| China Automotive Systems | |
| Type: | Public |
| Traded As: | NASDAQ: |
| Location: | Hubei Province, People's Republic of China |
| Key People: | Hanlin Chen (chairman) Qizhou Wu (CEO) |
| Area Served: | China and North America |
| Subsid: | HengLong USA Corporation |
| Industry: | Automotive Automotive Parts |
| Homepage: | http://www.caas-usa.com/ |
China Automotive Systems, Inc. is one of the largest power steering components and systems supplier in China. It is also a holding company that, through Genesis, manufactures power steering systems and other components for automobiles. Founded in 1993, all operations are conducted through eight Sino-foreign joint ventures in China and a wholly owned subsidiary in the United States. The company has business relations with more than 60 vehicle manufacturers, including FAW Group and Dongfeng Group; Shenyang Brilliance Jinbei, light vehicle manufacturer in China; Chery Automobile, state-owned car manufacturer in China, and Xi'an BYD Automobile and Zhejiang Geely car manufacturers.[1]
The company currently offers four separate series of power steering with an annual production capacity of over 3.5 million sets, steering columns, steering oil pumps and steering hoses.[2]
In 2010, CAAS was selected among more than 700 contestants as one of only six suppliers honored as Chery's "2010 Annual Best Parts Supplier".[3]
China Automotive Systems is listed under the International Directory of Company Histories, Volume 87.[4]
China Automotive has partnered with Tsinghua University to establish a steering system research center called Tsinghua Henglong Automobile Steering Research Institute, for the purpose of developing and testing electronic-controlled power steering systems.[5]
At the end of 2008, China Automotive Systems acquired an additional 36.5% of Henglong Automotive Parts Company on top of the already owned 44.5%. Henglong is engaged in manufacturing power steering systems and components for China's rapidly growing passenger vehicle market.[6] CAAS now holds an 80% equity interest in Henglong.[7]
Following China's entry into WTO, its auto demand experienced phenomenal growth. For the year ended December 31, 2010, net sales rose 35.3% to $345.9 million from $255.6 million for 2009. Gross profit increased by 31.8% to $80.3 million from $60.9 million in 2009.[7] Gross margin was 23% in both 2010 and 2009. Income from operations grew 58.1% to $54.0 million compared with $34.2 million in 2009. The operating margin increased to 15.6% in 2010 from 13.4% in 2009.[2]