Wuhan General Group China Inc (OTC:WUHN)

Barcelona, Spain, Aug. 15, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Wuhan General Group, Inc. (OTC PINK: WUHN) (the "Company" and "Wuhan"), is positioning itself to become a major player in the US$166B medical CBD (cannabidiol) space, as well as the promising psilocybin and medicinal mushroom health sector. The company is pleased to announce that Dr. Hyder A. Khoja (“Dr. Khoja”) is joining Wuhan General Group as Chief Scientific Officer. In his role as CSO, Dr. Khoja will oversee the company’s core research and product development to commercialization.

Dr. Khoja is a trusted and distinguished global leader in cannabinoid & psychedelic medicine. He possesses comprehensive knowledge of the pharmaceutical and dietary supplements industries. His extensive industrial experience spans from advising, innovating and developing cutting-edge projects, to holding various senior-level executive and senior research positions at various biotech companies, universities, and research institutes. His expertise in science and policy domains have led to a distinguished career in scientific research and business development. Dr. Khoja is excited to apply his extensive knowledge with Wuhan to advance botanical-based medicine within the realm of cannabis and mushrooms.

“We extend a warm welcome to Dr. Khoja in this new post,” said Jeff Robinson, CEO of Wuhan. “I have great confidence in Dr. Khoja as an accomplished scientist and recognized leader with a passion for molecular biology and genetic engineering, and with a track record of translating ideas into action, including innovation, commercialization and knowledge mobilization. Dr. Khoja also brings an extensive background in building multi-stakeholder teams and achieving impact on a national and international scale,” Jeff further commented. “This is a huge move forward for Wuhan to bring onboard such remarkable caliber as we move into drug discovery. We will be able to leverage his knowledge and our lab’s cannabis and psychedelics analytics to validate consistent medical-grade compounds for therapeutics. I expect that after we showcase our abilities, we will look for potential licensing opportunities with pharmaceutical companies.”

Dr. Hyder A. Khoja said: “It is the ideal time and opportunity for me to step in and guide Wuhan along the right path and continue my passion for bringing plant genomics and metabolomics for therapeutics to market. As the company is developing its drug discovery and diversifying its technology, I’m eager to leverage my expertise for the goals of the company and its shareholders.”

“We are delighted to have Dr. Khoja on board, with his scientific and industrial expertise, to support our mission of bringing botanical-based medicine to the forefront and lead our scientific and clinical research endeavors,” said Wuhan Chief Medical Officer, Dr. Anna Morera Leralta.  

BARCELONA, Spain, May 17, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (WUHN) (the "Company" and "Wuhan"), is thrilled to announce the signing of a very remarkable Letter of Intent (LOI) with Biodelta. 

The LOI calls for the purchase by Wuhan of 49% of the land, buildings, and infrastructure including the specialized greenhouse and drying ovens. A full agreement between the parties is expected to be reached in 45 days. More details will be made available after the signing of the full agreement. The assets to be acquired include but are not limited to:

• 1.3 million square feet of cultivation space of which 300,000 square feet is turnkey and ready to go as necessary permits are approved and issued. The additional 1,000,000 sq ft. will be built out and readied for early 2021.
• Specialized processing factory ISO 22000
• 8 Industrial GMP compliant dryers
• Water rights

"When we visited Biodelta in South Africa last month and saw first-hand the opportunity and possibilities we knew this was a deal that had to be made. This puts Wuhan on the global stage immediately in terms of sheer size and cannabis production capacity. Preliminary forecasts would see Wuhan produce 36,000 kg in phase one (300k sq. ft), and 175,000 kg (1.3M sq. ft) at full capacity," said MJ Medtech CEO Jeff Robinson.

Leon Giese, Biodelta CEO added: "Biodelta has been at the forefront of South Africa's algal biotech industry since 2004 through its growing and commercialization of Spirulina products into the pharma market in Europe, Asia, and the Americas. Biodelta recognizes the massive opportunity to exploit the growing worldwide demand for South African medicinal herbs. Biodelta has the facilities in place currently to grow under 300,000 square feet of specialized greenhouse and to evaporatively dry, process, formulate, brand and distribute a range of value-added CBD products into its retail pharmacy market throughout Southern Africa as well as its customers worldwide."

BARCELONA, Spain, April 05, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the "Company" and "Wuhan"), announced today that its subsidiary MJ MedTech, Inc. (MJ MedTech) has created a new division dedicated to exploring opportunities in the psychedelic medicine space. The new division, M2BIO will be headed up by Wuhan's CMO, Dr. Anna Morera Lorelta.

