China Automotive Systems, Inc. (CAAS) - 500 Beiträge pro Seite

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Profile:China Automotive Systems, Inc., through its Sino-foreign joint ventures, engages in the manufacture and sale of automotive systems and components in China. It offers power steering systems and other component parts for automobiles, as well as rack and pinion power steering gear, and integral power steering gear for cars, and light and heavy-duty vehicles; power steering parts and power steering pumps; sensor modulars; and electric power steering products. China Automotive Systems was founded in 2003 and is headquartered in Jing Zhou City, China.

http://www.caasauto.com/caas/

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China Automotive Systems Reports 2007 Third Quarter Results
Friday November 9, 7:00 am ET
Net Sales up 39% YoY, Operating income grew 95% YoY, Net income increased 68% YoY
Third Quarter 2007 Highlights:
-- Total net sales for the period increased to US$31.2 million, reflecting 39% year-over-year growth;
-- Net sales from steering components for passenger vehicles increased to US$20.2 million, reflecting 49% year-over-year growth;
-- Net sales from steering components for commercial vehicles increased to US$8.11 million, reflecting a 26% increase year-over-year;
-- Operating income increased to US$6.6 million, reflecting 95% year-over- year growth;
-- Net income rose to US$2.6 million, reflecting 68% year-over-year growth; and
-- Diluted earnings per share were US$0.11, an increase of 57% year-over- year


WUHAN, Hubei, China, Nov. 9 /Xinhua-PRNewswire-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS - News), a leading power steering components and systems supplier in China, today announced 2007 third quarter financial results.
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Total net sales for the third quarter of 2007 were US$31.2 million compared with US$22.4 million reported in the same period of 2006, and US$36.3 million for the second quarter of 2007, reflecting a 39% year-over-year growth and a 14% quarter-over-quarter decline, respectively. Net income for the third quarter of 2007 was US$2.6 million, compared with US$1.5 million for the same period last year, and US$2.5 million for the second quarter of 2007, reflecting 68% year-over-year growth and a 5% quarter-over- quarter increase, respectively. Fully diluted earning per share were US$0.11 for the third quarter of 2007, compared with US$0.07 the same period last year and US$0.10 per diluted share for the second quarter of 2007.

Net sales of steering products for passenger and light-duty vehicles for the third quarter of 2007 increased to US$20.2 million compared with US$13.6 million reported in the same period of 2006 and $ 22.8 million for the second quarter of 2007, reflecting 49% year-over-year growth and a 11% quarter-over- quarter decline respectively. Net sales from steering products for commercial vehicles for the third quarter of 2007 increased to US$8.1 million as compared with US$6.4 million reported in the same period of 2006 and US$ 9.9 million for the second quarter of 2007, reflecting a 26% increase year-over-year and a 18% quarter-over-quarter decline, respectively.

"Despite the seasonality of the Chinese passenger vehicle market, we are pleased to report that our revenue increased by 39% year-over-year during this quarter. While the Chinese domestic auto industry grew by 27% in the first 9 months of 2007, China Automotive Systems achieved a robust 40% year-over-year growth. Our sales and marketing efforts continue to position the Company to capture additional market share, specifically for more OEM penetration. We continue to invest in R&D to provide advanced product offerings and improve product quality. Our recently added capacity in the Wuhu facility (the joint venture with Chery Auto) and the forthcoming Hengsheng facility, will significantly expand our production capacity to fuel our penetration into domestic, high-end, Sino-foreign joint venture OEMs and prepare the Company to compete in the global marketplace. Our goal is to build a Chinese power steering powerhouse and attract more customers with our strong engineering ability, broad high-quality product offerings, and growing production capacity'' said Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems.

Gross profit for the third quarter of 2007 increased to US$11.4 million compared with US$8.2 million reported in the same period for 2006 and US$12.1 million for the second quarter of 2007, reflecting a 39% increase year-over- year and a 6% quarter-over-quarter decline, respectively. Operating income for the third quarter of 2007 was US$6.6 million compared with US$3.4 million reported in the same period of 2006 and US$6.3 million for the second quarter of 2007, reflecting a 95% year-over-year growth and an 5% quarter-over-quarter growth respectively.

