China Automotive Systems Reports Fourth Quarter and Fiscal 2017 Results

Gross profit was $16.5 million in the fourth quarter of 2017, compared to $21.8 million in the fourth quarter of 2016. The decrease in gross profit was primarily due to the decrease in net sales and change of product mix.

Gain on other sales was $1.7 million, compared to $1.8 million in the fourth quarter of 2016.

Selling expenses were $6.8 million in the fourth quarter of 2017, compared to $4.9 million in the fourth quarter of 2016. The increase was primarily due to higher transportation expenses and increased marketing expenses that were related to increased revenue. Selling expenses represented 4.7% of net sales in the fourth quarter of 2017 compared to 3.3% in the fourth quarter of 2016.

General and administrative expenses ("G&A expenses") increased to $5.5 million from $4.9 million in the fourth quarter of 2016. G&A expenses represented 3.8% of net sales in the fourth quarter of 2017 compared to 3.2% of net sales in the fourth quarter of 2016.  The increase in G&A expenses and G&A expenses as a percentage of net sales in the fourth quarter of 2017 was mainly due to higher personnel costs.

Research and development expenses ("R&D expenses") were $9.9 million in the fourth quarter of 2017, compared to $8.9 million in the fourth quarter of 2016. R&D expenses represented 6.9% of net sales in the fourth quarter of 2017 compared to 5.9% in the fourth quarter of 2016. The increase in R&D expenses was due to ongoing higher investment in EPS product research and development such as brushless motors and Advanced Driver Assistance Systems (ADAS) related projects. Additional engineers, newly acquired technologies, and more testing equipment accounted for most of the increase. 

Loss from operations was $4.0 million in the fourth quarter of 2017, compared to income from operations of $5.0 million in the same quarter of 2016. The loss was mainly due to lower gross profit and higher investment in R&D and selling expenses.

Interest expense was $0.6 million in the fourth quarter of 2017, compared to interest expense of $0.1 million in the fourth quarter of 2016 due to higher average loans outstanding.

Net financial income was $0.2 million in the fourth quarter of 2017, which was consistent with the same quarter of 2016.

Net loss attributable to parent company's common shareholders was $39.0 million in the fourth quarter of 2017 primarily due to the one-time accrued tax of $35.7 million mandated by the recent U.S. tax reform and accrued withholding tax of $4.0 million related to the planned dividend distribution from PRC subsidiaries in order to fulfil the payment of a one-time accrued tax.  In the fourth quarter of 2016 net income attributable to parent company's common shareholders was $5.8 million. Diluted loss per share was $1.23 in the fourth quarter of 2017, compared to diluted income per share of $0.18 in the fourth quarter of 2016.

The weighted average number of diluted common shares outstanding was 31,646,897 in the fourth quarter of 2017, compared to 31,711,888 in the fourth quarter of 2016.

Fiscal Year 2017

Annual net sales were $499.1 million in 2017, an 8.0% increase compared to $462.1 million in 2016. The overall increase was mainly due to higher sales of advanced legacy hydraulic products offset by the sales of electric power steering systems (EPS) sales which decreased by 6.6% in 2017.  EPS sales represented 24.2% of total revenue in 2017.

Gross profit in 2017 was $84.6 million, compared to $80.9 million in 2016. The increase in gross profit was primarily due to the increase in net sales.

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, 2017, gain on other sales amounted to $7.6 million, compared to $3.8 million in 2016. The increase in gain on other sales was primarily due to the disposal of a building and higher scrap volume in 2017.

Selling expenses were $19.9 million in 2017, compared to $17.2 million in 2016, which was mainly due to higher transportation and marketing expenses during the year. Selling expenses represented 4.0% in 2017, compared to 3.7% of net sales in 2016.

G&A expenses were $19.5 million in 2017, compared to $16.8 million in 2016. The increase was primarily due to higher personnel costs and allowance for doubtful accounts. G&A expenses represented 3.9% of net sales in 2017 compared to 3.6% of net sales in 2016.

R&D expenses were $33.5 million in 2017, compared to $27.7 million in 2016. R&D expenses represented 6.7% of net sales in 2017, compared to 6.0% of net sales in 2016. The increase in R&D expenses was due to ongoing higher investment in EPS product research and development such as brushless motors and Advanced Driver Assistance Systems (ADAS)-related projects. Additional engineers, newly acquired technologies, and more testing equipment represented most of the increase.

Operating income was $19.3 million in 2017, compared to $23.0 million in 2016. The decrease was primarily due to higher operating expenses in 2017.

Interest expense was $1.8 million in 2017, compared to interest expense of $0.7 million in 2016 due primarily to an increase in loans outstanding and higher interest rates.

Net financial income was $2.2 million in 2017, compared to net financial income of $1.4 million in 2016 due primarily to an increase in interest income.

Income before income tax expenses and equity in earnings of affiliated companies was $20.4 million for 2017, compared to $24.9 million for 2016. This decline was mainly due to lower income from operations and higher interest expense.

Income tax expense was $41.6 million for the year ended December 31, 2017, compared to $2.5 million for the year ended December 31, 2016, representing an increase of $39.1 million. The increase 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. We elected to pay the one-time accrued tax over eight years commencing in April 2018. In addition, withholding tax of $4.0 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, representing a decrease of $0.6 million which was mainly due to the decrease in income before income tax. The effective tax rate (excluding the impact of the one-time transition tax) was consistent from 2016 to 2017 at approximately 10%.

Net loss attributable to parent company's common shareholders was $19.3 million in 2017, compared to net income attributable to parent company's common shareholders of $22.5 million in 2016. Diluted loss per share was $0.61 in 2017, compared to diluted income per share of $0.70 in 2016.

The weighted average number of diluted common shares outstanding was 31,646,897 in 2017, compared to 31,957,052 in 2016.

Balance Sheet

As of December 31, 2017, total cash and cash equivalents, pledged cash and short-term investments were $125.7 million, total accounts receivable including notes receivable were $294.1 million, accounts payable were $240.2 million and bank and government loans were $73. million. Total parent company stockholders' equity was $299.4 million as of December 31, 2017, compared to $305.9 million as of December 31, 2016. Net cash flow from operating activities was $50.2 million in 2017. 

Business Outlook

Management has provided revenue guidance for the full year 2018 of $510 million. This target is based on the Company's current views on operating and market conditions, which are subject to change.

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

- Tables Follow -

China Automotive Systems, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands of USD, except share and per share amounts)
		December 31,
		2017				2016
ASSETS
Current assets:
Cash and cash equivalents		$	64,558			$	31,092
Pledged cash			31,535				30,799
Short-term investments			29,587				30,475
Accounts and notes receivable, net - unrelated parties			274,989				285,731
Accounts and notes receivable, net - related parties			19,086				20,984
Advance payments and others - unrelated parties			12,790				10,203
Advance payments and others - related parties			20,841				624
Inventories			79,217				68,050
Total current assets			532,603				477,958
Non-current assets:
Long-term time deposits			-				865
Property, plant and equipment, net			126,033				101,478
Intangible assets, net			661				617
Other receivables, net - unrelated parties			2,188				2,252
Advance payment for property, plant and equipment - unrelated parties			9,657				14,506 Werbung Mehr Nachrichten zur China Automotive Systems Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 05:14 - PR Newswire Asia Wealth Group Holdings Ltd - Result of AGM 02:00 - PR Newswire Bisichi Plc - Final Results 02:00 - PR Newswire BlackRock Throgmorton Trust Plc - Total Voting Rights Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59