China Automotive Systems (CAAS) Announces $5M Share Buyback

China Automotive Systems, Inc. (Nasdaq: CAAS) today announced that its board of directors approved a share repurchase program of up to $5 million of its outstanding common shares periodically over the next 12 months. Repurchases will be made in open market transactions, at prevailing market prices not to exceed $4.00 per share through March 30, 2023, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions. Members of the management team may make additional share purchases in addition to the Company repurchase.

Mr. Hanlin Chen, Chairman of CAAS, commented, "Our current stock valuation does not reflect our profitable 19.2% sales growth in 2021, our advances in technology and growing market position in global markets. We maintained our leadership position in the Chinese automobile steering market, and increased sales to global Tier-1 vehicle OEMs in North and South America and also penetrated European-branded vehicles such as Alfa Romeo's first luxury plug-in-hybrid SUV. Our new subsidiary, Sweden's Sentient AB, a world leader in steering and vehicle control software and hardware, will further enhance our technology especially for autonomous driving systems. In addition, we were the first Chinese company to develop electric power steering ("EPS") systems entirely in-house with the capabilities to integrate and communicate with a vehicle's main data as part of our Advanced Driver Assistance Systems (ADAS). EPS sales grew by 86.0% and represented 23.2% of total sales in 2021."

Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We continue to develop new advanced products in both the hydraulic steering market and the EPS markets to add market share and capture new customers. Our Henglong subsidiary received the SGS TÜV ISO26262:2018 ASIL-D certification, the highest quality rating which is a testament to our research and development expertise and our ability to manufacture products."

Mr. Jie Li, chief financial officer of CAAS, commented, "Our stock's market capitalization is well below our combined cash, cash equivalents and short-term investments, our working capital, our book value, and the valuations of a number of peer companies focused on multiple financial factors. The share repurchase commits our strong financial position to support shareholder value."

For the 2021 year, CAAS recorded net sales of $498.0 million with operating income of $5.5 million. Total cash and cash equivalents, pledged cash and short-term investments were $161.3 million, or approximately $5.23 per share, at December 31, 2021. Total parent company stockholders' equity was $321.0 million. Net cash flow from operating activities was $28.3 million in 2021.

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