A-Power Energy Generation Sys (MM) (NASDAQ:APWRU)
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From May 2019 to May 2024
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 entrée 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.