WUHAN, China, May 23 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced it has received notice from NASDAQ Listing Qualification Department on May 18th, 2007. On May 16, 2007, the China Automotive Systems notified NASDAQ that due to the resignation of Mr. Guangxun Xu from the China Automotive Systems’ Board of Directors to become NASDAQ’s Chief Representative in China on May 11, 2007, China Automotive Systems no longer complies with NASDAQ’s independent director requirements as set forth in Marketplace Rule 4350.
However, consistent with Marketplace Rule 4350(c)(1), NASDAQ will provide China Automotive Systems a cure period in order to regain compliance as follows:
1) until the earlier of China Automotive Systems’ next annual
shareholders’ meeting or May 11, 2008; or
2) if the next annual shareholders’ meeting is held before November 7,
2007, then China Automotive Systems must evidence compliance
no later than November 7, 2007.
China Automotive Systems must submit to NASDAQ documentation, including biographies of any new directors, evidencing compliance with the rules no later than this date. In the event China Automotive Systems does not regain compliance by this date, NASDAQ rules require Staff to provide written notification to the China Automotive Systems that its securities will be delisted. At that time, China Automotive Systems may appeal the delisting determination to a Listing Qualifications Panel.
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 800,000 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., Donfeng 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. 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 consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, 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:
Christopher Chu
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9426
Email: cchu@hfgcg.com
Stacey Dimakakos
Financial Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
