China Automotive Systems Reports 2011 Fourth Quarter Financial Results and Higher Annual Net Sales in Fiscal Year 2011
PR Newswire
WUHAN, China, March 9, 2012
WUHAN, China, March 9, 2012 /PRNewswire-Asia-FirstCall/ — China Automotive Systems, Inc. (“CAAS” or the “Company”), (NASDAQ: CAAS), a leading power steering components and systems supplier in China, today announced financial results for the fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter Highlights
- Net sales were $99.5 million, compared with $100.5 million in the fourth quarter of 2010
- Gross profit was $19.5 million, compared with $19.8 million in the fourth quarter of 2010
- Operating income was $8.0 million, compared with $12.3 million in the fourth quarter of 2010, and operating margin was 8.1%, compared with 12.2% in the fourth quarter of 2010
- Net income attributable to parent company’s common shareholders was $6.0 million, compared with $10.6 million in the fourth quarter of 2010, with diluted earnings per share of $0.19, compared with diluted earnings per share of $0.22 in the fourth quarter of 2010.
Fiscal Year 2011 Highlights
- For 2011, net sales were $348.0 million, compared with $345.9 million for 2010
- Gross profit was $68.1 million, compared with $80.3 million in 2010, and gross margin was 19.6%, compared with 23.2% in 2010
- Operating income was $33.4 million, compared, with $54.0 million in 2010, and operating margin was 9.6%, compared with 15.6% in 2010
- Net income attributable to parent company’s common shareholders was $36.2 million, compared with $44.7 million in 2010, and with diluted earnings per share of $0.69, compared to $1.10 in 2010
- Net cash flow from operations was $34.1 million, compared with $38.6 million in 2010, with working capital of $147.8 million at December 31, 2011, compared with $54.2 million at December 31, 2010
- Cash and cash equivalents were $73.0 million at December 31, 2011, up from $49.4 million at December 31, 2010
Mr. Qizhou Wu, chief executive officer of the Company, commented: “2011 was a challenging year for the Chinese auto industry. However, we held our ground by increasing domestic penetration in Dongfeng PSA and growing our export business with Chrysler North America. Our new products, especially electric power steering (“EPS”), grew in unit volume and commanded higher prices. On the strategic partnership front, we added two key joint ventures with Shanghai Auto-IVECO Hongyan in early 2012 and Beijing Auto, which will significantly lift our presence in these large organizations and pave the way for broader cooperation in the future. In addition, we will form a joint venture outside of China and establish a foothold in another large and rapidly growing market, Brazil.”
Fourth Quarter of 2011
For the fourth quarter of 2011, net sales were $99.5 million, compared with $100.5 million in the same quarter of 2010. The decrease was primarily due to higher sales of electric power steering (“EPS”), increased export sales to Chrysler North America and the appreciation of the Chinese RMB versus the U.S. dollar only partially offsetting lower unit sales of traditional steering products in China.
Gross profit was $19.5 million compared with $19.8 million in the same quarter of last year. The gross margins were comparable at 19.6% and 19.7% in the fourth quarter of 2011 and the same quarter of 2010, respectively.
Selling expenses rose to $2.8 million from $2.5 million in the fourth quarter of 2010, which were mainly due to higher marketing and related office costs and greater warehouse rental expenses as compared with the same quarter of last year. As a percentage of net sales, selling expenses were 2.9% in the fourth quarter of 2011, compared with 2.5% in the same quarter of 2010.
General and administrative expenses (“G&A expenses”) rose 266% to $5.4 million in the fourth quarter of 2011 from $1.5 million in the same quarter of 2010. The increase in G&A expenses was primarily due to: 1) higher wage and insurance expenses; 2) higher depreciation expenses; 3) higher office expenses; 4) increased listing and professional fees related to being a public company, and 5) lower bad debt recovery. As a percentage of net sales, G&A expenses increased to 5.4% in the fourth quarter of 2011 from 1.5% in the same quarter of 2010. Excluding the one-time recovery of bad debt of $2.5 million in the fourth quarter of 2010, G&A expenses in the fourth quarter of 2010 would have been $4.0 million (or 4% of net sales).
