- Electric Power Steering ("EPS") Sales Increased by 35.6% in
2022 -
WUHAN,
China, March 30,
2023 /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,
2022.
Fourth Quarter 2022 Highlights
- Net sales were $128.8
million
- Gross profit increased by 26.9% to $25.0
million from $19.7
million. Gross margin increased to 19.4% from 14.2% in
the fourth quarter of 2021
- Loss from operations was $2.6
million, compared to income from operations of $0.6 million in the fourth quarter of 2021
- Net income attributable to parent company's common shareholders
was approximately $4.3 million, or
diluted net income per share of $0.14, compared to net income of $5.0 million, or diluted income per share of
$0.16 in the fourth quarter of
2021.
Fiscal Year 2022 Highlights
- Net sales increased by 6.3% to $529.6
million compared to $498.0
million in 2021
- Gross profit increased by 15.7% to $83.4
million compared to $72.1
million in 2021. Gross margin increased to 15.7% from 14.5%
in 2021
- Operating income increased by 45.5% to $8.0 million compared to $5.5 million in 2021
- Diluted net income per share increased by 91.7% to $0.69 in 2022 compared to $0.36 in 2021
- Total cash and cash equivalents, pledged cash and short-term
investments were $171.8 million at
year end
- Net cash flow provided by operating activities was $48.0 million compared to $28.3 million in 2021.
Mr. Qizhou Wu, Chief Executive
Officer of CAAS, commented, "The Chinese economy continued to grow
slowly with 2.9% year-over-year growth in the fourth quarter of
2022 and 3.0% growth for the full year, down significantly from the
8.4% growth in 2021. COVID-related lockdowns and travel
restrictions in China resulted in
supply chain disruptions and slowed automobile sales growth in
2022. According to the China Association of Automobile
Manufacturers, overall sales of automobiles in China declined by 3.3% year-over-year in the
fourth quarter of 2022 and increased by only 2.1% year-over-year
for 2022."
"Despite all the challenges, we continued to grow our top and
bottom lines in 2022. Our sales in the domestic Chinese
passenger market improved and revenue from North America was steady. Sales to Chery
Automobile and our Brazilian operations achieved over 50% year-over
year sales growth in 2022. Additionally our EPS revenue
increased 35.6% year-over-year in 2022."
"Investment in research and development was 28.0% higher as we
increased product development for the New Energy
Vehicle ("NEV") market and autonomous driving programs, such
as our expanded relationship with BYD Auto for new customized EPS
products and our ongoing collaboration with Sentient AB in
Sweden."
"We are cautiously optimistic that recent government policy
changes in 2023, which greatly removed COVID-19 lockdowns and
travel restrictions, will be a catalyst to boost the business
environment in China," Mr. Wu
concluded.
Mr. Jie Li, Chief Financial
Officer of CAAS, commented, "Our margin continued to improve
throughout the year. We maintained our financial strength as
total cash and cash equivalents, pledged cash and short-term
investments increased to $171.8
million, or approximately $5.69 per share at year end. We enhanced
our profitability and generated strong free cashflow in 2022. We
repurchased 666,074 common shares in 2022."
Fourth Quarter of 2022
In the fourth quarter of 2022, net sales decreased by 7.2% to
$128.8 million compared to
$138.8 million in the same quarter of
2021. The net sales decrease was mainly due to a change in
the product mix and lower demand for passenger automobiles and
commercial vehicles in the fourth quarter of 2022 compared to the
fourth quarter of 2021.
Gross profit increased by 26.9% to $25.0 million in the fourth quarter of 2022,
compared to $19.7 million in the
fourth quarter of 2021. Gross margin in the fourth quarter of
2022 was 19.4% compared to 14.2% in the fourth quarter of 2021,
primarily due to a change in product mix.
Selling expenses were $4.6 million in the fourth quarter of
2022, compared to $3.4 million in the
fourth quarter of 2021. Selling expenses represented 3.6% of net
sales in the fourth quarter of 2022, compared to 2.4% in the fourth
quarter of 2021.
General and administrative expenses ("G&A expenses") were
$10.8 million in the fourth quarter
of 2022, compared to $7.6 million in
the same period in 2021. G&A expenses represented 8.4% of
net sales in the fourth quarter of 2022, compared to 5.5% of net
sales in the fourth quarter of 2021, which was mainly due to the
increase of provision of allowance for doubtful accounts.