Total cash and cash equivalents as of September 30, 2007 were US$21.8 million as compared with US$27.4 million as of December 31, 2006. Stockholder's equity increased to US$62.7 million as of September 30, 2007 from US$53.4 million as of December 31, 2006.

Mr. Jie Li, Chief Financial Officer, stated, ''With the combination of our increased capacity and our sales growth, China Automotive Systems started to generate economies-of-scale as we experienced a stable gross profit margin and a rising operating margin during this quarter and in first 9 months of 2007. We carefully planned our overall expansion with tight cost control and continued to generate positive cash-flow from operations to help fund our capital expenditures to increase capacity and our working capital needs. We continue to focus on improving our market position, profitability and building shareholder value.''

Recent Development

On September 25, 2007. China Automotive Systems announced the promotion of Mr. Qizhou Wu to Chief Executive Officer and Mr. Jie Li to Chief Financial Officer. Former CEO, Hanlin Chen continues to serve as the Chairman of the Board with a focus on developing the Company's vision and strategic plan for future growth including mergers and acquisitions and other strategic expansion. Mr. Qizhou Wu was a co-founder of China Automotive Systems and he has over 20- years experience in the automotive industry, in particular in the original equipment manufacturing (OEM) sector. Mr. Wu was the Company's Chief Operating Officer since March 2003 overseeing the growth and expansion of operations. Mr. Jie Li has served as the Corporate Secretary of the Company since December 2004. Mr. Li brings extensive experience in management and corporate planning including mergers and acquisition. Prior to joining the Company in September 2003, Mr. Li had management responsibilities as he was Assistant President of Jingzhou Jiulong Industrial Inc. and the general manger of Jingzhou Tianxin Investment Management Co. Ltd.

On October 29, 2007, China Automotive Systems announced it has formed a new wholly owned subsidiary, Jingzhou Hengsheng Automotive Systems Co. Ltd. ("Hengsheng"), to focus on opportunities with Sino-foreign joint venture OEMs in China and OEMs in international markets. The first phase of the new facilities, with a capacity of 700,000 power steering units, is expected to be fully constructed by the end of 2008. Hengsheng will gradually install new equipment, complete testing and ramp up production capacity in the next 3 years to reach a designed capacity of 1.3 million units by 2010. This expansion will more than double China Automotive Systems' current capacity of approximately 1.1 million units. Hengsheng will focus its quality assurance on meeting the stringent standards required by many global OEMs. As a wholly owned foreign enterprise, Hengsheng will benefit from an income tax exemption through 2010 followed by preferential tax treatment (at a 15% rate) for the following 3 years thereafter.

About CAAS

Based in Hubei Province, 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 seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1,100,000 sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. etc. For more information, please visit: http://www.caasauto.com .

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.



(TABLE TO FOLLOW)


China Automotive Systems, Inc.
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended
September 30
2007 2006

Net product sales, including $1,635,676
and $1,100,320 to related parties in
2007 and 2006, respectively $31,202,731 $22,399,673
Cost of product sold, including $1,276,789
and $602,127 purchased from related
parties in 2007 and 2006, respectively 19,839,980 14,266,514

Gross profit 11,362,751 8,133,159

Add: Gain on other sales 102,371 56,234

Less: Operating expenses-
Selling expenses 2,094,157 1,540,030
General and administrative expenses 1,683,190 2,139,440
Research and development expenses 321,533 206,732
Depreciation and amortization 735,810 904,622

Total Operating expenses 4,834,690 4,790,824

Income from operations 6,630,432 3,398,569
Add: Other income, net -- 93,632
Financial (expenses) (215,400) (295,121)

Income before income taxes 6,415,032 3,197,080
Less: Income taxes 379,409 470,617

Income before minority interests 6,035,623 2,726,463
Less: Minority interests 3,461,205 1,194,340

