WUHAN, China, March 29, 2018 /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 fourth quarter and the
audited results for the fiscal year ended December 31, 2017.
Fourth Quarter 2017 Highlights
- Net sales were $143.7 million
compared to $149.6 million in the
fourth quarter of 2016
- Net loss attributable to parent company's common shareholders
was $39.0 million, or diluted loss
per share of $1.23, reflecting an
accrued one-time corporate tax of $35.6
million recognized in the fourth quarter mandated by the
recent U.S. tax reform and additional $4.0
million withholding tax for the planned dividends from the
Company's PRC subsidiaries in order to fund the payments of such
tax.
Fiscal Year 2017 Highlights
- Net sales were $499.1 million,
compared to $462.1 million in
2016
- Diluted loss per share attributable to parent company's common
shareholders was $0.61 compared to
diluted income per share attributable to parent company's common
shareholders of $0.70 in 2016
- Cash and cash equivalents, pledged cash and short-term
investments were $125.7 million as of
December 31, 2017
- Net cash flow from operating activities was $50.2 million
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "Our growth in 2017 was led by higher
sales of our new advanced hydraulic products into the North
American market and higher sales of hydraulic products for the
commercial vehicle market in China. Our sales to North America grew by 51.4% and accounted for
16.9% of total sales in 2017. Truck sales in China grew by 16.9% in China, led by record sales of 1.1 million
units of heavy-duty trucks. With our large and broad line of
steering products, we are well positioned to take advantage of
growth opportunities in a number of automotive segments."
Mr. Jie Li, chief financial
officer of CAAS, commented, "We remain focused on increasing our
financial strength. We generated $50.2
million in cash flow from operations in 2017."
Fourth Quarter of 2017
In the fourth quarter of 2017, net sales were $143.7 million compared to $149.6 million in the same quarter of 2016.
The net sales decrease was mainly due to the exceptionally strong
Chinese auto market in the fourth quarter of 2016 and the
production for new products targeting the Company's North American
customers reaching its full capacity.
Gross profit was $16.5 million in
the fourth quarter of 2017, compared to $21.8 million in the fourth quarter of 2016. The
decrease in gross profit was primarily due to the decrease in net
sales and change of product mix.
Gain on other sales was $1.7
million, compared to $1.8
million in the fourth quarter of 2016.
Selling expenses were $6.8 million
in the fourth quarter of 2017, compared to $4.9 million in the fourth quarter of 2016. The
increase was primarily due to higher transportation expenses and
increased marketing expenses that were related to increased
revenue. Selling expenses represented 4.7% of net sales in the
fourth quarter of 2017 compared to 3.3% in the fourth quarter of
2016.
General and administrative expenses ("G&A expenses")
increased to $5.5 million from
$4.9 million in the fourth quarter of
2016. G&A expenses represented 3.8% of net sales in the fourth
quarter of 2017 compared to 3.2% of net sales in the fourth quarter
of 2016. The increase in G&A expenses and G&A
expenses as a percentage of net sales in the fourth quarter of 2017
was mainly due to higher personnel costs.
Research and development expenses ("R&D expenses") were
$9.9 million in the fourth quarter of
2017, compared to $8.9 million in the
fourth quarter of 2016. R&D expenses represented 6.9% of net
sales in the fourth quarter of 2017 compared to 5.9% in the fourth
quarter of 2016. The increase in R&D expenses was due to
ongoing higher investment in EPS product research and development
such as brushless motors and Advanced Driver Assistance Systems
(ADAS) related projects. Additional engineers, newly acquired
technologies, and more testing equipment accounted for most of the
increase.
Loss from operations was $4.0
million in the fourth quarter of 2017, compared to income
from operations of $5.0 million in
the same quarter of 2016. The loss was mainly due to lower gross
profit and higher investment in R&D and selling expenses.
Interest expense was $0.6 million
in the fourth quarter of 2017, compared to interest expense of
$0.1 million in the fourth quarter of
2016 due to higher average loans outstanding.
Net financial income was $0.2
million in the fourth quarter of 2017, which was consistent
with the same quarter of 2016.