According to Dr. Anna, psychedelic medicine is experiencing a remarkable revival in the wake of recent research studies and positive findings from great institutions, such as Johns Hopkins. Researchers are having great success in treating depression, post-traumatic stress disorder (PTSD), anxiety and certain addictions with Psilocybin, the active naturally occurring psychedelic pro-drug compound produced by specific mushrooms, known as "magic mushrooms".

Psilocybin therapy is a medical practice in which psilocybin, a psychoactive medicine, is administered to a patient during a session supported by a therapist. A psychoactive medicine is one that affects brain function and results in a change in cognition, perception or behavior.

''Psilocybin has become a very promising candidate for future treatments for anxiety and depression because it appears to disrupt the sorts of engrained brain activity patterns that are the hallmark of those diseases.'' Said Dr. Anna.

"Just like it took time for the regulators to get behind marijuana, we believe the same will happen with "magic mushrooms" in due course. We want to be far ahead of the curve and become pioneers in the market, collaborating with legislative bodies to help find better and healthier solutions," added MJ MedTech CEO, Jeff Robinson.

The new division, M2BIO aims to develop new therapies that will help patients who suffer from mental illness and ease the burden on healthcare systems globally. This division will be exploring additional indications for psilocybin, with the goal of bringing new therapies to market in the years to come.

LOS ANGELES, Jan. 30, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (USOTC: WUHN) (the "Company" and "Wuhan"), announced today that its wholly-owned subsidiary MJ MedTech, Inc. (MJ MedTech) and Biodelta Nutraceuticals, Ltd. (Biodelta) have entered into a joint venture to develop, brand, market and commercialize the internationally trademarked Dr. AnnaRx.

The joint venture calls for an initial pilot whereby the Dr. AnnaRx line of CBD based products will be sold (as regulations allow) across South Africa in more than 1,000 pharmacies. The data Biodelta collects on the pilot will enable them to ensure the Dr. AnnaRx brand will deliver the highest possible ROI when introduced internationally.

This partnership marks a very strong start to 2019 for MJ MedTech as the Company expects to have product on the shelves by Q2/3 of 2019.

Dr. Anna Leralta, CMO of Wuhan, commented, "I'm thrilled to be working with the very strong scientific team at Biodelta. They have proven for many years their outstanding track record and expertise in the field of science-backed nutraceuticals. They are an ideal partner to help support our vision of developing effective CBD products backed by sound science."

Under the terms of the Agreement, Biodelta will exclusively develop, distribute and merchandise all products sold under the Dr. AnnaRx brand in South Africa and 8 additional African countries across the African continent.

Leon Giese, CEO of Biodelta, added, "There is a growing demand for CBD products in the South African market. Retailers and consumers want a brand they can trust, and we believe Dr. AnnaRx is a perfect fit."

MONTREAL, Jan. 22, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the "Company" and "Wuhan"), announces today that the Company has successfully completed the acquisition of MJ MedTech, a nutraceutical biotechnology company that owns, develops and commercializes a range of CBD-based products under the International trademarked brand Dr. AnnaRx.

With the closing of the acquisition, Jeff Robinson will continue in his role as CEO and President of MJ MedTech, and will be joining the Board of Directors of Wuhan. Also, Dr. Anna Leralta will be appointed Secretary and Treasurer of Wuhan, and will be joining the Board of Directors of Wuhan as well. The reorganization will take place in the coming days as we go through the transition.

"I'm very pleased and excited to have completed the MJ MedTech acquisition, as it represents a significant opportunity to take part in the ever-expanding cannabis sector. At the center of this decision was the value creation we promised to our investors and shareholders, as well as the sustainable success of the Wuhan General Group as a company," said CEO Mr. Kamaneh. "I look forward to integrating both Jeff and Anna into the leadership team of Wuhan."

''Dr. Anna and I are both very eager to begin executing and delivering for Wuhan shareholders. We look forward to sharing our 2019 roadmap and milestones in the very near future," said Jeff Robinson.

CALGARY, Alberta, Oct. 04, 2018 (GLOBE NEWSWIRE) -- ePlay Digital Inc. (CSE:EPY) is delighted to announce a new exclusive strategic partnership agreement signed today with Wuhan General Group (China), Inc. (OTC:WUHN) to utilize Mobvovivo’s Augmented Reality (AR) platform in education, mobile product information, and e-commerce to support medical cannabis and cannabidiol (CBD) product marketing and sales. The companies will work together to create the Dr. Anna MD app - A Practical Guide to Cannabis.