Net income $2,574,418 $1,532,123

Net income per common share
Basic and diluted $0.11 $0.07

Weighted average number of common shares
outstanding
Basic 23,959,702 23,287,049
Diluted 23,962,356 23,287,782




China Automotive Systems, Inc.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
September 30
2007 2006

Net income $2,574,418 $1,532,123
Other comprehensive income:
Foreign currency translation gain -- --

Comprehensive income $2,574,418 $1,532,123



China Automotive Systems, Inc.
Condensed Consolidated Balance Sheets

September 30, December 31,
2007 2006
(Unaudited)

ASSETS
Current assets:
Cash and cash equivalents $21,791,286 $27,418,500
Pledged cash deposits 2,463,874 3,484,335
Accounts and notes receivable, net,
including $2,212,661 and $1,770,933
from related parties at 2007 and
2006, respectively 70,964,220 57,234,383
Advance payments and other, including
286,951 and $487,333 to related parties
at 2007 and 2006, respectively 1,276,433 837,014
Inventories 19,446,977 15,464,571

Total current assets $115,942,790 $104,438,803

Long-term Assets:
Property, plant and equipment, net $41,263,927 $40,848,046
Intangible assets, net 497,623 3,140,548
Other receivables, net, including
$1,036,560 and $738,510 from related
parties at 2007 and 2006, respectively 1,645,729 966,715
Advance payment for property, plant
and equipment, including $1,315,192
and $488,873 to related parties at
2007 and 2006, respectively 7,636,274 2,640,708
Long-term investments 39,474 73,718

Total assets $167,025,817 $152,108,538

LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Bank loans $13,421,053 $15,384,615
Accounts and notes payable,
including $876,324 and $640,405
to related parties at 2007 and
2006, respectively 42,519,539 37,647,913
Customer deposits 166,193 146,171
Accrued payroll and related costs 2,022,180 1,506,251
Accrued expenses and other payables 8,509,920 11,078,186
Accrued pension costs 3,443,464 3,266,867
Taxes payable 7,420,376 5,914,362
Amounts due to shareholders/directors 280,180 358,065

Total current liabilities $77,782,905 $75,302,430

Long-term liabilities:
Advances payable 321,392 313,151

Total liabilities $78,104,297 $75,615,581

Minority interests $26,260,079 $23,112,667

Stockholders' equity:
Preferred stock, $0.0001 par value
- Authorized - 20,000,000
Shares issued and outstanding -
None $-- $--
Common stock, $0.0001 par value -
Authorized - 80,000,000
Shares Issued and Outstanding -
23,959,702 shares and 23,851,581
shares at September 30, 2007 and
December 31, 2006, respectively 2,396 2,385
Additional paid-in capital 29,994,873 28,651,959

Retained earnings-
Appropriated 6,078,613 6,209,909
Unappropriated 22,851,206 16,047,237
Accumulated other comprehensive
income 3,734,353 2,468,800

Total stockholders' equity $62,661,441 $53,380,290

Total liabilities and stockholders'
equity $167,025,817 $152,108,538



For further information, please contact:

Jie Li
Chief Financial Officer
China Automotive Systems
Email: [e-mail]

Kevin Theiss
Investor Relations
The Global Consulting Group
Tel: [phone]
Email: [e-mail]

Stacy Dimakakos
Media Relations
The Global Consulting Group
Tel: [phone]
Email: [e-mail]




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Source: China Automotive Systems, Inc.

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CAAS: Q3 EPS 11c vs 7c Beats 5c Est

Friday , November 09, 2007 08:11ET

QUARTER RESULTS
China Automotive Systems Inc (CAAS) reported Q3 results ended September 2007. Q3 Revenues were $31.20M; +39.29% vs yr-ago; BEATING revenue consensus by +3.93%. Q3 EPS was 11c; +57.14% vs yr-ago; BEATING earnings consensus by +120.00%.

Q3 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
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Revenues: $31.20M $22.40M +39.29% $30.02M +3.93%
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EPS: 11c 7c +57.14% 5c +120.00%
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