Net loss attributable to parent company's common shareholders
was $39.0 million in the fourth
quarter of 2017 primarily due to the one-time accrued tax of
$35.7 million mandated by the recent
U.S. tax reform and accrued withholding tax of $4.0 million related to the planned dividend
distribution from PRC subsidiaries in order to fulfil the payment
of a one-time accrued tax. In the fourth quarter of 2016 net
income attributable to parent company's common shareholders was
$5.8 million. Diluted loss per share
was $1.23 in the fourth quarter of
2017, compared to diluted income per share of $0.18 in the fourth quarter of 2016.
The weighted average number of diluted common shares outstanding
was 31,646,897 in the fourth quarter of 2017, compared to
31,711,888 in the fourth quarter of 2016.
Fiscal Year 2017
Annual net sales were $499.1
million in 2017, an 8.0% increase compared to $462.1 million in 2016. The overall increase was
mainly due to higher sales of advanced legacy hydraulic products
offset by the sales of electric power steering systems (EPS) sales
which decreased by 6.6% in 2017. EPS sales represented 24.2%
of total revenue in 2017.
Gross profit in 2017 was $84.6
million, compared to $80.9
million in 2016. The increase in gross profit was primarily
due to the increase in net sales.
Gain on other sales mainly consisted of the net amount retained
from the sales of materials, property, plant and equipment and
scraps. For the year ended December 31,
2017, gain on other sales amounted to $7.6 million, compared to $3.8 million in 2016. The increase in gain on
other sales was primarily due to the disposal of a building and
higher scrap volume in 2017.
Selling expenses were $19.9
million in 2017, compared to $17.2
million in 2016, which was mainly due to higher
transportation and marketing expenses during the year. Selling
expenses represented 4.0% in 2017, compared to 3.7% of net sales in
2016.
G&A expenses were $19.5
million in 2017, compared to $16.8
million in 2016. The increase was primarily due to higher
personnel costs and allowance for doubtful accounts. G&A
expenses represented 3.9% of net sales in 2017 compared to 3.6% of
net sales in 2016.
R&D expenses were $33.5
million in 2017, compared to $27.7
million in 2016. R&D expenses represented 6.7% of net
sales in 2017, compared to 6.0% of net sales in 2016. The increase
in R&D expenses was due to ongoing higher investment in EPS
product research and development such as brushless motors and
Advanced Driver Assistance Systems (ADAS)-related projects.
Additional engineers, newly acquired technologies, and more testing
equipment represented most of the increase.
Operating income was $19.3 million
in 2017, compared to $23.0 million in
2016. The decrease was primarily due to higher operating expenses
in 2017.
Interest expense was $1.8 million
in 2017, compared to interest expense of $0.7 million in 2016 due primarily to an increase
in loans outstanding and higher interest rates.
Net financial income was $2.2
million in 2017, compared to net financial income of
$1.4 million in 2016 due primarily to
an increase in interest income.
Income before income tax expenses and equity in earnings of
affiliated companies was $20.4
million for 2017, compared to $24.9
million for 2016. This decline was mainly due to lower
income from operations and higher interest expense.
Income tax expense was $41.6
million for the year ended December
31, 2017, compared to $2.5
million for the year ended December
31, 2016, representing an increase of $39.1 million. The increase in 2017 resulted
primarily from a one-time accrued tax of $35.6 million recognized in the fourth quarter of
2017 that represented management's estimate of the amount of U.S.
corporate income tax for the mandatory repatriation of the
Company's share of previously deferred earnings of certain non-U.S.
subsidiaries of the Company as mandated by the recent U.S. tax
reform. We elected to pay the one-time accrued tax over eight years
commencing in April 2018. In
addition, withholding tax of $4.0
million was accrued in the fourth quarter of 2017 in order
to fund the payment of such one-time accrued tax since the Company
plans to distribute dividends from its PRC subsidiaries to the
Company. Excluding the one-time accrued tax and withholding tax
discussed above, income tax expense was $1.9
million, representing a decrease of $0.6 million which was mainly due to the decrease
in income before income tax. The effective tax rate (excluding the
impact of the one-time transition tax) was consistent from 2016 to
2017 at approximately 10%.
