WUHAN, China, May 12, 2016 /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 first quarter ended
March 31, 2016.
First Quarter 2016 Highlights
- Net sales were $116.9 million,
compared to $123.4 million in the
first quarter of 2015;
- Gross margin was 18.0%, compared with 17.6% in the first
quarter of 2015;
- Net income attributable to parent company's common shareholders
was $5.7 million, or diluted earnings
per share of $0.18, compared to net
income attributable to parent company's common shareholders of
$8.5 million, or diluted earnings per
share of $0.26 in the first quarter
of 2015.
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "Our sales in the first quarter of 2016
continued to reflect the slower economic growth in China and changes in the product mix for
steering. China's GDP growth in
the first quarter of 2016 was 6.7%, lower than the 6.9% for the
full year 2015, and the slowest growth since 2009. The stronger
dollar against Chinese currency led to the year-over-year top line
decline as we report our financial results in US dollars. Our
product mix continued to follow the market trend toward electric
power steering ("EPS") units. Our EPS sales in the first quarter of
2016 now accounted for 27.5% of total sales. We are also
investing more in our operations to support our EPS sales growth in
the future."
Mr. Jie Li, chief financial
officer of CAAS, commented, "We continue to focus on building our
financial strength. We are expanding our product portfolio,
especially of EPS products, and improving our operations. We
anticipate our stock repurchase plan will be implemented when the
window opens in the middle of May. We remain committed to building
long-term shareholder value."
First Quarter of 2016
In the first quarter of 2016, net sales were $116.9 million, compared to $123.4 million in the same quarter of 2015,
reflecting a 5.3% year-over-year decline. The net sales decline was
mainly due to decreased auto sales in a weak economic environment
and the impact of foreign currency translation as the value of the
Renminbi depreciated compared to the US dollar.
Gross profit was $21.0 million in
the first quarter of 2016, compared to $21.7
million in the first quarter of 2015. The gross margin was
18.0% in the first quarter of 2016, versus 17.6% in the first
quarter of 2015. The increase in gross margin was mainly due to a
change in product mix toward higher-margin advanced products.
Gain on other sales was $0.8
million, compared with $1.7
million in the first quarter of 2015.
Selling expenses were $4.3 million
in the first quarter of 2016, compared to $3.6 million in the first quarter of 2015.
Selling expenses represented 3.7% of net sales in the first quarter
of 2016, compared to 2.9% in the first quarter of 2015.
General and administrative expenses ("G&A expenses") were
$4.3 million in the first quarter of
2016, compared to $4.4 million in the
same quarter of 2015. G&A expenses represented 3.7% of net
sales in the first quarter of 2016 and 3.6% in the first quarter of
2015.
Research and development expenses ("R&D expenses") were
$6.1 million in the first quarter of
2016, up from $5.9 million in the
first quarter of 2015. R&D expenses represented 5.3% of net
sales in the first quarter of 2016 compared with 4.8% in the first
quarter of 2015.
Net financial income was $0.3
million in the first quarter of 2016 compared to net
financial income of $0.8 million in
the first quarter of 2015.
Income from operations was $7.1
million in the first quarter of 2016, compared to
$9.4 million in the same quarter of
2015. The decrease was mainly due to the reduced revenue, lower
gain on other sales and higher operating expenses in the 2016 first
quarter compared with the same quarter of 2015.
Income before income tax expenses and equity in earnings of
affiliated companies was $6.5 million
in the first quarter of 2016, compared to $9.7 million in the first quarter of 2015. The
decrease in income before income tax expenses and equity in
earnings of affiliated companies was mainly due to lower operating
income in the first quarter of 2016, compared with the first
quarter of 2015.
Net income attributable to parent company's common shareholders
was $5.7 million in the first quarter
of 2016, compared to net income attributable to parent company's
common shareholders of $8.5 million
in the first quarter of 2015. Diluted earnings per share were
$0.18 in the first quarter of 2016,
compared to diluted earnings per share of $0.26 in the first quarter of 2015.
The weighted average number of diluted common shares outstanding
was 32,123,588 in the first quarter of 2016, compared to 32,134,732
in the first quarter of 2015.
Balance Sheet
As of March 31, 2016, total cash
and cash equivalents, pledged cash and short-term investments were
$107.4 million, total accounts
receivable including notes receivable were $301.1 million, accounts payable were
$216.8 million and bank and
government loans were $45.4 million.
Total parent company stockholders' equity was $306.3 million as of March
31, 2016, compared to $299.0
million as of December 31,
2015.
Business Outlook
Management reiterated its revenue guidance for the full year
2016 of US$450 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 12, 2016 at 8:30 A.M.
