WUHAN, China, Jan. 7, 2016 /PRNewswire/ -- China Automotive Systems, Inc. ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced 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 subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions.
Mr. Hanlin Chen, Chairman of China Automotive Systems, commented, "Chinese automotive industry experienced challenges in 2015. However, we do not believe that our current stock price reflects our leadership in the automotive power steering industry in China and our growing presence in global marketplace. Over the years, as an established tier-one supplier to domestic and global auto-makers, we have proven our capabilities to expand customer base, grow shipment, win awards, develop new products, and generate free cash flow."
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "Since October last year, we are encouraged by a series of government policies to help revitalize the Chinese auto and auto parts sector. We see favorable momentum for us in China and abroad due to the substantial tax reduction for small car purchases and the significant depreciation of China's currency against the U.S. dollar. In addition, our facility in Brazil is entering into mass production in 2016 that enables us to secure large local contracts. With the recovery of our production utilization rate in China, we expect the improvement on our margins in the coming quarters."
Mr. Jie Li, chief financial officer of CAAS, commented, "Our stock is trading below our liquid current asset, book value, and global peers' valuations based on earnings, revenue and cash-flow. Our decision to buy back stocks aligns with our further improved balance sheet and our ongoing commitment to creating shareholder value."
In the first nine months, CAAS recorded revenue of $323.5 million and net income of $20.5 million. As of September 30, 2015, CAAS' total cash and cash equivalents, pledged cash deposits and short-term investments were $132.5 million, total accounts receivable including notes receivable were $273.9 million, accounts payable were $192.5 million and bank and government loans were $45.0 million. Total stockholders' equity was $305.9 million as of September 30, 2015, compared to $298.2 million as of December 31, 2014. Net cash flow from operating activities was $24.1 million, compared to $8.1 million for the first nine months in 2014.
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 5.0 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.
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 26, 2015, 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.
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China Automotive Systems, Inc.
SOURCE China Automotive Systems, Inc.