Research and development expenses ("R&D expenses")
were $10.6 million in the fourth quarter of 2022, compared to
$9.9 million in the fourth quarter of
2021. R&D expenses represented 8.2% of net sales in the fourth
quarter of 2022, compared to 7.1% in the fourth quarter of
2021, mainly due to an increase in salaries and wages as
a result of the increased R&D activities for new projects.
Loss from operations was $2.6 million in the fourth quarter of 2022,
compared to income from operations of $0.6 million in the fourth quarter of
2021.
Interest expense was $0.3
million in the fourth quarter of 2022, compared to
$0.5 million in the fourth
quarter of 2021.
Financial income was $1.4 million in the fourth quarter of 2022
due to exchange fluctuations of the U.S. dollar to the Chinese RMB
and the Brazilian Real, compared to financial expense of
$1.5 million in the fourth quarter of
2021.
Loss before income tax expenses and equity in earnings of
affiliated companies was $2.7 million in the fourth quarter of
2022, compared to a loss of $0.4 million in the fourth quarter of
2021.
Income tax benefit was $1.9 million in the fourth quarter of 2022,
compared to an income tax expense of $0.7 million in the fourth quarter of 2021,
mainly due to the loss before income tax expenses and equity
in earnings of affiliated companies in the fourth quarter of
2022.
Net income attributable to parent company's common shareholders
was $4.3 million in the fourth
quarter of 2022 compared to net income attributable to parent
company's common shareholders of $5.0 million in the fourth quarter of
2021. Diluted income per share was $0.14 in the fourth quarter of 2022,
compared to diluted income per share of $0.16 in the fourth quarter of 2021.
The weighted average number of diluted common shares outstanding
was 30,229,987 in the fourth quarter of 2022, compared to
30,853,822 in the fourth quarter of 2021.
Fiscal Year 2022
Net sales increased by 6.3% year-over-year to $529.6 million in 2022, compared to
$498.0 million in 2021. This increase
was mainly due to higher sales of passenger vehicles in
China, with sales to Chery
Automobile up 54.5% year-over-year and total sales of electric
power steering ("EPS") systems increased by 35.6% year-over-year.
EPS sales represented 29.5% of total revenue in 2022 compared
to 23.2% in 2021. Net sales of vehicle steering systems
to the Company's North American customers was approximately the
same in 2022, but Brazil Henglong's net sales grew by 54.1%
year-over-year to $39.3 million.
Gross profit in 2022 increased by 15.7% year-over-year to
$83.4 million, compared to
$72.1 million in 2021. The gross
margin increased to 15.7% from 14.5% in 2021 mainly due to changes
in the product mix.
Gain on other sales in 2022 decreased to $3.7 million, compared to $4.4 million in 2021.
Selling expenses declined by 7.7% year-over-year to $16.9 million in 2022, compared to
$18.3 million in 2021, mainly due to
lower transportation expenses. Selling expenses represented
3.2% of net sales in 2022, compared to 3.7% in 2021.
G&A expenses increased by 7.0% year-over-year to
$26.1 million in 2022, compared
to $24.4 million in 2021. G&A
expenses represented 4.9% of net sales in 2022, compared to 4.9% of
net sales in 2021.
R&D expenses were $36.1
million in 2022, compared to $28.2
million in 2021. The increase was primarily due to higher
investment in EPS products and other new products. R&D
expenses were 6.8% of net sales in 2022, compared to 5.7% of net
sales in 2021.
Operating income increased by 45.5% year-over-year to
$8.0 million in 2022, compared
to $5.5 million in 2021. The
increase in operating income was mainly due to higher gross
profit.
Interest expense was $1.5 million
in 2022, consistent with the $1.4
million in 2021.
Net financial income was $10.8
million in 2022, compared to net financial expense of
$2.4 million in 2021, primarily due
to an increase in foreign exchange gains as the U.S. dollar
fluctuated against the Chinese RMB and Brazilian Real.
Income before income tax expenses and equity in earnings of
affiliated companies was $23.0 million, compared to $8.4 million in fiscal year 2021. The
change was primarily due to higher operating income and net
financial income in 2022.
Income tax expense was $3.1 million in 2022, compared to
$4.0 million in 2021.
Net income attributable to parent company's common shareholders
was $21.2 million in
2022, compared to net income attributable to parent company's
common shareholders of $11.1 million
in 2021. Diluted net income per share increased by 91.7%
year-over-year to $0.69 in 2022
compared to $0.36 in 2021.
