WUHAN, China, March 28, 2019 /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, 2018.
Fourth Quarter 2018 Highlights
- Net sales were $124.3 million
compared to $143.7 million in the
fourth quarter of 2017
- Net loss attributable to parent company's common shareholders
was $3.2 million, or diluted loss per
share of $0.10, compared to a net
loss of $39.0 million, or diluted
loss per share of $1.23, in the
fourth quarter of 2017, reflected a one-time corporate tax accrual
of $35.6 million recognized in the
fourth quarter of 2017 as mandated by the 2017 U.S. tax
reform.
Fiscal Year 2018 Highlights
- Net sales were $496.2 million
compared to $499.1 million in
2017
- Diluted income per share attributable to parent company's
common shareholders was $0.08
compared to a diluted loss per share attributable to parent
company's common shareholders of $0.61 in 2017
- Cash and cash equivalents, pledged cash and short-term
investments were $133.5 million as of
December 31, 2018
- Net cash flow from operating activities was $12.5 million
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "Our performance in 2018 reflected the
slower growth of the automotive industry in China as the world's largest automotive market
experienced lower overall sales for the first time in more than two
decades. Overall auto sales declined by 2.8% in 2018 with
weakness in every month during the second half of the year. Car
sales declined by 4.1% compared with a 5.1% increase in the much
smaller commercial vehicle market in 2018."
"Our sales continued to be buoyed by our advanced hydraulic
steering products as we transitioned our electric power steering
("EPS") products into our new Hubei KYB joint venture, which began
operations during 2018. EPS sales comprised 21.7% of net sales
in 2018."
"We have entered into other new joint ventures and development
contracts for future growth. In late 2018, we entered into a
new joint venture agreement with Hyoseong Electric Co. Ltd.
("Hyoseong Electric") to establish a new joint venture company to
design, manufacture and sell electric motors for automotive
EPS. CAAS owns 51% of this new joint venture and it is
expected to have an annual capacity of 4.5 million units upon
completion. Due to our excellent record of new product development,
one of our tier-1 customers in North
America awarded CAAS a development program for a new
recirculating-ball ("RCB") steering system ("i-RCB Program") for
use in that company's autonomous vehicle product
development. We expect to begin mass production of this system
in August 2019 with annual sales of
approximately 45,000 units. Additionally, in March 2019, we also announced that Great Wall
Motor Company Limited, one of China's leading auto producers, has awarded an
exclusive supply contract for CAAS to supply its EPS systems to
steer its new all-electric small vehicle, model ORA
R150. Total shipments are expected to reach 150,000 units in
2019."
"Our export sales grew by 22.3% in 2018 compared with 2017, and
represented approximately 28.5% of total sales in 2018. Most
export sales were to the United
States and represented sales to our two tier-1 OEM customers
that supply vehicles in North
America. In 2018, we received the Q1 Award from Ford North
America. This is the highest honor for a supplier from Ford and it
means we have met the most stringent quality management and
execution standards. We remain well positioned with our broad line
of advanced steering products and we have received supply awards
from our customers."
Mr. Jie Li, chief financial
officer of CAAS, commented, "We continue to focus on generating
cash flow from operations to further build our financial
strength. Our joint ventures and product development contracts
are solidifying relationships and enhancing our abilities to meet
the current and future needs of our diverse customer base."
Fourth Quarter of 2018
In the fourth quarter of 2018, net sales were $124.3
million compared to $143.7 million in
the same quarter of 2017. The net sales decrease was mainly
due to the weaker Chinese auto market in the fourth quarter of 2018
compared with the fourth quarter of 2017.
Gross profit was $11.4 million
compared to $16.5 million in the
fourth quarter of 2017. The decrease in gross profit was primarily
due to the decrease in net sales and change of product mix. Gross
margin in the fourth quarter of 2018 was 9.2%, compared to 11.4% in
the fourth quarter of 2017.
Gain on other sales was $1.0
million, compared to $1.7
million in the fourth quarter of 2017.
Selling expenses were $4.9 million in the fourth quarter of
2018, compared to $6.8 million in the
fourth quarter of 2017. The decline was primarily due to lower
transportation expenses related to decreased volume. Selling
expenses represented 3.9% of net sales in the fourth quarter of
2018 compared to 4.7% in the fourth quarter of 2017.
