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 upward revised guidance to its operating results for its first quarter operating results ended March 31st, 2010.
For the quarter, the Company projects its revenues will exceed US $63.0 million and that its net income will exceed US $7.3 million. These operating results reflect a year-over-year organic growth rate of above 57% and 40% for revenue and net income growth, respectively.
The Company’s strong operating results were achieved due to better-than- expected sales activity and margin performance in combination with a continuing resurgence in China’s macro economy. In particular, a high growth rate in China’s onshore auto sales had a positive impact on Wonder Auto’s results. Based on visibility in business condition, the Company expects such favorable macro economic conditions relating to China’s on shore auto sale environment to continue.
Mr. Qingjie Zhao, Chairman and CEO of Wonder Auto, expressed: “The Board of Directors is pleased with Wonder’s achievement in the first quarter of 2010. Wonder Auto’s first quarter results are not only the result of outstanding organic performance, but are also the result of significant expansion in the auto safety business and alternative energy vehicles components business. We believe these favorable dynamics, in addition to renewed strength in China’s onshore auto market, point to a highly favorable operating environment for Wonder Auto in 2010 and following years. Wonder Auto’s performance, as well as aggregate China auto market statistics, corroborate long-term growth trends in the Chinese automotive market, as compared to short-term behavior from the 2009 Chinese government stimulus. We see multiple signs of a continuing resurgence in the Chinese automotive market attributable to strong onshore consumer behaviors.”
Wonder Auto plans to announce its full first quarter, 2010 operating results around early May.
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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