Net loss attributable to parent company's common shareholders
was $19.3 million in 2017, compared
to net income attributable to parent company's common shareholders
of $22.5 million in 2016. Diluted
loss per share was $0.61 in 2017,
compared to diluted income per share of $0.70 in 2016.
The weighted average number of diluted common shares outstanding
was 31,646,897 in 2017, compared to 31,957,052 in 2016.
Balance Sheet
As of December 31, 2017, total
cash and cash equivalents, pledged cash and short-term investments
were $125.7 million, total accounts
receivable including notes receivable were $294.1 million, accounts payable were
$240.2 million and bank and
government loans were $73. million.
Total parent company stockholders' equity was $299.4 million as of December 31, 2017, compared to $305.9 million as of December 31, 2016. Net cash flow from operating
activities was $50.2 million in
2017.
Business Outlook
Management has provided revenue guidance for the full year 2018
of $510 million. This target is based
on the Company's current views on operating and market conditions,
which are subject to change.
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 6 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 29, 2018, 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
+1-212-521-4050
Email: Kevin.Theiss@awakenlab.com
- Tables Follow -
China Automotive
Systems, Inc. and Subsidiaries
Consolidated
Balance Sheets
(In thousands of
USD, except share and per share amounts)
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
64,558
|
|
|
$
|
31,092
|
|
Pledged
cash
|
|
|
31,535
|
|
|
|
30,799
|
|
Short-term
investments
|
|
|
29,587
|
|
|
|
30,475
|
|
Accounts and notes
receivable, net - unrelated parties
|
|
|
274,989
|
|
|
|
285,731
|
|
Accounts and notes
receivable, net - related parties
|
|
|
19,086
|
|
|
|
20,984
|
|
Advance payments and
others - unrelated parties
|
|
|
12,790
|
|
|
|
10,203
|
|
Advance payments and
others - related parties
|
|
|
20,841
|
|
|
|
624
|
|
Inventories
|
|
|
79,217
|
|
|
|
68,050
|
|
Total current
assets
|
|
|
532,603
|
|
|
|
477,958
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Long-term time
deposits
|
|
|
-
|
|
|
|
865
|
|
Property, plant and
equipment, net
|
|
|
126,033
|
|
|
|
101,478
|
|
Intangible assets,
net
|
|
|
661
|
|
|
|
617
|
|
Other receivables,
net - unrelated parties
|
|
|
2,188
|
|
|
|
2,252
|
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
|
9,657
|
|
|
|
14,506
|
|
Advance payment for
property, plant and equipment - related parties
|
|
|
5,264
|
|
|
|
5,005
|
|
Long-term
investments
|
|
|
27,596
|
|
|
|
16,431
|
|
Deferred tax
assets
|
|
|
13,367
|
|
|
|
12,587
|
|
Total
assets
|
|
$
|
717,369
|
|
|
$
|
631,699
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Bank and government
loans
|
|
$
|
72,711
|
|
|
$
|
40,820
|
|
Accounts and notes
payable - unrelated parties
|
|
|
233,048
|
|
|
|
216,993
|
|
Accounts and notes
payable - related parties
|
|
|
7,168
|
|
|
|
6,803
|
|
Customer
deposits
|
|
|
1,128
|
|
|
|
700
|
|
Accrued payroll and
related costs
|
|
|
8,577
|
|
|
|
6,971
|
|
Accrued expenses and
other payables
|
|
|
40,127
|
|
|
|
35,882
|
|
Accrued pension
costs
|
|
|
4,051
|
|
|
|
4,130
|
|
Taxes
payable
|
|
|
5,927
|
|
|
|
11,674
|
|
Amounts due to
shareholders/directors
|
|
|
343
|
|
|
|
312
|
|
Advances payable
(current portion)
|
|
|
383
|
|
|
|
382
|
|
Total current
liabilities
|
|
|
373,463
|
|
|
|
324,667
