WUHAN, China, August 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 second quarter and six months ended June 30, 2012. All results are for continuing operations, unless stated otherwise.
Second Quarter 2012 Highlights
First Six Months of 2012 Highlights
Mr. Qizhou Wu, chief executive officer of CAAS, commented: "The passenger vehicle sector in China is gradually reaching its cyclical bottom. We are encouraged by the stability in both unit sales volume and raw material costs. We continue to increase our market share in both the passenger and commercial vehicle markets in China. Our specialty focus and our ability to develop advanced products with consistently high quality validate our technology and production prowess as a global tier one supplier for safety-related automotive components. With the help of our superior engineering team, we have further penetrated the North America market by beginning to supply another award-winning brand, Dodge Ram® trucks. We streamlined our operations by divesting our pump business as we quickly embrace emerging technologies to further position CAAS as the market leader in China. In the context of a difficult global market environment, we strive to expand our market share and to enhance our brand equity."
Mr. Jie Li, chief financial officer of CAAS, added, "While we aggressively expanded our R&D program to develop new products to address global market trends, our rigorous cost control measures showed results in many areas. Through our improved accounts receivable management, we continue to generate solid cash flow. We also successfully redeemed our convertible notes before their maturity dates, which provides more financial flexibility to leverage our balance sheet to create shareholder value."
Second Quarter of 2012
For the second quarter of 2012, net sales increased 2.8% to $80.4 million, compared with $78.2 million in the same quarter of 2011. The increase was primarily due to higher sales volume including export sales to customers in North America, the improvement of China's automotive market resulting from lower oil prices and government subsidies granted to customers who purchase low-emission cars and fuel-efficient domestic cars since May 2012, and the appreciation of the Chinese RMB versus the U.S. dollar.
Gross profit was $15.6 million in the second quarter of 2012, compared with $13.8 million in the second quarter of last year. Gross margin improved to 19.4% in the second quarter of 2012, compared with 17.7% in the same quarter of 2011, primarily due to lower raw materials prices, lean production management and rigorous cost control measures.
Selling expenses decreased 14.0% to $2.1 million from $2.4 million in the second quarter of 2011, which were mainly due to tightened cost controls imposed this quarter compared with the same quarter of last year. As a percentage of net sales, selling expenses were 2.6% in the second quarter of 2012, compared with 3.1% in the same quarter of 2011.
General and administrative expenses ("G&A expenses") decreased 7.1% to $3.1 million in the second quarter of 2012, from $3.4 million in the same quarter of 2011. The decrease in G&A expenses was primarily due to lower wage and salary expenses, and lower performance bonuses. As a percentage of net sales, G&A expenses decreased to 3.9% in the second quarter of 2012 from 4.3% in the same quarter of 2011.
Research and development expense ("R&D expense") increased 168.4% in the second quarter of 2012, to $3.7 million from $1.4 million in the same quarter of 2011, mainly due to the continued development of the Company's electric power steering ("EPS") systems. Higher expenses were incurred for additional R&D staff, mold improvement and external technical support in the second quarter of 2012, compared with the same quarter last year. As a percentage of net sales, R&D expense rose to 4.5% from 1.7% in the second quarter of 2011.
Income from operations was $8.6 million in the second quarter of 2012, compared with $7.2 million in the same quarter of 2011. The increase was primarily due to increased gains on other sales and higher gross profit combined with lower G&A and selling expenses in the second quarter of 2012 as compared with the same quarter in 2011. As a percentage of net sales, income from operations was 10.7%, compared with 9.2% in the second quarter of 2011.
Net financial expenses were slightly lower at $0.5 million, compared with $0.6 million in the second quarter of 2011, mainly due to the Company's early redemption of the convertible notes reducing the Company's interest expenses.
The gain on the change of fair value of derivatives in the second quarter of 2012 was $3.4 million compared with a loss of $0.1 million in the same quarter last year as the Company's stock price declined during the second quarter of 2012. The gain on the change of fair value of derivatives was related to the convertible notes and was non-cash in nature.