General and administrative expenses ("G&A expenses")
increased to $7.2 million from
$5.5 million in the fourth quarter of
2017. G&A expenses represented 5.8% of net sales in the fourth
quarter of 2018 compared to 3.8% of net sales in the fourth quarter
of 2017. The increase in G&A expenses and G&A
expenses as a percentage of net sales in the fourth quarter of 2018
was mainly due to lower net sales and higher personnel costs.
Research and development expenses ("R&D expenses")
were $10.2 million in the fourth quarter of 2018, compared to
$9.9 million in the fourth quarter of
2017. R&D expenses represented 8.2% of net sales in the fourth
quarter of 2018 compared to 6.9% in the fourth quarter of
2017.
Loss from operations was $9.9
million in the fourth quarter of 2018 compared to a loss of
$4.0 million in the fourth quarter of
2017. The higher loss was mainly due to lower sales and a decline
in the gross profit compared to the fourth quarter of 2017.
Net financial income was $1.2
million in the fourth quarter of 2018, compared to
$0.2 million in the fourth quarter of
2017.
Net loss attributable to parent company's common shareholders
was $3.2 million in the fourth
quarter of 2018 compared to $39.0
million in the fourth quarter of 2017. The loss in the
fourth quarter of 2017 was primarily due to a one-time accrued tax
of $35.7 million mandated by the 2017
U.S. tax reform, and accrued withholding tax of $4.0 million related to the planned dividend
distribution from PRC subsidiaries in order to fulfill the payment
of a one-time accrued tax. Diluted loss per share was $0.10 in the fourth quarter of 2018, compared to
diluted income per share of $1.23 in
the fourth quarter of 2017.
The weighted average number of diluted common shares outstanding
was 31,645,510 in the fourth quarter of 2018, compared to
31,646,897 in the fourth quarter of 2017.
Fiscal Year 2018
Annual net sales were $496.2
million in 2018 compared to $499.1
million in 2017. The overall decrease was mainly due to
lower sales of EPS systems partially offset by higher sales of
advanced legacy hydraulic products. EPS sales represented 21.7% of
total revenue in 2017.
Gross profit in 2018 was $65.4
million compared to $84.6
million in 2017. The decrease in gross profit was primarily
due to lower net sales, a change in product mix and higher raw
material costs.
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,
2018, gain on other sales amounted to $3.9 million compared to $7.6 million in 2017. The decrease in gain
on other sales was primarily due to the disposal of a building and
higher scrap volume in 2017.
Selling expenses were $18.9
million compared to $19.9
million in 2017, which was mainly due to lower net sales
resulting in decreased transportation expenses during the year.
Selling expenses represented 3.8% of net sales in each of 2018 and
in 2017.
G&A expenses were $19.8
million compared to $19.5
million in 2017. The increase was primarily due to higher
personnel costs and professional service fees. G&A expenses
represented 4.0% of net sales in 2018 compared to 3.9% of net sales
in 2017.
R&D expenses were $33.6
million in 2018, generally consistent with $33.5 million in 2017. R&D expenses
represented 6.8% of net sales in 2018, compared to 6.7% of net
sales in 2017.
Operating loss was $2.9 million in
2018 compared to operating income of $19.3
million in 2017. The decrease was primarily due to lower
gross profit in 2018.
Interest expense was $2.9 million
in 2018, compared to interest expense of $1.8 million in 2017 due primarily to higher
interest rates on loans in 2018.
Net financial income was $2.2
million in each of 2018 and 2017.
Loss before income tax expenses and equity in earnings of
affiliated companies was $2.5 million
for 2018, compared to income before income tax expenses and equity
in earnings of affiliated companies of $20.4
million for 2017. This decrease was mainly due to
the higher operating loss and higher interest rates.
Income tax benefit was $1.5
million for the year ended December
31, 2018, compared to income tax expense of $41.6 million for the year ended December 31, 2017. The income tax expense 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. The Company elected to pay the one-time accrued tax over
eight years commencing in April 2018.
In addition, withholding tax of $3.9
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 in 2017. The effective tax rate was 58.6% in 2018
and the effective tax rate (excluding the impact of the one-time
transition tax) was approximately 10.0% in 2017. The increase in
effective tax rate was mainly due to the decreased net income and
additional R&D expense super-deductions allowed in 2018
according to China's new tax
regulation.
