Shares in China's leading manufacturer of auto electrical and suspension parts, Wander Auto Technology, opened at $8.78 in its NASDAQ debut on Wednesday night Beijing time.

The manufacturer, based in Jinzhou, Liaoning Province, completed a reverse merger last June, with shares trading first on the OTCBB market before the overseas listing.

Zhao Qingjie, chairman and chief executive officer, identified the listing as "a significant step" to exploring overseas markets.

"Our strategy is to let China's high value-added auto parts industry 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 after the country overtook Germany in the first quarter to become the second largest auto parts supplier to the United States, and it embraces an unprecedented carmaking boom.

On Wander's client lists are scores of auto 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 from 930,000 to 4 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 plans to use bank loans to install two new production lines to expand its annual production capacity to 4.5 million units to meet market demand this year and next.

According to its third-quarter financial report, Wander had sales of $27.3 million, a rise of 40 percent from $19.5 million in the same period last year. Gross profit rocketed by 78 percent from $4 million to $7.1 million while net income grew by 55 percent from $2.4 million to $3.7 million.

The fully diluted earnings per share edged up 50 percent from 10 cents in the third quarter of last year to 15 cents.

Sales revenue for this year is expected to surge more than 40 percent to 700 million yuan or $93.8 million, with product output rising to 840 million yuan or $112 million.

Xinhua

(China Daily 11/09/2007 page13)