Wuhan recently announced the appointment of Dr. Anna Morera Leralta, ("Dr. Anna") as the company's chief medical officer (CMO). Dr. Anna is a researcher, thought leader and medical practitioner in the integrative medicine and medical cannabis fields.

“Augmented Reality will help people learn about and easily understand the medical benefits of CBD and related cannabis products directly on their mobile phones,” says Dr. Anna Morera Leralta, medical doctor, CMO of Wuhan. “Advancing the community’s insight of cannabis and cannabinoids, and ultimately providing society with alternative options and best practices is badly needed.”

The Dr. Anna MD app will allow users to operate their iPhone and Android cameras to get further information about cannabis products while driving advertising revenue, sales, and data analytics. Information about safety, efficacy, and effectiveness of cannabis and cannabinoids in pain, symptom management, and other conditions, will be available for products worldwide. Manufacturers and retailers will utilize Dr. Anna MD for training staff, marketing, and as a service offered to their retail and e-commerce customers. Customers and patients will rely on Dr. Anna MD to better understand the benefits, safety, and performance of an exploding number of new products.

“Ultimately, people will get to know Dr. Anna, as she appears in Augmented Reality, as a great and trusted source of information for cannabis and cannabinoids,” says Trevor Doerksen, CEO of ePlay Digital. “In situations where packaging and advertising is limited, users will have access to more information from Dr. Anna by simply pointing their iPhone or Android phone at products.”

In Canada, California, and other jurisdictions, governments require utilitarian, plain Cannabis packaging and place heavy restrictions on Cannabis advertising. Dr. Anna will help cannabis consumers learn more about products and where to buy them in real time through iPhone and Android smartphones. As a trusted source in an emerging marketplace more information will appear through interactive video and AR when customers point their camera to any product label or advertising at retail or on a website.

The global legal cannabis market is expected to reach USD 146.4 billion by end of 20251. Growing adoption of cannabis in several medical applications such as cancer, mental disorders, chronic pain and others is expected to propel revenue growth. Marketing and advertising budgets will be funneled into approved approaches such as education and technologies that can deliver more information about products to consumers easily.

MONTREAL, Sept. 11, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the "Company"), a Nevada investment company focused in cryptocurrency mining operations announced today that it's currently negotiating a redesign of a US Defense Department data center to transform it into a Cryptocurrency mining facility. The facility will meet security and power requirements when mining cryptocurrency. It will also provide the Company with an opportunity to set new standards in cryptocurrency mining safety, stability, and security measures.

This new facility will launch at an optimal time in the market to strengthen the Company's cryptocurrency mining division for highly scalable and flexible mining operations across all major cryptocurrencies. The Company benefits from low-cost North American power, a cool climate, and high-speed Internet, which is critical to mining success, placing it in a competitive position to maximize profitability. Ultimately, the project comes at a time that will serve in the Company's and shareholders' best interests.

The 55,0000 sq. ft facility has over 3MW of power ready to accommodate up to 1300 mining machines for Bitcoin, Zcash, and others with an additional 12,000 to be deployed upon successful completion of its upgrade to a 30MW facility in 2019. Once the negotiation is finalized, the first order of rigs from Asicminer is expected to arrive in late October and more in the coming months. The Company estimates this operation to bring monthly revenue in excess of $3.5M based on current cryptocurrency market prices for the initial 1300 mining machines in operation. More information will be shared regarding the progress of the project when available.

Ramy Kamaneh, CEO said: "We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy. The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market. We acted in the best interests of the Company and its shareholders and firmly believe that the market has bottomed and a bullish market is starting again."

In addition to providing optimal cryptocurrency mining performance, the facility will adhere to strict safety and security standards. As a leader in streamlined solutions that respond to the impacts of the tech industry, the Company believes that this project will increase in value and also create opportunities for innovation within the sector.

MONTREAL, Aug. 29, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the "Company"), a Nevada investment company focused on the industrial technology market space, announces today that, starting next week, they will begin a series of common share cancellations to reorganize the share structure of the Company to increase shareholder value.

The company intent to reduce its outstanding common shares from 100 million to approx. 35 million shares, with a press release confirming each transaction as they occur. All canceled shares will be returned to the company treasury to be used in future acquisitions of businesses and assets. This will work to stimulate the company's growth and increase value for current and future shareholders.

Ramy Kamaneh, CEO said: "We are excited about initiating our strategy roadmap, hence creating wealth for our investors. It shows the trust we have in the process of expanding this company, and we look forward to what is to come."