Research and development expense (“R&D expense”) decreased 8.2% in the fourth quarter of 2011, to $3.4 million from $3.7 million in the same quarter of fiscal 2010. As a percent of net sales, R&D expense declined to 3.4% from 3.7% in the fourth quarter of 2010.
Operating income was $8.0 million in the fourth quarter of 2011, compared with $12.3 million in the same quarter of 2010. The decrease was primarily due to higher G&A expenses and selling expenses in the fourth quarter of 2011 as compared with the corresponding period of 2010.
Financial expenses decreased 17.1% to $1.1 million from $1.3 million in the fourth quarter of 2010, mainly due to lower foreign exchange losses in the fourth quarter of 2011.
The gain in the change of fair value of derivatives in the fourth quarter of 2011 was $1.6 million compared with a gain of $6.0 million in the same quarter last year. The gain in the change of fair value of derivatives was related to the convertible bond and was non-cash in nature.
Income before income taxes was $8.6 million in the fourth quarter of 2011, compared with $17.3 million in the same quarter of 2010. The decrease in income before income taxes was primarily due to lower operating income and a significantly smaller gain in the change of fair value of derivatives in the fourth quarter of 2011, as compared with the same quarter in 2010.
Net income attributable to parent company’s shareholders was $6.0 million in the fourth quarter of 2011, compared to $10.6 million in the same quarter in 2010. Diluted earnings per share were $0.19 in the fourth quarter of 2011 compared with $0.22 in the corresponding period of 2010.
Fiscal 2011
CAAS’s annual net sales increased $2.1 million to $348.0 million, compared with $345.9 million in 2010. Sales in 2011 experienced higher sales per unit through growth in the sales of EPS units, an expansion of exports to Chrysler in North America and the effect of RMB appreciation compared to the U.S. dollar, all of which more than offset a lower number of unit sales for traditional steering products in China.
Gross profit for fiscal year 2011 decreased to $68.1 million, from $80.3 million in 2010. Gross margin was 19.6%, as compared to 23.2% in 2010, primarily due to reductions in product pricing and higher unit production costs.
Selling expenses in 2011 increased by 6.5% to $10.0 million from $9.4 million, mainly due to higher marketing and associated office costs and greater warehouse rental expenses. As a percentage of net sales, selling expenses were 2.9% and 2.7% in 2011 and 2010, respectively.
G&A expenses increased by $6.2 million, to $16.2 million in 2011 from $10.0 million in 2010. The increase in G&A expenses was primarily due to: 1) higher wage and insurance expenses; 2) lower bad debts recovered; 3) higher office expenses from expansion of operations; and 4) increased listing and professional fees related to being a public company. As a percentage of net sales, G&A expenses were 4.7% in 2011 versus 2.9% in 2010. During the fourth quarter of 2010, there was a significant bad debt provision recovery of $2.5 million. Excluding this one-time bad debt of $2.5 million recovered in the fourth quarter of 2010, G&A expenses for 2010 would have been $12.5 million and 3.6% of net sales.
Research and development expenses (“R&D expenses”) increased 25%, or $2.0 million, to $10.0 million in 2011 from $8.0 million in 2010, primarily due to costs related to further development of the Company’s EPS technology and improvement in its production. As a percentage of net sales, R&D expenses increased to 2.9% in 2011 from 2.3% in 2010.
Operating income was $33.4 million in 2011, a decrease of 38.1% from $54.0 million in 2010, due to lower gross profit and higher operating expenses, especially G&A expenses. As a percentage of net sales, operating margin was 9.6% compared with 15.6% in 2010.
Financial expenses increased 18.5% to $4.0 million from $3.4 million for 2010 as average borrowings rose by $2.6 million in 2011 and the average interest rate increased by over 1% to 6.29% during 2011. Additionally, foreign exchange losses rose as the RMB appreciated by approximately 5% against the U.S. dollar.
The gain on convertible notes conversion was $1,564,418 in 2011, versus nil in 2010. On March 1, 2011, a holder of the Convertible Notes converted $6,428,571 of the principal amount of the convertible notes (at a conversion price of $7.0822 per share) and was issued 907,708 shares of the Company’s common stock. The Company recorded a gain on convertible notes conversion of $1,564,418 in 2011, which is the difference between the market price of the common stock and the conversion consideration on the conversion date. No convertible notes were converted in 2010.
