-- To Incentivize Key Employees to Target Annual 40% Growth For Next Three
Years --
JINZHOU CITY, Liaoning, China, May 6 /Xinhua-PRNewswire-FirstCall/ --
Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"),
a leading manufacturer of automotive electrical and suspension parts in China,
today announced that the board of directors of the Company has adopted the
2008 Equity Incentive Plan (the ''Plan'').
As part of the Plan, the Company's compensation committee has approved the
grant of 542,000 stock options to certain of its key employees and directors
which will vest over the next 3 years upon achievement of targeted annual pro
forma net income of US$22 million for 2008, US$30.8 million for 2009 and
US$43.15 million for 2010. One-third of the options will vest each year upon
achievement of the respective targeted pro forma net income. As approved by
the compensation committee, the targeted pro forma net income equals the
after-tax net income as reported in the Company's Annual Report on Form 10-K
plus two non-cash expenses, including the stock option expenses resulting from
any grant of Award under the 2008 Plan and redemption accretion on convertible
notes (if any). The options have an exercise price of US$9.00 per share and
will terminate 15 months after the respective vesting date. Approximately 65
Wonder Auto personnel will receive these options with 42.8% of the options
allocated for senior management and directors. The remaining options are
allocated to a broad range of Wonder Auto's staff.
Subject to the approval by the Company's stockholders at any time within
12 months of this adoption, the Plan authorizes issuance of up to 3.5 million
shares and has a term of 10 years unless it is terminated sooner by the board
of directors of the Company.
Mr. Qinjie Zhao, Chief Executive Officer of Wonder Auto, commented, ''This
incentive plan will inject great enthusiasm into the management team and key
employees throughout the Wonder Auto organization to reach our goal of growing
pro forma net income by 40% for another 3 consecutive years from 2008 to
2010.''
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 and suspension products. Wonder Auto was ranked
second in sales revenue in the China market for automotive alternator and
starter in 2006. With respective 5 different series and over 150 models of
alternators, 70 models of starters and various suspension related parts, the
Company supplies to a wide range of automakers, engine producers and auto
parts suppliers both in domestic China and overseas. Wonder Auto's main
customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi
Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine
Manufacturing Co., Ltd., and Tianjin FAW Xiali Automotive Co., Ltd. For more
information, please log on to http://www.watg.cn .
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such statements
include, among others, those concerning our goal for net income growth as well
as all assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such forward-looking statements are
not guarantees of future performance and that a number of risks and
uncertainties could cause actual results of the Company to differ materially
from those anticipated, expressed or implied in the forward-looking
statements.
The words "believe," "expect," "anticipate," "project," "targets,"
"optimistic," "intend," "aim," "will" or similar expressions are intended to
identify forward-looking statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements.
Risks and uncertainties that could cause actual results to differ materially
from those anticipated include risks related to new and existing products,
product defects and any related product recall; any projections of sales,
earnings, revenue, margins or other financial items; any statements of the
plans, strategies and objectives of management for future operations; any
statements regarding future economic conditions or performance; uncertainties
related to conducting business in China; any statements of belief or
intention;
any of the factors and risks mentioned in the "Risk Factors" section of our
Annual Report on Form 10-K for the year ended December 31, 2007 and any
subsequent SEC filings. The Company assumes no obligation and does not intend
to update any forward-looking statements, except as required by law.
For further information, please contact:
Yuechun Xie
Investor Relations Manager
Wonder Auto Technology, Inc.
Tel: +86-416-266-1186
Email: ycxie@watg.cn
Kevin Theiss
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
SOURCE Wonder Auto Technology, Inc.
Yuechun Xie, Investor Relations Manager of Wonder Auto Technology, Inc.,
+86-416-266-1186, or ycxie@watg.cn; Kevin Theiss, Investor Relations of The
Global Consulting Group, +1-646-284-9409, or ktheiss@hfgcg.com
