WUHAN, Hubei, China, April 7 /PRNewswire-Asia/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its subsidiaries, Jingzhou Henglong Automotive Parts Co., Ltd. (Henglong) and Shashi Jiulong Power Steering Co., Ltd. (Jiulong) both were awarded the status of being a High-Tech Enterprise from the government. This status qualifies the Company’s two subsidiaries to receive a preferential income tax rate of 15% through 2011. Without such awards, Jiulong would continue its regular rate of 25% and Henglong’s preferential income tax rate of 15% would expire by the end of 2009.
These two subsidiaries were found to meet the criteria to qualify as
High-Tech Enterprises based on "enterprise income tax law" and "high-tech enterprise management practice".
For the 2008 year, Henglong and Jiulong were the two largest contributors to revenues and combined these subsidiaries provided over $12 million of net income.
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 over 1.3 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
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
