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A-Power Subsidiary Achieves High-tech Enterprise Status High-tech status should permit a lower corporate income tax rate and easier access to government support
Press Release Source: A-Power Energy Generation Systems, Ltd. On Wednesday January 19, 2011, 7:40 am EST SHENYANG, China, Jan. 19, 2011 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq:APWR - News) ("A-Power" or the "Company"), a leading provider of distributed power generation systems in China and a manufacturer of wind turbines, today announced that its subsidiary, Shenyang Ruixiang Wind Energy Equipment Co., Ltd. ("Shenyang Ruixiang"), has obtained its Certificate of State High-tech Enterprise, which is jointly issued by the Science and Technology Department of Liaoning Province, the Finance Department of Liaoning Province, the National Tax Bureau of Liaoning Province, and the Local Tax Bureau of Liaoning Province. The certificate is valid for three years.
Mr. Jinxiang Lu, A-Power's Chairman and Chief Executive Officer, said, "We are pleased to announce this achievement that highlights the significant progress we have made in our research and development capabilities. Receiving the certificate recognizes A-Power's technical expertise and also should permit reduced taxes for Shenyang Ruixiang."
As a result of obtaining the certificate, the corporate income tax rate for Shenyang Ruixiang should be reduced from 25% to 15%. In addition, A-Power believes that the certificate should make it easier for Shenyang Ruixiang to access Liaoning government support for its ongoing research and development efforts.
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