This restructuring is not only an important step for the company, but also signifies a growing strength in mining electrification, cryptocurrencies, industrial batteries, Internet of Things hardware, and artificial intelligence -- all promising niche markets. As Wuhan General Group continues to narrow its focus on the service of growth, ethics, sustainability, and safety in growing industries, investors are provided an opportunity to get the best shareholder value.

Addressing the name and ticker change, the company has decided to postpone this change until Q1 2019. At that time, the company will audit their past three years' finances to secure their title as a fully reporting company. Once this is achieved, Wuhan General Group will reapply with Finra.

MONTREAL, Aug. 14, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc./ SDT Holdings, Inc.  (OTC PINK: WUHN) (the "Company"), an industrial technology company focused on creating industrial batteries and electric equipment for the mining, construction and agricultural industries announced today that for the period ended June 30, 2018, gross revenue from its consulting services division increased 140 percent as compared to the same period in the previous year. Gross revenue for the period ended June 30, 2018 was $154,000 as compared to $64,000 for the same period in the previous year. In addition, the company has begun to see positive cash flow in the second quarter of 2018.

“Our consulting-services team achieved a strong six months characterized by solid revenue growth and major core development, while navigating this challenging phase of going public,” said CEO Ramy Kamaneh.

Mr. Kamaneh continued, “As many industries move away from gas and diesel power and adopt electric vehicles and other equipment, we expect to see a pattern of high double digit revenue growth going forward. Our deep understanding of the specifications for these industrial batteries along with the in-field operations of various industries allows us to have a competitive advantage when we are asked to provide a solution for some of North America’s largest companies.”

MONTREAL, July 25, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE  --  SDT Holdings, Inc. / Wuhan General Group (China), Inc. (OTC PINK:WUHN) (the "Company"), a Montreal-based industrial technology holding company serving various industries through their four subsidiaries, filed its Information and Disclosure Statement with OTC Markets.

The Company's Information and Disclosure Statement includes financial statements for the years ended 2016 and 2017, as well as first quarter 2018. The Company believes it has now filed the necessary documentation with OTC Market to achieve Current Pink status.

The Company has also filed Articles of Amendment with Nevada Secretary of State changing the Company's name from "Wuhan General Group (China), Inc." to "SDT Holdings, Inc." The Company has begun work with FINRA to implement the name change and is seeking to change its ticker symbol. Potential options for the new ticker symbol include "SDTH" and "SDTG" which are under consideration as well as others if these they are unavailable.

"We are very happy to have made our financials available on the OTC Markets website," commented Ramy Kamaneh, CEO of WUHN. "We are extremely grateful for all the hard work that our financial and legal teams have put in place to lead us today. We do not control the outcome of these efforts, which took more time and capital than originally planned, but we believe that improving transparency for our investors is an important milestone, and with all these changes undertaken, we hope to continue to grow our business and create strong shareholder value."

MONTREAL, June 13, 2018 (GLOBE NEWSWIRE) -- SDT Holdings, Inc. / Wuhan General Group (China), Inc. (OTC PINK:WUHN) (the "Company"), a Montreal-based industrial technology holding company serving various industries through their four subsidiaries, announces major developments.

''Launching a business like SDT and going public is both exciting and overwhelming at the same time," said CEO, Ramy Kamaneh. "We've been busy working toward achieving multiple milestones in the first half of 2018 to build the necessary foundation and structure required for long-term growth and shareholder value improvement."

Launched New Corporate Website

The Company is proud to announce the launch of its corporate website, an important milestone that directly reflects the Company's vision and will serve a key role in communicating with investors and customers.

Please visit the company's new corporate website to learn more:  https://sdtholdings.com/

Team Members Additions

Gerald Bernstein has been appointed Chief Financial Officer of SDT Holdings.

''We're pleased to welcome Gerald to the team," said CEO, Ramy Kamaneh. "His financial expertise and knowledge of the public space will be an important asset to the company. By quickly integrating with the company, Gerald will help fast-track our process of becoming a fully reporting company in the coming weeks."

Patents

The company has engaged Anglehart et al., an IP-focused law firm, for pending and future intellectual property applications. Progress is already being made in this arena and the Company expects intellectual property to add significant value to its balance sheet.

MONTREAL, Jan. 23, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire -- SDT Holdings, Inc. / Wuhan General Group (China), Inc. (OTC PINK:WUHN) (the "Company").

