A-Power Energy Generation Systems, Ltd. Announces Corporate Update
January 24 2008 - 8:00AM
Business Wire
A-Power Energy Generation Systems, Ltd.
(NASDAQ:APWR)(NASDAQ:APWRW)(NASDAQ:APWRU) (�A-Power"), previously
Chardan South China Acquisition Corporation (CSCA, CSCAW, CSCAU),
announced that it has completed the acquisition of 100% of the
common stock of Head Dragon Holdings Limited, which controls PRC
operating subsidiaries known as the Liaoning GaoKe Energy Group. As
part of that transaction, Chardan South China Acquisition Corp.
merged into its BVI subsidiary, A-Power Energy Generation Systems,
Ltd, which had previously changed its name from China Energy
Technology Limited. As previously announced, A-Power received
approval to list on the NASDAQ Capital Market and its stock began
trading on NASDAQ on Tuesday, January 22. Assuming all outstanding
preferred shares of Head Dragon Holdings accept the exchange offer
to convert their shares to A-Power common stock, A-Power will have
a total of 20,650,000 common shares, 11,500,000 warrants, and no
preferred shares outstanding. Jinxiang Lu, A-Power�s Chairman and
CEO, stated, �We are extremely excited about the merger and NASDAQ
listing and the enhanced visibility and liquidity that comes with
such a listing. This transaction has made us a financially stronger
and more transparent company. This, in turn, will enable us to take
advantage of a greater number of opportunities, both domestically
and internationally, and will help accelerate our growth to become
one of the leading green energy companies in Asia. After the close
of the merger, we held our first board meeting with our newly
appointed board of directors. This was an exciting event for me
personally, and I look forward to working closely with our board
and for them to assist us in making strategic business decisions
going forward. Our newly appointed board includes experts in the
financial and energy sectors spanning Asia, Europe and the U.S. At
this initial board meeting we established our governance committees
and agreed that we will report our financial results and hold
investor calls on a quarterly basis. We feel that this is the best
way to communicate with our global investor base and it will keep
all of our shareholders better apprised of the company�s progress
going forward. For a brief update on the present state of our
operations, our base distributed power generation business is
performing very well and continues to experience substantial
growth. In this regard we are confident that we exceeded the 2007
incentive share operating after tax earnings target of US$14
million. As we continue to pursue our goal of becoming one of the
leading green energy companies in Asia, we are actively exploring a
large number of extremely interesting opportunities that utilize
other renewable energy technologies, like wind. As we previously
outlined, we have the exclusive right to develop wind farms in
seven different areas in the Inner Mongolia and Liaoning Provinces.
These farms have a combined wind energy capacity of approximately 2
GW. As part of our entr�e into the wind business, we have commenced
the construction of a wind turbine production facility in Shenyang,
China and are in the process of finalizing agreements which will
give us exclusive rights to some of the most advanced wind turbine
technology in the world. The first phase of the plant will be
180,000 square feet and is expected to be completed in mid-2008. In
this first phase we expect to focus on supplying wind turbines to
the booming domestic PRC wind market. That market, according to
China�s government, is expected to grow to over 50 GW by 2020, up
from just 2.2 GW of output in 2006 and 1.2 GW of output in 2005. To
help reach this target, China enacted The Renewable Energy Law that
requires state owned utilities to purchase all of the energy
generated from wind farms at fixed, long-term competitive rates.
This new policy has given further incentives to develop wind farms
in China and is expected to continue to spur substantial growth in
China�s wind energy market. By virtue of our exclusive wind farm
rights and anticipated wind turbine production capability, A-Power
expects to play a major role in this growth.� 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 Liaoning GaoKe Energy Group, Ltd. (�GaoKe�). Forward-looking
statements are statements that are not historical facts, including
statements about A-Power�s future plans and expectations. 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: potential trade barriers
affecting international expansion; 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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