WUHAN, China, May 11, 2017 /PRNewswire/ -- China Automotive
Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a
leading power steering components and systems supplier in
China, today announced its
unaudited financial results for the unaudited first quarter ended
March 31, 2017.
First Quarter 2017 Highlights
- Net sales were $119.3 million, up
2.1% from $116.9 million in the first
quarter of 2016
- Gross margin was 18.1%, consistent with 18.0% in the first
quarter of 2016
- Net income attributable to parent company's common shareholders
was $5.7 million, or diluted earnings
per share of $0.18, in the first
quarter of 2017 and 2016
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "We have maintained our sales and
earnings during this transition period as we build our electric
power steering ("EPS") capabilities. We have added more
production capacity and introduced additional models of EPS to
position us for stronger growth in the future. Our growing
portfolio of advanced steering products will build our sales by
providing more solutions to meet our customers' needs."
Mr. Jie Li, chief financial
officer of CAAS, commented, "We continue to build our financial
strength through strong cost controls, generating positive
operational cash flow and improving our cost of invested capital."
First Quarter of 2017
In the first quarter of 2017, net sales were $119.3 million, compared to $116.9 million in the same quarter of 2016,
reflecting a 2.1% year-over-year growth. The increase of net sales
was mainly due to the increased sales volume.
Gross profit was $21.6 million in
the first quarter of 2017, compared to $21.0
million in the first quarter of 2016. The gross margin was
18.1% in the first quarter of 2017, versus 18.0% in the first
quarter of 2016.
Gain on other sales was $0.8
million in the first quarters of 2017 and 2016.
Selling expenses were $4.1 million
in the first quarter of 2017, compared to $4.3 million in the first quarter of 2016. The
decrease was primarily due to lower marketing expenses. Selling
expenses represented 3.4% of net sales in the first quarter of 2017
versus 3.7% in the first quarter of 2016.
General and administrative expenses ("G&A expenses") were
$4.4 million in the first quarter of
2017, compared to $4.3 million in the
same quarter of 2016. G&A expenses represented 3.7% of net
sales in the first quarter of 2017 and 3.7% in the first quarter of
2016.
Research and development expenses ("R&D expenses") were
$6.8 million in the first quarter of
2017, compared to $6.1 million in the
first quarter of 2016. R&D expenses represented 5.7% of net
sales in the first quarter of 2017 compared to 5.2% in the first
quarter of 2016. The increase in R&D expenses was due to
increased investment in EPS product research and development such
as brushless motor and Advanced Driver Assistance Systems (ADAS)
related projects.
Income from operations was $7.2
million in the first quarter of 2017, compared to
$7.1 million in the same quarter of
2016.
Interest expense was $0.2 million
in the first quarter of 2017, consistent with the same quarter of
2016.
Net financial income was $0.3
million in the first quarters of 2017 and 2016.
Income before income tax expenses and equity in earnings of
affiliated companies was $7.1 million
in the first quarter of 2017, compared to $6.5 million in the first quarter of 2016. The
increase in income before income tax expenses and equity in
earnings of affiliated companies was mainly due to higher operating
income and a decrease in other expenses.
Net income attributable to parent company's common shareholders
was $5.7 million in the first quarter
of 2017 and 2016. Diluted earnings per share were $0.18 in the first quarter of 2017 and
2016.
The weighted average number of diluted common shares outstanding
was 31,649,908 in the first quarter of 2017, compared to 32,123,588
in the first quarter of 2016.
Balance Sheet
As of March 31, 2017, total cash
and cash equivalents, pledged cash and short-term investments were
$93.1 million, total accounts
receivable including notes receivable were $305.9 million, accounts payable were
$223.1 million and short-term bank
and government loans were $68.5
million. Total parent company stockholders' equity was
$307.8 million as of March 31, 2017, compared to $300.5 million as of December 31, 2016. Net cash flow from operating
activities was $2.3 million in the
first quarter of 2017.
Business Outlook
Management reiterated its revenue guidance for the full year
2017 of US$485 million. This target
is based on the Company's current views on operating and market
conditions, which are subject to change.
Conference Call
Management will conduct a conference call on May 11, 2017 at 8:00 A.M.