On May 24, 2012, the Company and the holder of the convertible notes reached a settlement agreement whereby CAAS made an early redemption of the convertible notes on May 25, 2012. A gain of $1.4 million was recorded in the second quarter of 2012 for early redemption of the convertible notes. No convertible notes were redeemed during the second quarter of 2011.
Income before income taxes and equity in earnings of affiliated companies was $12.9 million in the second quarter of 2012, compared with $6.5 million in the same quarter of 2011. The increase in income before income taxes and equity in earnings of affiliated companies was primarily due to higher income from operations of $1.4 million, an increase in the gain on the change in fair value of derivatives of $3.6 million, and a gain of $1.4 million on redemption of the convertible notes in the second quarter of 2012, as compared with the same quarter in 2011.
Income tax expense was $1.3 million for the quarter ended June 30, 2012, compared with $1.2 million for the second quarter of 2011. The effective tax rate decreased to 10.2% for the second quarter of 2012, from 17.7% for the same period in 2011, which was primarily due to utilization of the tax losses carried forward against the gain on change in the fair value of derivative and the gain on the redemption of convertible notes.
Income from continuing operations was $11.6 million for the second quarter of 2012, compared with $5.4 million for the same quarter last year. The increase was mainly due to higher income before income tax expenses and equity in earnings of affiliated companies.
In May 2012, CAAS discontinued its operations at Zhejiang and sold its 51% equity interest in Zhejiang. Accordingly, the Zhejiang business is now recorded as a discontinued operation. Net income from the discontinued operations was $2.6 million for the second quarter of 2012, which included the transaction income recorded in connection with the sale of Zhejiang of $2.5 million (after tax). Net operational results of the Zhejiang business for the second quarter of 2012 were after-tax income of $0.1 million, and $0.3 million for the same period last year.
Net income attributable to parent company's common shareholders, including net income from discontinued operations, was $12.2 million in the second quarter of 2012, compared with $3.9 million in the same quarter in 2011. Diluted earnings per share were $0.29 in the second quarter of 2012, compared with $0.14 in the corresponding period of 2012. The weighted average number of basic common shares outstanding was 28,260,302 in the second quarter of 2012, compared with 28,083,534 in the same quarter of 2011. The weighted average number of diluted common shares outstanding was 30,257,347 in the second quarter compared with 28,202,989 in the same quarter of 2011. Diluted earnings per share from continuing operations were $0.21 in the second quarter of 2012, compared with diluted earnings per share from continuing operations of $0.13 in the second quarter of 2011.
First Six Months of 2012
Net sales for the first six months of 2012 decreased 2.0% to $161.3 million, compared with $164.6 million in the first six months of last year. Six-month gross profit was $31.0 million, compared with $32.5 million in the same period a year ago. Six-month gross margin was 19.2%, compared with 19.7% for the same six-month period in 2011. Income from operations was $14.9 million, compared with $18.1 million in the first six months of 2011. Operating margin was 9.2%, compared with 11.0% for the same period of 2011. Income from continuing operations was $11.9 million in the first six months of 2012, compared with $26.7 million in the same period in 2011. Diluted earnings per share for continuing operations were $0.31 in the first six months of 2012, compared with diluted earnings per share for continuing operations of $0.38 in the first six months of 2011. Net income attributable to the parent companys common shareholders, including net income from discontinued operations, decreased to $11.2 million from $21.2 million in the first six months of 2011. Diluted earnings per share were $0.40 for both the 2012 and the 2011 first six-month periods.
As of June 30, 2012, total cash and cash equivalents were $77.7 million, compared with $73.0 million at December 31, 2011. Working capital was $123.9 million as of June 30, 2012. Net cash flows from operating activities in the first six months of 2012 were approximately $6.9 million, reflecting the payment of $8.8 million of interest expenses for the redemption of the convertible notes.
Business Outlook
Due to a significant slacking of demand for automotive vehicles in the People's Republic of China, management has lowered its guidance and now expects annual revenues to be even with that of year 2011. This target is based on the Companys current views on operating and market conditions, which are subject to change.