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term government
loan
|
|
|
306
|
|
|
|
608
|
|
Advances
payable
|
|
|
359
|
|
|
|
339
|
|
Deferred tax
liabilities
|
|
|
4,393
|
|
|
|
193
|
|
Long-term taxes
payable
|
|
|
32,719
|
|
|
|
-
|
|
Total
liabilities
|
|
|
411,240
|
|
|
|
325,807
|
|
Commitments and
Contingencies (Note 31)
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value - Authorized - 80,000,000 shares Issued – 32,338,302 and
32,338,302 shares at December 31, 2017 and 2016,
respectively
|
|
|
3
|
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
64,406
|
|
|
|
64,764
|
|
Retained
earnings-
|
|
|
|
|
|
|
|
|
Appropriated
|
|
|
10,707
|
|
|
|
10,549
|
|
Unappropriated
|
|
|
209,459
|
|
|
|
228,963
|
|
Accumulated other
comprehensive income/(loss)
|
|
|
17,780
|
|
|
|
(892)
|
|
Treasury stock –
694,298 and 694,298 shares at December 31, 2017 and 2016,
respectively
|
|
|
(2,907)
|
|
|
|
(2,907)
|
|
Total parent company
stockholders' equity
|
|
|
299,448
|
|
|
|
300,480
|
|
Non-controlling
interests
|
|
|
6,681
|
|
|
|
5,412
|
|
Total stockholders'
equity
|
|
|
306,129
|
|
|
|
305,892
|
|
Total liabilities and
stockholders' equity
|
|
$
|
717,369
|
|
|
$
|
631,699
|
|
China Automotive
Systems, Inc. and Subsidiaries
Consolidated
Statements of Income
(In thousands of
USD, except share and per share amounts)
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Net product sales
($37,583 and $39,845 sold to related parties for the years ended
December 31, 2017 and 2016)
|
|
$
|
499,063
|
|
|
$
|
462,050
|
|
Cost of products sold
($28,994 and $27,747 purchased from related parties for the years
ended December 31, 2017 and 2016)
|
|
|
414,429
|
|
|
|
381,131
|
|
Gross
profit
|
|
|
84,634
|
|
|
|
80,919
|
|
Net gain on other
sales
|
|
|
7,635
|
|
|
|
3,803
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
19,912
|
|
|
|
17,159
|
|
General and
administrative expenses
|
|
|
19,543
|
|
|
|
16,841
|
|
Research and
development expenses
|
|
|
33,544
|
|
|
|
27,706
|
|
Total operating
expenses
|
|
|
72,999
|
|
|
|
61,706
|
|
Operating
income
|
|
|
19,270
|
|
|
|
23,016
|
|
Other income,
net
|
|
|
678
|
|
|
|
1,116
|
|
Interest
expense
|
|
|
1,753
|
|
|
|
656
|
|
Financial income,
net
|
|
|
2,180
|
|
|
|
1,428
|
|
Income before income
tax expenses and equity in earnings of affiliated
companies
|
|
|
20,375
|
|
|
|
24,904
|
|
Less: Income
taxes
|
|
|
41,633
|
|
|
|
2,484
|
|
Add: Investment
income, net
|
|
|
2,619
|
|
|
|
557
|
|
Net
(loss)/income
|
|
|
(18,639)
|
|
|
|
22,977
|
|
Net income
attributable to non-controlling interest
|
|
|
707
|
|
|
|
466
|
|
Net (loss)/income
attributable to parent company's common shareholders
|
|
|
(19,346)
|
|
|
|
22,511
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to parent company's common shareholders per share
–
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.61)
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
(0.61)
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding –
|
|
|
|
|
|
|
|
|
Basic
|
|
|
31,644,004
|
|
|
|
31,954,407
|
|
Diluted
|
|
|
31,646,897
|
|
|
|
31,957,052
|
|
China Automotive
Systems, Inc. and Subsidiaries
Consolidated
Statements of Comprehensive Income
(In thousands of
USD unless otherwise indicated)
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
$
|
(18,639)
|
|
|
$
|
22,977
|
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation income/(loss)
|
|
|
19,384
|
|
|
|
(19,996)
|
|