SDT Holdings, Inc. is a Montreal-based industrial technology parent company that focuses on the development, production and commercialization of its subsidiaries: Mining Electrification, Cryptocurrencies/blockchain, Industrial Batteries and Internet of Things / Artificial Intelligence for the industrial market. We are dedicated to supplying quality, innovative technologies and battery solutions for the Transport, Mining, Agricultural, Industrial and Earthmoving Industries.
 
The Company will be announcing in the coming days a sequence of corporate updates and developments (joint ventures, acquisitions, contracts ...) regarding the parent company as well as its subsidiaries. Let this be the start in establishing trust and transparency with our current and prospective investors.
 
"We have spent a lot of time and resources in getting the Company reinstated with the state of Nevada as well as other transactions and we couldn’t be more excited for what’s to come. 2018 will be a great year for us and our shareholders,” stated Ramy Kamaneh, CEO of SDT Holdings, Inc.

Wuhan General Group (China), Inc.

Consolidated Statements of Income

For the three and six months ended June 30, 2012 and 2011

(Stated in US Dollars)

NEW YORK, July 10, 2012 (GLOBE NEWSWIRE) -- The NASDAQ Stock Market announced today that it will delist the common stock of Wuhan General Group (China), Inc. Wuhan General Group (China), Inc.'s stock was suspended on June 15, 2012 and has not traded on NASDAQ since that time. NASDAQ will file a Form 25 with the Securities and Exchange Commission to complete the delisting. The delisting becomes effective ten days after the Form 25 is filed. For news and additional information about the company, including the basis for the delisting and whether the company's securities are trading on another venue, please review the company's public filings or contact the company directly.

Wuhan General Group (China), Inc.

Consolidated Statements of Income

For the three months ended March 31, 2012 and 2011

(Stated in US Dollars)

GeoTeam® Note: 2012 vs. 2011 First Quarter Adjusted EPS was $0.04 vs. $0.07.

Wuhan General Group (China), Inc. (the “Company”) received written notification (the “Notification”) on May 14, 2012 from The NASDAQ Stock Market LLC (“Nasdaq”) stating that the Company’s common stock is subject to delisting from Nasdaq, pending the Company’s opportunity to request a hearing before the NASDAQ Hearings Panel (the “Panel”).

As previously disclosed, on May 17, 2011, the Company received a letter from Nasdaq stating that based on the closing bid price of the Company’s common stock for the previous 30 consecutive business days, the Company did not meet the minimum bid price requirement for continued listing set forth in Listing Rule 5550(a)(2) (the “Rule”).  In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company had a grace period of 180 calendar days, until November 14, 2011, to regain compliance with the minimum bid price requirement.  The Company did not regain compliance by November 14, 2011. On November 15, 2011, Nasdaq granted the Company an additional extension of 180 calendar days, until May 11, 2012, to meet the minimum bid price requirement.

The Notification stated that the Company has not regained compliance with the Rule and if the Company does not request an appeal before the Panel on or before May 21, 2012, the Company’s common stock will be scheduled for delisting at the opening of business on May 23, 2012. The Company has determined that it will appeal Nasdaq’s determination on or before May 21, 2012, which will stay the delisting of the Company’s common stock pending the Panel’s decision. There can be no assurance that the Company will be successful in an appeal before the Panel.

Wuhan General Group (China), Inc.

Consolidated Statements of Income

For the years ended December 31, 2011 and 2010

(Stated in US Dollars)

Second  Quarter 2011 Results

GeoTeam Note: 2010 vs. 2009 Adjusted EPS

• Full Year:  $0.20 vs. $0.31
• Fourth Quarter:  $0.08 vs. $0.22

Our cost of sales increased $14.84 million, or 21.47%, to $83.95 million in 2010 from $69.11 million in 2009. This increase was primarily attributable to our increase in sales. As a percentage of sales, the cost of sales was 76.10% for 2010 compared to 74.85% for 2009. This increase was due to inflation of the overall cost of production.
 
Our gross profit increased $3.14 million, or 13.50%, to $26.36 million in 2010 from $23.23 million in 2009. Gross profit as a percentage of sales was 23.90% in 2010 compared to 25.15% in 2009.

Our selling expenses in 2010 decreased $26,486 or 1.71%, to approximately $1.52 million from approximately $1.55 million in 2009. As a percentage of sales, selling expenses were 1.38% in 2010 compared to 1.68% in 2009. This decrease as a percentage of sales was primarily attributable to a decrease in the payment of sales commissions in 2010 as a result of slower collection rates with respect to our accounts receivable and lower gross margins.