The weighted average number of diluted common shares outstanding
was 30,641,274 in 2022 compared to 30,855,431 in 2021.
Balance Sheet
As of December 31, 2022, total
cash and cash equivalents, pledged cash and short-term investments
were $171.8 million. Total
accounts receivable including notes receivable were $224.3 million. Accounts payable
including notes payable were $235.1
million and short-term bank loans were $45.7 million. Total parent company
stockholders' equity was $311.7 million as of December 31, 2022, compared to $321.0 million as of December 31, 2021. Net cash flow from
operating activities was $48.0 million in 2022, compared to
$28.3 million in 2021. Cash
paid to acquire property, plant and equipment and land use rights
was $20.3 million in 2022,
compared to $9.3 million in 2021.
Business Outlook
Management provides revenue guidance for the fiscal year 2023 of
$560.0 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 March 30, 2023 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
with pin 775394:
Phone Number: +1-888-506-0062 (North America)
Phone Number:
+1-973-528-0011 (International)
Mainland China Toll Free: +86-400-120-3199
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 ten 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 Fiat Chrysler Automobiles (FCA) and
Ford Motor Company 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, 2023, and in
documents subsequently filed by the Company from time to time with
the Securities and Exchange Commission. Any of these factors and
other factors beyond our control, could have an adverse effect on
the overall business environment, cause uncertainties in the
regions where we conduct business, cause our business to suffer in
ways that we cannot predict and materially and adversely impact our
business, financial condition and results of operations. A
prolonged disruption or any further unforeseen delay in our
operations of the manufacturing, delivery and assembly process
within any of our production facilities could continue to result in
delays in the shipment of products to our customers, increased
costs and reduced revenue. 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
Tel: +1-212-510-8922
Email: Kevin@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,
|
|
|
|
2022
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
121,216
|
|
|
$
|
131,695
|
|
Pledged cash
|
|
|
37,735
|
|
|
|
27,804
|
|
Short-term
investments
|
|
|
12,861
|
|
|
|
1,756
|
|
Accounts and notes
receivable, net - unrelated parties (Allowance for credit losses of
$14,359 and
$11,961, respectively)
|
|
|
214,308
|
|
|
|
195,729
|
|
Accounts and notes
receivable, net - related parties (Allowance for credit losses of
$1,763 and $898,
respectively)
|
|
|
10,016
|
|
|
|
14,607
|
|
Advance payments and
others, net - unrelated parties (Allowance for credit losses of
$115
and $55, respectively)
|
|
|
10,907
|
|
|
|
12,696
|
|
Advance payments and
others - related parties
|
|
|
1,439
|
|
|
|
600
|
|
Inventories
|
|
|
112,236
|
|
|
|
116,493
|
|
Total current
assets
|
|
|
520,718
|
|
|
|
501,380
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
106,606
|
|
|
|
127,721
|
|
Land use rights,
net
|
|
|
9,555
|
|
|
|
10,732
|
|
Intangible assets,
net
|
|
|
1,273
|
|
|
|
1,812
|
|
Operating lease
assets
|
|
|
477
|
|
|
|
138
|
|
Long-term time
deposits
|
|
|
-
|
|
|
|
8,135
|
|
Other receivables, net
(Allowance for credit losses of nil and $50,
respectively)
|
|
|
46
|
|
|
|
358
|
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
|
6,331
|
|
|
|
2,284
|
|
Advance payment for
property, plant and equipment - related parties
|
|
|
1,884
|
|
|
|
810
|
|
Long-term
investments
|
|
|
59,810
|
|
|
|
36,966
|
|
Deferred tax
assets
|
|
|
7,652
|
|
|
|
10,114
|
|
Other non-current
assets
|
|
|
-
|
|
|
|