Net income attributable to parent company's common shareholders
was $2.4 million in 2018 compared to
a net loss attributable to parent company's common shareholders of
$19.3 million in 2017. Diluted net
income per share was $0.08 in 2018,
compared to diluted loss per share of $0.61 in 2017.
The weighted average number of diluted common shares outstanding
was 31,645,594 in 2018 compared to 31,646,897 in 2017.
Balance Sheet
As of December 31, 2018, total
cash and cash equivalents, pledged cash and short-term investments
were $133.5 million, total accounts
receivable including notes receivable were $256.3 million, accounts payable were
$210.1 million and bank and
government loans were $61.2 million.
Total parent company stockholders' equity was $285.9 million as of December 31, 2018, compared to $299.4 million as of December 31, 2017. To date, a total of 146,281
shares have been repurchased for consideration of $0.8 million under a repurchase program approved
on December 5, 2018. Net
cash flow from operating activities was $12.5 million in 2018.
Business Outlook
Management has provided revenue guidance for the full year
2019 of $510 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 28, 2019 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:
US Toll
Free:
|
+1-877-407-8031
|
International:
|
+1-201-689-8031
|
China (toll
free):
|
+ 86 400 120
2840
|
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 nine 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 28, 2019, 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.
jieli@chl.com.cn
Kevin Theiss
Awaken Advisors
+1-212-521-4050
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,
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
86,346
|
|
|
$
|
64,558
|
Pledged
cash
|
|
29,623
|
|
|
|
31,535
|
Short-term
investments
|
|
17,543
|
|
|
|
29,587
|
Accounts and notes
receivable, net - unrelated parties
|
|
237,519
|
|
|
|
274,989
|
Accounts and notes
receivable, net - related parties
|
|
18,825
|
|
|
|
19,086
|
Advance payments and
others - unrelated parties
|
|
16,270
|
|
|
|
12,790
|
Advance payments and
others - related parties
|
|
1,281
|
|
|
|
20,841
|
Inventories
|
|
88,021
|
|
|
|
79,217
|
Total current
assets
|
|
495,428
|
|
|
|
532,603
|
Non-current
assets:
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
129,853
|
|
|
|
126,033
|
Intangible assets,
net
|
|
605
|
|
|
|
661
|
Other receivables,
net - unrelated parties
|
|
1,799
|
|
|
|
2,188
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
6,135
|
|
|
|
9,657
|
Advance payment for
property, plant and equipment - related parties
|
|
8,723
|
|
|
|
5,264
|
Long-term
investments
|
|
32,620
|
|
|
|
27,596
|
Deferred tax
assets
|
|
15,336
|
|
|
|
13,367
|
Total
assets
|
$
|
690,499
|
|
|
$
|
717,369
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Bank and government
loans
|
$
|
60,952
|
|
|
$
|
72,711
|
Accounts and notes
payable - unrelated parties
|
|
205,643
|
|
|
|
233,048
|
Accounts and notes
payable - related parties
|
|
4,477
|
|
|
|
7,168
|
Customer
deposits
|
|
750
|
|
|
|
1,128
|
Accrued payroll and
related costs
|
|
7,346
|
|
|
|
8,577
|
Accrued expenses and
other payables
|
|
47,032
|
|
|
|
40,127
|
Accrued pension
costs
|
|
3,282
|
|
|
|
4,051
|
Taxes
payable
|
|
11,137
|
|
|
|
5,927
|
Amounts due to
shareholders/directors
|
|
317
|
|
|
|
343
|
Advances payable
(current portion)
|
|
364
|
|
|
|
383
|
Total current
liabilities
|
|
341,300
|
|
|
|
373,463
|
Long-term
liabilities:
|
|
|
|
|
|
|
Long-term government