EDT/8:00 P.M. Beijing Time to
discuss these results. A question and answer session will follow
management's presentation. To participate, please call the
following numbers 10 minutes before the call start time and ask to
be connected to the "China Automotive Systems" conference call:
Phone
Number:
|
+1-877-407-8031
(North America)
|
Phone
Number:
|
+1-201-689-8031
(International)
|
Phone
Number:
|
+864 001 202 840
(China Toll Free)
|
A replay of the call will be available on the Company's website
under the investor relations section.
About China Automotive Systems, Inc.
Based in Hubei Province, the People's Republic of China, China Automotive
Systems, Inc. is a leading supplier of power steering components
and systems to the Chinese automotive industry, operating through
eight Sino-foreign joint ventures. The Company offers a full range
of steering system parts for passenger automobiles and commercial
vehicles. The Company currently offers four separate series of
power steering with an annual production capacity of over 5.5
million sets of steering gears, columns and steering hoses. Its
customer base is comprised of leading auto manufacturers, such as
China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto
Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile
Co., Ltd. in China, and Chrysler Group LLC in North
America. For more information, please
visit: http://www.caasauto.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" as defined under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press
release. These forward-looking statements include statements
regarding the qualitative and quantitative effects of the
accounting errors, the periods involved, the nature of the
Company's review and any anticipated conclusions of the Company or
its management and other statements that are not historical facts.
Our actual results may differ materially from the results described
in or anticipated by our forward-looking statements due to certain
risks and uncertainties. As a result, the Company's actual results
could differ materially from those contained in these
forward-looking statements due to a number of factors, including
those described under the heading "Risk Factors" in the Company's
Form 10-K annual report filed with the Securities and Exchange
Commission on March 30, 2017, and in documents subsequently
filed by the Company from time to time with the Securities and
Exchange Commission. We expressly disclaim any duty to provide
updates to any forward-looking statements made in this press
release, whether as a result of new information, future events or
otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
+1-646-726-6511
Email: Kevin.Theiss@awakenlab.com
- Tables Follow -
China Automotive
Systems, Inc. and Subsidiaries
Condensed
Unaudited Consolidated Balance Sheets
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
March 31,
2017
|
|
|
December 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
31,303
|
|
|
$
|
31,092
|
|
Pledged
cash
|
|
|
33,586
|
|
|
|
30,799
|
|
Short-term
investments
|
|
|
28,208
|
|
|
|
30,475
|
|
Accounts and notes
receivable, net - unrelated parties
|
|
|
284,608
|
|
|
|
285,731
|
|
Accounts and notes
receivable, net - related parties
|
|
|
21,308
|
|
|
|
20,984
|
|
Advance payments and
others - unrelated parties
|
|
|
9,123
|
|
|
|
10,203
|
|
Advance payments and
others - related parties
|
|
|
29,957
|
|
|
|
624
|
|
Inventories
|
|
|
69,051
|
|
|
|
68,050
|
|
Current deferred tax
assets
|
|
|
7,872
|
|
|
|
7,946
|
|
Total current
assets
|
|
|
515,016
|
|
|
|
485,904
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Long-term time
deposits
|
|
|
870
|
|
|
|
865
|
|
Property, plant and
equipment, net
|
|
|
104,050
|
|
|
|
101,478
|
