WUHAN, Hubei, China, Oct. 23 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), ("China Automotive" or "Company") a leading power steering components and systems supplier in China, today announced that its founder and Chairman, Mr. Hanlin Chen, Chief Executive Officer, Mr. Qizhou Wu, Chief Financial Officer, Mr. Jie Li and other officers are planning to invest 500,000 dollars to purchase common shares of the Company in the open market.
Chairman Hanlin Chen commented, "This share purchase reflects management's belief that the recent stock price has been impacted by market factors that are far below our long-term value. In the most recent quarter we reported a 28.1% revenue gain compared with the year ago period. For the six months ended June 30, 2008, our fully diluted earnings per share rose to $0.36. The Company also reported cash and equivalents of $28.4 million at June 30, 2008."
"In the past 15 years, we have built a successful business with the leading market share in China. As we continue our quest in the world's second largest auto nation and 15 billion dollar global market, we are confident with our investment and increased ownership of China Automotive Systems."
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