 Our general and administrative expenses increased approximately $4.95 million, or 72.61%, to $11.76 million in 2010 from approximately $6.81 million in 2009. As a percentage of sales, general and administrative expenses were 10.66 % in 2010 compared to 7.38% in 2009. This increase as a percentage of sales was primarily attributable to (i) an arrangement fee incurred in connection with the establishment of the Standard Chartered Loan agreement; (ii) legal fees, auditor fees and a management and consultancy fee incurred in connection with the early termination of the Standard Chartered Loan Agreement; and (iii) additional write offs of bad debt.

Based on comments received from the Securities and Exchange Commission (the “SEC”), the Company’s Chief Financial Officer, after consultation with the Company’s Audit Committee, concluded on March 7, 2011 that the Company’s previously filed financial statements for the year ended December 31, 2009 and for the quarter ended March 31, 2010 should no longer be relied upon because of errors in such financial statements. To correct these errors, the Company has amended and restated the affected financial statements.

• The Company reclassified inventory related to the Huangli Project, which is considered a correction of a classification error.  The amount of $2,188,439 was previously classified in construction-in-progress at December 31, 2008.  The Company moved the amount to the inventory account, and it has been subcategorized as raw materials.  The reclassification caused a $2,188,439 decrease in construction in progress from $30,276,011 to $28,087,572 and a corresponding increase of $2,188,439 in the inventory accounts from $8,395,467 to $10,583,906.  The related total of current assets increased from $88,760,427 to $90,948,867 while the total of non-current assets decreased from $66,311,941 to $64,123,502.  Total assets remain unchanged.  The statement of cash flows for the year ended December 31, 2008 was also impacted by the reclassification.  Cash sourced from operating activities were previously overstated, and cash used in investing activities was previously overstated.  The correction of error decreased the cash generated by operating activities by $2,188,439 and also decreased the amount of cash used in investing activities by $2,188,439.  The impact of the restatement was limited to the presentation of the balance sheet and the related statements of cash flows.  There was no related impact to earnings for the year ended December 31, 2008.
  
• The Company restated the long term loans outstanding due to Standard Chartered Bank at December 31, 2009 as short term, rather than long term as a result of the Company’s noncompliance with certain loan covenants disclosed in Note 12 to the Company’s amended and restated financial statements.  The impact of the restatement is limited to the Company’s classification of liabilities on the Company’s Consolidated Balance Sheets and Note 12.  As a result of the restatement, the short term balance increased from $35,276,347 to $46,758,253 while the corresponding long term loans decreased from $11,481,906 to $0.  The Company’s current liabilities increased from $59,671,630 to $71,153,536.  The Company’s long term liabilities decreased from $11,481,906 to $0.  The Company’s total liabilities remain unchanged.
  
• The Company restated its diluted earnings per share for the year ended December 31, 2008, as a correction of error.  The Company previously reported diluted earnings per share of $0.26 based on the assumption that the constructive preferred dividend related to the issuance of Series B Convertible Preferred Stock during the year should not be added back to “net income available to common stockholders” to arrive at “income available to common stockholders on a converted basis” for the purposes of computing the diluted earnings per share.  The Company assumed that even if the holders of the Series B Convertible Preferred Stock had converted their preferred stock using the “as-if” method the constructive preferred dividend would not be made available to common stockholders because the constructive preferred dividend was charged immediately upon the issuance of the Series B Convertible Preferred Stock.  The Company later determined that this treatment was erroneous.  Therefore, the Company revised the calculation of the “income available to common stockholders on a converted basis” to include the constructive preferred dividend.  As a result of the restatement, the Company’s diluted earnings per share increased to $0.34 per share.  For detailed computations, see Note 18 to the Company’s amended and restated financial statements.
  
• The Company restated its statements of cash flow for the year ended December 31, 2008.  The change is related to the purchase of Sukong Assets as detailed in Note 1 to the Company’s amended and restated financial statements.  The purchase was previously presented as an all cash transaction.  The restated presentation shows that a significant portion of the total purchase price was a non-cash transaction where the Company transferred certain advances to suppliers and receivables without recourse valued at $20,064,965 to the seller in exchange for the Sukong Assets.  The Company did not make any adjustment to its general ledger accounts.  The restatement was limited to the presentation of the statement of cash flows.  Net cash sourced from operations was previously $16,776,026.  The restated presentation shows net cash used in operations is $5,477,378.  The net cash used in investing activities was previously $39,087,376.  The restated presentation shows cash used in investing activities as $16,833,972.  The restated figures in the statement of cash flows are primarily attributable to the effect of the non-cash purchase of Sukong assets; however, a small portion of the difference is attributable to the restatement of the inventory and construction in progress account as detailed in Note 23 to the Company’s amended and restated financial statements.  The Company’s earnings for the year ended December 31, 2008 were unaffected by the change in presentation caused by the non-cash investing activity related to both the non-cash purchase of the Sukong Assets and the restatement of inventory and construction in progress.
  
