Worldwide Energy (PINK:WEMU)

Through its United States management arm, Worldwide USA, oversees the Chinese operations of its contract manufacturing and solar business. The company prides itself on having a diverse customer base, 70% of which is comprised of Fortune 500 firms.

Contract Manufacturing Segment.  As a contract manufacturer, Worldwide supplies components and assemblies, either through direct manufacturing or through subcontracting to other manufacturers based on the customers’ designs, formulas, drawings, specifications and quality control criteria. Another way to view it is as private labeling.

This Business model gives the company flexibility towards customers’ needs while offering competitive prices. A primary goal for Worldwide is to provide timely delivery and high quality components at manufacturing costs less than what Worldwide’s customers would pay for similar parts in the United States.

The Company believes that the trend for international businesses to utilize cost effective services of foreign entities will continue for years to come. An offshore outsourcing model can bring cost savings of 50% to 70% to customers.

When utilizing its subcontractors, Worldwide provides the plant, equipment, factory labor and the capital needed for manufacturing. The Company also provides the sales, management, production control and technical support for the products.

The company has stressed that in times of economic stress a sub-contracting model gives it flexibility to adjust to demand rather than dealing with idle internal capacity. However, as the economy improves, Worldwide plans to rely less on subcontracting services by adding to its two internal manufacturing operations:

• Shanghai Intech Precision Mechanical Products is the subsidiary that manufactures die-cast and machined parts for the automotive, telecommunications and home supply industries, all of which are made in either the Die Casting Shop or the Machining Shop.  Processes that operate under the mechanical division are responsible for manufacturing non-electric applications such as molds that house electronic components, hinges in computer laptop frames and key board buttons.
  
  The Die casting shop operates processes in which permanent molds are created when molten metal is forced under pressure via heat or cold. The Machining shop is the facility that is equipped with resources that do the physical aspects of manufacturing such metal cutting, grinding and drilling.

• Shanghai Intech-Detron Electric and Electronic Company is the subsidiary that produces power supply units. Products include wires and circuitry used in pc boards.

Worldwide is capable of manufacturing products across the entire technical spectrum; wireless products via advanced technology, automobile parts via intermediate processes, and metals via simple processes.

All of the company's products initially flow through the Shanghai Intech Electro-Mechanical Products Intech subsidiary. It represents the quality assurance and engineering arm of the Company. This unit directs products to the proper manufacturing division and decides if the job will be done internally or subcontracted. It also monitors the in-house or out-sourced manufacturing process and is responsible for research and development.

 WEMU contract manufacturing segment strengths:

• Unique business relationships between Worldwide and its subcontractors allow it to offer customers lower manufacturing costs.
• With both subcontractor and in-house factories, Worldwide has a wide range of manufacturing capabilities.
• Worldwide’s quality control initiatives are highly effective as a result of several factors:
  • Inspection criteria for manufacturers are based on the customers’ quality guidelines
  • Routine material audits, in-process inspections, and the final inspections
  • Incentive/reward packages are provided to Worldwide’s quality control employees.
• Worldwide’s quick turn-around time compared with other offshore suppliers.
• Significant flexibility towards customers’ needs.

Solar Segment (Established in February of 2008). Worldwide is particularly excited about its recent entry into the solar market due to the launch of its �AmeriSolar� brand name and the lease of a factory capable of producing 80MW in solar modules per year. This factory produces solar modules for customers primarily in Europe and South Korea and contributes to over 70% of the company's total revenues.

Worldwide management feels that the future of its solar segment is well supported by expectations that global industry solar revenue growth will be approximately 27% through 2018.

The solar segment produces solar modules for installation on the roof or the sides of buildings to generate power, light and heat through the use of energy provided by the sun.

Two technologies can be utilized to produce solar modules.

• Silicon cell technology
• Thin film technology

Currently, the majority of Worldwide's solar emphasis is on silicon cell technology. When compared to thin film technology, silicon cell technology offers a more reliable source of power and is well suited for commercial use. Constructing a silicon manufacturing facility in also much more cost effective. However, silicon cell technology is more detrimental to the environment. Recognizing that thin film technology will increasingly become what more and more companies will strive to perfect, Worldwide is devoting some R&D efforts to this area.

Solar segment strengths:

• Through superior patented technology Worldwide is able to address technical problems, that affect solar module efficiency, more effectively than its competition.
• Through superior patented technology, Worldwide constructs solar modules that possess greater durability than competing products.
• The company has seasoned sales force with strong contacts in the solar industry.
• Worldwide boasts high quality product at prices below its competitors.
• Solid relationships with universities aid strengthen Worldwide's R&D efforts.

Worldwide Energy & Manufacturing is focusing on fast expansion of its solar business.  To accomplish this, the company is: 

1. Upgrading its manufacturing facility with a much better equipped Research and Development center that focuses on cost savings with the company's existing silicon cell modules and thin film technology.

2. Further promoting its AmeriSolar brand in the different parts of the world in addition to its currently existing customer territory—Germany, Italy, Spain, France, Portugal, Switzerland, England, South Korea, Canada, United States and China.

3. Acquiring companies in the clean industry that will create revenues and profit for Worldwide.

The company has currently suspended its contract manufacturing business to concentrate on its solar module business which it hopes will drive top and bottom line growth in 2010.

Our emphasis will be to provide consistent growth in sales and earnings of at least 30%, leading to the maximization of shareholder value.