China Automotive Systems, Inc. (NASDAQ:CAAS)

Thursday, November 21, 2019 | Web News
WUHAN, China, Nov. 21, 2019 /PRNewswire/ -- China Automotive Systems, Inc. (CAAS) ("CAAS" or the...
Tuesday, November 12, 2019 | Web News
Third Quarter 2019 Financial Results Net sales were $100.5 million compared to $112.1 million in the third quarter of 2018; Net...
Thursday, August 8, 2019 | Web News
Second Quarter 2019 Financial Results Net sales decreased 15.9% to $105.7 million from $125.8 million in the second quarter of...
See All Research...
Thursday, May 29, 2014, 9:26 AM
China Automotive Systems: Rare And Undervalued Chinese Industrial Success
See All Articles and Reports...

At least one FIE exists in the corporate structure

Fourth Quarter 2018 Financial Results

  • 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 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.

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."

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.

Web site: http://www.caasauto.com

Last updated March 28, 2019