Comprehensive
income
|
|
|
745
|
|
|
|
2,981
|
|
Comprehensive
income/(loss) attributable to non-controlling interest
|
|
|
1,352
|
|
|
|
(226)
|
|
Comprehensive
(loss)/income attributable to parent company
|
|
$
|
(607)
|
|
|
$
|
3,207
|
|
China Automotive
Systems, Inc. and Subsidiaries
Consolidated
Statements of Changes in Stockholders' Equity
(In thousands of
USD, except share and per share amounts)
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
Balance at January 1,
2017 and 2016– 32,338,302 and 32,338,302 shares,
respectively
|
|
$
|
3
|
|
|
$
|
3
|
|
Balance at December
31, 2017 and 2016– 32,338,302 and 32,338,302 shares,
respectively
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
Additional Paid-in
Capital
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
64,764
|
|
|
$
|
64,627
|
|
Stock-based
compensation
|
|
|
100
|
|
|
|
137
|
|
Acquisition of the
non-controlling interest in Brazil Henglong
|
|
|
(458)
|
|
|
|
-
|
|
Balance at December
31
|
|
$
|
64,406
|
|
|
$
|
64,764
|
|
|
|
|
|
|
|
|
|
|
Retained Earnings—
Appropriated
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
10,549
|
|
|
$
|
10,379
|
|
Appropriation of
retained earnings
|
|
|
158
|
|
|
|
170
|
|
Balance at December
31
|
|
$
|
10,707
|
|
|
$
|
10,549
|
|
|
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
228,963
|
|
|
|
206,622
|
|
Net (loss)/income
attributable to parent company
|
|
|
(19,346)
|
|
|
|
22,511
|
|
Appropriation of
retained earnings
|
|
|
(158)
|
|
|
|
(170)
|
|
Balance at December
31
|
|
$
|
209,459
|
|
|
$
|
228,963
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive (Loss)/Income
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
(892)
|
|
|
|
18,412
|
|
Other comprehensive
loss related to the non-controlling interests acquired by the
Company
|
|
|
(67)
|
|
|
|
-
|
|
Net foreign currency
translation adjustment attributable to parent company
|
|
|
18,739
|
|
|
|
(19,304)
|
|
Balance at December
31
|
|
$
|
17,780
|
|
|
$
|
(892)
|
|
|
|
|
|
|
|
|
|
|
Treasury
Stock
|
|
|
|
|
|
|
|
|
Balance at January 1,
2017 and 2016 – 694,298 and 217,283 shares, respectively
|
|
|
(2,907)
|
|
|
|
(1,000)
|
|
Repurchase of common
stock in 2017 and 2016 – nil and 477,015 shares,
respectively
|
|
|
-
|
|
|
|
(1,907)
|
|
Balance at December
31, 2017 and 2016 – 694,298 and 694,298 shares,
respectively
|
|
$
|
(2,907)
|
|
|
|
(2,907)
|
|
|
|
|
|
|
|
|
|
|
Total parent company
stockholders' equity
|
|
$
|
299,448
|
|
|
$
|
300,480
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
5,412
|
|
|
$
|
8,252
|
|
Net foreign currency
translation adjustment attributable to non-controlling
interest
|
|
|
645
|
|
|
|
(692)
|
|
Net income
attributable to non-controlling interest
|
|
|
707
|
|
|
|
466
|
|
Other comprehensive
income related to the non-controlling interests acquired by the
Company
|
|
|
67
|
|
|
|
-
|
|
Acquisition of the
non-controlling interest in Brazil Henglong
|
|
|
458
|
|
|
|
-
|
|
Non-controlling
interests change due to the disposal of Fujian Qiaolong
|
|
|
-
|
|
|
|
(2,150)
|
|
Distribution of
retained earnings
|
|
|
(608)
|
|
|
|
(464)
|
|
Balance at December
31
|
|
$
|
6,681
|
|
|
$
|
5,412
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
306,129
|
|
|
$
|
305,892
|
|
China Automotive
Systems, Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(In thousands of
USD unless otherwise indicated)
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
(18,639)
|
|
|
$
|
22,977
