WUHAN, China, Jan. 7, 2016 /PRNewswire/ -- China Automotive
Systems, Inc. ("CAAS" or the "Company"), a leading power
steering components and systems supplier in China, today announced its board of directors
approved a share repurchase program of up to $5 million of its outstanding common shares
periodically over the next 12 months. Repurchases will be made in
open market transactions, at prevailing market prices subject to
applicable laws, regulations and approvals. The timing of the share
repurchases will depend on a variety of factors, including market
conditions.
Mr. Hanlin Chen, Chairman of
China Automotive Systems, commented, "Chinese automotive industry
experienced challenges in 2015. However, we do not believe that our
current stock price reflects our leadership in the automotive power
steering industry in China and our
growing presence in global marketplace. Over the years, as an
established tier-one supplier to domestic and global auto-makers,
we have proven our capabilities to expand customer base, grow
shipment, win awards, develop new products, and generate free cash
flow."
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "Since October last year, we are
encouraged by a series of government policies to help revitalize
the Chinese auto and auto parts sector. We see favorable momentum
for us in China and abroad due to
the substantial tax reduction for small car purchases and the
significant depreciation of China's currency against the U.S. dollar. In
addition, our facility in Brazil
is entering into mass production in 2016 that enables us to secure
large local contracts. With the recovery of our production
utilization rate in China, we
expect the improvement on our margins in the coming quarters."
Mr. Jie Li, chief financial
officer of CAAS, commented, "Our stock is trading below our liquid
current asset, book value, and global peers' valuations based on
earnings, revenue and cash-flow. Our decision to buy back stocks
aligns with our further improved balance sheet and our ongoing
commitment to creating shareholder value."
In the first nine months, CAAS recorded revenue of $323.5 million and net income of $20.5 million. As of September 30, 2015, CAAS' total cash and cash
equivalents, pledged cash deposits and short-term investments were
$132.5 million, total accounts
receivable including notes receivable were $273.9 million, accounts payable were
$192.5 million and bank and
government loans were $45.0 million.
Total stockholders' equity was $305.9
million as of September 30,
2015, compared to $298.2
million as of December 31,
2014. Net cash flow from operating activities was
$24.1 million, compared to
$8.1 million for the first nine
months in 2014.
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 5.0 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 26, 2015, 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
Investor Relations
Email: caas@compassbell.com
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SOURCE China Automotive Systems, Inc.