loan
|
|
291
|
|
|
|
306
|
Advances
payable
|
|
1,654
|
|
|
|
359
|
Other long-term
payable
|
|
8,726
|
|
|
|
-
|
Deferred tax
liabilities
|
|
4,198
|
|
|
|
4,393
|
Long-term taxes
payable
|
|
29,503
|
|
|
|
32,719
|
Total
liabilities
|
|
385,672
|
|
|
|
411,240
|
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, 2018 and 2017,
respectively
|
|
3
|
|
|
|
3
|
Additional paid-in
capital
|
|
64,429
|
|
|
|
64,406
|
Retained
earnings-
|
|
|
|
|
|
|
Appropriated
|
|
11,104
|
|
|
|
10,707
|
Unappropriated
|
|
211,439
|
|
|
|
209,459
|
Accumulated other
comprehensive income
|
|
1,855
|
|
|
|
17,780
|
Treasury stock -
711,698 and 694,298 shares at December 31, 2018 and 2017,
respectively
|
|
(2,953)
|
|
|
|
(2,907)
|
Total parent company
stockholders' equity
|
|
285,877
|
|
|
|
299,448
|
Non-controlling
interests
|
|
18,950
|
|
|
|
6,681
|
Total stockholders'
equity
|
|
304,827
|
|
|
|
306,129
|
Total liabilities and
stockholders' equity
|
$
|
690,499
|
|
|
$
|
717,369
|
China Automotive
Systems, Inc. and Subsidiaries
|
Consolidated
Statements of Income and Loss
|
(In thousands of
USD, except share and per share amounts)
|
|
|
Year Ended December 31,
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Net product sales
($37,606 and $37,583 sold to related parties for the
years ended December 31, 2018 and 2017)
|
$
|
496,158
|
|
|
$
|
499,063
|
Cost of products sold
($25,558 and $28,994 purchased from related
parties for the years ended December 31, 2018 and 2017)
|
|
430,745
|
|
|
|
414,429
|
Gross
profit
|
|
65,413
|
|
|
|
84,634
|
Net gain on other
sales
|
|
3,940
|
|
|
|
7,635
|
Operating
expenses:
|
|
|
|
|
|
|
Selling
expenses
|
|
18,949
|
|
|
|
19,912
|
General and
administrative expenses
|
|
19,761
|
|
|
|
19,543
|
Research and
development expenses
|
|
33,551
|
|
|
|
33,544
|
Total operating
expenses
|
|
72,261
|
|
|
|
72,999
|
Operating
income
|
|
(2,908)
|
|
|
|
19,270
|
Other income,
net
|
|
1,173
|
|
|
|
678
|
Interest
expense
|
|
(2,928)
|
|
|
|
(1,753)
|
Financial income,
net
|
|
2,162
|
|
|
|
2,180
|
(Loss)/income before
income tax expenses and equity in earnings
of affiliated
companies
|
|
(2,501)
|
|
|
|
20,375
|
Less: Income
taxes
|
|
(1,465)
|
|
|
|
41,633
|
Add: Equity in net
earnings of affiliates
|
|
1,115
|
|
|
|
2,619
|
Net
income/(loss)
|
|
79
|
|
|
|
(18,639)
|
Net (loss)/income
attributable to non-controlling interest
|
|
(2,298)
|
|
|
|
707
|
Net income/(loss)
attributable to parent company's common
shareholders
|
|
2,377
|
|
|
|
(19,346)
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to parent company's common
shareholders per share -
|
|
|
|
|
|
|
Basic
|
$
|
0.08
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding -
|
|
|
|
|
|
|
Basic
|
|
31,643,813
|
|
|
|
31,644,004
|
Diluted
|
|
31,645,594
|
|
|
|
31,646,897
|
China Automotive
Systems, Inc. and Subsidiaries
|
Consolidated
Statements of Comprehensive Income and Loss
|
(In thousands of
USD unless otherwise indicated)
|
|
|
Year Ended December 31,
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Net
income/(loss)
|
$
|
79
|
|
|
$
|
(18,639)
|
Other comprehensive
(loss)/income:
|
|
|
|
|
|
|
Foreign currency
translation (loss)/income
|
|
(16,548)
|
|
|
|
19,384
|
Comprehensive
(loss)/income
|
|
(16,469)
|
|
|
|
745
|
Comprehensive
(loss)/income attributable to non-controlling interest
|
|
(2,921)
|
|
|
|
1,352
|
Comprehensive loss
attributable to parent company
|
$
|
(13,548)
|
|
|
$
|
(607)
|
China Automotive
Systems, Inc. and Subsidiaries
|
Consolidated