16,312
|
|
Total
assets
|
|
$
|
714,352
|
|
|
$
|
716,762
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
45,671
|
|
|
$
|
47,592
|
|
Accounts and notes
payable - unrelated parties
|
|
|
218,412
|
|
|
|
214,590
|
|
Accounts and notes
payable - related parties
|
|
|
16,695
|
|
|
|
13,464
|
|
Customer
deposits
|
|
|
5,654
|
|
|
|
2,400
|
|
Accrued payroll and
related costs
|
|
|
11,628
|
|
|
|
10,984
|
|
Accrued expenses and
other payables
|
|
|
48,311
|
|
|
|
50,332
|
|
Taxes
payable
|
|
|
17,598
|
|
|
|
12,326
|
|
Operating lease
liabilities - current portion
|
|
|
226
|
|
|
|
128
|
|
Total current
liabilities
|
|
|
364,195
|
|
|
|
351,816
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Advances
payable
|
|
|
2,144
|
|
|
|
2,028
|
|
Operating lease
liabilities - non-current portion
|
|
|
255
|
|
|
|
22
|
|
Long-term loans
|
|
|
528
|
|
|
|
—
|
|
Deferred tax
liabilities
|
|
|
4,010
|
|
|
|
4,380
|
|
Long-term taxes
payable
|
|
|
15,805
|
|
|
|
21,075
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
386,937
|
|
|
|
379,321
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
|
582
|
|
|
|
553
|
|
|
|
|
|
|
|
|
|
|
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, 2022 and 2021,
respectively
|
|
|
3
|
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
63,731
|
|
|
|
63,731
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
Appropriated
|
|
|
11,851
|
|
|
|
11,481
|
|
Unappropriated
|
|
|
247,174
|
|
|
|
226,363
|
|
Accumulated other
comprehensive income
|
|
|
(3,413)
|
|
|
|
24,717
|
|
Treasury stock –
2,152,600 and 1,486,526
shares at December 31, 2022 and 2021,
respectively
|
|
|
(7,695)
|
|
|
|
(5,261)
|
|
Total parent company
stockholders' equity
|
|
|
311,651
|
|
|
|
321,034
|
|
Non-controlling
interests
|
|
|
15,182
|
|
|
|
15,854
|
|
Total stockholders'
equity
|
|
|
326, 833
|
|
|
|
336,888
|
|
Total liabilities,
mezzanine equity and stockholders' equity
|
|
|
714,352
|
|
|
$
|
716,762
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income or Loss
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Net product sales
($44,282 and $65,131
sold to related parties for the years
ended December 31, 2022 and 2021)
|
|
$
|
529,551
|
|
|
$
|
497,993
|
|
Cost of products sold
($28,810 and $31,580
purchased from related parties for the
years ended December 31,
2022 and 2021)
|
|
|
446,157
|
|
|
|
425,914
|
|
Gross
profit
|
|
|
83,394
|
|
|
|
72,079
|
|
Net gain on other
sales
|
|
|
3,696
|
|
|
|
4,368
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
16,910
|
|
|
|
18,278
|
|
General and
administrative expenses
|
|
|
26,120
|
|
|
|
24,423
|
|
Research and
development expenses
|
|
|
36,109
|
|
|
|
28,228
|
|
Total operating
expenses
|
|
|
79,139
|
|
|
|
70,929
|
|
Operating
income
|
|
|
7,951
|
|
|
|
5,518
|
|
Other income,
net
|
|
|
5,782
|
|
|
|
6,668
|
|
Interest
expense
|
|
|
(1,450)
|
|
|
|
(1,437)
|
|
Financial
income/(expense), net
|
|
|
10,753
|
|
|
|
(2,350)
|
|
Income before income
tax expenses and equity in earnings of affiliated
companies
|
|
|
23,036
|
|
|
|
8,399
|
|
Less: Income
taxes
|
|
|
3,082
|
|
|
|
4,004
|
|
Add: Equity in earnings
of affiliated companies
|
|
|
2,389
|
|
|
|
6,331
|
|
Net income
|
|
|
22,343
|
|
|
|
10,726
|
|
Net income/(loss)
attributable to non-controlling
interest
|
|
|
1,132
|
|
|
|
(352)
|
|
Accretion to redemption
value of redeemable non-controlling interests
|
|
|
(30)
|
|
|
|
(28)
|
|
Net income
attributable to parent company's common shareholders
|
|
|
21,181
|
|
|
|
11,050
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to parent company's common shareholders per share -
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.69
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.69
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding -
|
|
|
|
|
|
|
|