EDT/8:30 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)
A replay of the call will be available on the Company's website
under 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 5.0 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, Beijing Henglong Automotive
System Co., Ltd. (for 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, 2016, 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
+1-646-726-6511
Email: caas@compassbell.com
-Tables Follow –
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Unaudited
Consolidated Balance Sheets
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
55,399
|
|
|
$
|
69,676
|
|
Pledged
cash
|
|
|
23,473
|
|
|
|
31,402
|
|
Short-term
investments
|
|
|
28,576
|
|
|
|
21,209
|
|
Accounts and notes
receivable, net - unrelated parties
|
|
|
276,345
|
|
|
|
254,397
|
|
Accounts and notes
receivable, net - related parties
|
|
|
24,760
|
|
|
|
21,918
|
|
Advance payments and
others - unrelated parties
|
|
|
7,583
|
|
|
|
4,381
|
|
Advance payments and
others - related parties
|
|
|
606
|
|
|
|
544
|
|
Inventories
|
|
|
70,726
|
|
|
|
65,570
|
|
Current deferred tax
assets
|
|
|
6,615
|
|
|
|
6,962
|
|
Total current
assets
|
|
|
494,083
|
|
|
|
476,059
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Long-term time
deposits
|
|
|
5,107
|
|
|
|
5,082
|
|
Property, plant and
equipment, net
|
|
|
91,830
|
|
|
|
84,151
|
|
Intangible assets,
net
|
|
|
2,664
|
|
|
|
2,793
|
|
Other receivables,
net - unrelated parties
|
|
|
3,783
|
|
|
|
3,882
|
|
Other receivables,
net - related parties
|
|
|
45
|
|
|
|
14
|
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
|
12,968
|
|
|
|
15,192
|
|
Advance payment for
property, plant and equipment - related parties
|
|
|
8,133
|
|
|
|
8,863
|
|
Long-term
investments
|
|
|
6,245
|
|
|
|
6,152
|
|
Goodwill
|
|
|
611
|
|
|
|
608
|
|
Non-current deferred
tax assets
|
|
|
4,949
|
|
|
|
4,899
|
|
Total
assets
|
|
$
|
630,418
|
|
|
$
|
607,695
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Bank and government
loans
|
|
$
|
45,370
|
|
|
$
|
40,929
|
|
Accounts and notes
payable - unrelated parties
|
|
|
210,785
|
|
|
|
197,105
|
|
Accounts and notes
payable - related parties
|
|
|
5,994
|
|
|
|
6,363
|
|
Customer
deposits
|
|
|
1,591
|
|
|
|
1,613
|
|
Accrued payroll and
related costs
|
|
|
6,192
|
|
|
|
6,332
|
|
Accrued expenses and
other payables
|
|
|
31,500
|
|
|
|
31,383
|
|
Accrued pension
costs
|
|
|
4,952
|
|
|
|
4,664
|
|
Taxes
payable
|
|
|
7,968
|
|
|
|
9,284
|
|
Amounts due to
shareholders/directors
|
|
|
349
|
|
|
|
345
|
|
Current deferred tax
liabilities
|
|
|
194
|
|
|
|
194
|
|
Total current
liabilities
|
|
|
314,895
|
|
|
|
298,212
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Advances
payable
|
|
|
774
|
|
|
|
1,922
|
|
Non-current deferred
tax liabilities
|
|
|
258
|
|
|
|
266
|
|
Total
liabilities
|
|
$
|
315,927
|
|
|
$
|
300,400
|
|
|
|
|
|
|
|
|
|
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, 2016 and December
31, 2015,
respectively
|
|
$
|
3
|
|
|
$
|
3
|
|
Additional paid-in
capital
|
|
|
64,627
|
|
|
|
64,627
|
|
Retained
earnings-
|
|
|
|
|
|
|
|
|
Appropriated
|
|
|
10,379
|
|
|
|
10,379
|
|
Unappropriated
|
|
|
212,331
|
|
|
|
206,622
|
|
Accumulated other
comprehensive income
|
|
|
19,985
|
|
|
|
18,412
|
|
Treasury stock -
217,283 and 217,283 shares as of March 31, 2016 and
December 31, 2015, respectively
|
|
|
(1,000)
|
|
|
|
(1,000)
|
|
Total parent company
stockholders' equity
|
|
|
306,325
|
|
|
|
299,043
|
|
Non-controlling
interests
|
|
|
8,166
|
|
|
|
8,252
|
|
Total stockholders'
equity
|
|
|
314,491
|
|
|
|
307,295
|
|
Total liabilities and
stockholders' equity
|
|
$
|
630,418
|
|
|
$
|
607,695
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Unaudited
Consolidated Statements of Income
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
Three Months Ended
March 31,
|
|
|
2016
|
|
|
2015
|
|
Net product sales
($8,585 and $8,299 sold to related parties for the three months
ended March 31, 2016 and 2015)
|
|
$
|
116,854
|
|
|
$
|
123,443
|
|
Cost of products sold
($6,875 and $7,008 purchased from related parties for the
three months ended March 31, 2016 and 2015)
|
|
|
95,842
|
|
|
|
101,772
|
|
Gross
profit
|
|
|
21,012
|
|
|
|
21,671
|
|
Gain on other
sales
|
|
|
801
|
|
|
|
1,657
|
|
Less: Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
4,305
|
|
|
|
3,624
|
|
General and