Statements of Changes in Stockholders' Equity
|
(In thousands of
USD, except share and per share amounts)
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
Balance at January 1,
2018 and 2017 - 32,338,302 and 32,338,302 shares,
respectively
|
$
|
3
|
|
|
$
|
3
|
Balance at December
31, 2018 and 2017 - 32,338,302 and 32,338,302 shares,
respectively
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
Additional Paid-in
Capital
|
|
|
|
|
|
|
Balance at January
1
|
$
|
64,406
|
|
|
$
|
64,764
|
Stock-based
compensation
|
|
23
|
|
|
|
100
|
Acquisition of the
non-controlling interest in Brazil Henglong
|
|
-
|
|
|
|
(458)
|
Balance at December
31
|
$
|
64,429
|
|
|
$
|
64,406
|
|
|
|
|
|
|
|
Retained Earnings –
Appropriated
|
|
|
|
|
|
|
Balance at January
1
|
$
|
10,707
|
|
|
$
|
10,549
|
Appropriation of
retained earnings
|
|
397
|
|
|
|
158
|
Balance at December
31
|
$
|
11,104
|
|
|
$
|
10,707
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
|
|
|
|
Balance at January
1
|
$
|
209,459
|
|
|
|
228,963
|
Net income/(loss)
attributable to parent company
|
|
2,377
|
|
|
|
(19,346)
|
Appropriation of
retained earnings
|
|
(397)
|
|
|
|
(158)
|
Balance at December
31
|
$
|
211,439
|
|
|
$
|
209,459
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive Income/(Loss)
|
|
|
|
|
|
|
Balance at January
1
|
$
|
17,780
|
|
|
|
(892)
|
Other comprehensive
income related to the non-controlling interests acquired
by the Company
|
|
-
|
|
|
|
(67)
|
Net foreign currency
translation adjustment attributable to parent company
|
|
(15,925)
|
|
|
|
18,739
|
Balance at December
31
|
$
|
1,855
|
|
|
$
|
17,780
|
|
|
|
|
|
|
|
Treasury
Stock
|
|
|
|
|
|
|
Balance at January 1,
2018 and 2017 - 694,298 and 694,298 shares,
respectively
|
|
(2,907)
|
|
|
|
(2,907)
|
Repurchase of common
stock in 2018 and 2017 - 17,400 shares and nil
shares, respectively
|
|
(46)
|
|
|
|
-
|
Balance at December
31, 2018 and 2017 - 711,698 and 694,298 shares,
respectively
|
$
|
(2,953)
|
|
|
|
(2,907)
|
|
|
|
|
|
|
|
Total parent company
stockholders' equity
|
$
|
285,877
|
|
|
$
|
299,448
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
|
|
|
|
Balance at January
1
|
$
|
6,681
|
|
|
$
|
5,412
|
Net foreign currency
translation adjustment attributable to non-controlling
interest
|
|
(623)
|
|
|
|
645
|
Net (loss)/income
attributable to non-controlling interest
|
|
(2,298)
|
|
|
|
707
|
Other comprehensive
income related to the non-controlling interests acquired
by the Company
|
|
-
|
|
|
|
67
|
Acquisition of the
non-controlling interest in Brazil Henglong
|
|
-
|
|
|
|
458
|
Contribution by
non-controlling shareholder of Henglong KYB
|
|
15,728
|
|
|
|
-
|
Distribution of
retained earnings
|
|
(538)
|
|
|
|
(608)
|
Balance at December
31
|
$
|
18,950
|
|
|
$
|
6,681
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
304,827
|
|
|
$
|
306,129
|
China Automotive
Systems, Inc. and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(In thousands of
USD unless otherwise indicated)
|
|
|
Year Ended December 31,
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
79
|
|
|
$
|
(18,639)
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Stock-based
compensation
|
|
23
|
|
|
|
100
|
Depreciation and
amortization
|
|
16,816
|
|
|
|
15,358
|
Deferred income
taxes
|
|
(2,502)
|
|
|
|
4,143
|
Inventory write
downs
|
|
6,239
|
|
|
|
5,109
|
Accrual of provision
for doubtful accounts
|
|
887
|
|
|
|
887
|
Equity in net
(earnings) of affiliates
|
|
(1,115)
|
|
|
|
(2,617)
|
Gain on disposal of
fixed assets
