Brief Introduction of Wonder Auto Technology, Inc.

One  Brief Introduction
        Wonder Auto Technology, Inc.(NASDAQ share code: WATG), which is located in Liaoning, China, owning five subsidiaries at present, 2 of them are under construction. The company has ten years experience in the field of manufacturing alternators and starters, is a leading supplier in the automotive alternators and starters industry in China. The capability of production in 2006 is 3.5 million units.
        The company pursues researching and manufacturing all types of alternators and starters for sedans and commercial vehicles. At present, it can produce alternators and starters of more than 150 and 70 verities respectively. In order to remain the competitive advantage in the automobile industry, WATG pursues to adopt the strategy of keeping the technology and total cost advanced with strong technology power and R&D capability. The company owns two R&D centers located in Jinzhou, Liaoning and Beijing         respectively. The R&D team consisted of 71 professionals engaging in research, development, test, products, process improvement and application of new materials. 10 of them are foreign experts. The company possesses 50 alternator and starter related national patents, all of which have been applied in its products. The company has set up strategy cooperation with Korea Hivron automobile electric company, getting down to the research and development of advanced automobile electric technology and product together.
        The company sets up long term OE business relations with more than 50 automobile and engine manufacturers in China, including Beijing Hyundai Motor Company and Dongfeng Yueda Kia Motor Company with exclusive relationship, and the most competitive domestic engine providers such as Shenyang Mitsubishi Aviation Engine Company and Haerbin Dongan Engine Company. Recently, new contracts suceeded include first run orders from Beijing Benz-Daimler Chrysler Automation, Nanjing MG Rover Motor Company Ltd and Nanjing FIAT. Both contracts have broaden the Company’s market penetration beyond the mid and low end engine capacity market. After the WTO entry, the automobile demand in Chinese has experienced a conspicuous process of growing: the growth in 2004, 2005 and 2006 exceeds 20% respectively. The volume of China made automobiles is, for the first time, surpassed 7 million units in 2006. China has become as the second biggest automobile market worldwide at present.
        Despite of the above, the rate of GDP per capita for auto ownership is quite low comparing with that in the U.S., European and Japan(U.S. have more than 650 autos per thousand persons, while Chinese have less than 30 per thousand persons). Owing to the GDP per capita has great potential growth; the demand in the auto will further expand in the coming ten years, China will become as the largest country of autos production and demand. WATG will be the best beneficiary of generators and starters in the process of the growing demand. With the increasing in auto component sourcing in Chinese market by the foreign auto manufacturer, WATG will expand its domestic and world market by means of brand acceptance, controlled quality, lower cost, research and development, and strategic acquisition as well. Watg will become the largest worldwide starters and generators supplier.