Zhejiang Wanfeng Auto Wheel share trading halted

Shanghai, July 26 (Gasgoo.com) Shares in Zhejiang Wanfeng Auto Wheel Co., Ltd. ((002085.SZ), a subsidiary of Wanfeng Auto Holding Group (hereinafter referred as Wanfeng), have entered a trading halt since July 22, media reported today.

Wanfeng said Friday that due to problems that may result from the Group's current restrictions and to safeguard the interests of investors as well as avoid any severe impact on Zhejiang Wanfeng's stock price, it would temporarily suspend trading starting July 22, and resume it on August 22.

As Asia's largest auto wheel manufacturer, Wanfeng said its sales for 2010 is expected to decline by about 60% after the EU Trade Commission releases China's exports aluminum wheel anti-dumping preliminary ruling.

Meanwhile, owing to the influence of market competition and the provisional anti-dumping tax rate the EU Trade Commission is going to impose, Wanfeng's overall profitability in the European market is likely to decrease more than 80%, Wanfeng said in an early statement.

In 2009, Wanfeng reported sales of 1.35 billion yuan ($199 million), a small drop from 2008's 1.44 bilion yuan. In view of the rising demand in China's auto parts market, the Group said the fall in sales was mainly caused by the decline of exports. Wangfeng's wheel business accounts for 95% of the Group's revenues.