Recent Developments
On May 25, 2012, the Company redeemed all of its outstanding senior convertible notes before their maturity dates. The negotiated total redemption price was $32.4 million, which includes all principal, accrued and unpaid interest and the make-whole amounts as of the date of redemption. The five-year senior convertible notes were issued in February 2008 with an original total principal amount of $35 million, a scheduled maturity date of February 15, 2013 and a conversion price per share of $7.0822. In April 2009, the Company redeemed $5 million of the principal amount of the convertible notes. On March 1, 2011, upon the conversion of $6.4 million of the principal amount of the convertible notes, 907,708 common shares were issued at a conversion price of $7.0822 per share. The remaining total principal amount of the senior convertible notes before redemption was $23.6 million.
On May 23, 2012, the Company announced that its wholly owned subsidiary, Great Genesis Holdings Limited ("Great Genesis"), had entered into a definitive agreement (the "Agreement") to sell its equity interest in Zhejiang Henglong & Vie Pump-Manu Co., Ltd. ("Zhejiang"), to the Zhejiang Vie Group ("Vie Group"), Great Genesis joint venture partner in Zhejiang. This transaction is subject to local regulatory authority approval. Founded in 2002, Zhejiang, which designs, manufactures and markets power steering pumps, is located in Zhuji City, Zhejiang Province. According to the Agreement, Great Genesis will sell its 51% stake in Zhejiang to Vie Group for RMB52 million, which represents a 53% premium as compared with the May 20, 2012 estimated net book value of approximately RMB34 million. The transaction is expected to close in September, 2012.
On May 15, 2012, the Company announced that Mr. Arthur Wong was appointed to the board of directors of the Company (the "Board") on May 15, 2012, where he will serve as chairman of the audit committee of the Board and as a member of the nominating and compensation committees of the Board. He currently serves as a member of the boards of directors of VisionChina Media Inc. (NASDAQ:VISN) and Besunyen Holdings Company Limited (HKG: 926), and as chairman of the audit committees for both companies boards of directors. He worked at Deloitte Touche Tohmatsu ("Deloitte"), from 1982 to 2008, and he rose to become a partner in Deloittes Beijing office. While serving at Deloitte, Mr. Wong acted as the audit partner for various companies, including international auto and auto parts manufacturers.
Conference Call
Management will conduct a conference call on August 9 at 8:00 A.M. EDT/8:00 P.M. Beijing Time to discuss these results. A simultaneous webcast will be available at the Investor Relations section of the Company's website at http://www.caasauto.com. A question and answer session will follow managements 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 September 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 "398483" to access the replay. The replay can also be accessed at the Investor Relations section of the CAAS website through September 9, 2012.
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 3.8 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 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
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China Automotive Systems, Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(In thousands of USD unless otherwise indicated) | |||||
June 30, 2012 (Unaudited) | December 31, 2011 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 77,692 | $ | 72,961 | |
Pledged cash deposits | 21,186 | 21,821 | |||
Accounts and notes receivable, net - unrelated parties | 189,662 | 200,940 | |||
Accounts and notes receivable, net - related parties | 10,811 | 11,519 | |||
Accounts receivable from sale of a subsidiary | 8,221 | - | |||
