FOR IMMEDIATE RELEASE
A-POWER REPORTS FINANCIAL RESULTS OF ITS OPERATING SUBSIDIARES FOR THE
YEAR ENDED DECEMBER 31, 2007 & CONFIRMS 2008 EARNINGS GUIDANCE
Shenyang, China - March 31, 2008 - A-Power Energy Generation Systems (NASDAQ: APWR) ("A-
Power") today announced the financial results of its operating subsidiaries for the year ended December 31,
2007 (see attached tables). Because the acquisition by Chardan China Acquisition Corp. (now A-Power) of
Head Dragon Holdings (“Head Dragon” or the “Company”) did not occur until 2008, the 2007 numbers
referenced in this announcement reflect the operations of Head Dragon and its Chinese operating subsidiaries
As a result of the acquisition transactions that occurred in the first quarter of 2008, Head Dragon became a
100% owned subsidiary of A-Power.
2007 Year-End Financial Results
For the year ended December 31, 2007, Head Dragon’s revenue was $152.5 million, an increase of 54.5% from
$98.7 million in 2006. The increase was due to continued growth in the Company’s core distributed power
generation business and the relatively larger size of projects under construction in 2007 compared with 2006.
The total cost of revenues for the year ended December 31, 2007 amounted to $132.0 million, an increase by
$46.1 million compared to $85.9 million in the prior year and gross margin increased to 13.5% in 2007 from
13% in 2006. The increase in gross margin was primarily due to revenue contributions from several new, higher
margin contracts that commenced in 2007.
General and administrative expenses amounted to approximately $3.5 million for the year ended December 31,
2007, an increase of $1.6 million compared to approximately $1.9 million in the prior year. This increase was
primarily due to the addition of key technical and managerial talent and direct expenses associated with preparing
Head Dragon for the acquisition by Chardan South China Acquisition Corp.
Finance costs increased by a