|
Basic
|
|
|
30,639,102
|
|
|
|
30,851,776
|
|
Diluted
|
|
|
30,641,274
|
|
|
|
30,855,431
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Comprehensive Income or Loss
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Net income
|
|
|
22,343
|
|
|
|
10,726
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation (loss)/gain
|
|
|
(29,934)
|
|
|
|
7,784
|
|
Comprehensive
(loss)/income
|
|
|
(7,591)
|
|
|
|
18,510
|
|
Comprehensive
(loss)/income attributable
to non-controlling interest
|
|
|
(672)
|
|
|
|
128
|
|
Accretion to redemption
value of redeemable non-controlling interest
|
|
|
(30)
|
|
|
|
(28)
|
|
Comprehensive
(loss)/income attributable to parent company
|
|
$
|
(6,949)
|
|
|
$
|
18,354
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Changes in Stockholders' Equity
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
|
2022
|
|
|
2021
|
|
Common Stock
|
|
|
|
|
|
|
|
|
Balance at January 1,
2022 and 2021 – 32,338,302 and 32,338,302 shares,
respectively
|
|
$
|
3
|
|
$
|
|
3
|
|
Balance at December 31,
2022 and 2021 – 32,338,302 and 32,338,302 shares,
respectively
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
Additional Paid-in
Capital
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
63,731
|
|
$
|
|
64,273
|
|
Share-based
compensation
|
|
|
—
|
|
|
|
88
|
|
Acquisition of the
non-controlling interest in Wuhu
|
|
|
—
|
|
|
|
(630)
|
|
Balance at December
31
|
|
$
|
63,731
|
|
|
$
|
63,731
|
|
|
|
|
|
|
|
|
|
|
Retained Earnings -
Appropriated
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
11,481
|
|
$
|
|
11,303
|
|
Appropriation of
retained earnings
|
|
|
370
|
|
|
|
178
|
|
Balance at December
31
|
|
$
|
11,851
|
|
|
$
|
11,481
|
|
|
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
226,363
|
|
$
|
|
215,491
|
|
Net income attributable
to parent company
|
|
|
21,211
|
|
|
|
11,078
|
|
Accretion of redeemable
non-controlling interests
|
|
|
(30)
|
|
|
|
(28)
|
|
Appropriation of
retained earnings
|
|
|
(370)
|
|
|
|
(178)
|
|
Balance at December
31
|
|
$
|
247,174
|
|
$
|
|
226,363
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive (Loss)/Income
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
24,717
|
|
|
$
|
17,413
|
|
Net foreign currency
translation adjustment attributable to parent company
|
|
|
(28,130)
|
|
|
|
7,304
|
|
Balance at December
31
|
|
$
|
(3,413)
|
|
$
|
|
24,717
|
|
|
|
|
|
|
|
|
|
|
Treasury
Stock
|
|
|
|
|
|
|
|
|
Balance at January 1,
2022 and 2021 – 1,486,526
and 1,486,526 shares,
respectively
|
|
$
|
(5,261)
|
|
$
|
|
(5,261)
|
|
Repurchase of common
stock in 2022 and 2021 – 666,074 and
nil shares, respectively
|
|
|
(2,434)
|
|
|
|
—
|
|
Balance at December 31,
2022 and 2021 – 2,152,600
and 1,486,526 shares,
respectively
|
|
$
|
(7,695)
|
|
|
$
|
(5,261)
|
|
|
|
|
|
|
|
|
|
|
Total parent company
stockholders' equity
|
|
$
|
311,651
|
|
|
$
|
321,034
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
|
|
|
|
|
|
Balance at January
1
|
|
$
|
15,854
|
|
$
|
|
16,170
|
|
Net foreign currency
translation adjustment attributable to non-controlling
interest
|
|
|
(1,804)
|
|
|
|
480
|
|
Net income/(loss)
attributable to non-controlling interest
|
|
|
1,132
|
|
|
|
(352)
|
|
Acquisition of the
non-controlling interest in Wuhu
|
|
|
—
|
|
|
|
(444)
|
|
Balance at December
31
|
|
$
|
15,182
|
|
|
$
|
15,854
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
326,833
|
|
|
$
|
336,888
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
22,343
|
|
|
$
|
10,726
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
—
|
|
|
|
88
|
|
Depreciation and
amortization
|
|
|
25,173
|
|
|
|
27,113
|
|
Deferred income
taxes
|
|
|
1.243
|
|
|
|
4,020
|
|
Allowance for credit
losses
|
|
|
4.404
|
|
|
|
2,738
|
|
Impairment loss on
prepayment for investment in Hefei Senye