|
Intangible assets,
net
|
|
|
576
|
|
|
|
617
|
|
Other receivables,
net - unrelated parties
|
|
|
2,298
|
|
|
|
2,252
|
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
|
14,168
|
|
|
|
14,506
|
|
Advance payment for
property, plant and equipment - related parties
|
|
|
2,326
|
|
|
|
5,005
|
|
Long-term
investments
|
|
|
16,572
|
|
|
|
16,431
|
|
Non-current deferred
tax assets
|
|
|
4,815
|
|
|
|
4,641
|
|
Total
assets
|
|
$
|
660,691
|
|
|
$
|
631,699
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Bank and government
loans
|
|
$
|
68,536
|
|
|
$
|
40,820
|
|
Accounts and notes
payable - unrelated parties
|
|
|
217,194
|
|
|
|
216,993
|
|
Accounts and notes
payable - related parties
|
|
|
5,893
|
|
|
|
6,803
|
|
Customer
deposits
|
|
|
824
|
|
|
|
700
|
|
Accrued payroll and
related costs
|
|
|
6,577
|
|
|
|
6,971
|
|
Accrued expenses and
other payables
|
|
|
34,848
|
|
|
|
35,882
|
|
Accrued pension
costs
|
|
|
3,907
|
|
|
|
4,130
|
|
Taxes
payable
|
|
|
7,623
|
|
|
|
11,674
|
|
Amounts due to
shareholders/directors
|
|
|
315
|
|
|
|
312
|
|
Advances payable
(current portion)
|
|
|
384
|
|
|
|
382
|
|
Current deferred tax
liabilities
|
|
|
163
|
|
|
|
193
|
|
Total current
liabilities
|
|
|
346,264
|
|
|
|
324,860
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term bank
loan
|
|
|
627
|
|
|
|
608
|
|
Advances
payable
|
|
|
341
|
|
|
|
339
|
|
Total
liabilities
|
|
$
|
347,232
|
|
|
$
|
325,807
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value - Authorized - 80,000,000 shares; Issued -
32,338,302 and 32,338,302 shares as of March 31, 2017 and December
31,
2016, respectively
|
|
$
|
3
|
|
|
$
|
3
|
|
Additional paid-in
capital
|
|
|
64,764
|
|
|
|
64,764
|
|
Retained
earnings-
|
|
|
|
|
|
|
|
|
Appropriated
|
|
|
10,549
|
|
|
|
10,549
|
|
Unappropriated
|
|
|
234,677
|
|
|
|
228,963
|
|
Accumulated other
comprehensive income
|
|
|
683
|
|
|
|
(892)
|
|
Treasury stock -
694,298 and 694,298 shares as of March 31, 2017 and
December 31, 2016, respectively
|
|
|
(2,907)
|
|
|
|
(2,907)
|
|
Total parent company
stockholders' equity
|
|
|
307,769
|
|
|
|
300,480
|
|
Non-controlling
interests
|
|
|
5,690
|
|
|
|
5,412
|
|
Total stockholders'
equity
|
|
|
313,459
|
|
|
|
305,892
|
|
Total liabilities and
stockholders' equity
|
|
$
|
660,691
|
|
|
$
|
631,699
|
|
China Automotive
Systems, Inc. and Subsidiaries
Condensed
Unaudited Consolidated Statements of Operations and Comprehensive
Income
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
Three Months Ended March
31,
|
|
|
|
2017
|
|
|
2016
|
|
Net product sales ($9,538 and $8,585 sold to related parties for the three months
ended March 31, 2017 and 2016)
|
|
$
|
119,308
|
|
|
$
|
116,854
|
|
Cost of products sold
($7,363 and $6,875 purchased from related parties for the
three months ended March 31, 2017 and 2016)
|
|
|
97,679
|
|
|
|
95,842
|
|
Gross
profit
|
|
|
21,629
|
|
|
|
21,012
|
|
Gain on other
sales
|
|
|
788
|
|
|
|
801
|
|
Less: Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
4,068
|
|
|
|
4,305
|
|
General and
administrative expenses
|
|
|
4,354
|
|
|
|
4,315
|
|
Research and
development expenses
|
|
|
6,765
|
|
|
|
6,139
|
|
Total operating
expenses
|
|
|
15,187
|
|
|
|
14,759
|
|
Income from
operations
|
|
|
7,230
|
|
|
|
7,054
|
|
Other expense,
net
|
|
|
(254)
|
|
|
|
(644)
|
|
Interest
expense
|
|
|
(231)
|
|
|
|
(196)
|
|
Financial income,
net
|
|
|
332
|
|
|
|
322
|
|
Income before income tax expenses and equity in earnings of affiliated companies
|
|
|
7,077
|
|
|
|
6,536
|
|
Less: Income
taxes
|
|
|
1,190
|
|
|
|
1,053
|
|
Equity in earnings of
affiliated companies
|
|
|
51
|
|
|
|
62
|
|
Net income
|
|
|
5,938
|
|
|
|
5,545
|
|
Net income/(loss)
attributable to non-controlling interests