Advance payments and others - unrelated parties | 766 | 2,215 | |||
Advance payments and others - related parties | 636 | 630 | |||
Inventories | 46,889 | 51,607 | |||
Current deferred tax assets | 3,351 | 3,687 | |||
Total current assets | 359,214 | 365,380 | |||
Non-current assets: | |||||
Property, plant and equipment, net | 77,330 | 84,843 | |||
Intangible assets, net | 713 | 837 | |||
Other receivables, net - unrelated parties | 2,169 | 1,877 | |||
Other receivables, net - related parties | 1,042 | 500 | |||
Advance payment for property, plant and equipment - unrelated parties | 5,983 | 1,472 | |||
Advance payment for property, plant and equipment - related parties | 3,694 | 3,712 | |||
Long-term investments | 3,584 | 3,485 | |||
Non-current deferred tax assets | 3,992 | 4,341 | |||
Total assets | $ | 457,721 | $ | 466,447 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Bank and government loans | $ | 41,655 | $ | 10,316 | |
Accounts and notes payable - unrelated parties | 153,935 | 169,456 | |||
Accounts and notes payable - related parties | 3,682 | 2,053 | |||
Customer deposits | 1,124 | 1,181 | |||
Accrued payroll and related costs | 4,614 | 5,177 | |||
Accrued expenses and other payables | 22,201 | 22,618 | |||
Accrued pension costs | 4,243 | 4,067 | |||
Taxes payable | 3,481 | 2,029 | |||
Amounts due to shareholders/directors | 350 | 352 | |||
Deferred tax liabilities | 19 | 311 | |||
Total current liabilities | 235,304 | 217,560 | |||
Long-term liabilities: | |||||
Convertible notes payable | - | 23,571 | |||
Compound derivative liabilities | - | 559 | |||
Accrued make-whole redemption interest expense of convertible notes | - | 7,616 | |||
Advances payable | 1,611 | 984 | |||
Total liabilities | 236,915 | 250,290 | |||
Commitments and Contingencies | |||||
Stockholders' equity- | |||||
Common stock, $0.0001 par value - Authorized - 80,000,000 shares Issued and Outstanding - 28,260,302 shares at June 30, 2012 and December 31, 2011 | 3 | 3 | |||
Additional paid-in capital | 39,295 | 39,295 | |||
Retained earnings- | |||||
Appropriated | 9,953 | 9,026 | |||
Unappropriated | 110,840 | 99,514 | |||
Accumulated other comprehensive income | 24,731 | 25,291 | |||
Total parent company stockholders' equity | 184,822 | 173,129 | |||
Noncontrolling interests | 35,984 | 43,028 | |||
Total stockholders' equity | 220,806 | 216,157 | |||
Total liabilities and stockholders' equity | $ | 457,721 | $ | 466,447 | |
China Automotive Systems, Inc. | |||||
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income | |||||
(In thousands of USD, except share and per share amounts) | |||||
Three Months Ended June 30, | |||||
2012 | 2011 | ||||
Net product sales | |||||
Unrelated parties | $ | 71,886 | $ | 65,391 | |
Related parties | 8,493 | 12,766 | |||
80,379 | 78,157 | ||||
Cost of product sold | |||||
Unrelated parties | 61,241 | 59,712 | |||
Related parties | 3,506 | 4,608 | |||
64,747 | 64,320 | ||||
Gross profit | 15,632 | 13,837 | |||
Gain on other sales | 1,810 | 498 | |||
Less: Operating expenses | |||||
Selling expenses | 2,088 | 2,427 | |||
General and administrative expenses | 3,130 | 3,369 | |||
Research and development expenses | 3,650 | 1,360 | |||
Total operating expenses | 8,868 | 7,156 | |||
Income from operations | 8,574 | 7,179 | |||
Other income, net | 7 | 73 | |||
Financial expenses, net | (500) | (560) | |||
Gain (loss) on change in fair value of derivative | 3,411 | (147 | |||
Gain on redemption of convertible notes | 1,421 | - | |||
Income before income tax expenses and equity in earnings of affiliated companies | 12,913 | 6,545 | |||
Less: Income taxes | 1,314 | 1,160 | |||
Equity in earnings of affiliated companies | 32 | 48 | |||
Income from continuing operations | 11,631 | 5,433 | |||
Discontinued operations (including after-tax disposition gain of $ 2,494) - net of income tax | 2,620 | 331 | |||
Net income | 14,251 | 5,764 | |||