|
|
|
2,676
|
|
|
|
-
|
|
Equity in earnings of
affiliates
|
|
|
(2,389)
|
|
|
|
(6,331)
|
|
Government subsidy
reclassified from advances payable
|
|
|
—
|
|
|
|
(1,253)
|
|
Loss on disposal of
fixed assets
|
|
|
58
|
|
|
|
389
|
|
(Increase)/decrease
in:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
|
(36,935)
|
|
|
|
26,560
|
|
Advance payments and
others
|
|
|
(41)
|
|
|
|
1,439
|
|
Inventories
|
|
|
(5,368)
|
|
|
|
(25,684)
|
|
Increase/(decrease)
in:
|
|
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
|
27,271
|
|
|
|
(2,801)
|
|
Customer
deposits
|
|
|
3,580
|
|
|
|
870
|
|
Accrued payroll and
related costs
|
|
|
1,628
|
|
|
|
(2,721)
|
|
Accrued expenses and
other payables
|
|
|
1,158
|
|
|
|
(4,081)
|
|
Taxes
payable
|
|
|
2,925
|
|
|
|
(4,501)
|
|
Advances
payable
|
|
|
297
|
|
|
|
1,700
|
|
Net cash provided by
operating activities
|
|
|
48,023
|
|
|
|
28,271
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of short-term
investments and long-term time deposits
|
|
|
(80,244)
|
|
|
|
(63,478)
|
|
Proceeds from
maturities of short-term investments
|
|
|
75,144
|
|
|
|
69,351
|
|
Decrease/(increase) in
demand loans and employee housing loans included in other
receivables
|
|
|
292
|
|
|
|
(171)
|
|
Loan to a related
party
|
|
|
(146)
|
|
|
|
—
|
|
Repayment of loan from
a related party
|
|
|
—
|
|
|
|
154
|
|
Cash received from
property, plant and equipment sales
|
|
|
1,514
|
|
|
|
150
|
|
Cash paid to acquire
property, plant and equipment (including $3,445 and
$1,965 paid to related parties for the
years ended December 31, 2022 and 2021, respectively)
|
|
|
(20,296)
|
|
|
|
(9,260)
|
|
Cash paid to acquire
intangible assets
|
|
|
(188)
|
|
|
|
(642)
|
|
Cash received from
long-term investment
|
|
|
3,986
|
|
|
|
20,621
|
|
Investment under equity
method
|
|
|
(12,802)
|
|
|
|
(308)
|
|
Cash prepaid for
investment under equity method
|
|
|
—
|
|
|
|
(13,454)
|
|
Net cash provided
by/(used in) investing activities
|
|
|
(32,740)
|
|
|
|
2,963
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
loans
|
|
|
51,898
|
|
|
|
53,209
|
|
Repayment of bank loans
and government loans
|
|
|
(49,917)
|
|
|
|
(50,803)
|
|
Repurchase of common
shares
|
|
|
(2,434)
|
|
|
|
—
|
|
Repayments of the
borrowing under sale and leaseback transaction
|
|
|
(1,130)
|
|
|
|
(4,450)
|
|
Acquisition of
non-controlling interest
|
|
|
—
|
|
|
|
(1,075)
|
|
Net cash used in
financing activities
|
|
|
(1,583)
|
|
|
|
(3,119)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents affected by foreign currency
|
|
|
(14,248)
|
|
|
|
3,323
|
|
Net increase in cash
and cash equivalents
|
|
|
(548)
|
|
|
|
31,438
|
|
Cash, cash equivalents
and pledged cash at beginning of year
|
|
|
159,499
|
|
|
|
128,061
|
|
Cash, cash equivalents
and pledged cash at end of year
|
|
$
|
158,951
|
|
|
$
|
159,499
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows (continued)
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
Cash paid for
interest
|
|
$
|
1,492
|
|
|
$
|
1,843
|
|
Cash paid for income
taxes
|
|
$
|
4,044
|
|
|
$
|
3,398
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF NON-CASH ACTIVITIES:
|
|
|
|
Non-cash investing
activities:
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
Property, plant and
equipment recorded during the year which previously were advance
payments
|
|
$
|
2,473
|
|
|
$
|
8,543
|
|
Change in accounts
payable for acquiring property, plant and equipment
|
|
$
|
985
|
|
|
$
|
1,510
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
Supplemental
disclosure of acquisition of
operating lease assets
|
|
|
477
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/china-automotive-systems-reports-a-91-7-increase-in-diluted-net-income-per-share-in-fiscal-year-2022--301785478.html
SOURCE China Automotive Systems, Inc.