WUHAN, China, Aug. 25, 2020 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that 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 not to exceed $3.50 per share, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions. Members of the management team may make share purchases in addition to the Company repurchase.
Mr. Hanlin Chen, Chairman of CAAS, commented, "Our current stock price does not reflect our leadership position in the Chinese automotive power steering industry as well as our growing number of Tier-1 vehicle OEMs that are using our products in the North and South American markets. The high quality of our products have won awards as well as contracts to be the exclusive supplier of steering products to certain vehicles. We are producing advanced hydraulic steering products for passenger and commercial vehicles, electric power steering systems through our joint venture with KYB (China) Investment Co., Ltd. ("KYB"), a wholly owned company of Japan KYB Co., Ltd., and we recently began designing, manufacturing and selling electric motors for automotive electric power steering systems through our joint venture with Hyoseong Electric Co. Ltd. In addition, we have a number of new products that will enhance our growth potential in the future."
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "The COVID-19 pandemic significantly affected our worldwide sales and domestic operations in the first half of 2020. We have resumed full production capabilities in all our plants and we believe the second half of 2020 will be an improved operating environment. We continue to invest in new products and upgrades to our current products to gain market share."
Mr. Jie Li, chief financial officer of CAAS, commented, "Our stock's market capitalization is below our cash, cash equivalents and pledged cash position as of June 30, 2020. We generated net cash by operating activities of $31.4 million in the first six months of 2020 and we remained focused on maintaining our excellent financial strength to provide the resources to build shareholder value."
As of June 30, 2020, CAAS' total cash and cash equivalents, and pledged cash deposits were $105.9 million, total accounts receivable including notes receivable were $188.4 million, accounts payable were $172.0 million and short-term loans were $55.2 million. Total stockholders' equity was $280.0 million.
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.
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. If the outbreak of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for automobile sales, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. 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.