Net income attributable to noncontrolling interests | 1,229 | 1,420 | |||
Net income attributable to parent company | 13,022 | 4,344 | |||
Allocation to convertible notes holders | (859) | (460) | |||
Net income attributable to parent company's common | $ | 12,163 | $ | 3,884 | |
Net income attributable to parent company's common shareholders per share | |||||
Basic | |||||
Income from continuing operations attributable to shareholders | $ | 0.35 | $ | 0.13 | |
Income per share from discontinued operations | $ | 0.08 | $ | 0.01 | |
Net income attributable to shareholders | $ | 0.43 | $ | 0.14 | |
Diluted | |||||
Income from continuing operations attributable to shareholders | $ | 0.21 | $ | 0.13 | |
Income per share from discontinued operations | $ | 0.08 | $ | 0.01 | |
Net income attributable to shareholders | $ | 0.29 | $ | 0.14 | |
Weighted average number of common shares outstanding | |||||
Basic | 28,260,302 | 28,083,534 | |||
Diluted | 30,257,347 | 28,202,989 | |||
Comprehensive income: | |||||
Net income | $ | 14,251 | $ | 5,764 | |
Foreign currency translation (loss) gain, net of tax | (1,227) | 2,902 | |||
Comprehensive income | 13,024 | 8,666 | |||
Comprehensive income attributable to noncontrolling interests | 1,019 | 1,928 | |||
Comprehensive income attributable to parent company | $ | 12,005 | $ | 6,738 | |
China Automotive Systems, Inc. | |||||
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income | |||||
(In thousands of USD, except share and per share amounts) | |||||
Six Months Ended June 30, | |||||
2012 | 2011 | ||||
Net product sales | |||||
Unrelated parties | $ | 144,912 | $ | 142,282 | |
Related parties | 16,386 | 22,302 | |||
161,298 | 164,584 | ||||
Cost of product sold | |||||
Unrelated parties | 120,603 | 122,077 | |||
Related parties | 9,685 | 10,028 | |||
130,288 | 132,105 | ||||
Gross profit | 31,010 | 32,479 | |||
Gain on other sales | 1,922 | 909 | |||
Less: Operating expenses | |||||
Selling expenses | 4,268 | 4,643 | |||
General and administrative expenses | 6,512 | 7,163 | |||
Research and development expenses | 7,242 | 3,520 | |||
Total operating expenses | 18,022 | 15,326 | |||
Income from operations | 14,910 | 18,062 | |||
Other income, net | 78 | 106 | |||
Financial expenses, net | (1,412) | (1,607) | |||
(Loss) gain on change in fair value of derivative | (449 | 11,585 | |||
Gain on redemption of convertible notes | 1,421 | - | |||
Gain on convertible notes conversion | - | 1,564 | |||
Income before income tax expenses and equity in earnings of affiliated companies | 14,548 | 29,710 | |||
Less: Income taxes | 2,775 | 3,053 | |||
Equity in earnings of affiliated companies | 112 | 87 | |||
Income from continuing operations | 11,885 | 26,744 | |||
Discontinued operations (including after-tax disposition gain of $ 2,494) - net of income tax | 2,651 | 1,100 | |||
Net income | 14,536 | 27,844 | |||
Net income attributable to noncontrolling interests | 2,283 | 3,858 | |||
Net income attributable to parent company | 12,253 | 23,986 | |||
Allocation to convertible notes holders | (1,055) | (2,773) | |||
Net income attributable to parent company's common | $ | 11,198 | $ | 21,213 | |
Net income attributable to parent company's common shareholders per share | |||||
Basic | |||||
Income from continuing operations attributable to shareholders | $ | 0.31 | $ | 0.75 | |
Income per share from discontinued operations | $ | 0.09 | $ | 0.01 | |
Net income attributable to shareholders | $ | 0.40 | $ | 0.76 | |
Diluted | |||||
Income from continuing operations attributable to shareholders | $ | 0.31 | $ | 0.38 | |
Income per share from discontinued operations | $ | 0.09 | $ | 0.02 | |
Net income attributable to shareholders | $ | 0.40 | $ | 0.40 | |
Weighted average number of common shares outstanding | |||||
Basic | 28,260,302 | 27,780,965 | |||
Diluted | 28,261,854 | 31,544,808 | |||
Comprehensive income: | |||||