|
|
(445)
|
|
|
|
(2,184)
|
(Increase) decrease
in:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
27,526
|
|
|
|
30,908
|
Advance payments and
other
|
|
(3,790)
|
|
|
|
(529)
|
Inventories
|
|
(17,853)
|
|
|
|
(12,156)
|
Increase (decrease)
in:
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
(22,491)
|
|
|
|
2,533
|
Customer
deposits
|
|
(346)
|
|
|
|
411
|
Accrued payroll and
related costs
|
|
(964)
|
|
|
|
1,182
|
Accrued expenses and
other payables
|
|
8,893
|
|
|
|
560
|
Accrued pension
costs
|
|
(646)
|
|
|
|
(331)
|
Taxes
payable
|
|
2,215
|
|
|
|
24,164
|
Net cash provided by
operating activities
|
|
12,526
|
|
|
|
48,899
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase of
short-term investments
|
|
(22,923)
|
|
|
|
(32,145)
|
Proceeds from
maturities of short-term investments
|
|
34,175
|
|
|
|
35,780
|
Increase in other
receivables
|
|
337
|
|
|
|
198
|
Cash received from
property, plant and equipment sales
|
|
1,022
|
|
|
|
2,231
|
Government subsidy
received for purchase of property, plant and
equipment
|
|
1,322
|
|
|
|
-
|
Cash paid to acquire
property, plant and equipment (including $9,207
and $9,791 paid to related parties for the years ended
December 31,
2018 and 2017, respectively)
|
|
(25,764)
|
|
|
|
(27,096)
|
Cash paid to acquire
intangible assets
|
|
(189)
|
|
|
|
(201)
|
Loan to a related
party
|
|
-
|
|
|
|
(29,044)
|
Cash received from
repayment of the loan to a related party
|
|
20,430
|
|
|
|
10,591
|
Investment under
equity method
|
|
(5,957)
|
|
|
|
(7,629)
|
Net cash used in
investing activities
|
|
2,453
|
|
|
|
(47,315)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from bank
and government loans
|
|
78,917
|
|
|
|
72,237
|
Repayment of bank and
government loans
|
|
(92,215)
|
|
|
|
(43,154)
|
Proceeds from sale
and leaseback transaction
|
|
11,758
|
|
|
|
-
|
Payment to broker
agents for repurchase of common stock
|
|
(300)
|
|
|
|
-
|
Repayments of the
borrowing for sale and leaseback transaction
|
|
(3,218)
|
|
|
|
-
|
Dividends paid to the
non-controlling interest holders of non-wholly
owned subsidiaries
|
|
(524)
|
|
|
|
(623)
|
(Decrease) in amounts
due to shareholders/directors
|
|
(26)
|
|
|
|
-
|
Cash received from
capital contributions by non-controlling interest
holder
|
|
15,728
|
|
|
|
-
|
Net cash provided by
financing activities
|
|
10,120
|
|
|
|
28,460
|
|
|
|
|
|
|
|
Cash and cash
equivalents affected by foreign currency
|
|
(5,223)
|
|
|
|
4,158
|
Net increase in cash
and cash equivalents
|
|
19,876
|
|
|
|
34,202
|
Cash, cash
equivalents and pledged cash at beginning of year
|
|
96,093
|
|
|
|
61,891
|
Cash, cash
equivalents and pledged cash at end of year
|
$
|
115,969
|
|
|
$
|
96,093
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
Year Ended December 31,
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Cash paid for
interest
|
$
|
3,803
|
|
|
$
|
654
|
Cash paid for income
taxes
|
$
|
3,717
|
|
|
$
|
4,643
|
|
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ACTIVITIES:
|
Non-cash investing
activities:
|
|
|
Year Ended December 31,
|
|
2018
|
|
|
2017
|
|
|
|
|
|
Property, plant and
equipment recorded during the year which
previously were advance payments
|
$
|
13,347
|
|
|
$
|
19,879
|
Accounts payable for
acquiring property, plant and equipment
|
$
|
1,046
|
|
|
$
|
1,180
|
View original
content:http://www.prnewswire.com/news-releases/china-automotive-systems-reports-fourth-quarter-and-fiscal-2018-results-300820008.html
SOURCE China Automotive Systems, Inc.