OT - APWR - Former WU Play
A-Power Enters into an Agreement to Acquire Liaoning International Construction & Engineering Group
Last update: 11:24 a.m. EST Feb. 14
SHENYANG, China, Feb 14, 2008 (BUSINESS WIRE) -- A-Power Energy Generation Systems, Ltd. (APWR:APWR APWRU, , ) ("A-Power"), announced today that it has entered into an agreement to acquire Liaoning International Construction and Engineering Group (LICEG), one of China's leading construction and engineering companies.
LICEG was incorporated under the Construction Commission of the Liaoning Province, and is one of a limited number of construction and engineering companies in China with a Class-A license that permits it to undertake international power and infrastructure projects and to construct various power systems, energy and infrastructure projects of any size in China. A-Power currently has a Class-B construction license and must work with Class-A companies to complete the construction of its distributed power generation systems over 25 MW in size.
Since its inception in 1993, LICEG has completed a large number of projects in not only China, but in Africa, Eastern Europe and the Asian Pacific region. In the latest fiscal year for which audited financials are available (2006), LICEG recorded revenue of approximately US$70 million and net income of approximately US$2.3 million.
Mr. Jinxiang Lu, A-Power's Chairman and CEO, commented, "The acquisition of LICEG will be a strategic addition and extension of A-Power's existing design, construction, installation and project management capability. A-Power plans to expand internationally and LICEG's international experience will dramatically accelerate our entry into those markets.
"We are confident that we can leverage the talented professionals in LICEG to increase the revenue generation and profits from our core distributed power generation business. In addition, by grafting our processes and control systems onto their contracts we expect to be able to bring their profit margins up to ours."
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.
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