Net income | $ | 14,536 | $ | 27,844 | |
Foreign currency translation (loss)/gain, net of tax | (725) | 5,016 | |||
Comprehensive income | 13,811 | 32,860 | |||
Comprehensive income attributable to noncontrolling interests | 2,118 | 4,730 | |||
Comprehensive income attributable to parent company | $ | 11,693 | $ | 28,130 | |
China Automotive Systems, Inc. | ||||||
Condensed Unaudited Consolidated Statements of Cash Flows | ||||||
(In thousands of USD unless otherwise indicated) | ||||||
Six Months Ended June 30, | ||||||
2012 | 2011 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 14,536 | 27,844 | |||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||
Depreciation and amortization | 7,310 | 6,574 | ||||
Increase (decrease) in allowance for doubtful accounts | 67 | (95) | ||||
Inventory write downs | (54) | - | ||||
Deferred income taxes | (476) | (265) | ||||
Equity in earnings of affiliated companies | (112) | (87) | ||||
Gain on sales of a subsidiary | (2,848) | - | ||||
Gain on convertible notes conversion | - | (1,564) | ||||
Gain on redemption of convertible notes | (1,421) | - | ||||
Loss (gain) on change in fair value of derivative | 449 | (11,585) | ||||
Amortization of debt issue cost | 27 | - | ||||
Loss on fixed assets disposals | 67 | 36 | ||||
Changes in operating assets and liabilities: | ||||||
(Increase) decrease in: | ||||||
Pledged deposits | (1,756) | 1,510 | ||||
Accounts and notes receivable | 1,224 | (6,137) | ||||
Advance payments and others | 1,208 | (628) | ||||
Inventories | (2,489) | (7,821) | ||||
Increase (decrease) in: | ||||||
Accounts and notes payable | (4,517) | 9,192 | ||||
Customer deposits | 207 | 1,259 | ||||
Accrued payroll and related costs | (314) | (691) | ||||
Accrued expenses and other payables | (6,688) | 1,124 | ||||
Accrued pension costs | 193 | (213) | ||||
Taxes payable | 1,635 | (1,965) | ||||
Advances payable | 634 | - | ||||
Net cash provided by operating activities | 6,882 | 16,488 | ||||
Cash flows from investing activities: | ||||||
Decrease (increase) in other receivables | (936) | 1,376 | ||||
Proceeds from disposal of property, plant and equipment | 492 | 109 | ||||
Payments to acquire property, plant and equipment | (8,880) | (9,088) | ||||
Payments to acquire intangible assets | (4) | (17) | ||||
Cash decrease for the subsidiary sold | (300) | |||||
Net cash used in investing activities | (9,628) | (7,620) | ||||
Cash flows from financing activities: | ||||||
Proceeds from government and bank loan | 33,960 | - | ||||
Repayments of bank loan | - | (3,863) | ||||
Paid debt issue cost for bank loan | (230) | - | ||||
Dividends paid to the noncontrolling interests | (2,387) | - | ||||
Redemption of convertible notes | (23,571) | - | ||||
Increase (decrease) in amounts due to shareholders/directors | - | (13) | ||||
Net cash provided by (used in) financing activities | 7,772 | (3,876) | ||||
Effects of exchange rate on cash and cash equivalents | (295) | 1,008 | ||||
Net increase in cash and cash equivalents | 4,731 | 6,000 | ||||
Cash and cash equivalents at beginning of period | 72,961 | 49,425 | ||||
Cash and cash equivalents at end of the period | $ | 77,692 | $ | 55,425 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Six Months Ended June 30, | ||||||
2012 | 2011 | |||||
Cash paid for interest | $ | 9,578 | $ | 904 | ||
Cash paid for income taxes | 3,670 | 5,084 | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||
Six Months Ended June 30, | |||||
2012 | 2011 | ||||
Issuance of common shares for the conversion of convertible notes | $ | - | $ | 10,112 | |
Advance payments for acquiring property, plant and equipment | 9,677 | 9,346 | |||
Dividends payable to noncontrolling interests | 707 | 2,525 | |||
Noncontrolling interests contribution of capital with property, plant and equipment | 2,846 | - | |||
Accounts receivable from sale of a subsidiary | 8,221 | - | |||