|
|
|
224
|
|
|
|
(164)
|
|
Net income
attributable to parent company's common shareholders
|
|
$
|
5,714
|
|
|
$
|
5,709
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,938
|
|
|
$
|
5,545
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain, net of tax
|
|
|
1,629
|
|
|
|
1,650
|
|
Comprehensive
income
|
|
|
7,567
|
|
|
|
7,195
|
|
Comprehensive
income/(loss) attributable to non-controlling interests
|
|
|
278
|
|
|
|
(85)
|
|
Comprehensive income
attributable to parent company
|
|
$
|
7,289
|
|
|
$
|
7,280
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to parent company's common shareholders per
share
|
|
|
|
|
|
|
|
|
Basic -
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
Diluted -
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
31,644,004
|
|
|
|
32,121,019
|
|
Diluted
|
|
|
31,649,908
|
|
|
|
32,123,588
|
|
China Automotive
Systems, Inc. and Subsidiaries
Condensed
Unaudited Consolidated Statements of Cash Flows
(In thousands of
USD unless otherwise indicated)
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
|
2017
|
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,938
|
|
|
$
|
5,545
|
|
Adjustments to reconcile net income from operations to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
4,189
|
|
|
|
3,805
|
|
Reversal of provision
for doubtful accounts
|
|
|
(19)
|
|
|
|
(54)
|
|
Inventory write
downs
|
|
|
813
|
|
|
|
1,414
|
|
Deferred income
taxes
|
|
|
(63)
|
|
|
|
347
|
|
Equity in earnings of
affiliated companies
|
|
|
(51)
|
|
|
|
(62)
|
|
(Gain)/loss on fixed
assets disposals
|
|
|
17
|
|
|
|
(3)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase)/decrease
in:
|
|
|
|
|
|
|
|
|
Pledged
cash
|
|
|
(2,618)
|
|
|
|
8,089
|
|
Accounts and notes
receivable
|
|
|
2,480
|
|
|
|
(23,347)
|
|
Advance payments and
others
|
|
|
(52)
|
|
|
|
(3,145)
|
|
Inventories
|
|
|
(1,444)
|
|
|
|
(6,242)
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
|
(1,592)
|
|
|
|
12,495
|
|
Customer
deposits
|
|
|
123
|
|
|
|
(26)
|
|
Accrued payroll and
related costs
|
|
|
(431)
|
|
|
|
(172)
|
|
Accrued expenses and
other payables
|
|
|
(1,467)
|
|
|
|
91
|
|
Accrued pension
costs
|
|
|
(247)
|
|
|
|
265
|
|
Taxes
payable
|
|
|
(3,318)
|
|
|
|
(1,362)
|
|
Net cash provided
by/(used in) operating activities
|
|
|
2,362
|
|
|
|
(2,362)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Increase in other
receivables
|
|
|
20
|
|
|
|
94
|
|
Cash received from
property, plant and equipment sales
|
|
|
26
|
|
|
|
515
|
|
Payments to acquire
property, plant and equipment (including $493 and
$3,464 paid to related parties for three months ended March 31,
2017
and 2016, respectively)
|
|
|
(3,245)
|
|
|
|
(9,825)
|
|
Payments to acquire
intangible assets
|
|
|
-
|
|
|
|
(3)
|
|
Purchase of
short-term investments
|
|
|
-
|
|
|
|
(7,814)
|
|
Proceeds from
maturities of short-term investments
|
|
|
2,433
|
|
|
|
553
|
|
Loan to a related
party
|
|
|
(29,044)
|
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(29,810)
|
|
|
|
(16,480)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
and government loans
|
|
|
27,754
|
|
|
|
6,500
|
|
Repayments of bank
and government loans
|
|
|
(245)
|
|
|
|
(2,265)
|
|
Net cash provided
by financing activities
|
|
|
27,509
|
|
|
|
4,235
|
|
Effects of exchange
rate on cash and cash equivalents
|
|
|
150
|
|
|
|
330
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
|
211
|
|
|
|
(14,277)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
31,092
|
|
|
|
69,676
|
|
Cash and cash
equivalents at end of period
|
|
$
|
31,303
|
|
|
$
|
55,399
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-automotive-systems-reports-2017-first-quarter-results-300455796.html
SOURCE China Automotive Systems, Inc.