administrative expenses
|
|
|
4,315
|
|
|
|
4,448
|
|
Research and
development expenses
|
|
|
6,139
|
|
|
|
5,893
|
|
Total operating
expenses
|
|
|
14,759
|
|
|
|
13,965
|
|
Income from
operations
|
|
|
7,054
|
|
|
|
9,363
|
|
Other
(expense)/income, net
|
|
|
(644)
|
|
|
|
94
|
|
Interest
expense
|
|
|
(196)
|
|
|
|
(474)
|
|
Financial income,
net
|
|
|
322
|
|
|
|
753
|
|
Income before income
tax expenses and equity in earnings of affiliated
companies
|
|
|
6,536
|
|
|
|
9,736
|
|
Less: Income
taxes
|
|
|
1,053
|
|
|
|
1,410
|
|
Equity in earnings of
affiliated companies
|
|
|
62
|
|
|
|
66
|
|
Net income
|
|
|
5,545
|
|
|
|
8,392
|
|
Net loss attributable
to non-controlling interests
|
|
|
(164)
|
|
|
|
(118)
|
|
Net income attributable
to parent company's common shareholders
|
|
$
|
5,709
|
|
|
$
|
8,510
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,545
|
|
|
$
|
8,392
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain/(loss), net of tax
|
|
|
1,650
|
|
|
|
(1,275)
|
|
Comprehensive
income
|
|
|
7,195
|
|
|
|
7,117
|
|
Comprehensive loss
attributable to non-controlling interests
|
|
|
(85)
|
|
|
|
(201)
|
|
Comprehensive income
attributable to parent company
|
|
$
|
7,280
|
|
|
$
|
7,318
|
|
|
|
|
|
|
|
|
|
Net income
attributable to parent company's common shareholders per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic -
|
|
$
|
0.18
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
Diluted -
|
|
$
|
0.18
|
|
|
$
|
0.26
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
32,121,019
|
|
|
|
32,121,019
|
|
Diluted
|
|
|
32,123,588
|
|
|
|
32,134,732
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Unaudited
Consolidated Statements of Cash Flows
|
|
(In thousands of
USD unless otherwise indicated)
|
|
|
Three Months Ended
March 31,
|
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,545
|
|
$
|
8,392
|
|
Adjustments to
reconcile net income from operations to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,805
|
|
|
3,965
|
|
Reversal of provision
for doubtful accounts
|
|
|
(54)
|
|
|
(2)
|
|
Inventory write
downs
|
|
|
1,414
|
|
|
756
|
|
Deferred income
taxes
|
|
|
347
|
|
|
(145)
|
|
Equity in earnings of
affiliated companies
|
|
|
(62)
|
|
|
(66)
|
|
Gain on fixed assets
disposals
|
|
|
(3)
|
|
|
(10)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
Pledged
cash
|
|
|
8,089
|
|
|
2,843
|
|
Accounts and notes
receivable
|
|
|
(23,347)
|
|
|
(16,932)
|
|
Advance payments and
others
|
|
|
(3,145)
|
|
|
(1,330)
|
|
Inventories
|
|
|
(6,242)
|
|
|
(5,328)
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
|
12,495
|
|
|
13,876
|
|
Customer
deposits
|
|
|
(26)
|
|
|
(602)
|
|
Accrued payroll and
related costs
|
|
|
(172)
|
|
|
(300)
|
|
Accrued expenses and
other payables
|
|
|
91
|
|
|
(236)
|
|
Accrued pension
costs
|
|
|
265
|
|
|
(242)
|
|
Taxes
payable
|
|
|
(1,362)
|
|
|
287
|
|
Net cash used in provided
by (used in) operating activities
|
|
|
(2,362)
|
|
|
4,926
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Increase (decrease)
in other receivables
|
|
|
94
|
|
|
(184)
|
|
Cash received from
property, plant and equipment sales
|
|
|
515
|
|
|
559
|
|
Payments to acquire
property, plant and
equipment
|
|
|
(9,825)
|
|
|
(5,723)
|
|
Payments to acquire
intangible assets
|
|
|
(3)
|
|
|
(7)
|
|
Purchase of
short-term investments
|
|
|
(7,814)
|
|
|
(5,889)
|
|
Proceeds from
maturities of short-term investments
|
|
|
553
|
|
|
7,667
|
|
Net cash used in investing
activities
|
|
|
(16,480)
|
|
|
(3,577)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from bank
and government loans
|
|
|
6,500
|
|
|
2,249
|
|
Repayments of bank
and government loans
|
|
|
(2,265)
|
|
|
(4,884)
|
|
Dividends paid to the
non-controlling interests
|
|
|
-
|
|
|
(814)
|
|
Dividends paid to the
holders of the Company's common stock
|
|
|
-
|
|
|
(252)
|
|
Net cash provided by
(used in) financing activities
|
|
|
4,235
|
|
|
(3,701)
|
|
Effects of exchange
rate on cash and cash equivalents
|
|
|
330
|
|
|
(244)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(14,277)
|
|
|
(2,596)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
69,676
|
|
|
68,505
|
|
Cash and cash
equivalents at end of period
|
|
$
|
55,399
|
|
$
|
65,909
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-automotive-systems-reports-2016-first-quarter-results-300267478.html
SOURCE China Automotive Systems, Inc.