WUHAN, China, Dec. 7, 2018 /PRNewswire/ --
China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS"
or the "Company"), a leading power steering components and
systems supplier in China, today announced that 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 not to exceed
$4.00 per share, subject to
applicable laws, regulations and approvals. The timing of the share
repurchases will depend on a variety of factors, including market
conditions. Members of the management team may make additional
share purchases in addition to the Company repurchase.
Mr. Hanlin Chen, Chairman of
China Automotive Systems, commented, "We do not believe that our
current stock price reflects our leadership position in the Chinese
automotive power steering industry. Despite the challenging
automotive market in China today,
we continue to produce advanced hydraulic steering products and we
have enhanced our position for the sale of electric power steering
systems through our new joint venture with KYB (China) Investment Co., Ltd. ("KYB"), a wholly
owned company of Japan KYB Co., Ltd. In addition, our growing
sales to
tier-1 automobile manufacturers in the North and South American
automotive markets provides a foundation for further future
growth."
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "The Chinese auto and auto parts
sectors remain as key segments to China's industrial base providing the means
for manufacturing, logistics, and transportation. We continue to
invest in new products to gain market share."
Mr. Jie Li, chief financial
officer of CAAS, commented, "Our stock's market capitalization is
below our cash, cash equivalents and short-term investments, our
liquid current assets, book value, and global peers' valuations
based on a number of financial measurements. Our decision to
repurchase share is a result of our strong balance sheet built up
over a number of years and highlights our commitment to creating
shareholder value."
In the first nine months of 2018, CAAS recorded revenue of
$371.9 million with net income
attributable to parent company's common shareholders of
$5.5 million. As of September 30, 2018, CAAS' total cash and cash
equivalents, pledged cash deposits and short-term investments were
$144.1 million, total accounts
receivable including notes receivable were $249.6 million, accounts payable were
$196.6 million and short-term loans
were $70.9 million. Total
stockholders' equity was $309.5
million as of September 30,
2018. Net cash flow from operating activities was
$9.0 million in the first nine months
of 2018.
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
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SOURCE China Automotive Systems, Inc.