For 2011, the gain on change in fair value of the derivatives embedded in the convertible notes was $21.0 million, compared with $20.2 million in 2010, primarily due to a greater decrease of the Company’s stock price in 2011.
Income before income taxes decreased to $52.1 million in 2011, a decrease of 27% from $71.4 million in 2010. This decrease was primarily due to lower gross profit and higher operating expenses in 2011. Income before taxes represented 14.9% of net sales in 2011 versus 20.6% in 2010.
Income tax expense was $4.4 million in 2011, compared to $8.5 million in 2010. Income tax decrease was mainly due to lower taxable income in 2011.The effective tax rate in 2011 was 8.4%, compared with 11.9% in 2010.
Net income attributable to parent company’s shareholders was $36.3 million in 2011, compared to $44.7 million in 2010. Diluted earnings per share were $0.69 in 2011, compared with $1.10 in 2010. The weighted average number of basic common shares outstanding was 27,930,668 in 2011, versus 27,098,258 in 2010. The weighted average number of diluted common shares outstanding was 31,511,685 in 2011, compared with 31,565,422 in 2010.
As of December 31, 2011, total cash and cash equivalents were $73.0 million, compared with $49.4 million at the end of 2010. Working capital was $147.8 million as of December 31, 2011, compared with $54.2 million as of December 31, 2010. Net cash flows from operations were $34.1 million in 2011, compared with $38.6 million in 2010. Cash used to acquire property, plant and equipment was $14.9 million in 2011, compared with $28 million in 2010.
Business Outlook
Management’s revenue guidance is for 10% year-over-year growth for the 2012 year. This target is based on the Company’s current views on operating and market conditions, which are subject to change.
“We are cautiously optimistic about 2012 despite the uncertainty in the Chinese domestic market. The PRC government’s recent policy on government vehicle purchases can be a positive catalyst to home-grown brands, as the annual vehicle spending by government entities is a sizeable percentage of the PRC market. And, many of these qualified models are already using CAAS steering systems. However, we will continue to diversify the customer base and leverage our brand recognition to increase penetration into existing customers. Our success with Chrysler Dodge RAM will open many doors for us globally. We will continue to focus on exercising financial discipline and generating free cash flow. We remain confident that CAAS will continue to grow long-term shareholder value,” Mr. Wu concluded.
Recent Developments
In January 2012, CAAS announced to form a joint venture with SAIC-IVECO Hongyan Company (“SAIC-IVECO”) to create a new manufacturing facility with a registered capital of RMB60 million and a capacity to produce 200,000 power steering units for commercial vehicles in China. This joint venture is named Chongqing Henglong Hongyan Power Steering Systems Co. Ltd. (“Chongqing Henglong”) and is 70% owned by CAAS. Chongqing Henglong designs and produces power steering units to meet the specific steering characteristics of SAIC-IVECO’s commercial vehicles. CAAS’s production capacity will be significantly expanded as Chongqing Henglong’s capacity combines with the Company’s Beijing Auto joint venture for a total production capacity of 500,000 steering units.
In December 2011, CAAS announced that it had been selected as a supplier of aftermarket power steering gears to a global OEM’s parts division for use in one SUV model in North America. The gears are being produced by the Company in China and exported to North America. This SUV is a well-established model in North America that has been in production for several years, and sales of that SUV experienced strong growth in 2011.
In November 2011, CAAS increased its presence in the North American market through a new multi-year contract with Chrysler Group LLC (“Chrysler”). Starting in 2012, CAAS’s power steering products will be installed in RAM pick-up trucks. CAAS first began working with Chrysler in 2008 on its award-winning Jeep Wrangler. Chrysler has now expanded its orders to RAM pick-up truck models 2500 and 3500.
In October 2011, CAAS announced that it received the 2011 Excellent Supplier Award from Chrysler’s China office for the Company’s supplying of power steering gears for the award-winning Jeep Wrangler since 2008.
Also in October 2011, CAAS announced that, in addition to its operations in North America, its Board of Directors approved the formation of a joint venture with two local automotive companies in Brazil, the largest automotive market in South America.
