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12-11-2007
When
the opening bell on the NASDAQ exchange sounded Wednesday Beijing Time, China's
leading manufacturer of automobile electrical and suspension parts, Wonder Auto
Technology Inc., staged a debut on the global stock market.
Under the
ticker code "WATG", the manufacturer based in Jinzhou of northeast China's
Liaoning Province, completed a reverse merger last June, with shares trading first
on the OTCBB market and for the ultimate overseas listing.
Chairman and
chief executive officer Zhao Qingjie identified the listing as "a significant
step" to exploring overseas markets.
"Our strategy is to let
China's highly value-added auto parts industry to branch into the world market
dominated by Europe and the United States," he said.
Industry experts
foresee tremendous growth potential for China's auto parts manufacturers as the
country overtook Germany in the first quarter to become the second largest auto
parts supplier to the United States and is embracing an unprecedented boom in
car making.
On Wonder's client lists are scores of automobile and engine
manufacturers including Beijing Hyundai, Shenyang Mitsubishi, Beijing Benz-Daimlerchrysler,
SAIC-GM-Wuling and Chery.
The company's production capacity has more
than quadrupled from930,000 units to four million units over the past decade while
its product mix expanded from 15 to 220 items. Last year, its generators alone
accounted for 16 percent of China's new car market while starters controlled another
13 percent, making its total market share the second largest in China.
Zhao
said the company planned to use bank loans to install two new production lines
to expand its annual production capacity to 4.5 million units so as to meet the
market demand of this year and2008.
According to its third quarter financial
report, Wonder Auto Technology saw 27.3 million U.S. dollars in sales, a rise
of 40 percent from 19.5 million U.S. dollars from the third quarter of last year.
Gross profits rocketed by 78 percent from four million U.S. dollars to 7.1 million
US dollars while net income grew by 55percent from 2.4 million U.S. dollars to
3.7 million U.S. dollars.
The fully diluted earnings per share edged
up 50 percent from ten U.S. cents in the third quarter of last year to 15 U.S.
cents.
The sales revenue for 2007 was expected to surge more than 40
percent to 700 million yuan or 93.8 million U.S. dollars with the product output
rising to 840 million yuan or 112 million U.S. dollars.
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