APWR $17.19
Shares Outstanding 13.00 M
Float: 12.09 M
2/5/2008

A-Power Energy Generation Systems, Ltd. designs, constructs, and tests distributed power generation systems to factories and users in the People's Republic of China. It incorporates standard power generating equipment into an integrated system that includes refined control systems to balance power generation with demand. The company also offers automatic control system, which monitors the performance of equipment in the system, including the boiler, turbine, generator, grid supply, demand, and distribution, as well as space and water heating functions. Its target customers include companies operating in various industries, including steel, chemical, cement, food processing, and ethanol; and municipal governments, as well as state-owned Chinese power companies. The company was founded in 2003 and is based in Shenyang, the People's Republic of China.

Friday February 1st A-Power Energy Generation Systems, Ltd. announced that its wholly owned Chinese operating subsidiary, Liaoning GaoKe Energy Group (“GaoKe”), has received letters of intent for 380 2.5 MW wind turbines, a number that will utilize all of its anticipated plant capacity through 2009. The company is presently engaged in negotiations to finalize these contracts and turn them into purchase orders. As was previously announced, the first phase of the plant is scheduled to be completed in the third quarter of this year.
 

Mr. Edward Meng, A-Power’s CFO commented, “As we have previously announced, we have recently acquired rights to both 2.5 MW turbines from Fuhrlander AG of Germany and 225 kW and 750 kW turbines from Norwin A/S of Denmark and we are planning to begin producing these in our new facility in Shenyang later this year. At this time we are very glad to report that we have already received a number of letters of intent that aggregate to 380 units to purchase the 2.5 MW turbines.

 
In addition, we have received a number of LOI’s for Norwin’s 750 KW turbines. As previously stated, the sales price for the 2.5MW wind turbine is expected to be RMB 20 to 24 million ($2.7 to $3.2 million), while the 750kw turbine is expected to sell for RMB 3.4 to 3.7 million ($0.46 to $0.51 million). Both are expected to have gross margins of approximately 8 to 12%. In order to meet this demand as quickly as possible, we are making arrangements to import many of the subassemblies from suppliers around the world that presently supply Fuhrlander and Norwin. Over time we are confident that we will be able to identify second-source qualified suppliers for many of these subassemblies in China to further improve the gross margins.”

Liaoning High-tech Energy Group is the only private enterprise in China that has acquired national contract qualification for national electrical projects on overall contracting. The company has 16 subsidiaries, 12 branch companies with a total registered assets of RMB 350 million. In recent two years, over 30 enterprises have become the group’s allies and partners and have made the group be able to control a bankroll up to RMB 10 billion. There are 25 power plant construction projects having been signed by the group with total contracting amount over RMB 6billion from 2003-2005. There are 6 projects under construction in 2005 and the project quantum will be 1 billion within the year. In 2004, the group passed ISO9001 International Quality System Certification and Environment, Occupational Health and Safty Management System Certification, and it has become one of the top 100 private-owned enterprises in integrate strength in Liaoning Province.


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.

 

Contact

 
A-Power Energy Generation Systems, Ltd.
625 Broadway
Suite 1111
San Diego, CA 92101
Phone: 619-795-4627