Conference Call
Management will conduct a conference call on March 9th at 8:00 A.M. EST/9:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management’s presentation.
To participate, please call the following numbers 10 minutes before the call start time and ask to be connected to the “China Automotive Systems” conference call:
Phone Number: +1-877-407-8031 (North America)
Phone Number: +1-201-689-8031 (International)
In addition, the conference call will be broadcast live over the Internet at: http://www.caasauto.com
Please go to the web site at least 15 minutes early to register, download and install any necessary software.
A telephone replay of the call will be available after the conclusion of the conference call through 11:59 P.M. EDT on April 9, 2012. The dial-in details for the replay are: U.S. Toll Free Number +1-877-660-6853, International dial-in number +1-201-612-7415; using Account “286” and Conference ID “390452 ” to access the replay.
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 nine 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 3.5 million sets of steering columns, steering oil pumps 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 North America 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 the Company’s estimates and assumptions only as of the date of this press release. The Company’s actual results may differ materially from the results described in or anticipated by these forward-looking statements due to certain risks and uncertainties, including those described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 9, 2012, and in documents subsequently filed by the Company from time to time. The Company expressly disclaims 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
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@grayling.com
– tables follow –
China Automotive Systems, Inc. and Subsidiaries Consolidated Balance Sheets As of December 31, 2011 and 2010 |
|||||||||
December 31, |
|||||||||
2011 |
2010 |
||||||||
ASSETS |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ |
72,960,500 |
$ |
49,424,979 |
|||||
Pledged cash deposits |
21,820,890 |
20,983,891 |
|||||||
Accounts and notes receivable, net – unrelated parties |
206,333,110 |
190,392,146 |
|||||||
Accounts and notes receivable, net – related parties |
6,126,148 |
5,466,842 |
|||||||
Advance payments and others – unrelated parties |
2,215,240 |
2,892,068 |
|||||||
Advance payments and others – related parties |
629,741 |
1,334,069 |
|||||||
Inventories |
51,607,193 |
36,870,272 |
|||||||
Current deferred tax assets |
3,686,713 |
3,511,421 |
|||||||
Total current assets |
365,379,535 |
310,875,688 |
|||||||
Non-current assets: |
|||||||||
Property, plant and equipment, net |
84,843,250 |
75,380,747 |
|||||||
Intangible assets, net |
837,075 |
662,089 |
|||||||
Other receivables, net – unrelated parties |
1,876,953 |
2,450,970 |
|||||||
Other receivables, net – related parties |
499,652 |
350,464 |
|||||||
Advance payment for property, plant and equipment – unrelated parties |
1,472,442 |
1,839,537 |
|||||||
Advance payment for property, plant and equipment – related parties |
3,712,121 |
7,534,440 |
|||||||
Long-term investments |
3,485,118 |
3,162,136 |
|||||||
Non-current deferred tax assets |
4,340,974 |
3,271,594 |
|||||||
Total assets |
$ |
466,447,120 |
$ |
405,527,665 |
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||
Current liabilities: |
|||||||||
Bank loans |
$ |
10,315,987 |
$ |
6,794,812 |
|||||
Accounts and notes payable – unrelated parties |
169,456,482 |
146,649,497 |
|||||||
Accounts and notes payable – related parties |
2,052,897 |
1,867,926 |
|||||||
Convertible notes payable |
– |
30,000,000 |
|||||||
Compound derivative liabilities |
– |
25,271,808 |
|||||||
Customer deposits |
1,181,401 |
720,883 |
