock Market ("Nasdaq") indicating that the Company was not in compliance with the continued listing requirements under Nasdaq Listing Rule 5250(c)(1), which requires the timely filing of periodic reports with the U.S. Securities and Exchange Commission (the "Nasdaq Letter"). The Company received the Nasdaq Letter because it has not timely filed its annual report on Form 10-K for the fiscal year ended December 31, 2010. The Nasdaq Letter has no immediate effect on the listing or trading of Wonder Auto's common stock on Nasdaq.
As previously announced in the Company's Form 12b-25 filed with the U.S. Securities and Exchange Commission on March 17, 2011, the filing of the Company's 10-K for the year ended December 31, 2010 has been delayed due to the Company's determination that its financial statements as of and for the years ended December 31, 2008 and 2009, included in its Annual Report on Form 10-K for the year ended December 31, 2009, as well as the financial statements included in its Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30 during each of the years 2008 and 2009, should no longer be relied upon due to a cutoff error regarding timing of revenue in such periods. The Company is continuing to evaluate the impact of the cutoff errors on its financial results for the year ended December 31, 2010 and on its internal control over financial reporting as of December 31, 2010. Subject to the evaluation described above, the Company continues to expect to meet the guidance for revenue and profit for the year ended December 31, 2010 previously announced in its press release dated November 9, 2010.
The Company received the Nasdaq Letter on March 23, 2011. Pursuant to the Nasdaq Letter, the Company has 60 calendar days, or until May 23, 2011, to submit a plan to NASDAQ to regain compliance with the Nasdaq Listing Rules. If Nasdaq accepts Wonder Auto's plan of compliance, NASDAQ may grant the Company an extension of up to 180 calendar days from the due date of the annual report on Form 10-K, or until September 12, 2011, to regain compliance.