WUHAN, China, March 23, 2020 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that is has extended it's 2019 annual report filing date to May 14, 2020 pursuant to the U.S. Securities and Exchange ("SEC") order dated March 4, 2020 (Release No. 34-88318) that allows certain companies affected by COVID-19 to file its Form 10-K up to May 14, 2020.
In late 2019, an outbreak of a respiratory illness caused by COVID-19 emerged in Wuhan City, Hubei province, PRC, where the Company's headquarters is located. On January 23, 2020, the PRC government announced the lockdown of Wuhan City, considered to be the epicenter of the COVID-19 outbreak, in an attempt to quarantine the city and limit the spread of this virulent virus. The government of Hubei Province implemented strict travel restrictions and ordered all non-essential businesses to remain shuttered starting from January 23, 2020. As a result, the Company's finance team has been unable to complete the preparation of the Company's consolidated financial statements and the Form 10-K until after March 30, 2020.
In the first quarter of 2020, the COVID-19 outbreak has caused disruptions in our manufacturing operations, which have resulted in delays in the shipment of products to certain customers. However, as of March 10th, CAAS's production centers in Wuhu Henglong (Wuhu, Anhui Province), Brilliance Henglong (Shenyang, Liaoning Province) and Chongqing Henglong (Chongqing City) have resumed their full operations. Nearly all of the Company's workforce are currently running the main production center in Jingzhou City, Hubei Province. The Company's corporate headquarters has also been temporarily relocated to Jingzhou City until further notice from the Wuhan government.
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "This outbreak has caused delays in consolidating our 2019 annual financial statements as well as travel restrictions for our outside auditors. We have initiated steps to assist our workers' return to operations and we are nearly back to full operations in all production plants, including the Wuhan operations."
"We believe the worst is behind us and all corporate activities are close to resuming normal operations," Mr. Wu concluded.
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 6 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 Group LLC 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 our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 28, 2019, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. If the outbreak of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for automobile sales, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim 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
Awaken Advisors
+1-212-521-4050
kevin@awakenlab.com
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