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
100
|
|
|
|
137
|
|
Depreciation and
amortization
|
|
|
15,358
|
|
|
|
13,926
|
|
Deferred income
taxes
|
|
|
4,143
|
|
|
|
(1,628)
|
|
Inventory write
downs
|
|
|
5,109
|
|
|
|
3,210
|
|
Accrual/(reversal) of
provision for doubtful accounts
|
|
|
887
|
|
|
|
(21)
|
|
Equity in earnings of
affiliated companies
|
|
|
(2,617)
|
|
|
|
(556)
|
|
Gain on disposal of
Fujian Qiaolong
|
|
|
-
|
|
|
|
(698)
|
|
Gain on disposal of
fixed assets
|
|
|
(2,184)
|
|
|
|
(23)
|
|
Changes in operating
assets and liabilities (net of the impact of disposal of Fujian
Qiaolong):
|
|
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
|
Pledged
cash
|
|
|
1,254
|
|
|
|
(799)
|
|
Accounts and notes
receivable
|
|
|
30,908
|
|
|
|
(56,251)
|
|
Advance payments and
other
|
|
|
(529)
|
|
|
|
(2,331)
|
|
Inventories
|
|
|
(12,156)
|
|
|
|
(15,442)
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
|
2,533
|
|
|
|
35,455
|
|
Customer
deposits
|
|
|
411
|
|
|
|
(646)
|
|
Accrued payroll and
related costs
|
|
|
1,182
|
|
|
|
1,143
|
|
Accrued expenses and
other payables
|
|
|
560
|
|
|
|
10,548
|
|
Accrued pension
costs
|
|
|
(331)
|
|
|
|
(231)
|
|
Taxes
payable
|
|
|
(8,555)
|
|
|
|
3,130
|
|
Long-term taxes
payable
|
|
|
32,719
|
|
|
|
-
|
|
Advances
payable
|
|
|
-
|
|
|
|
(75)
|
|
Net cash provided by
operating activities
|
|
|
50,153
|
|
|
|
11,825
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of
short-term investments and long-term time deposits
|
|
|
(32,145)
|
|
|
|
(28,210)
|
|
Proceeds from
maturities of short-term investments and long-term time
deposits
|
|
|
35,780
|
|
|
|
20,657
|
|
Decrease in other
receivables
|
|
|
198
|
|
|
|
2,388
|
|
Cash received from
disposal of Fujian Qiaolong
|
|
|
-
|
|
|
|
1,953
|
|
Cash received from
property, plant and equipment sales
|
|
|
2,231
|
|
|
|
1,284
|
|
Cash paid to acquire
property, plant and equipment (including $12,691 and $8,021 paid to
related parties for the years ended December 31, 2017 and 2016,
respectively)
|
|
|
(27,096)
|
|
|
|
(39,585)
|
|
Cash paid to acquire
intangible assets
|
|
|
(201)
|
|
|
|
(161)
|
|
Loan to a related
party
|
|
|
(29,044)
|
|
|
|
-
|
|
Cash received from
repayment of the loan to a related party
|
|
|
10,591
|
|
|
|
-
|
|
Investment under
equity method
|
|
|
(7,629)
|
|
|
|
(10,556)
|
|
Net cash used in
investing activities
|
|
|
(47,315)
|
|
|
|
(52,230)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
and government loans
|
|
|
72,237
|
|
|
|
14,313
|
|
Repayment of bank and
government loans
|
|
|
(43,154)
|
|
|
|
(6,973)
|
|
Repurchase of common
stock
|
|
|
-
|
|
|
|
(1,907)
|
|
Dividends paid to the
holders of the Company's common stock
|
|
|
-
|
|
|
|
(544)
|
|
Dividends paid to the
non-controlling interest holders of joint venture
companies
|
|
|
(623)
|
|
|
|
(464)
|
|
Net cash provided by
financing activities
|
|
|
28,460
|
|
|
|
4,425
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents affected by foreign currency
|
|
|
2,168
|
|
|
|
(2,604)
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
|
33,466
|
|
|
|
(38,584)
|
|
Cash and equivalents
at beginning of year
|
|
|
31,092
|
|
|
|
69,676
|
|
Cash and
equivalents at end of year
|
|
$
|
64,558
|
|
|
$
|
31,092
|
|
View original
content:http://www.prnewswire.com/news-releases/china-automotive-systems-reports-fourth-quarter-and-fiscal-2017-results-300621510.html
SOURCE China Automotive Systems, Inc.