A-Power Announced Today That Its Acquisition Candidate, Liaoning International Construction & Engineering Group, Was Awarded Two
March 05 2008 - 8:00AM
Business Wire
A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR)�(NASDAQ:
APWRW) (NASDAQ: APWRU) (�A-Power�) announced today that its
acquisition candidate, Liaoning International Construction &
Engineering Group (�LICEG�), has signed two phase 1 construction
contracts with Beijing Shougang Co., Ltd. (SSE:000959) worth a
total of $11 million. Beijing Shougang, founded in 1919, is the
fourth largest steel producer in China and is working closely with
the PRC government to relocate all of its heavy polluting steel
factories out of Beijing into neighboring provinces prior to the
Olympic Games. Mr. Jinxiang Lu, A-Power�s Chairman and CEO,
commented, �We are looking forward to completing the acquisition of
Liaoning International Construction & Engineering Group. The
acquisition of LICEG will be a strategic addition and extension of
our design, construction, installation and project management
capabilities and will expand our business domestically while
simultaneously accelerating our entry into the international
markets. LICEG reported 2007 revenue of $93 million (unaudited) and
net income of approximately $3 million (unaudited). By grafting our
processes and control systems onto their contracts we expect to be
able to bring their profit margins up to ours over time. �Following
the acquisition of LICEG and through its initial contracts with
Beijing Shougang, we believe that we will be the only non
state-owned company involved in the relocation of large factories
from Beijing to neighboring provinces. With the upcoming Olympic
Games and the new Clean Air Act, many companies, including Beijing
Shougang, are receiving government support to close down and
relocate to areas outside of Beijing. We expect these initial
contracts to be the beginning of our co-operation with Beijing
Shougang and its massive $5 billion relocation process.� About
A-Power A-Power Energy Generation Systems, Ltd., formerly Chardan
South China Acquisition Corp., through its PRC operating
subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest
provider of distributed power generation systems in China and will
enter into China�s wind energy market in 2008. The Company is also
focused on developing and commercializing additional renewable
energy technologies and has strategic relationships with both
Tsinghua University and the China Sciences Academy in Guangzhou.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
about A-Power and GaoKe. Forward-looking statements are statements
that are not historical facts, including statements relating to the
contemplated acquisition and new contracts. Such forward-looking
statements, based upon the current beliefs and expectations of
A-Power�s and GaoKe�s management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: business conditions in China; continued
compliance with government regulations; legislation or regulatory
environments, requirements or changes adversely affecting the
businesses in which GaoKe is engaged; cessation or changes in
government incentive programs; fluctuations in customer demand;
management of rapid growth and transitions to new markets;
intensity of competition from or introduction of new and superior
products by other providers of distributed power generation and
other energy generation technology; timing, approval and market
acceptance of new product introductions; general economic
conditions; geopolitical events and regulatory changes; as well as
other relevant risks detailed in A-Power�s filings with the
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Neither A-Power nor
GaoKe assumes any obligation to update the information contained in
this press release.
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