• The Company restated the long term loans outstanding due to Standard Chartered Bank at March 31, 2010 as short term, rather than long term as a result of the Company’s noncompliance with certain loan covenants disclosed in Note 12 to the Company’s amended and restated financial statements.  The impact of the restatement is limited to the Company’s classification of liabilities on the Company’s Consolidated Balance Sheets and Note 12.  As a result of the restatement, the short term balance increased from $22,556,695 to $44,458,071 while the corresponding long term loans decreased from $21,901,376 to $0.  The Company’s current liabilities increased from $47,852,516 to $69,753,892.  The Company’s long term liabilities decreased from $21,901,376 to $0.  The Company’s total liabilities remain unchanged.
  

On December 13, 2010, Wuhan General Group (China), Inc. entered into a series of agreements designed to reduce the overhang of the Company’s Series A, B, C, AA, BB and JJ warrants and to simplify the Company’s capital structure.

Once all of the shares have been issued in connection with the warrant recapitalization, the Company will have approximately 32,505,015 shares of common stock outstanding. After the completion of the transactions, the Company will have one Series A warrant outstanding representing the right to purchase 128,755 shares of the Company’s common stock. The Company will no longer have any Series B, C, AA, BB or JJ warrants outstanding.

Third Quarter 2010 Highlights

• Third quarter revenue was $28.8 million, an increase of 16.3% from $24.7 million for the same period in 2009. 

• Gross profit was $8.1 million, an increase of 17.8% from $6.9 millionfor the same period in 2009

• Gross profit margin was 28.1% compared with 27.8% for the same quarter last year

• Operating income was $4.1 million, a decrease of 8.6% from the corresponding quarter last year

• Net income was $1.8 million, compared with $3.0 millionfor the same period in 2009

• Net income available to common stockholders was $1.7 million compared with $2.8 millionfor the same period in 2009. Adjusting for abnormal charges, adjusted net income available to common stockholders was $3.1 million for the third quarter of 2010

• Earnings per diluted share were $0.05 compared with $0.08 for the third quarter last year. Adjusting for abnormal charges, earnings per diluted share were $0.10 for the third quarter of 2010

"For the third quarter, our blower division was the main driver of revenue growth, supported by this year's economic recovery in China that encouraged our customers in the steel industry to increase orders of capital equipment. In addition to positive sales growth, the improved gross margin in our turbine segment sequentially and year-over-year is a sign of an improved competitive position, which also showed the scale effect and quality improvement attributable to our new Wuhan Generating facility," said Mr. Ruilong Qi, the CEO of Wuhan General. "While we are pleased about our sales growth, effective collection of accounts receivable remains a challenge for our business and we carefully monitor the financial positions of our customers to avoid unnecessary delay of payments."

"We are satisfied with the current outlook for our business as demonstrated by our backlog of RMB 212 million (approximately $32 million) for Wuhan Blower and RMB 150 million (approximately $22 million) for Wuhan Generating of which we expect to realize approximately $36 million in revenue for 2010. In light of the growing backlog and our firm, albeit slow, progress in collection of accounts receivable, we are optimistic about our performance as we move to the next year," said Mr. Qi, "While we recognize that challenges remain for our business to resume its former performance, we remain optimistic about our future prospects. We believe that our dedication to service and ability to deliver customized solutions will help us win a wider range of projects and obtain a broader customer base."

For the three months ended September 30, 2010, the Company expects to report

• Total unaudited net revenue of $28.8 million, compared with $24.7 million in the third quarter 2009

• unaudited net income of $1.8 million, or $0.05 per diluted share, compared with $3.0 million, or $0.08 per diluted share for the same period last year.  

The Company expects to report complete results for the three months ended September 30, 2010 by November 15, 2010.