|||||||
Accrued payroll and related costs |
5,177,140 |
4,927,200 |
|||||||
Accrued expenses and other payables |
22,617,667 |
29,072,710 |
|||||||
Accrued pension costs |
4,067,399 |
3,851,988 |
|||||||
Taxes payable |
2,029,215 |
6,860,946 |
|||||||
Amounts due to shareholders/directors |
351,817 |
353,817 |
|||||||
Deferred tax liabilities |
309,667 |
312,304 |
|||||||
Total current liabilities |
217,559,672 |
256,683,891 |
|||||||
Long-term liabilities: |
|||||||||
Convertible notes payable |
23,571,429 |
– |
|||||||
Compound derivative liabilities |
559,148 |
– |
|||||||
Accrued make-whole redemption interest expense of convertible notes |
7,615,709 |
– |
|||||||
Advances payable |
983,986 |
603,983 |
|||||||
Total liabilities |
250,289,944 |
257,287,874 |
|||||||
Commitments and contingencies |
|||||||||
Stockholders’ equity |
|||||||||
Common stock, $0.0001 par value – Authorized – 80,000,000 shares; |
2,826 |
2,717 |
|||||||
Additional paid-in capital |
39,295,419 |
28,565,153 |
|||||||
Retained earnings- |
|||||||||
Appropriated |
9,026,240 |
8,767,797 |
|||||||
Unappropriated |
99,513,395 |
58,979,851 |
|||||||
Accumulated other comprehensive income |
25,291,231 |
15,957,500 |
|||||||
Total parent company stockholders’ equity |
173,129,111 |
112,273,018 |
|||||||
Non-controlling interests |
43,028,065 |
35,966,773 |
|||||||
Total stockholders’ equity |
216,157,176 |
148,239,791 |
|||||||
Total liabilities and stockholders’ equity |
$ |
466,447,120 |
$ |
405,527,665 |
|||||
China Automotive Systems, Inc. and Subsidiaries Consolidated Statements of Income (Loss) Years Ended December 31, 2011 and 2010 |
|||||||||
December 31, |
|||||||||
2011 |
2010 |
||||||||
Net product sales |
|||||||||
Unrelated parties |
$ |
328,043,323 |
$ |
334,264,680 |
|||||
Related parties |
19,931,431 |
11,660,502 |
|||||||
347,974,754 |
345,925,182 |
||||||||
Cost of product sold |
|||||||||
Unrelated parties |
259,096,894 |
246,369,792 |
|||||||
Related parties |
20,778,863 |
19,252,680 |
|||||||
279,875,757 |
265,622,472 |
||||||||
Gross profit |
68,098,997 |
80,302,710 |
|||||||
Net gain on other sales |
1,481,308 |
1,129,032 |
|||||||
Operating expenses: |
|||||||||
Selling expenses |
9,971,835 |
9,363,875 |
|||||||
General and administrative expenses |
16,224,369 |
10,029,211 |
|||||||
R&D expenses |
10,005,605 |
7,991,252 |
|||||||
Total operating expenses |
36,201,809 |
27,384,338 |
|||||||
Operating income |
33,378,496 |
54,047,404 |
|||||||
Other income, net |
168,749 |
558,058 |
|||||||
Financial expenses, net |
(3,983,817) |
(3,360,837) |
|||||||
Gain on change in fair value of derivative |
20,971,087 |
20,171,698 |
|||||||
Gain on convertible notes conversion |
1,564,418 |
– |
|||||||
Income before income tax expenses and equity in earnings of affiliated companies |
52,098,933 |
71,416,323 |
|||||||
Less: Income taxes |
4,353,702 |
8,484,205 |
|||||||
Add/(less): Equity in earnings of affiliated companies |
158,250 |
(14,816) |
|||||||
Net income |
47,903,481 |
62,917,302 |
|||||||
Net income attributable to noncontrolling interest |
7,111,494 |
11,179,189 |
|||||||
Net income attributable to parent company |
40,791,987 |
51,738,113 |
|||||||
Allocation to convertible notes holders |
(4,518,838) |
(6,994,306) |
|||||||
Net income attributable to parent company’s common shareholders |
$ |
36,273,149 |
$ |
44,743,807 |
|||||
Net income attributable to parent company’s common shareholders per share – |
|||||||||
Basic |
$ |
1.30 |
$ |
1.65 |
|||||
Diluted |
$ |
0.69 |
$ |
1.10 |
|||||
Weighted average number of common shares outstanding – |
|||||||||
Basic |
27,930,668 |
27,098,258 |
|||||||
Diluted |
31,511,685 |
31,565,422 |
|||||||
China Automotive Systems, Inc. and Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, 2011 and 2010 |
|||||||||
2011 |
2010 |
||||||||
Cash flows from operating activities: |
|||||||||
Net income |
$ |
47,903,481 |
$ |
62,917,302 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Stock-based compensation |
100,575 |
595,402 |
|||||||
Depreciation and amortization |
13,501,091 |
9,497,618 |
|||||||
Deferred income taxes assets and liabilities |
(914,886) |
620,880 |
|||||||
Provision/(reversal) for inventories |
(23,054) |
431,652 |
|||||||
(Reversal) for doubtful accounts |
(75,486) |
(2,373,520) |
|||||||
Equity gain/(loss) in earnings of affiliated companies |
(158,250) |
14,816 |
|||||||
Gain on convertible notes conversion |
(1,564,418) |
– |
|||||||
Gain on change in fair value of derivative |
(20,971,087) |
(20,171,698) |
|||||||
Loss on disposal of fixed assets |
104,849 |
690,256 |
|||||||
Other operating adjustments |
– |
(6) |
|||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase)/decrease in: |
|||||||||
Pledged cash deposits |
181,608 |
(7,656,455) |
|||||||
Accounts and notes receivable |
(6,200,552) |
(33,055,864) |
|||||||
Advance payments and other |
1,576,777 |
(1,721,067) |
|||||||
Inventories |
(12,458,644) |
(8,679,749) |
|||||||
Increase/(decrease) in: |
|||||||||
Accounts and notes payable |
15,013,604 |
36,821,221 |
|||||||
Customer deposits |
409,036 |
(1,232,590) |
|||||||
Accrued payroll and related costs |
19,903 |
206,373 |
|||||||
Accrued expenses and other payables |
2,355,538 |
6,295,860 |
|||||||
Accrued pension costs |
25,566 |
(45,692) |
|||||||
Taxes payable |
(5,107,984) |
(4,963,593) |
|||||||
Advances payable |
345,623 |
361,015 |
|||||||
Net cash provided by operating activities |
34,063,290 |
38,552,161 |
|||||||
Cash flows from investing activities: |
|||||||||
(Increase)/decrease in other receivables |
563,649 |
(1,695,321) |
|||||||
Cash received from equipment sales |
574,775 |
383,924 |
|||||||
Cash paid to acquire property, plant and equipment |
(14,857,364) |
(28,024,638) |
|||||||
Cash paid to acquire intangible assets |
(323,463) |
(165,292) |
|||||||
Equity investment |
– |
(3,095,414) |
|||||||
Net cash used in investing activities |
(14,042,403) |
(32,596,741) |
|||||||
Cash flows from financing activities: |
|||||||||
Bank loans borrowed |
10,199,951 |
8,215,091 |
|||||||
Repayment of bank loans |
(6,995,320) |
(6,794,812) |
|||||||
Dividends paid to the non-controlling interest holders of joint-venture companies |
(2,822,432) |
(3,614,252) |
|||||||
Increase (decrease) in amounts due to shareholders/directors |
(28,194) |
344,695 |
|||||||
Exercise of stock option |
517,931 |
454,700 |
|||||||
Net cash provided by (used in) financing activities |
871,936 |
(1,394,578) |
|||||||
Cash and cash equivalents affected by foreign currency |
2,642,698 |
1,383,961 |
|||||||
Net change in cash and cash equivalents |
|||||||||
Net increase in cash and cash equivalents |
23,535,521 |
5,944,803 |
|||||||
Cash and equivalents at beginning of year |
49,424,979 |
43,480,176 |
|||||||
Cash and equivalents at end of year |
$ |
72,960,500 |
$ |
49,424,979 |
|||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||||||||
Year Ended December 31 |
||||||||||
2011 |
2010 |
|||||||||
Cash paid for interest |
$ |
1,972,601 |
$ |
2,044,713 |
||||||
Cash paid for income taxes |
$ |
8,271,564 |
$ |
6,685,443 |
||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: |
||||||||||
Year Ended December 31 |
||||||||||
2011 |
2010 |
|||||||||
Issuance of common shares for the conversion of convertible notes |
$ |
10,111,869 |
$ |
– |
||||||
Advance payments for acquiring property, plant and equipment |
$ |
5,184,563 |
$ |
9,373,977 |
||||||
Dividend Payable to non-controlling interest shareholders of joint-venture |
$ |
807,970 |
$ |
1,530,445 |
||||||
SOURCE China Automotive Systems, Inc.
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