- Chairman Hanlin Chen Chosen as One of the Best 10 Entrepreneurs -
WUHAN, Hubei, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that China Automotive Systems was identified as one of the 100 "Best Enterprises" and Mr. Hanlin Chen was named one of the 10 "Best Entrepreneurs" by Jinzhou City at a recent ceremony in recognition of the Company's growth, rising market share and its ability to win contracts with large domestic and global customers.
These awards acknowledge the Company's achievements and contributions to Jinzhou City. Between the 2005 and 2007 years, China Automotive Systems achieved 110% sales growth with a faster 167% increase in net income. China Automotive Systems has announced milestones which will help sustain the Company's growth. First, the Company has advanced its design, manufacturing and quality control proficiency to develop world-class products. This achievement resulted in its first ever purchase order from a global automotive manufacturer headquartered in North America to supply power steering gears to this automotive manufacturer. Second, the Company shipped its first power steering gears to the Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for use in DPCA-manufactured cars. Additionally, China Automotive Systems is shipping product to another new client captured in 2008, ChangAn Auto Co. Ltd., one of China's most distinguished carmakers in China producing a full line of vehicles ranging from passenger cars, SUVs, light duty trucks, mini-vans, coach buses and other commercial vehicles.
Mr. Hanlin Chen, Chairman, commented, "Through our success at China Automotive Systems we have built a leading firm in our industry. We are now leveraging our success in China to penetrate the global markets. Although 2008 was a difficult year for the automotive industry with slower growth, we managed to continue our expansion and increase our market share. The automotive industry has been declared one of the key industries in China and we expect the Chinese government support and economic stimulus package will help generate a recovery in 2009."
The Chinese government has enacted policies to help stimulate the economy with a 4 trillion yuan ($586 billion) package. Proposals to enhance automobile demand include tax incentives for new purchases and providing rewards to swap older cars for new cars.
Both China Automotive Systems' and Mr. Chen's contributions to revitalizing Jinzhou City were acknowledged. Mr. Chen was the first of the 10 Best Entrepreneurs to receive a medal and a trophy. China Automotive Systems has improved the working environment in Jinzhou City through greater direct employment, as well as helping to build local suppliers and businesses.
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 1.1 million 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., Dongfeng 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, and the impact of acquisitions on its financial performance. 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 demand for the Company's products; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling Global
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacey Dimakakos
Financial Media Relations
Grayling Global
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
