Advanced Battery (ABAT) Providing Financial Guidance for Wuxi Autocycle

Advanced Battery Technologies (ABAT), which recently acquired Wuxi Autocycle to break into the electric bike biz is providing some financial guidance for Wuxi with 3 year projections. ..

Wuxi currently has 4 production lines in operation with production capability of 100 vehicles per day per line but is currently operating at lower than 20% of total capacity.

For the period of May through December of 2009, the company believes Wuxi will contribute revenue of $35.0 million – $37.5 million and gross profit of $9.2 million to $9.7 million.  For 2010, the company believes that growth in domestic and international demand for its products will continue and Wuxi production will reach approximately 2/3 of current capacity, or contribute $55.0 million to $65.0 million revenue, by the end of next year. For 2011, the company expects to utilize at least 80-85% of current capacity.

Mr. Zhiguo Fu, CEO of ABAT added, “We are very excited about the growth potential we see at Wuxi Autocycle. Wuxi  has world class production facilities that can handle the growing demands for electric and hybrid electric vehicles. Demand is strong in both domestic and international markets as individuals and industries shift to electric and hybrid vehicles and new-energy cars. Whereas most companies focus either on battery manufacturing or electric vehicle manufacturing, ABAT is now uniquely positioned as it has manufacturing capability in both the battery and electric vehicle market. Wuxi’s and ABAT’s combined manufacturing capabilities including the ability to produce vehicles, batteries and many key vehicle parts means Wuxi can produce high quality vehicles with margins that are superior to its competition.”

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