On June 28, 2010, Wuhan General Group (China), Inc., through its wholly owned subsidiaries Wuhan Blower Co., Ltd. (“Wuhan Blower”), Wuhan Generating Equipment Co., Ltd. and Wuhan Sungreen Environment Protection Equipment Co., Ltd. (“Wuhan Sungreen,” together with Wuhan Blower and Wuhan Generating, the “Borrowers”), entered into a Loan Facility Agreement with Hankou Bank Company Limited, Wuhan Branch (“Hankou Bank”) for a loan facility totaling RMB 320,000,000 (approximately $47 million) in secured debt financing. The Borrowers, upon application, may access this loan facility from June 28, 2010 to June 28, 2013. Pursuant to certain Financial Consulting Service Agreements entered into between the Borrowers and Hankou Bank, dated June 29, 2010, the Borrowers must pay financial consultancy fees that aggregate to approximately RMB 2.84 million (approximately $417,000) in connection with the bank loan facility with Hankou Bank.

The obligations under the Loan Facility Agreement and Loan Agreements with Hankou Bank are secured by the real property of the Borrowers and guaranteed by Wuhan Blower and Wuhan Sungreen. The Loan Facility Agreement and the Loan Agreements are governed by the laws of the People’s Republic of China

The current demand for blowers and turbines is significantly stronger compared to the year ago period and in light of the growing backlog, the Company maintains its expectations of year-over-year revenue growth of around 20% for 2010. The Company expects the blower and turbine segments to contribute approximately 50% and 45% of total revenue for 2010 respectively, while Wuhan Sungreen is expected to contribute the remaining 5% of revenue. Meanwhile, the Company's other objective for 2010 is to further improve the collection of accounts receivable, thereby strengthening its financial position.

"We are pleased with the growing profitability of our business throughout the first quarter and hope to continue maintaining strict cost control as we resume growth. We expect the second and third quarter to make up for the lighter first months of the year," said Mr. Qi. "With more working capital and less cash tied to accounts receivable, we are better equipped to take on larger projects. We are currently assessing opportunities to provide blowers for urban infrastructure projects, as well as for Original Equipment Manufacturing (OEM) contracts, while maintaining our long-term stance in the turbine segment."

"We are pleased to see strong recovery of our business in the fourth quarter of 2009," said Mr. Xu Jie, CEO of Wuhan General. "The turnaround has been especially pronounced in our turbine division, as we increased sales to hydropower plants. The number of projects available for bid in this field is increasing as the government encourages investment in hydropower and subsidizes the construction of these plants in certain regions. Therefore, we have decided to make hydropower an important part of our strategy going forward. Our current backlog is RMB 175 million (approximately $25.7 million) and RMB 138 million (approximately $20 million) for Wuhan Blower and Wuhan Generating, respectively."

"As the Company completed construction of its turbine facility at Wuhan Generating in 2009, its main focus for 2010 is ramping up the turbine business, focusing specifically on water turbines for hydropower plants. The Company's current backlog of turbine orders is $20 million, of which 60% is for water turbines."

"We are still in the process of finalizing equipment installation at our turbine facility at Wuhan Generating and completing construction at our Sungreen subsidiary, scheduled to be completed by the end of 2010. In 2010, we expect to expend approximately $15 million for the construction and equipment installation, which we expect to fund mainly through our credit facility from Standard Chartered Bank," said Mr. Xu. "We expect the new turbine facility to operate at close to full utilization by the end of 2010, while we expect Sungreen to reach around 70% utilization by the end of 2010."

"As Sungreen will mainly support our turbine and blower businesses by providing parts and components, we expect a reduction in outsourcing costs in 2010, which should support our gross margin. In light of the growing backlog, we expect around 20% growth in our top line for 2010," concluded Mr. Xu.

In 2009, our sales decreased 21.54% compared to 2008. This decrease in sales was primarily due to a delay in the equipment replacement cycle within China’s steel manufacturing companies which resulted in fewer sales and capital expenditure restrictions on our power plant customers due to the global economic crisis. For many of the same reasons, we also have experienced significant delays in receiving payments from our customers.  The number of days sales were outstanding increased 93 days at December 31, 2009, compared to December 31, 2008. The combination of these factors resulted in our income from operations being insufficient to meet our working capital needs. At the same time, banks tightened their lending policies as a result of the turmoil in the credit markets. This required us to use bridge loans to finance our working capital needs during this period.

We intend to expend a significant amount of capital to complete our facilities and the installation of equipment and to make deposits for performance bonds for new projects that we have obtained. In light of the Company’s new credit facility with Standard Chartered Bank the Company believes that its currently available working capital, combined with cash from operations and bank financing, should be adequate to sustain operations at current levels through at least the next 12 months. For our long-term strategic growth, the Company will continue to rely upon debt and capital markets for any necessary long-term funding not provided by operating cash flows. Funding decisions will be guided by our capital structure planning objectives. The primary objectives of the Company’s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense.