Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'CAAS | ' |
Entity Common Stock, Shares Outstanding | ' | 28,043,019 |
Entity Registrant Name | 'CHINA AUTOMOTIVE SYSTEMS INC | ' |
Entity Central Index Key | '0001157762 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Condensed_Unaudited_Consolidat
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net product sales | $115,476 | $97,889 | $229,782 | $195,052 |
Cost of products sold | 93,893 | 79,500 | 186,861 | 157,302 |
Gross profit | 21,583 | 18,389 | 42,921 | 37,750 |
Gain on other sales | 8,226 | 1,058 | 9,135 | 1,732 |
Less: Operating expenses | ' | ' | ' | ' |
Selling expenses | 4,327 | 3,800 | 7,369 | 6,964 |
General and administrative expenses | 3,776 | 3,217 | 7,322 | 7,343 |
Research and development expenses | 5,180 | 4,616 | 11,068 | 8,016 |
Total operating expenses | 13,283 | 11,633 | 25,759 | 22,323 |
Income from operations | 16,526 | 7,814 | 26,297 | 17,159 |
Other income, net | 139 | 3 | 378 | 73 |
Financial income (expenses), net | -28 | -108 | 186 | -309 |
Income before income tax expenses and equity in earnings of affiliated companies | 16,637 | 7,709 | 26,861 | 16,923 |
Less: Income taxes | 3,126 | 1,571 | 5,101 | 3,317 |
Equity in earnings of affiliated companies | 75 | 68 | 137 | 126 |
Net income | 13,586 | 6,206 | 21,897 | 13,732 |
Net income attributable to non-controlling interests | 2,580 | 1,225 | 4,116 | 2,811 |
Net income attributable to parent company’s common shareholders | 11,006 | 4,981 | 17,781 | 10,921 |
Comprehensive income: | ' | ' | ' | ' |
Net income | 13,586 | 6,206 | 21,897 | 13,732 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation gain (loss), net of tax | -25 | 3,436 | -2,422 | 4,048 |
Comprehensive income | 13,561 | 9,642 | 19,475 | 17,780 |
Comprehensive income attributable to non-controlling interests | 2,576 | 1,808 | 3,712 | 3,497 |
Comprehensive income attributable to parent company | $10,985 | $7,834 | $15,763 | $14,283 |
Net income attributable to parent company’s common shareholders per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.39 | $0.18 | $0.63 | $0.39 |
Diluted (in dollars per share) | $0.39 | $0.18 | $0.63 | $0.39 |
Weighted average number of common shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 28,043,019 | 28,043,019 | 28,043,019 | 28,043,019 |
Diluted (in shares) | 28,064,376 | 28,048,789 | 28,063,939 | 28,049,863 |
Condensed_Unaudited_Consolidat1
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income [Parenthetical] (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from Related Parties | $14,928 | $9,035 | $26,738 | $17,178 |
Related Party Costs | $7,461 | $6,006 | $14,652 | $12,671 |
Condensed_Unaudited_Consolidat2
Condensed Unaudited Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $55,757 | $53,979 | ||
Pledged cash deposits | 26,959 | 33,963 | ||
Short-term investments | 38,472 | 35,510 | ||
Accounts and notes receivable, net - unrelated parties | 285,182 | 267,639 | ||
Accounts and notes receivable, net - related parties | 24,658 | 17,194 | ||
Advance payments and others - unrelated parties | 2,441 | 3,156 | ||
Advance payments and others - related parties | 625 | 866 | ||
Inventories | 63,308 | 51,392 | ||
Assets held for sale | 0 | 925 | ||
Current deferred tax assets | 6,032 | 5,783 | ||
Total current assets | 503,434 | 470,407 | ||
Non-current assets: | ' | ' | ||
Property, plant and equipment, net | 83,698 | [1] | 80,018 | [1] |
Intangible assets, net | 1,424 | 686 | ||
Other receivables, net - unrelated parties | 441 | 252 | ||
Other receivables, net - related parties | 61 | 108 | ||
Advance payment for property, plant and equipment - unrelated parties | 3,633 | 3,488 | ||
Advance payment for property, plant and equipment - related parties | 1,522 | 2,097 | ||
Long-term investments | 4,114 | 4,023 | ||
Goodwill | 642 | 0 | ||
Non-current deferred tax assets | 4,660 | 4,528 | ||
Total assets | 603,629 | 565,607 | ||
Current liabilities: | ' | ' | ||
Bank and government loans | 42,840 | 37,381 | ||
Accounts and notes payable - unrelated parties | 207,889 | 198,419 | ||
Accounts and notes payable - related parties | 4,921 | 4,634 | ||
Customer deposits | 1,723 | 1,677 | ||
Accrued payroll and related costs | 6,201 | 7,052 | ||
Accrued expenses and other payables | 43,968 | 29,062 | ||
Accrued pension costs | 5,086 | 4,626 | ||
Taxes payable | 8,287 | 7,792 | ||
Amounts due to shareholders/directors | 376 | 312 | ||
Current deferred tax liabilities | 217 | 117 | ||
Total current liabilities | 321,508 | 291,072 | ||
Long-term liabilities: | ' | ' | ||
Advances payable | 2,867 | 2,764 | ||
Non-current deferred tax liabilities | 339 | 0 | ||
Total liabilities | 324,714 | 293,836 | ||
Commitments and Contingencies (Note 29) | ' | ' | ||
Stockholders’ equity: | ' | ' | ||
Common stock, $0.0001 par value - Authorized - 80,000,000 shares; Issued-28,260,302 and 28,260,302 shares at June 30, 2014 and December 31, 2013, respectively | 3 | 3 | ||
Additional paid-in capital | 34,518 | 39,565 | ||
Retained earnings- | ' | ' | ||
Appropriated | 10,178 | 10,048 | ||
Unappropriated | 163,674 | 146,023 | ||
Accumulated other comprehensive income | 30,044 | 32,061 | ||
Treasury stock - 217,283 and 217,283 shares at June 30, 2014 and December 31, 2013, respectively | -1,000 | -1,000 | ||
Total parent company stockholders' equity | 237,417 | 226,700 | ||
Non-controlling interests | 41,498 | 45,071 | ||
Total stockholders' equity | 278,915 | 271,771 | ||
Total liabilities and stockholders' equity | $603,629 | $565,607 | ||
[1] | As of June 30, 2014 and December 31, 2013, the Company had pledged property, plant and equipment with net book value of $51.0 million and $51.4 million, respectively, for its comprehensive credit facilities with banks in China. |
Condensed_Unaudited_Consolidat3
Condensed Unaudited Consolidated Balance Sheets [Parenthetical] (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 28,260,302 | 28,260,302 |
Treasury stock, shares outstanding | 217,283 | 217,283 |
Condensed_Unaudited_Consolidat4
Condensed Unaudited Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Cash flows from operating activities: | ' | ' | ||
Net income | $21,897 | $13,732 | ||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ' | ' | ||
Depreciation and amortization | 7,751 | 7,218 | ||
Increase (decrease) in allowance for doubtful accounts | 121 | -106 | ||
Inventory write downs | 1,922 | 277 | ||
Deferred income taxes | -413 | -143 | ||
Equity in earnings of affiliated companies | -128 | -126 | ||
Amortization of debt issue cost | 0 | 57 | ||
Gain on fixed assets disposals | -7,506 | -165 | ||
(Increase) decrease in: | ' | ' | ||
Pledged deposits | 6,695 | 4,306 | ||
Accounts and notes receivable | -25,139 | -32,734 | ||
Advance payments and others | 1,038 | -219 | ||
Inventories | -7,461 | -4,211 | ||
Increase (decrease) in: | ' | ' | ||
Accounts and notes payable | 7,948 | 9,689 | ||
Customer deposits | 57 | -106 | ||
Accrued payroll and related costs | -790 | 73 | ||
Accrued expenses and other payables | 191 | 2,679 | ||
Accrued pension costs | 502 | 44 | ||
Taxes payable | 1,007 | -66 | ||
Advances payable | 0 | -32 | ||
Net cash provided by operating activities | 7,692 | 167 | ||
Cash flows from investing activities: | ' | ' | ||
Increase in other receivables | 636 | -212 | ||
Cash received from property, plant and equipment sales | 6,777 | 1,557 | ||
Payments to acquire property, plant and equipment | -8,194 | -5,565 | ||
Payments to acquire intangible assets | -5 | -60 | ||
Purchase of short-term investments | -15,882 | -15,376 | ||
Proceeds from maturities of short-term investments | 12,597 | 0 | ||
Acquisition of Fujian Qiaolong,net of cash acquired | -2,976 | 0 | ||
Net cash used in investing activities | -7,047 | -19,656 | ||
Cash flows from financing activities: | ' | ' | ||
Proceeds from government and bank loan | 6,774 | 14,111 | ||
Repayments of bank loan | -3,251 | -8,069 | ||
Dividends paid to the non-controlling interests | -1,985 | -405 | ||
Increase (decrease) in amounts due to shareholders/directors | 69 | -40 | ||
Net cash provided by financing activities | 1,607 | 5,597 | ||
Effects of exchange rate on cash and cash equivalents | -474 | 1,513 | ||
Net increase (decrease) in cash and cash equivalents | 1,778 | -12,379 | ||
Cash and cash equivalents at beginning of period | 53,979 | 87,649 | ||
Cash and cash equivalents at end of period | 55,757 | 75,270 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' | ||
Cash paid for interest | 603 | 739 | ||
Cash paid for income taxes | 3,109 | 2,029 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' | ||
Advance payments for acquiring property, plant and equipment | 5,155 | 3,204 | ||
Non-controlling interests arising as a result of acquisition of Fujian Qiaolong | 2,793 | [1] | 0 | [1] |
Account receivable for selling property, plant and equipment | 1,890 | 0 | ||
Dividends payable to the Company’s shareholders | 5,048 | 0 | ||
Dividends payable to non-controlling interests | 8,127 | 167 | ||
SUPPLEMENTAL DISCLOSURE OF ACQUISITION | ' | ' | ||
Purchase consideration settled in cash for Fujian Qiaolong | -3,007 | 0 | ||
Less: cash acquired | 31 | 0 | ||
Investing cash outflow for acquisitions | ($2,976) | $0 | ||
[1] | In the second quarter of 2014, the Company acquired a 51.0% equity interest in Fujian Qiaolong (see Note 3). The fair value of the non-controlling interest of Fujian Qiaolong is $2.8 million. |
Organization_and_business
Organization and business | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Organization and Business [Text Block] | ' | ||||||||
1 | Organization and business | ||||||||
China Automotive Systems, Inc., “China Automotive,” was incorporated in the State of Delaware on June 29, 1999 under the name Visions-In-Glass, Inc. China Automotive, including, when the context so requires, its subsidiaries and the joint ventures described below, is referred to herein as the “Company.” The Company is primarily engaged in the manufacture and sale of automotive systems and components, as described below. | |||||||||
Great Genesis Holdings Limited, a company incorporated in Hong Kong on January 3, 2003 under the Companies Ordinance in Hong Kong as a limited liability company, “Genesis,” is a wholly-owned subsidiary of the Company. Great Genesis is mainly engaged in the manufacture and sale of automotive systems and components through its controlled subsidiaries and the joint ventures, as described below. | |||||||||
Henglong USA Corporation, “HLUSA,” incorporated on January 8, 2007 in Troy, Michigan, is a wholly-owned subsidiary of the Company, and is mainly engaged in marketing of automotive parts in North America, and provides after-sales service and research and development support accordingly. | |||||||||
The Company owns the following aggregate net interests in the entities established in the People's Republic of China, the “PRC,” and Brazil as of June 30, 2014 and December 31, 2013. | |||||||||
Percentage Interest | |||||||||
Name of Entity | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 | 81 | % | 81 | % | |||||
Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 | 80 | % | 80 | % | |||||
Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 | 70 | % | 70 | % | |||||
Universal Sensor Application Inc., “USAI” 4 | 83.34 | % | 83.34 | % | |||||
Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 5 | 85 | % | 85 | % | |||||
Wuhu HengLong Automotive Steering System Co., Ltd., “Wuhu” 6 | 77.33 | % | 77.33 | % | |||||
Hubei Henglong Automotive System Group Co., Ltd, “Hubei Henglong” 7 | 100 | % | 100 | % | |||||
Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 | 80 | % | 80 | % | |||||
Beijing Henglong Automotive System Co., Ltd., “Beijing Henglong” 9 | 50 | % | 50 | % | |||||
Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 | 70 | % | 70 | % | |||||
CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 11 | 80 | % | 80 | % | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 | 51 | % | - | ||||||
Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”13 | 85 | % | - | ||||||
1 | Jiulong was established in 1993 and mainly engages in the production of integral power steering gear for heavy-duty vehicles. | ||||||||
2 | Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light-duty vehicles. | ||||||||
3 | Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. | ||||||||
4 | USAI was established in 2005 and mainly engages in the production and sales of sensor modules. | ||||||||
5 | Jielong was established in 2006 and mainly engages in the production and sales of electric power steering, “EPS.” | ||||||||
6 | Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. | ||||||||
7 | On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. | ||||||||
8 | In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. The registered capital of the Testing Center was RMB30.0 million, equivalent to approximately $4.4 million. | ||||||||
9 | On January 24, 2010, Genesis entered into a joint venture contract with Beijing Hainachuan Auto Parts Co., Ltd. to establish Beijing Henglong as a joint venture company to design, develop and manufacture both hydraulic and electric power steering systems and parts. On September 16, 2010, with Beijing Hainachuan’s agreement, Genesis transferred its interest in the joint venture to Hubei Henglong, and left the other terms of the joint venture contract unchanged. According to the joint venture agreement, the Company does not have voting control of Beijing Henglong. Therefore, the Company’s consolidated financial statements do not include Beijing Henglong, and such investment is accounted for through the equity method. | ||||||||
10 | On February 21, 2012, Hubei Henglong and SAIC-IVECO Hongyan Company, “SAIC-IVECO,” established a Sino-foreign joint venture company, Chongqing Henglong, to design, develop and manufacture both hydraulic and electric power steering systems and parts. | ||||||||
11 | On August 21, 2012, Brazil Henglong was established as a Sino-foreign joint venture company by Hubei Henglong and two Brazilian citizens, Ozias Gaia Da Silva and Ademir Dal’ Evedove. Brazil Henglong engages mainly in the import and sales of automotive parts in Brazil. | ||||||||
12 | In the second quarter of 2014, the Company acquired a 51.0% ownership interest in Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong”, a special purpose vehicle manufacturer and dealer with automobile repacking qualifications, based in Fujian, China. Fujian Qiaolong mainly manufactures and distributes drainage and rescue vehicles with mass flow, drainage vehicles with vertical downhole operation, crawler-type mobile pump stations, high-altitude water supply and discharge drainage vehicles, long-range control crawler-type mobile pump stations and other vehicles. The consideration was approximately $3.0 million. | ||||||||
13 | In May 2014, Jielong formed a wholly-owned subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in D&R, manufacture and sales of automobile electronic systems and parts. The new wholly-owned subsidiary is located in Wuhan, China.The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. At the date of release of this quarterly report, Jielong has not completed the capital injection. | ||||||||
Basis_of_presentation_and_sign
Basis of presentation and significant accounting policies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||
2 | Basis of presentation and significant accounting policies | ||
(a) | Basis of Presentation | ||
Basis of Presentation – The accompanying condensed unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. The details of subsidiaries are disclosed in Note 1. Significant inter-company balances and transactions have been eliminated upon consolidation. The condensed unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions in Article 10 of Regulation S-X. Accordingly they do not include all of the information and footnotes required by such accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||
The accompanying interim condensed consolidated financial statements are unaudited, but in the opinion of the Company’s management, contain all necessary adjustments, which include normal recurring adjustments, for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. | |||
The condensed consolidated balance sheet as of December 31, 2013 is derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. | |||
Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company’s management believes that the disclosures contained in these financial statements are adequate to make the information presented herein not misleading. For further information, please refer to the financial statements and the notes thereto included in the Company’s 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. | |||
The results of operations for the three months and six months ended June 30, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2014. | |||
Estimation - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |||
(b) | Recent Accounting Pronouncements | ||
In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The new guidance changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. ASU 2014-08 is effective for the Company in the first quarter of fiscal 2015. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company is currently evaluating the impact of adopting this update on its financial statements. | |||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 will eliminate transaction-specific and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 and the effect of the standard on our ongoing financial reporting. | |||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), “Compensation—Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact of adopting this Update on its financial statements. | |||
(c) | Significant Accounting Policies | ||
Business Combinations – A business combination is recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). | |||
Goodwill - Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisition of interests in its subsidiary. We test goodwill for impairment at the reporting unit level on an annual basis as of December 31, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company adopted the Financial Accounting Standards Board (“FASB”) revised guidance on “Testing of Goodwill for Impairment.” Under this guidance, the Company has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. For a reporting unit applying a qualitative assessment first, the Company starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test uses a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. The Company estimates total fair value of the reporting unit using discounted cash flow analysis, and makes assumptions regarding future revenue, gross margins, working capital levels, investments in new products, capital spending, tax, cash flows, and the terminal value of the reporting unit. | |||
There have been no other updates to the significant accounting policies set forth in the notes to the consolidated financial statements for the year ended December 31, 2013. | |||
Acquisition
Acquisition | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
3 | Acquisition | ||||
In the second quarter of 2014, the Company acquired a 51.0% ownership interest in Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong”, a special purpose vehicle manufacturer and dealer with automobile repacking qualification, based in Fujian, China. Fujian Qiaolong mainly manufactures and distributes drainage and rescue vehicle with mass flow, drainage vehicles with vertical downhole operation, crawler-type mobile pump stations, high-altitude water supply and discharge drainage vehicles, long-range control crawler-type mobile pump stations and other vehicles. The acquisition expands the Company’s scope of business and improves the Company’s product mix. The results of Fujian Qiaolong have been included since the date of acquisition and are reflected in the Company’s Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income. The total purchase price was approximately $3.0 million. The goodwill resulting from the acquisition is not deductible for tax purposes. | |||||
The following table summarizes the allocation of consideration and the respective fair values of the assets acquired and liabilities assumed in the Fujian Qiaolong acquisition as of the date of purchase (figures are in thousands of USD): | |||||
Total purchase price: | |||||
Cash consideration paid to acquire ownership interest | $ | 3,007 | |||
Assets | |||||
Cash and cash equivalents | $ | 31 | |||
Current assets, net of cash acquired | 8,428 | ||||
Deferred tax asset | 69 | ||||
Property and equipment | 3,694 | ||||
Intangible assets | 864 | ||||
Goodwill | 642 | ||||
Total assets consolidated into the Group | $ | 13,728 | |||
Liabilities | |||||
Current liabilities, excluding current deferred tax liabilities | -7,352 | ||||
Deferred tax liabilities | -448 | ||||
Other liabilities | -128 | ||||
Total liabilities consolidated into the Group | -7,928 | ||||
Non-controlling interests at fair value | -2,793 | ||||
Total equity consolidated into the Group | $ | 3,007 | |||
Pro forma results of operations for the acquisition of Fujian Qiaolong have not been presented because it is not material to the consolidated results of operations. | |||||
For the acquisition of Fujian Qiaolong, intangible assets which have been assessed and recognized, such as patents and developed technology, have a weighted-average useful life of 4.7 years. | |||||
Pledged_cash_deposits
Pledged cash deposits | 6 Months Ended | |
Jun. 30, 2014 | ||
Cash and Cash Equivalents [Abstract] | ' | |
Cash and Cash Equivalents Disclosure [Text Block] | ' | |
4 | Pledged cash deposits | |
Pledged cash deposits are used as guarantees for the Company’s notes payable and their use is restricted. The Company regularly pays some of its suppliers by bank notes. The Company has to make a cash deposit, equivalent to 30 % - 100 % of the face value of the relevant bank note in order to obtain the bank note. | ||
Shortterm_investments
Short-term investments | 6 Months Ended | |
Jun. 30, 2014 | ||
Short Term Investments Disclosure [Abstract] | ' | |
Short Term Investments Disclosure [Text Block] | ' | |
5 | Short-term investments | |
Short-term investments comprise time deposits with maturity terms of more than three months but due within one year. The carrying values of time deposits approximate fair value because of their short maturities. The interest earned is recognized in the condensed unaudited statements of operations and comprehensive income over the contractual term of the deposit. | ||
Accounts_and_notes_receivable_
Accounts and notes receivable, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts and Notes Receivable Disclosure [Abstract] | ' | |||||||
Accounts and Notes Receivable Disclosure [Text Block] | ' | |||||||
6 | Accounts and notes receivable, net | |||||||
The Company’s accounts and notes receivable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts receivable - unrelated parties (1) | $ | 157,495 | $ | 140,920 | ||||
Notes receivable - unrelated parties (2) (3) | 129,111 | 128,068 | ||||||
Total accounts and notes receivable- unrelated parties | 286,606 | 268,988 | ||||||
Less: allowance for doubtful accounts - unrelated parties | -1,424 | -1,349 | ||||||
Accounts and notes receivable, net - unrelated parties | 285,182 | 267,639 | ||||||
Accounts and notes receivable, net - related parties | 24,658 | 17,194 | ||||||
Accounts and notes receivable, net | $ | 309,840 | $ | 284,833 | ||||
-1 | As of June 30, 2014 and December 31, 2013, the Company has pledged $11.9 million and $19.1 million, respectively, of accounts receivable as security for its comprehensive credit facility with banks in China. | |||||||
-2 | Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. | |||||||
-3 | As of June 30, 2014, Henglong collateralized its notes receivable in an amount of RMB 228.1 million (equivalent to approximately $37.1 million) as security for the credit facility with banks in China and the Chinese government, including RMB 197.1 million (equivalent to approximately $32.0 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,” for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau,” and RMB 31.0 million (equivalent to approximately $5.0 million) in favor of the Chinese government as security for the low-interest government loan (see Note 14). As of December 31, 2013, Henglong collateralized its notes receivable in an amount of RMB 196.3 million (equivalent to approximately $32.2 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,” for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau.” | |||||||
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
7 | Inventories | |||||||
The Company’s inventories as of June 30, 2014 and December 31, 2013 consisted of the following (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 14,465 | $ | 12,185 | ||||
Work in process | 13,256 | 8,079 | ||||||
Finished goods | 35,587 | 31,128 | ||||||
Total | $ | 63,308 | $ | 51,392 | ||||
Provision for inventories valuation amounted to $1.9 million and $0.3 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||
Other_receivables_net
Other receivables, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Receivables Disclosure [Abstract] | ' | |||||||
Other Receivables Disclosure [Text Block] | ' | |||||||
8 | Other receivables, net | |||||||
The Company’s other receivables as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Other receivables - unrelated parties (1) | $ | 507 | $ | 314 | ||||
Less: allowance for doubtful accounts- unrelated parties | -66 | -62 | ||||||
Other receivables, net - unrelated parties | $ | 441 | $ | 252 | ||||
June 30, 2014 | December 31, 2013 | |||||||
Other receivables - related parties (1) | $ | 714 | $ | 729 | ||||
Less: allowance for doubtful accounts- related parties | -653 | -621 | ||||||
Other receivables, net - related parties | $ | 61 | $ | 108 | ||||
-1 | Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans, with no stated interest rate or due date. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. | |||||||
Assets_held_for_sale
Assets held for sale | 6 Months Ended | |
Jun. 30, 2014 | ||
Asset Held For Sale Current [Abstract] | ' | |
Disclosure of assets held for sale [Text Block] | ' | |
9 | Assets held for sale | |
According to the agreement signed between the Company and Jingzhou Land Reserve Center (“JLRC”), a local PRC government bureau, the Company has agreed to transfer the land use rights over 136,392 square meters of a piece of land in total located at Jingzhou city, Hubei Province, the PRC, to JLRC for total consideration of approximately $13.0 million. The collection of the consideration is subject to JLRC’s completion of its sale of such land use rights to be tendered in the open market. | ||
In the third quarter of 2013, the Company recognized and received consideration of $4.6 million upon the completion of the sale of the first portion of the land use rights by JLRC. As of December 31, 2013, the balance of assets held for sale represented the remaining land use rights to be sold within the 12 months following such date. | ||
In April 2014, JLRC successfully sold the remaining land use rights through an open tender. The consideration for the remaining land use rights was approximately $8.4 million, of which $6.5 million was received by the Company as of June 30, 2014 and the remaining $1.9 million has been recorded in accounts and notes receivable on the accompanying condensed unaudited consolidated balance sheets. Accordingly, the Company recorded $7.5 million for the sale of the rest of the land use rights as gain on other sales on the accompanying condensed unaudited consolidated statements of operations and comprehensive income. | ||
Long_term_investments
Long term investments | 6 Months Ended | |
Jun. 30, 2014 | ||
Long-term Investments [Abstract] | ' | |
Long Term Investments [Text Block] | ' | |
10 | Long term investments | |
As of June 30, 2014 and December 31, 2013, the Company’s balance of long-term investment was $4.1 million and $4.0 million, respectively. For the long-term investments in which the Company has no voting control, such investments were accounted for using the equity method or cost method. | ||
On January 24, 2010, the Company invested $3.1 million to establish a fifty-fifty joint venture company, Beijing Henglong, with an unrelated party. The Company accounts for its operating results with the equity method of accounting. | ||
The Company’s share of net assets and net income is reported as “long-term investment” on the condensed unaudited consolidated balance sheets and “equity in earnings of affiliated companies” on the condensed unaudited consolidated statements of operations and comprehensive income. The Company’s condensed unaudited consolidated financial statements reflect the equity earnings of non-consolidated affiliates of $0.13 million and $0.13 million for the six months ended June 30, 2014 and 2013, respectively. | ||
Property_plant_and_equipment_n
Property, plant and equipment, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
11 | Property, plant and equipment, net | |||||||
The Company’s property, plant and equipment as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Land use rights and buildings | $ | 46,895 | $ | 43,849 | ||||
Machinery and equipment | 114,549 | 110,322 | ||||||
Electronic equipment | 7,517 | 7,414 | ||||||
Motor vehicles | 4,058 | 3,195 | ||||||
Construction in progress | 6,976 | 5,133 | ||||||
Total amount of property, plant and equipment(1) | 179,995 | 169,913 | ||||||
Less: Accumulated depreciation(2) | -96,297 | -89,895 | ||||||
Total amount of property, plant and equipment, net(3) | $ | 83,698 | $ | 80,018 | ||||
-1 | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $3.7 million of property, plant and equipment, consisting of $3.4 million of land use rights and buildings, $0.2 million of machinery and equipment, and $0.1 million of motor vehicles, which are depreciated over a weighted average life of 43.0 years, 3.5 years, and 3.1 years, respectively. | |||||||
-2 | Depreciation charges were $4.0 million and $3.7 million for the three months ended June 30, 2014 and 2013, respectively, and $7.63 million and $7.13 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
-3 | As of June 30, 2014 and December 31, 2013, the Company had pledged property, plant and equipment with net book value of $ 51.0 million and $51.4 million, respectively, for its comprehensive credit facilities with banks in China. | |||||||
Intangible_assets
Intangible assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
12 | Intangible assets | |||||||
The Company’s intangible assets as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Costs: | ||||||||
Patent technology | $ | 2,911 | $ | 2,067 | ||||
Management software license | 699 | 699 | ||||||
Total intangible assets(1) | 3,610 | 2,766 | ||||||
Less: Amortization(2) | -2,186 | -2,080 | ||||||
Total intangible assets, net | $ | 1,424 | $ | 686 | ||||
-1 | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $0.9 million of intangible assets, consisting of $0.9 million of patent technology and $nil of management software licenses, which are amortized over a weighted average life of 4.7 years and 1.1 years, respectively. | |||||||
-2 | Amortization expenses were $0.08 million and $0.04 million for the three months ended June 30, 2014 and 2013, respectively, and $0.12 million and $0.09 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
Deferred_income_tax_assets
Deferred income tax assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Deferred Income Tax Disclosure [Text Block] | ' | |||||||
13 | Deferred income tax assets | |||||||
In accordance with the provisions of ASC Topic 740, “Income Taxes,” the Company assesses, on a quarterly basis, its ability to realize its deferred tax assets. Based on the more likely than not standard in the guidance and the weight of available evidence, the Company believes a valuation allowance against its deferred tax assets is necessary. In determining the need for a valuation allowance, the Company considered the following significant factors: an assessment of recent years’ profitability and losses by tax authorities; the Company’s expectation of profits based on margins and volumes expected to be realized, which are based on current pricing and volume trends; the long period in all significant operating jurisdictions before the expiry of net operating losses, noting further that a portion of the deferred tax asset is composed of deductible temporary differences that are subject to an expiry period until realized under tax law. The Company will continue to evaluate the provision of valuation allowance in future periods. | ||||||||
The components of estimated deferred income tax assets as of June 30, 2014 and December 31, 2013 are as follows (figures are in thousands of USD): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Losses carry forward (U.S.) (1) | $ | 6,946 | $ | 6,825 | ||||
Losses carry forward (PRC) (1) | 2,150 | 1,838 | ||||||
Product warranties and other reserves | 4,408 | 4,207 | ||||||
Property, plant and equipment | 4,480 | 4,346 | ||||||
Share-based compensation | 297 | 296 | ||||||
Bonus accrual | 418 | 557 | ||||||
Other accruals | 721 | 850 | ||||||
Others | 1,070 | 1,103 | ||||||
Total deferred tax assets | 20,490 | 20,022 | ||||||
Less: taxable temporary difference related to revenue recognition | -586 | -793 | ||||||
Total deferred tax assets, net | 19,904 | 19,229 | ||||||
Less: Valuation allowance | -9,212 | -8,918 | ||||||
Total deferred tax assets, net of valuation allowance (2) | $ | 10,692 | $ | 10,311 | ||||
-1 | The net operating losses carry forward for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These losses will expire, if not utilized, in 20 years. Net operating losses carry forward for non-U.S. entities can be carried forward for 5 years to offset taxable income. However, as of June 30, 2014 and December 31, 2013, the valuation allowance was $9.2 million and $8.9 million, respectively, including $7.2 million and $7.3 million, respectively, allowance for the Company’s deferred tax assets in the United States and $2.0 million and $1.7 million, respectively, allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the non-U.S. deferred tax assets, pursuant to certain tax laws and regulations in China, the management believes such amount will not be used to offset future taxable income. | |||||||
-2 | Approximately $4.7 million and $4.5 million of net deferred income tax asset as of June 30, 2014 and December 31, 2013, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $6.0 million and $5.8 million of net deferred income tax assets as of June 30, 2014 and December 31, 2013, respectively, are included in current deferred tax assets. | |||||||
Bank_and_government_loans_net
Bank and government loans, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Debt [Text Block] | ' | |||||||
14 | Bank and government loans, net | |||||||
Loans consist of the following at June 30, 2014 and December 31, 2013 (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, | |||||||
2013 | ||||||||
Short-term bank loan (1) (2) | $ | 7,964 | $ | 7,381 | ||||
Short-term bank loan (3) | 30,000 | 30,000 | ||||||
Short-term government loan (4) | 4,876 | - | ||||||
Subtotal | 42,840 | 37,381 | ||||||
Debt issue cost | - | -57 | ||||||
Amortization | - | 57 | ||||||
Bank and government loans, net | $ | 42,840 | $ | 37,381 | ||||
-1 | These loans are secured by property, plant and equipment of the Company and are repayable within one year (see Note 11). As of June 30, 2014 and December 31, 2013, the weighted average interest rate was 6.86% and 6.22% per annum, respectively. Interest is paid on the twentieth day of each month and the principal repayment is at maturity. | |||||||
-2 | On July 18, 2013, Jiulong entered into a one-year loan agreement with China Construction Bank Jingzhou branch in the amount of $1.6 million. The agreement contains certain financial and non-financial covenants, including but not limited to restrictions on the utilization of the funds and the maintenance of an asset-liability ratio not exceeding 60%. As of June 30, 2014, the asset-liability ratio of Jiulong was 53.4% and the Company was in compliance with these covenants at June 30, 2014. | |||||||
-3 | On May 18, 2012, the Company entered into a credit facility agreement, the “Credit Agreement,” with ICBC Macau to obtain a non-revolving credit facility in the amount of $30.0 million, the “Credit Facility”. The Credit Facility would have expired on November 3, 2012 unless the Company drew down the line of credit in full prior to such expiration date, and the maturity date for the loan drawdown was the earlier of (i) 18 months from the drawdown or (ii) 1 month before the expiry of the standby letter of credit obtained by Henglong from ICBC Jingzhou as security for the Credit Facility, the “Henglong Standby Letter of Credit”. The interest rate of the Credit Facility is calculated based on a three-month LIBOR plus 2.25% per annum, subject to the availability of funds and fluctuation at ICBC Macau’s discretion. The interest is calculated daily based on a 360-day year and it is fixed one day before the first day of each interest period. The interest period is defined as three months from the date of drawdown. As security for the Credit Facility, the Company was required to provide ICBC Macau with the Henglong Standby Letter of Credit for a total amount not less than $31.6 million if the Credit Facility is fully drawn. | |||||||
On May 22, 2012, the Company drew down the full amount of $30.0 million under the Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $31.6 million in favor of ICBC Macau. The Henglong Standby Letter of Credit issued by ICBC Jingzhou is collateralized by Henglong’s notes receivable of RMB 197.1 million (equivalent to approximately $32.0 million). The Company also paid an arrangement fee of $0.1 million to ICBC Macau and $0.1 million to ICBC Jingzhou. The original maturity date of the Credit Facility was May 22, 2013. | ||||||||
On May 7, 2013, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2014. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.0% per annum, Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. | ||||||||
On May 13, 2014, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 12, 2015. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.55% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of June 30, 2014, the interest rate of the Credit Facility was 2.78% per annum. | ||||||||
-4 | On March 28, 2014, the Company received a Chinese government loan of RMB 30.0 million (equivalent to approximately $4.9 million), with an interest rate of 3% per annum, that will mature on March 15, 2015. Henglong has pledged RMB 31.0 million (equivalent to approximately $5.0 million) of notes receivable as security for such government loan (see Note 6). | |||||||
Accounts_and_notes_payable
Accounts and notes payable | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts and Notes Payable Disclosure [Abstract] | ' | |||||||
Accounts and Notes Payable Disclosure [Text Block] | ' | |||||||
15 | Accounts and notes payable | |||||||
The Company’s accounts and notes payable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts payable - unrelated parties | $ | 137,471 | $ | 120,202 | ||||
Notes payable - unrelated parties (1) | 70,418 | 78,217 | ||||||
Total accounts and notes payable - unrelated parties | 207,889 | 198,419 | ||||||
Total accounts and notes payable - related parties | 4,921 | 4,634 | ||||||
Total accounts and notes payable | $ | 212,810 | $ | 203,053 | ||||
-1 | Notes payable represent accounts payable in the form of bills of exchange whose acceptances are guaranteed and settlements are handled by banks. The Company has pledged cash deposits, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. | |||||||
Accrued_expenses_and_other_pay
Accrued expenses and other payables | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accrued Expenses and Other Payables Disclosure [Abstract] | ' | ||||||||||
Accrued Expenses and Other Payables Disclosure [Text Block] | ' | ||||||||||
16 | Accrued expenses and other payables | ||||||||||
The Company’s accrued expenses and other payables as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
June 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Accrued expenses | $ | 4,492 | $ | 4,980 | |||||||
Accrued interest | 112 | 85 | |||||||||
Other payables | 2,204 | 1,858 | |||||||||
Warranty reserves (1) | 23,986 | 22,104 | |||||||||
Dividends payable to common shareholders (2) | 5,047 | - | |||||||||
Dividends payable to non-controlling interests (3) | 8,127 | 35 | |||||||||
Total | $ | 43,968 | $ | 29,062 | |||||||
(1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. | |||||||||||
For the six months ended June 30, 2014 and 2013, and for the year ended December 31, 2013, the warranties activities were as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 22,104 | $ | 18,081 | $ | 18,081 | |||||
Additions during the period | 5,055 | 5,637 | 12,707 | ||||||||
Settlement within period, by cash or actual material | -2,972 | -4,013 | -9,244 | ||||||||
Foreign currency translation gain (loss) | -201 | 313 | 560 | ||||||||
Balance at end of the period | $ | 23,986 | $ | 20,018 | $ | 22,104 | |||||
(2) On May 27, 2014, the Company announced the payment of a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. | |||||||||||
(3) In accordance with the resolution of the board of directors of Henglong, in June 2014, Henglong declared a dividend amounting to $40.6 million to its shareholders, of which $8.1 million was payable to the holder of the non-controlling interests. | |||||||||||
Taxes_payable
Taxes payable | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Taxes Payables [Abstract] | ' | |||||||
Taxes Payable [Text Block] | ' | |||||||
17 | Taxes payable | |||||||
The Company’s taxes payable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, | |||||||
2013 | ||||||||
Value-added tax payable | $ | 4,007 | $ | 5,494 | ||||
Income tax payable | 3,904 | 1,841 | ||||||
Other tax payable | 376 | 457 | ||||||
Total | $ | 8,287 | $ | 7,792 | ||||
Advances_payable
Advances payable | 6 Months Ended | |
Jun. 30, 2014 | ||
Payables and Accruals [Abstract] | ' | |
Advances Payable [Text Block] | ' | |
18 | Advances payable | |
As of June 30, 2014 and December 31, 2013, advances payable by the Company were $2.9 million and $2.8 million, respectively. | ||
The amounts are special subsidies made by the Chinese government to the Company to offset the cost and charges related to the improvement of production capacities and improvement of the quality of products. For the government subsidies with no further conditions to be met, the amounts are recorded as other income when received; for the amounts with certain operating conditions, the government subsidies are recorded as advances payable when received and will be recorded as a deduction of related expenses and cost of acquired assets when the conditions are met. | ||
The balances are unsecured, interest-free and will be repayable to the Chinese government if the usage of such advance does not continue to qualify for the subsidy. | ||
Additional_paidin_capital
Additional paid-in capital | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Additional Paid in Capital [Abstract] | ' | ||||||||||
Additional paid-in capital [Text Block] | ' | ||||||||||
19 | Additional paid-in capital | ||||||||||
The Company’s positions in respect of the amounts of additional paid-in capital for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 39,565 | $ | 39,371 | $ | 39,371 | |||||
Share-based compensation | - | - | 194 | ||||||||
Return of common shareholders’ investment cost (1) | -5,047 | - | - | ||||||||
Balance at end of the period | $ | 34,518 | $ | 39,371 | $ | 39,565 | |||||
-1 | On May 27, 2014, the Company announced a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. As China Automotive Systems, the parent company, had an accumulated deficit position as of the date of the dividend declaration, the dividends distributed to the Company’s common shareholders described above are treated as a return of common shareholders’ investment cost. | ||||||||||
Retained_earnings
Retained earnings | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Retained Earnings Disclosure [Abstract] | ' | ||||||||||
Retained Earnings Disclosure [Text Block] | ' | ||||||||||
20 | Retained earnings | ||||||||||
Appropriated | |||||||||||
Pursuant to the relevant PRC laws and regulations, the profits distribution of the Company’s PRC subsidiaries, which are based on their PRC statutory financial statements, rather than the financial statement that was prepared in accordance with U.S. GAAP, are available for distribution in the form of cash dividends after these subsidiaries have paid all relevant PRC tax liabilities, provided for losses in previous years, and made appropriations to statutory surplus at 10 %. | |||||||||||
When the statutory surplus reserve reaches 50% of the registered capital of a company, additional reserve is no longer required. However, the reserve cannot be distributed to venture partners. Based on the business licenses of the PRC subsidiaries, the registered capital of Henglong, Jiulong, Shenyang, Jielong, Wuhu, Hubei Henglong and Chongqing are $10.0 million, $4.2 million (equivalent to RMB 35.0 million), $8.1 million (equivalent to RMB 67.5 million), $6.0 million, $3.8 million (equivalent to RMB 30.0 million), $39 million and $9.5 million (equivalent to RMB 60.0 million), respectively, and the registered capital of USAI is $2.6 million. | |||||||||||
The Company’s activities in respect of the amounts of the appropriated retained earnings for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 10,048 | $ | 9,953 | $ | 9,953 | |||||
Appropriation of retained earnings | 130 | 95 | 95 | ||||||||
Balance at end of the period | $ | 10,178 | $ | 10,048 | $ | 10,048 | |||||
Unappropriated | |||||||||||
The Company’s activities in respect of the amounts of the unappropriated retained earnings for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 146,023 | $ | 119,329 | $ | 119,329 | |||||
Net income attributable to parent company | 17,781 | 10,921 | 26,789 | ||||||||
Appropriation of retained earnings | -130 | -95 | -95 | ||||||||
Balance at end of the period | $ | 163,674 | $ | 130,155 | $ | 146,023 | |||||
Accumulated_other_comprehensiv
Accumulated other comprehensive income | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Other Comprehensive Income, Noncontrolling Interest [Text Block] | ' | ||||||||||
21 | Accumulated other comprehensive income | ||||||||||
The Company’s activities in respect of the amounts of the accumulated other comprehensive income for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 32,061 | $ | 25,898 | $ | 25,898 | |||||
Foreign currency translation adjustment attributable to parent company | -2,017 | 3,361 | 6,163 | ||||||||
Balance at end of the period | $ | 30,044 | $ | 29,259 | $ | 32,061 | |||||
Noncontrolling_interests
Non-controlling interests | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||
Noncontrolling Interest Disclosure [Text Block] | ' | ||||||||||
22 | Non-controlling interests | ||||||||||
The Company’s activities in respect of the amounts of the non-controlling interests’ equity for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 45,071 | $ | 38,846 | $ | 38,846 | |||||
Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong (1) | 2,793 | - | - | ||||||||
Income attributable to non-controlling interests | 4,116 | 2,811 | 6,276 | ||||||||
Dividends declared to the non-controlling interest holders of joint-venture companies | -10,077 | -405 | -1,299 | ||||||||
Foreign currency translation adjustment attributable to non-controlling interests | -405 | 687 | 1,248 | ||||||||
Balance at end of the period | $ | 41,498 | $ | 41,939 | $ | 45,071 | |||||
-1 | In the second quarter of 2014, the Company acquired a 51.0% equity interest in Fujian Qiaolong (see Note 3). The fair value of the non-controlling interest of Fujian Qiaolong is $2.8 million. | ||||||||||
Gain_on_other_sales
Gain on other sales | 6 Months Ended | |
Jun. 30, 2014 | ||
Gain on other sales [Abstract] | ' | |
Gain on other sales [Text Block] | ' | |
23 | Gain on other sales | |
Gain on other sales mainly consisted of net amount retained from sales of materials, property, plant and equipment, land use rights, and scraps. For the six months ended June 30, 2014, gain on other sales amounted to $9.1 million as compared to $1.7 million for the six months ended June 30, 2013, representing an increase of $7.4 million. In the second quarter of 2014, the Company sold the remaining land use rights (see Note 9) and recognized a gain of $7.5 million, which represented the difference between the selling price of $8.4 million and the net book value of the land use rights of $0.9 million. There was no such gain in the same period in 2013. | ||
Financial_income_expenses_net
Financial (income) expenses, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Financial Income Expenses Disclosure [Abstract] | ' | |||||||
Financial Income Expenses Disclosure [Text Block] | ' | |||||||
24 | Financial (income) expenses, net | |||||||
During the three months and six months ended June 30, 2014 and 2013, the Company recorded financial expenses, net which are summarized as follows (figures are in thousands of USD): | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Interest expense | $ | 546 | $ | 582 | ||||
Interest income | -496 | -698 | ||||||
Foreign exchange gain, net | -196 | -21 | ||||||
Loss (gain) of cash discount, net | -3 | 5 | ||||||
Bank fees | 177 | 240 | ||||||
Total financial expense, net | $ | 28 | $ | 108 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Interest expense | $ | 824 | $ | 1,005 | ||||
Interest income | -1,253 | -1,155 | ||||||
Foreign exchange gain, net | -1 | 47 | ||||||
Loss (gain) of cash discount, net | -62 | 12 | ||||||
Bank fees | 306 | 400 | ||||||
Total financial (income) expense, net | $ | -186 | $ | 309 | ||||
Income_tax_rate
Income tax rate | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Tax Disclosure [Text Block] | ' | |
25 | Income tax rate | |
The Company’s subsidiaries registered in the PRC are subject to state and local income taxes within the PRC at the applicable tax rate of 25% on the taxable income as reported in their PRC statutory financial statements in accordance with the relevant income tax laws applicable to foreign invested enterprise, unless preferential tax treatment is granted by local tax authorities. If the enterprise meets certain preferential terms according to the China income tax law, such as assessment as a “High & New Technology Enterprise” by the government, then, the enterprise will be subject to enterprise income tax at a rate of 15%. | ||
Pursuant to the New China Income Tax Law and the Implementing Rules (“New CIT”) which became effective as of January 1, 2008, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise to its foreign investors will be subject to a 10% withholding tax if the foreign investors are considered as non-resident enterprises without any establishment or place within China or if the dividends payable have no connection with the establishment or place of the foreign investors within China, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. | ||
Genesis, the Company’s wholly-owned subsidiary and the direct holder of the equity interests in the Company’s subsidiaries in China, is incorporated in Hong Kong. According to the Mainland China and Hong Kong Taxation Arrangement, dividends paid by a foreign-invested enterprise in China to its direct holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5%, if the foreign investor owns directly at least 25% of the shares of the foreign-invested enterprise. Under the New CIT, if Genesis is regarded as a non-resident enterprise and therefore is required to pay an additional 5% withholding tax for any dividends payable to it from the PRC subsidiaries. | ||
According to PRC tax regulation, the Company should withhold income taxes for the profit distributed from the PRC subsidiaries to Genesis, the subsidiaries’ holding company incorporated in Hong Kong. For the profit that the PRC subsidiaries intended to distribute to Genesis, the Company accrues the withholding income tax as deferred tax liabilities. During the six months ended June 30, 2014 and the year ended December 31, 2013, the Company recognized deferred tax liabilities of $0.07 million and $0.07 million, respectively, for profit to be distributed to Genesis of $1.5 million and $1.4 million, respectively. The Company intended to re-invest the remaining undistributed profits generated from the PRC subsidiaries in those subsidiaries permanently. As of June 30, 2014 and December 31, 2013, the Company still has undistributed earnings of approximately $176.5 million and $158.5 million, respectively, from investment in the PRC subsidiaries that are considered permanently reinvested. Had the undistributed earnings been distributed to Genesis and not permanently reinvested, the tax provision as of June 30, 2014 and December 31, 2013 of approximately $8.8 million and $7.9 million, respectively, would have been recorded. Such undistributed profits will be reinvested in Genesis and not further distributed to the parent company incorporated in the United States going forward. | ||
During 2008, Jiulong was awarded the title of “High & New Technology Enterprise” and, based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15% for 2008, 2009 and 2010. In 2011, the Company passed the re-assessment of the government based on PRC income tax laws. Accordingly, the Company continued to be taxed at the 15% tax rate in 2011, 2012 and 2013. The Company estimated the applied tax rate in 2014 to be 15% as it will probably pass the re-assessment in 2014 and continue to qualify as “High & New Technology Enterprise”. | ||
During 2008, Henglong was awarded the title of “High & New Technology Enterprise” and, based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15% for 2008, 2009 and 2010. In 2011, the Company passed the re-assessment of the government, based on PRC income tax laws. Accordingly, it continued to be taxed at the 15% tax rate in 2011, 2012 and 2013. The Company estimated the applied tax rate in 2014 to be 15% as it will probably pass the re-assessment in 2014 and continue to qualify as “High & New Technology Enterprise”. | ||
During 2009, Shenyang was awarded the title of “High & New Technology Enterprise” and, based on the PRC income tax law, it was subject to enterprise income tax at a rate of15% for 2009, 2010 and 2011. In 2012, the Company passed the re-assessment of the government based on PRC income tax laws. Accordingly, it will continue to be taxed at the 15% tax rate in 2012, 2013 and 2014. | ||
During 2013, Jielong was awarded the title of “High & New Technology Enterprise” and, based on the PRC income tax law, it is subject to enterprise income tax at a rate of15% for 2013, 2014 and 2015. | ||
According to the New CIT, Hubei Henglong has been subject to tax at a rate of 12.5% from 2010 to 2012. In November 2011, Hubei Henglong was awarded the title of “High & New Technology Enterprise”, based on the PRC income tax law. Accordingly, it will be subject to enterprise income tax at a rate of 15% for 2013. The Company estimated the applied tax rate in 2014 to be 15% as it will probably pass the re-assessment in 2014 and continue to qualify as “High & New Technology Enterprise”. | ||
According to the New CIT, USAI and Testing Center were exempted from income tax in 2009, and each has been subject to income tax at a rate of 12.5% in 2010 and 2011, and 25% in 2012, 2013 and 2014. | ||
Chongqing Henglong was established in 2012. According to the New CIT, Chongqing Henglong is subject to income tax at a uniform rate of 25%. No provision for Chongqing Henglong is made as it had no assessable income for the three months and six months ended June 30, 2014 and 2013. | ||
Based on Brazilian income tax laws, Brazil Henglong is subject to income tax at a uniform rate of 15%, and a resident legal person is subject to additional tax at a rate of 10% for the part of taxable income over $0.12 million (equivalent to BRL 0.24 million). The Company had no assessable income in Brazil for the three months and six months ended June 30, 2014 and 2013. | ||
Fujian Qiaolong was acquired in the second quarter of 2014. In November 2011, Fujian Qiaolong was awarded the title of “High & New Technology Enterprise” and, based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15% for 2011, 2012 and 2013. The Company estimates that it will continue to be taxed at the 15% tax rate in 2014, as a result of the Company being able to pass the re-assessment and continue to qualify as “High & New Technology Enterprise”. No provision for Fujian Qiaolong is made as it had no assessable income for the three months and six months ended June 30, 2014. | ||
The profits tax rate of Hong Kong is 16.5%. No provision for Hong Kong tax is made as Genesis is an investment holding company, and had no assessable income in Hong Kong for the three months and six months ended June 30, 2014 and 2013. | ||
The enterprise income tax rate of the United States is 35%. No provision for U.S. tax is made for HLUSA as HLUSA had no assessable income in the United States for the three months and six months ended June 30, 2013. HLUSA made a provision for assessable income for the three months and six months ended June 30, 2014. | ||
The enterprise income tax rate of the United States is 35%. No provision for U.S. tax is made for the Company as the Company had no assessable income in the United States for the three months and six months ended June 30, 2014 and 2013. | ||
The effective tax rate decreased to 18.8% and 19.0% for the three months and six months ended June 30, 2014 from 20.4% and 19.6% for the same periods in 2013, which was primarily due to a significant increase in assessable income of Henglong which has a low effective tax rate of 15.0%. | ||
Income_per_share
Income per share | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
26 | Income per share | |||||||
Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated using the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. The dilutive effect of outstanding stock options is determined based on the treasury stock method. | ||||||||
The calculation of basic and diluted income per share attributable to the parent company for the three months ended June 30, 2014 and 2013, were (figures are in thousands of USD , except share and per share amounts ): | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income attributable to the parent company’s common shareholders – Basic and Diluted | $ | 11,006 | $ | 4,981 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 28,043,019 | 28,043,019 | ||||||
Dilutive effects of stock options | 21,357 | 5,770 | ||||||
Denominator for dilutive income per share – Diluted | 28,064,376 | 28,048,789 | ||||||
Net income per share attributable to parent company’s common shareholders – Basic | $ | 0.39 | $ | 0.18 | ||||
Net income per share attributable to parent company’s common shareholders – Diluted | $ | 0.39 | $ | 0.18 | ||||
As of June 30, 2014 and 2013, the exercise prices for 60,000 shares and 45,000 shares, respectively, of outstanding stock options were above the weighted average market price of the Company’s common stock during the three months ended June 30, 2014 and 2013, respectively, and these stock options were excluded from the calculation of the diluted income per share for the corresponding periods presented. | ||||||||
The calculations of basic and diluted income per share attributable to the parent company for the six months ended June 30, 2014 and 2013, were (figures are in thousands of USD , except share and per share amounts ): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income attributable to the parent company’s common shareholders – Basic and Diluted | $ | 17,781 | $ | 10,921 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 28,043,019 | 28,043,019 | ||||||
Dilutive effects of stock options | 20,920 | 6,844 | ||||||
Denominator for dilutive income per share – Diluted | 28,063,939 | 28,049,863 | ||||||
Net income per share attributable to parent company’s common shareholders – Basic | $ | 0.63 | $ | 0.39 | ||||
Net income per share attributable to parent company’s common shareholders – Diluted | $ | 0.63 | $ | 0.39 | ||||
As of June 30, 2014 and 2013, the exercise prices for 60,000 shares and 45,000 shares, respectively, of outstanding stock options were above the weighted average market price of the Company’s common stock during the six months ended June 30, 2014 and 2013, respectively, and these stock options were excluded from the calculation of the diluted income per share for the corresponding periods presented. | ||||||||
Significant_concentrations
Significant concentrations | 6 Months Ended | |
Jun. 30, 2014 | ||
Risks and Uncertainties [Abstract] | ' | |
Concentration Risk Disclosure [Text Block] | ' | |
27 | Significant concentrations | |
A significant portion of the Company’s business is conducted in China where the currency is the RMB. Regulations in China permit foreign owned entities to freely convert the RMB into foreign currency for transactions that fall under the "current account," which includes trade related receipts and payments, interest and dividends. Accordingly, the Company’s Chinese subsidiaries may use RMB to purchase foreign exchange for settlement of such "current account" transactions without pre-approval. However, pursuant to applicable regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with the PRC law. In calculating accumulated profits, foreign investment enterprises in China are required to allocate at least 10% of their annual net income each year, if any, to fund certain reserve funds, including mandated employee benefits funds, unless these reserves have reached 50% of the registered capital of the enterprises. | ||
Transactions other than those that fall under the "current account" and that involve conversion of RMB into foreign currency are classified as "capital account" transactions; examples of "capital account" transactions include repatriations of investment by or loans to foreign owners, or direct equity investments in a foreign entity by a China domiciled entity. "Capital account" transactions require prior approval from China's State Administration of Foreign Exchange, or SAFE, or its provincial branch to convert a remittance into a foreign currency, such as USD, and transmit the foreign currency outside of China. | ||
This system could be changed at any time and any such change may affect the ability of the Company or its subsidiaries in China to repatriate capital or profits, if any, outside China. Furthermore, SAFE has a significant degree of administrative discretion in implementing the laws and has used this discretion to limit convertibility of current account payments out of China. Whether as a result of a deterioration in the Chinese balance of payments, a shift in the Chinese macroeconomic prospects or any number of other reasons, China could impose additional restrictions on capital remittances abroad. As a result of these and other restrictions under the laws and regulations of the PRC, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the parent. The Company has no assurance that the relevant Chinese governmental authorities in the future will not limit further or eliminate the ability of the Company’s PRC subsidiaries to purchase foreign currencies and transfer such funds to the Company to meet its liquidity or other business needs. Any inability to access funds in China, if and when needed for use by the Company outside of China, could have a material and adverse effect on the Company’s liquidity and its business. | ||
The Company grants credit to its customers including Xiamen Joylon, Xiamen Automotive Parts, Shanghai Fenglong and Jiangling Yude, which are related parties of the Company. The Company’s customers are mostly located in the PRC. | ||
During the six months ended June 30, 2014, the Company’s ten largest customers accounted for 68.7% of its consolidated net product sales, with one customer individually accounting for more than 10% of consolidated net sales, i.e., 11.6%. As of June 30, 2014, approximately 4.9% of accounts receivable were from trade transactions with the aforementioned one customer, and there was one other individual customer with a receivables balance of more than 10% of total accounts receivable, i.e. 12.3%. | ||
During the six months ended June 30, 2013, the Company’s ten largest customers accounted for 74.0% of its consolidated net sales, with the largest customer individually accounting for more than 10% of consolidated net sales, i.e., 11.5%. As of June 30, 2013, approximately 6.4% of accounts receivable were from trade transactions with the aforementioned one customer, and there were two other individual customers with a receivables balance of more than 10% of total accounts receivable, i.e. 11.9% and 12.4%, respectively. | ||
Related_party_transactions_and
Related party transactions and balances | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||
28 | Related party transactions and balances | |||||||
Related party transactions are as follows (figures are in thousands of USD): | ||||||||
Related sales | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Merchandise sold to related parties | $ | 14,928 | $ | 9,035 | ||||
$ | 14,928 | $ | 9,035 | |||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Merchandise sold to related parties | $ | 26,738 | $ | 17,178 | ||||
$ | 26,738 | $ | 17,178 | |||||
Related purchases | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Materials purchased from related parties | $ | 7,461 | $ | 6,006 | ||||
Technology purchased from related parties | 72 | 421 | ||||||
Equipment purchased from related parties | 336 | 1,051 | ||||||
Total | $ | 7,869 | $ | 7,478 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Materials purchased from related parties | $ | 14,652 | $ | 12,671 | ||||
Technology purchased from related parties | 164 | 517 | ||||||
Equipment purchased from related parties | 1,254 | 1,383 | ||||||
Total | $ | 16,070 | $ | 14,571 | ||||
Related receivables | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts receivable | $ | 24,658 | $ | 17,194 | ||||
Other receivables | 61 | 108 | ||||||
Total | $ | 24,719 | $ | 17,302 | ||||
Related advances | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Advance equipment payment to related parties | $ | 1,522 | $ | 2,097 | ||||
Advance payments and others to related parties | 625 | 866 | ||||||
Total | $ | 2,147 | $ | 2,963 | ||||
Related payables | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts payable | $ | 4,921 | $ | 4,634 | ||||
These transactions were consummated under similar terms as those with the Company's third party customers and suppliers. | ||||||||
Related parties pledged certain land use rights and buildings as security for the Company’s credit facilities provided by banks. | ||||||||
Loans to Related Parties | ||||||||
For the six months ended June 30, 2013, certain of the Company’s subsidiaries provided short-term loans to related parties of the Company in the aggregate principal amount of $ 0.7 million (RMB 4.3 million). The contractual period of each loan was three months or less from the date of the extension of the loan and the Company did not charge interest due to their short-term maturity. The loans to related parties were entered into for the purpose of assisting the borrowing entities in addressing certain cash flow needs. All of these loans qualified for net reporting in accordance with ASC 230 “Statement of Cash Flows”. As of June 30, 2013, all of these loans had been repaid to the Company. | ||||||||
For the three months ended June 30, 2014 and 2013, there were no loan activities with related parties. | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Loans to related parties | - | $ | 686 | |||||
As of August 13, 2014, Hanlin Chen, the Company’s Chairman, owns 63.65% of the common stock of the Company and has the effective power to control the vote on substantially all significant matters without the approval of other stockholders. | ||||||||
Commitments_and_contingencies
Commitments and contingencies | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||||||||||||||
29 | Commitments and contingencies | |||||||||||||||||||
Legal proceedings | ||||||||||||||||||||
Securities Action - Southern District of New York. On October 25, 2011, a purported securities class action was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the Company’s securities between March 25, 2010 and March 17, 2011. On February 24, 2012, the plaintiffs filed an amended complaint, changing the purported class period to between May 12, 2009 and March 17, 2011. The amended complaint alleged that the Company, certain of its present officers and directors, and the Company’s former independent accounting firm violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and the rules promulgated thereunder, and sought unspecified damages. The Company filed a motion to dismiss the amended complaint, which the court denied on August 8, 2012. On September 4, 2012, the Company filed an answer to the amended complaint. On January 15, 2013, plaintiffs filed a motion to certify the purported class, which the court denied on May 31, 2013. On July 17, 2013, plaintiffs filed a petition for permission to appeal the order denying class certification, and, on August 1, 2013, the Company filed an answer in opposition to the petition. On October 23, 2013, the Court of Appeals for the Second Circuit denied plaintiffs’ petition for permission to appeal. On December 6, 2013, plaintiffs filed a motion for preliminary approval of a settlement with the Company’s former independent accounting firm and certification of a proposed settlement class, which the district court denied on January 15, 2014. On March 28, 2014, the Company and plaintiffs entered into a settlement agreement. As part of the settlement, on April 29, 2014, the Company and plaintiffs filed a stipulation dismissing all claims by plaintiffs against the Company and its current and former officers and directors, with no admission of any wrongdoing or liability. On April 29, 2014, the court entered an order granting the dismissal. The settlement had no material effect on the condensed unaudited consolidated financial statements for the three months and six months ended June 30, 2014. | ||||||||||||||||||||
Other than the above, the Company is not a party to any pending or, to the best of the Company’s knowledge, any threatened legal proceedings. In addition, no director, officer or affiliate of the Company, or owner of record of more than five percent of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation. | ||||||||||||||||||||
Other commitments and contingencies | ||||||||||||||||||||
In addition to the bank loans, notes payables and the related interest, the following table summarizes the Company’s major commitments and contingencies as of June 30, 2014 (figures are in thousands of USD): | ||||||||||||||||||||
Payment obligations by period | ||||||||||||||||||||
2014 (1) | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
Interest on short-term bank loan | $ | 643 | $ | 331 | $ | - | $ | - | $ | - | $ | 974 | ||||||||
Obligations for purchasing agreements | 4,470 | 4,197 | - | - | - | 8,667 | ||||||||||||||
Total | $ | 5,113 | $ | 4,528 | $ | - | $ | - | $ | - | $ | 9,641 | ||||||||
-1 | Remaining 6 months in 2014. | |||||||||||||||||||
Offbalance_sheet_arrangements
Off-balance sheet arrangements | 6 Months Ended | |
Jun. 30, 2014 | ||
Off Balance Sheet Arrangements Disclosure [Abstract] | ' | |
Off Balance Sheet Arrangements Disclosure [Text Block] | ' | |
30 | Off-balance sheet arrangements | |
As of June 30, 2014 and December 31, 2013, the Company did not have any significant transactions, obligations or relationships that could be considered off-balance sheet arrangements. | ||
Segment_reporting
Segment reporting | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||
31 | Segment reporting | ||||||||||||||
The accounting policies of the product sectors are the same as those described in the summary of significant accounting policies except that the disaggregated financial results for the product sectors have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting them in making internal operating decisions. Generally, the Company evaluates performance based on stand-alone product sector operating income and accounts for inter segment sales and transfers as if the sales or transfers were to third parties, at current market prices. | |||||||||||||||
As of June 30, 2014, the Company had 12 product sectors, five of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Shenyang, Wuhu and Hubei Henglong), and one holding company (Genesis). The other seven sectors were engaged in the production and sale of sensor modular (USAI), EPS (Jielong), provision of after sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), trade (Brazil Henglong), commercial vehicle repacking and sales (Fujian Qiaolong), and manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie). Since the revenues, net income and net assets of these seven sectors collectively are less than 10% of consolidated revenues, net income and net assets, respectively, in the condensed unaudited consolidated financial statements, the Company incorporated these seven sectors into “Other Sectors.” | |||||||||||||||
As of June 30, 2013, the Company had 10 product sectors, five of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Shenyang, Wuhu and Hubei Henglong), and one holding company (Genesis). The other five sectors were engaged in the production and sale of sensor modular (USAI), EPS (Jielong), provision of after sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong) and trade (Brazil Henglong). Since the revenues, net income and net assets of these five sectors collectively are less than 10% of consolidated revenues, net income and net assets, respectively, in the condensed unaudited consolidated financial statements, the Company incorporated these five sectors into “Other Sectors.” | |||||||||||||||
As discussed in Acquisition (see Note 3) above, the Company acquired a 51.0% equity interest in Fujian Qiaolong in the second quarter of 2014. The results of Fujian Qiaolong have been included since the date of acquisition and are reflected in Other Sectors in the Company’s segment reporting. | |||||||||||||||
The Company’s product sector information for the three months and six months ended June 30, 2014 and 2013, is as follows (figures are in thousands of USD): | |||||||||||||||
Net Product Sales | Net Income (Loss) | ||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Henglong | $ | 71,665 | $ | 57,829 | $ | 11,799 | $ | 5,071 | |||||||
Jiulong | 20,155 | 21,019 | 399 | 615 | |||||||||||
Shenyang | 12,043 | 10,202 | 506 | 227 | |||||||||||
Wuhu | 5,857 | 5,689 | -35 | -10 | |||||||||||
Hubei Henglong | 13,684 | 12,422 | 42,106 | -1 | 719 | ||||||||||
Other Sectors | 11,372 | 7,723 | 406 | 828 | |||||||||||
Total Segments | 134,776 | 114,884 | 55,181 | 7,450 | |||||||||||
Corporate | - | - | -1,188 | -1,069 | |||||||||||
Eliminations | -19,300 | -16,995 | -40,407 | -175 | |||||||||||
Total | $ | 115,476 | $ | 97,889 | $ | 13,586 | $ | 6,206 | |||||||
-1 | $40.3 million included in the amount of net income is attributable to the dividend from Henglong, which has been eliminated at the consolidation level. | ||||||||||||||
Net Product Sales | Net Income (Loss) | ||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Henglong | $ | 143,085 | $ | 121,990 | $ | 17,533 | $ | 11,384 | |||||||
Jiulong | 41,789 | 40,043 | 1,582 | 1,237 | |||||||||||
Shenyang | 23,940 | 19,069 | 762 | 516 | |||||||||||
Wuhu | 12,404 | 12,165 | -79 | -167 | |||||||||||
Hubei Henglong | 27,283 | 22,827 | 43,402 | -1 | 1,458 | ||||||||||
Other Sectors | 20,323 | 17,308 | 995 | 894 | |||||||||||
Total Segments | 268,824 | 233,402 | 64,195 | 15,322 | |||||||||||
Corporate | - | - | -2,023 | -2,511 | |||||||||||
Eliminations | -39,042 | -38,350 | -40,275 | 921 | |||||||||||
Total | $ | 229,782 | $ | 195,052 | $ | 21,897 | $ | 13,732 | |||||||
-1 | $40.3 million included in the amount of net income is attributable to the dividend from Henglong, which has been eliminated at the consolidation level. | ||||||||||||||
Subsequent_event
Subsequent event | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
32. Subsequent event | |
On August 11, 2014, the Company entered into a Stock Exchange Agreement (the “Agreement”) to acquire from Jingzhou City Jiulong Machinery Electricity Manufacturing Co., Ltd. (“Jiulong Machinery Electricity”) its minority interest in Henglong, such minority interest being a 20% equity interest therein; and Jiulong, such minority interest being a 19% equity interest therein. | |
The consideration for the acquisition is the issuance of 4,078,000 new shares of the Company to Jiulong Machinery Electricity, with 3,260,000 new shares of the Company being exchanged for the 20% equity interest in Henglong and 818,000 new shares of the Company being exchanged for the 19% equity interest in Jiulong. The shares will be issued in a private placement transaction that is exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. | |
The Company expects to complete the acquisition pursuant to the provisions of the Agreement in the third quarter of 2014. Upon consummation of the transaction, Henglong and Jiulong will become wholly-owned subsidiaries of the Company. | |
Basis_of_presentation_and_sign1
Basis of presentation and significant accounting policies (Policies) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Accounting, Policy [Policy Text Block] | ' | ||
(a) | Basis of Presentation | ||
Basis of Presentation – The accompanying condensed unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. The details of subsidiaries are disclosed in Note 1. Significant inter-company balances and transactions have been eliminated upon consolidation. The condensed unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions in Article 10 of Regulation S-X. Accordingly they do not include all of the information and footnotes required by such accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||
The accompanying interim condensed consolidated financial statements are unaudited, but in the opinion of the Company’s management, contain all necessary adjustments, which include normal recurring adjustments, for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. | |||
The condensed consolidated balance sheet as of December 31, 2013 is derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. | |||
Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company’s management believes that the disclosures contained in these financial statements are adequate to make the information presented herein not misleading. For further information, please refer to the financial statements and the notes thereto included in the Company’s 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. | |||
The results of operations for the three months and six months ended June 30, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2014. | |||
Estimation - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||
(b) | Recent Accounting Pronouncements | ||
In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The new guidance changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. ASU 2014-08 is effective for the Company in the first quarter of fiscal 2015. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company is currently evaluating the impact of adopting this update on its financial statements. | |||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 will eliminate transaction-specific and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 and the effect of the standard on our ongoing financial reporting. | |||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), “Compensation—Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact of adopting this Update on its financial statements. | |||
Business Combinations Policy [Policy Text Block] | ' | ||
(c) | Significant Accounting Policies | ||
Business Combinations – A business combination is recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). | |||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||
Goodwill - Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisition of interests in its subsidiary. We test goodwill for impairment at the reporting unit level on an annual basis as of December 31, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company adopted the Financial Accounting Standards Board (“FASB”) revised guidance on “Testing of Goodwill for Impairment.” Under this guidance, the Company has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. For a reporting unit applying a qualitative assessment first, the Company starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test uses a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. The Company estimates total fair value of the reporting unit using discounted cash flow analysis, and makes assumptions regarding future revenue, gross margins, working capital levels, investments in new products, capital spending, tax, cash flows, and the terminal value of the reporting unit. | |||
Organization_and_business_Tabl
Organization and business (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Schedule of Equity Method Investments [Table Text Block] | ' | ||||||||
The Company owns the following aggregate net interests in the entities established in the People's Republic of China, the “PRC,” and Brazil as of June 30, 2014 and December 31, 2013. | |||||||||
Percentage Interest | |||||||||
Name of Entity | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 | 81 | % | 81 | % | |||||
Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 | 80 | % | 80 | % | |||||
Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 | 70 | % | 70 | % | |||||
Universal Sensor Application Inc., “USAI” 4 | 83.34 | % | 83.34 | % | |||||
Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 5 | 85 | % | 85 | % | |||||
Wuhu HengLong Automotive Steering System Co., Ltd., “Wuhu” 6 | 77.33 | % | 77.33 | % | |||||
Hubei Henglong Automotive System Group Co., Ltd, “Hubei Henglong” 7 | 100 | % | 100 | % | |||||
Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 | 80 | % | 80 | % | |||||
Beijing Henglong Automotive System Co., Ltd., “Beijing Henglong” 9 | 50 | % | 50 | % | |||||
Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 | 70 | % | 70 | % | |||||
CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 11 | 80 | % | 80 | % | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 | 51 | % | - | ||||||
Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”13 | 85 | % | - | ||||||
1 | Jiulong was established in 1993 and mainly engages in the production of integral power steering gear for heavy-duty vehicles. | ||||||||
2 | Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light-duty vehicles. | ||||||||
3 | Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. | ||||||||
4 | USAI was established in 2005 and mainly engages in the production and sales of sensor modules. | ||||||||
5 | Jielong was established in 2006 and mainly engages in the production and sales of electric power steering, “EPS.” | ||||||||
6 | Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. | ||||||||
7 | On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. | ||||||||
8 | In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. The registered capital of the Testing Center was RMB30.0 million, equivalent to approximately $4.4 million. | ||||||||
9 | On January 24, 2010, Genesis entered into a joint venture contract with Beijing Hainachuan Auto Parts Co., Ltd. to establish Beijing Henglong as a joint venture company to design, develop and manufacture both hydraulic and electric power steering systems and parts. On September 16, 2010, with Beijing Hainachuan’s agreement, Genesis transferred its interest in the joint venture to Hubei Henglong, and left the other terms of the joint venture contract unchanged. According to the joint venture agreement, the Company does not have voting control of Beijing Henglong. Therefore, the Company’s consolidated financial statements do not include Beijing Henglong, and such investment is accounted for through the equity method. | ||||||||
10 | On February 21, 2012, Hubei Henglong and SAIC-IVECO Hongyan Company, “SAIC-IVECO,” established a Sino-foreign joint venture company, Chongqing Henglong, to design, develop and manufacture both hydraulic and electric power steering systems and parts. | ||||||||
11 | On August 21, 2012, Brazil Henglong was established as a Sino-foreign joint venture company by Hubei Henglong and two Brazilian citizens, Ozias Gaia Da Silva and Ademir Dal’ Evedove. Brazil Henglong engages mainly in the import and sales of automotive parts in Brazil. | ||||||||
12 | In the second quarter of 2014, the Company acquired a 51.0% ownership interest in Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong”, a special purpose vehicle manufacturer and dealer with automobile repacking qualifications, based in Fujian, China. Fujian Qiaolong mainly manufactures and distributes drainage and rescue vehicles with mass flow, drainage vehicles with vertical downhole operation, crawler-type mobile pump stations, high-altitude water supply and discharge drainage vehicles, long-range control crawler-type mobile pump stations and other vehicles. The consideration was approximately $3.0 million. | ||||||||
13 | In May 2014, Jielong formed a wholly-owned subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in D&R, manufacture and sales of automobile electronic systems and parts. The new wholly-owned subsidiary is located in Wuhan, China.The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. At the date of release of this quarterly report, Jielong has not completed the capital injection. | ||||||||
Acquisition_Tables
Acquisition (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||
The following table summarizes the allocation of consideration and the respective fair values of the assets acquired and liabilities assumed in the Fujian Qiaolong acquisition as of the date of purchase (figures are in thousands of USD): | |||||
Total purchase price: | |||||
Cash consideration paid to acquire ownership interest | $ | 3,007 | |||
Assets | |||||
Cash and cash equivalents | $ | 31 | |||
Current assets, net of cash acquired | 8,428 | ||||
Deferred tax asset | 69 | ||||
Property and equipment | 3,694 | ||||
Intangible assets | 864 | ||||
Goodwill | 642 | ||||
Total assets consolidated into the Group | $ | 13,728 | |||
Liabilities | |||||
Current liabilities, excluding current deferred tax liabilities | -7,352 | ||||
Deferred tax liabilities | -448 | ||||
Other liabilities | -128 | ||||
Total liabilities consolidated into the Group | -7,928 | ||||
Non-controlling interests at fair value | -2,793 | ||||
Total equity consolidated into the Group | $ | 3,007 | |||
Accounts_and_notes_receivable_1
Accounts and notes receivable, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts and Notes Receivable Disclosure [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
The Company’s accounts and notes receivable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts receivable - unrelated parties (1) | $ | 157,495 | $ | 140,920 | ||||
Notes receivable - unrelated parties (2) (3) | 129,111 | 128,068 | ||||||
Total accounts and notes receivable- unrelated parties | 286,606 | 268,988 | ||||||
Less: allowance for doubtful accounts - unrelated parties | -1,424 | -1,349 | ||||||
Accounts and notes receivable, net - unrelated parties | 285,182 | 267,639 | ||||||
Accounts and notes receivable, net - related parties | 24,658 | 17,194 | ||||||
Accounts and notes receivable, net | $ | 309,840 | $ | 284,833 | ||||
-1 | As of June 30, 2014 and December 31, 2013, the Company has pledged $11.9 million and $19.1 million, respectively, of accounts receivable as security for its comprehensive credit facility with banks in China. | |||||||
-2 | Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. | |||||||
-3 | As of June 30, 2014, Henglong collateralized its notes receivable in an amount of RMB 228.1 million (equivalent to approximately $37.1 million) as security for the credit facility with banks in China and the Chinese government, including RMB 197.1 million (equivalent to approximately $32.0 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,” for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau,” and RMB 31.0 million (equivalent to approximately $5.0 million) in favor of the Chinese government as security for the low-interest government loan (see Note 14). As of December 31, 2013, Henglong collateralized its notes receivable in an amount of RMB 196.3 million (equivalent to approximately $32.2 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,” for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau.” | |||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
The Company’s inventories as of June 30, 2014 and December 31, 2013 consisted of the following (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 14,465 | $ | 12,185 | ||||
Work in process | 13,256 | 8,079 | ||||||
Finished goods | 35,587 | 31,128 | ||||||
Total | $ | 63,308 | $ | 51,392 | ||||
Other_receivables_net_Tables
Other receivables, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Receivables Disclosure [Abstract] | ' | |||||||
Schedule Of Other Receivables [Table Text Block] | ' | |||||||
The Company’s other receivables as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Other receivables - unrelated parties (1) | $ | 507 | $ | 314 | ||||
Less: allowance for doubtful accounts- unrelated parties | -66 | -62 | ||||||
Other receivables, net - unrelated parties | $ | 441 | $ | 252 | ||||
June 30, 2014 | December 31, 2013 | |||||||
Other receivables - related parties (1) | $ | 714 | $ | 729 | ||||
Less: allowance for doubtful accounts- related parties | -653 | -621 | ||||||
Other receivables, net - related parties | $ | 61 | $ | 108 | ||||
-1 | Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans, with no stated interest rate or due date. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. | |||||||
Property_plant_and_equipment_n1
Property, plant and equipment, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
The Company’s property, plant and equipment as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Land use rights and buildings | $ | 46,895 | $ | 43,849 | ||||
Machinery and equipment | 114,549 | 110,322 | ||||||
Electronic equipment | 7,517 | 7,414 | ||||||
Motor vehicles | 4,058 | 3,195 | ||||||
Construction in progress | 6,976 | 5,133 | ||||||
Total amount of property, plant and equipment(1) | 179,995 | 169,913 | ||||||
Less: Accumulated depreciation(2) | -96,297 | -89,895 | ||||||
Total amount of property, plant and equipment, net(3) | $ | 83,698 | $ | 80,018 | ||||
-1 | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $3.7 million of property, plant and equipment, consisting of $3.4 million of land use rights and buildings, $0.2 million of machinery and equipment, and $0.1 million of motor vehicles, which are depreciated over a weighted average life of 43.0 years, 3.5 years, and 3.1 years, respectively. | |||||||
-2 | Depreciation charges were $4.0 million and $3.7 million for the three months ended June 30, 2014 and 2013, respectively, and $7.63 million and $7.13 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
-3 | As of June 30, 2014 and December 31, 2013, the Company had pledged property, plant and equipment with net book value of $ 51.0 million and $51.4 million, respectively, for its comprehensive credit facilities with banks in China. | |||||||
Intangible_assetsTables
Intangible assets(Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Impaired Intangible Assets [Table Text Block] | ' | |||||||
The Company’s intangible assets as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Costs: | ||||||||
Patent technology | $ | 2,911 | $ | 2,067 | ||||
Management software license | 699 | 699 | ||||||
Total intangible assets(1) | 3,610 | 2,766 | ||||||
Less: Amortization(2) | -2,186 | -2,080 | ||||||
Total intangible assets, net | $ | 1,424 | $ | 686 | ||||
-1 | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $0.9 million of intangible assets, consisting of $0.9 million of patent technology and $nil of management software licenses, which are amortized over a weighted average life of 4.7 years and 1.1 years, respectively. | |||||||
-2 | Amortization expenses were $0.08 million and $0.04 million for the three months ended June 30, 2014 and 2013, respectively, and $0.12 million and $0.09 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
Deferred_income_tax_assets_Tab
Deferred income tax assets (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
The components of estimated deferred income tax assets as of June 30, 2014 and December 31, 2013 are as follows (figures are in thousands of USD): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Losses carry forward (U.S.) (1) | $ | 6,946 | $ | 6,825 | ||||
Losses carry forward (PRC) (1) | 2,150 | 1,838 | ||||||
Product warranties and other reserves | 4,408 | 4,207 | ||||||
Property, plant and equipment | 4,480 | 4,346 | ||||||
Share-based compensation | 297 | 296 | ||||||
Bonus accrual | 418 | 557 | ||||||
Other accruals | 721 | 850 | ||||||
Others | 1,070 | 1,103 | ||||||
Total deferred tax assets | 20,490 | 20,022 | ||||||
Less: taxable temporary difference related to revenue recognition | -586 | -793 | ||||||
Total deferred tax assets, net | 19,904 | 19,229 | ||||||
Less: Valuation allowance | -9,212 | -8,918 | ||||||
Total deferred tax assets, net of valuation allowance (2) | $ | 10,692 | $ | 10,311 | ||||
-1 | The net operating losses carry forward for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These losses will expire, if not utilized, in 20 years. Net operating losses carry forward for non-U.S. entities can be carried forward for 5 years to offset taxable income. However, as of June 30, 2014 and December 31, 2013, the valuation allowance was $9.2 million and $8.9 million, respectively, including $7.2 million and $7.3 million, respectively, allowance for the Company’s deferred tax assets in the United States and $2.0 million and $1.7 million, respectively, allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the non-U.S. deferred tax assets, pursuant to certain tax laws and regulations in China, the management believes such amount will not be used to offset future taxable income. | |||||||
-2 | Approximately $4.7 million and $4.5 million of net deferred income tax asset as of June 30, 2014 and December 31, 2013, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $6.0 million and $5.8 million of net deferred income tax assets as of June 30, 2014 and December 31, 2013, respectively, are included in current deferred tax assets. | |||||||
Bank_and_government_loans_net_
Bank and government loans, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Loans consist of the following at June 30, 2014 and December 31, 2013 (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, | |||||||
2013 | ||||||||
Short-term bank loan (1) (2) | $ | 7,964 | $ | 7,381 | ||||
Short-term bank loan (3) | 30,000 | 30,000 | ||||||
Short-term government loan (4) | 4,876 | - | ||||||
Subtotal | 42,840 | 37,381 | ||||||
Debt issue cost | - | -57 | ||||||
Amortization | - | 57 | ||||||
Bank and government loans, net | $ | 42,840 | $ | 37,381 | ||||
-1 | These loans are secured by property, plant and equipment of the Company and are repayable within one year (see Note 11). As of June 30, 2014 and December 31, 2013, the weighted average interest rate was 6.86% and 6.22% per annum, respectively. Interest is paid on the twentieth day of each month and the principal repayment is at maturity. | |||||||
-2 | On July 18, 2013, Jiulong entered into a one-year loan agreement with China Construction Bank Jingzhou branch in the amount of $1.6 million. The agreement contains certain financial and non-financial covenants, including but not limited to restrictions on the utilization of the funds and the maintenance of an asset-liability ratio not exceeding 60%. As of June 30, 2014, the asset-liability ratio of Jiulong was 53.4% and the Company was in compliance with these covenants at June 30, 2014. | |||||||
-3 | On May 18, 2012, the Company entered into a credit facility agreement, the “Credit Agreement,” with ICBC Macau to obtain a non-revolving credit facility in the amount of $30.0 million, the “Credit Facility”. The Credit Facility would have expired on November 3, 2012 unless the Company drew down the line of credit in full prior to such expiration date, and the maturity date for the loan drawdown was the earlier of (i) 18 months from the drawdown or (ii) 1 month before the expiry of the standby letter of credit obtained by Henglong from ICBC Jingzhou as security for the Credit Facility, the “Henglong Standby Letter of Credit”. The interest rate of the Credit Facility is calculated based on a three-month LIBOR plus 2.25% per annum, subject to the availability of funds and fluctuation at ICBC Macau’s discretion. The interest is calculated daily based on a 360-day year and it is fixed one day before the first day of each interest period. The interest period is defined as three months from the date of drawdown. As security for the Credit Facility, the Company was required to provide ICBC Macau with the Henglong Standby Letter of Credit for a total amount not less than $31.6 million if the Credit Facility is fully drawn. | |||||||
On May 22, 2012, the Company drew down the full amount of $30.0 million under the Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $31.6 million in favor of ICBC Macau. The Henglong Standby Letter of Credit issued by ICBC Jingzhou is collateralized by Henglong’s notes receivable of RMB 197.1 million (equivalent to approximately $32.0 million). The Company also paid an arrangement fee of $0.1 million to ICBC Macau and $0.1 million to ICBC Jingzhou. The original maturity date of the Credit Facility was May 22, 2013. | ||||||||
On May 7, 2013, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2014. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.0% per annum, Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. | ||||||||
On May 13, 2014, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 12, 2015. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.55% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of June 30, 2014, the interest rate of the Credit Facility was 2.78% per annum. | ||||||||
-4 | On March 28, 2014, the Company received a Chinese government loan of RMB 30.0 million (equivalent to approximately $4.9 million), with an interest rate of 3% per annum, that will mature on March 15, 2015. Henglong has pledged RMB 31.0 million (equivalent to approximately $5.0 million) of notes receivable as security for such government loan (see Note 6). | |||||||
Accounts_and_notes_payable_Tab
Accounts and notes payable (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts and Notes Payable Disclosure [Abstract] | ' | |||||||
Schedule Of Accounts and Notes Payable [Table Text Block] | ' | |||||||
The Company’s accounts and notes payable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts payable - unrelated parties | $ | 137,471 | $ | 120,202 | ||||
Notes payable - unrelated parties (1) | 70,418 | 78,217 | ||||||
Total accounts and notes payable - unrelated parties | 207,889 | 198,419 | ||||||
Total accounts and notes payable - related parties | 4,921 | 4,634 | ||||||
Total accounts and notes payable | $ | 212,810 | $ | 203,053 | ||||
-1 | Notes payable represent accounts payable in the form of bills of exchange whose acceptances are guaranteed and settlements are handled by banks. The Company has pledged cash deposits, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. | |||||||
Accrued_expenses_and_other_pay1
Accrued expenses and other payables (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Payables and Accruals [Abstract] | ' | ||||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||||
The Company’s accrued expenses and other payables as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
June 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Accrued expenses | $ | 4,492 | $ | 4,980 | |||||||
Accrued interest | 112 | 85 | |||||||||
Other payables | 2,204 | 1,858 | |||||||||
Warranty reserves (1) | 23,986 | 22,104 | |||||||||
Dividends payable to common shareholders (2) | 5,047 | - | |||||||||
Dividends payable to non-controlling interests (3) | 8,127 | 35 | |||||||||
Total | $ | 43,968 | $ | 29,062 | |||||||
(1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. | |||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||||
For the six months ended June 30, 2014 and 2013, and for the year ended December 31, 2013, the warranties activities were as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 22,104 | $ | 18,081 | $ | 18,081 | |||||
Additions during the period | 5,055 | 5,637 | 12,707 | ||||||||
Settlement within period, by cash or actual material | -2,972 | -4,013 | -9,244 | ||||||||
Foreign currency translation gain (loss) | -201 | 313 | 560 | ||||||||
Balance at end of the period | $ | 23,986 | $ | 20,018 | $ | 22,104 | |||||
(2) On May 27, 2014, the Company announced the payment of a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. | |||||||||||
(3) In accordance with the resolution of the board of directors of Henglong, in June 2014, Henglong declared a dividend amounting to $40.6 million to its shareholders, of which $8.1 million was payable to the holder of the non-controlling interests. | |||||||||||
Taxes_payable_Tables
Taxes payable (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Taxes Payables [Abstract] | ' | |||||||
Schedule Of Income Taxes Payable [Table Text Block] | ' | |||||||
The Company’s taxes payable as of June 30, 2014 and December 31, 2013 are summarized as follows (figures are in thousands of USD): | ||||||||
June 30, 2014 | December 31, | |||||||
2013 | ||||||||
Value-added tax payable | $ | 4,007 | $ | 5,494 | ||||
Income tax payable | 3,904 | 1,841 | ||||||
Other tax payable | 376 | 457 | ||||||
Total | $ | 8,287 | $ | 7,792 | ||||
Additional_paidin_capital_Tabl
Additional paid-in capital (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Additional Paid in Capital [Abstract] | ' | ||||||||||
Schedule Of Additional Paid In Capital [Table Text Block] | ' | ||||||||||
The Company’s positions in respect of the amounts of additional paid-in capital for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 39,565 | $ | 39,371 | $ | 39,371 | |||||
Share-based compensation | - | - | 194 | ||||||||
Return of common shareholders’ investment cost (1) | -5,047 | - | - | ||||||||
Balance at end of the period | $ | 34,518 | $ | 39,371 | $ | 39,565 | |||||
-1 | On May 27, 2014, the Company announced a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. As China Automotive Systems, the parent company, had an accumulated deficit position as of the date of the dividend declaration, the dividends distributed to the Company’s common shareholders described above are treated as a return of common shareholders’ investment cost. | ||||||||||
Retained_earnings_Tables
Retained earnings (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Retained Earnings Disclosure [Abstract] | ' | ||||||||||
Schedule Of Appropriated Retained Earnings [Table Text Block] | ' | ||||||||||
The Company’s activities in respect of the amounts of the appropriated retained earnings for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 10,048 | $ | 9,953 | $ | 9,953 | |||||
Appropriation of retained earnings | 130 | 95 | 95 | ||||||||
Balance at end of the period | $ | 10,178 | $ | 10,048 | $ | 10,048 | |||||
Schedule Of Unappropriated Retained Earnings [Table Text Block] | ' | ||||||||||
The Company’s activities in respect of the amounts of the unappropriated retained earnings for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 146,023 | $ | 119,329 | $ | 119,329 | |||||
Net income attributable to parent company | 17,781 | 10,921 | 26,789 | ||||||||
Appropriation of retained earnings | -130 | -95 | -95 | ||||||||
Balance at end of the period | $ | 163,674 | $ | 130,155 | $ | 146,023 | |||||
Accumulated_other_comprehensiv1
Accumulated other comprehensive income (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The Company’s activities in respect of the amounts of the accumulated other comprehensive income for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 32,061 | $ | 25,898 | $ | 25,898 | |||||
Foreign currency translation adjustment attributable to parent company | -2,017 | 3,361 | 6,163 | ||||||||
Balance at end of the period | $ | 30,044 | $ | 29,259 | $ | 32,061 | |||||
Noncontrolling_interests_Table
Non-controlling interests (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||
Schedule Of Non Controlling Interests Disclosure [Table Text Block] | ' | ||||||||||
The Company’s activities in respect of the amounts of the non-controlling interests’ equity for the six months ended June 30, 2014 and 2013, and the year ended December 31, 2013 are summarized as follows (figures are in thousands of USD): | |||||||||||
Six Months Ended June 30, | Year Ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||
Balance at beginning of the period | $ | 45,071 | $ | 38,846 | $ | 38,846 | |||||
Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong (1) | 2,793 | - | - | ||||||||
Income attributable to non-controlling interests | 4,116 | 2,811 | 6,276 | ||||||||
Dividends declared to the non-controlling interest holders of joint-venture companies | -10,077 | -405 | -1,299 | ||||||||
Foreign currency translation adjustment attributable to non-controlling interests | -405 | 687 | 1,248 | ||||||||
Balance at end of the period | $ | 41,498 | $ | 41,939 | $ | 45,071 | |||||
-1 | In the second quarter of 2014, the Company acquired a 51.0% equity interest in Fujian Qiaolong (see Note 3). The fair value of the non-controlling interest of Fujian Qiaolong is $2.8 million. | ||||||||||
Financial_income_expenses_net_
Financial (income) expenses, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Financial Income Expenses Disclosure [Abstract] | ' | |||||||
Schedule Of Financial Expenses [Table Text Block] | ' | |||||||
During the three months and six months ended June 30, 2014 and 2013, the Company recorded financial expenses, net which are summarized as follows (figures are in thousands of USD): | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Interest expense | $ | 546 | $ | 582 | ||||
Interest income | -496 | -698 | ||||||
Foreign exchange gain, net | -196 | -21 | ||||||
Loss (gain) of cash discount, net | -3 | 5 | ||||||
Bank fees | 177 | 240 | ||||||
Total financial expense, net | $ | 28 | $ | 108 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Interest expense | $ | 824 | $ | 1,005 | ||||
Interest income | -1,253 | -1,155 | ||||||
Foreign exchange gain, net | -1 | 47 | ||||||
Loss (gain) of cash discount, net | -62 | 12 | ||||||
Bank fees | 306 | 400 | ||||||
Total financial (income) expense, net | $ | -186 | $ | 309 | ||||
Income_per_share_Tables
Income per share (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The calculation of basic and diluted income per share attributable to the parent company for the three months ended June 30, 2014 and 2013, were (figures are in thousands of USD , except share and per share amounts ): | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income attributable to the parent company’s common shareholders – Basic and Diluted | $ | 11,006 | $ | 4,981 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 28,043,019 | 28,043,019 | ||||||
Dilutive effects of stock options | 21,357 | 5,770 | ||||||
Denominator for dilutive income per share – Diluted | 28,064,376 | 28,048,789 | ||||||
Net income per share attributable to parent company’s common shareholders – Basic | $ | 0.39 | $ | 0.18 | ||||
Net income per share attributable to parent company’s common shareholders – Diluted | $ | 0.39 | $ | 0.18 | ||||
The calculations of basic and diluted income per share attributable to the parent company for the six months ended June 30, 2014 and 2013, were (figures are in thousands of USD , except share and per share amounts ): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income attributable to the parent company’s common shareholders – Basic and Diluted | $ | 17,781 | $ | 10,921 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 28,043,019 | 28,043,019 | ||||||
Dilutive effects of stock options | 20,920 | 6,844 | ||||||
Denominator for dilutive income per share – Diluted | 28,063,939 | 28,049,863 | ||||||
Net income per share attributable to parent company’s common shareholders – Basic | $ | 0.63 | $ | 0.39 | ||||
Net income per share attributable to parent company’s common shareholders – Diluted | $ | 0.63 | $ | 0.39 | ||||
Related_party_transactions_and1
Related party transactions and balances (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Schedule Of Related Party Transactions [Table Text Block] | ' | |||||||
Related party transactions are as follows (figures are in thousands of USD): | ||||||||
Related sales | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Merchandise sold to related parties | $ | 14,928 | $ | 9,035 | ||||
$ | 14,928 | $ | 9,035 | |||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Merchandise sold to related parties | $ | 26,738 | $ | 17,178 | ||||
$ | 26,738 | $ | 17,178 | |||||
Related purchases | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Materials purchased from related parties | $ | 7,461 | $ | 6,006 | ||||
Technology purchased from related parties | 72 | 421 | ||||||
Equipment purchased from related parties | 336 | 1,051 | ||||||
Total | $ | 7,869 | $ | 7,478 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Materials purchased from related parties | $ | 14,652 | $ | 12,671 | ||||
Technology purchased from related parties | 164 | 517 | ||||||
Equipment purchased from related parties | 1,254 | 1,383 | ||||||
Total | $ | 16,070 | $ | 14,571 | ||||
Related receivables | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts receivable | $ | 24,658 | $ | 17,194 | ||||
Other receivables | 61 | 108 | ||||||
Total | $ | 24,719 | $ | 17,302 | ||||
Related advances | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Advance equipment payment to related parties | $ | 1,522 | $ | 2,097 | ||||
Advance payments and others to related parties | 625 | 866 | ||||||
Total | $ | 2,147 | $ | 2,963 | ||||
Related payables | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Accounts payable | $ | 4,921 | $ | 4,634 | ||||
Loans to Related Parties | ||||||||
For the three months ended June 30, 2014 and 2013, there were no loan activities with related parties. | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Loans to related parties | - | $ | 686 | |||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | ' | |||||||||||||||||||
In addition to the bank loans, notes payables and the related interest, the following table summarizes the Company’s major commitments and contingencies as of June 30, 2014 (figures are in thousands of USD): | ||||||||||||||||||||
Payment obligations by period | ||||||||||||||||||||
2014 (1) | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
Interest on short-term bank loan | $ | 643 | $ | 331 | $ | - | $ | - | $ | - | $ | 974 | ||||||||
Obligations for purchasing agreements | 4,470 | 4,197 | - | - | - | 8,667 | ||||||||||||||
Total | $ | 5,113 | $ | 4,528 | $ | - | $ | - | $ | - | $ | 9,641 | ||||||||
-1 | Remaining 6 months in 2014. | |||||||||||||||||||
Segment_reporting_Tables
Segment reporting (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||||
The Company’s product sector information for the three months and six months ended June 30, 2014 and 2013, is as follows (figures are in thousands of USD): | |||||||||||||||
Net Product Sales | Net Income (Loss) | ||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Henglong | $ | 71,665 | $ | 57,829 | $ | 11,799 | $ | 5,071 | |||||||
Jiulong | 20,155 | 21,019 | 399 | 615 | |||||||||||
Shenyang | 12,043 | 10,202 | 506 | 227 | |||||||||||
Wuhu | 5,857 | 5,689 | -35 | -10 | |||||||||||
Hubei Henglong | 13,684 | 12,422 | 42,106 | -1 | 719 | ||||||||||
Other Sectors | 11,372 | 7,723 | 406 | 828 | |||||||||||
Total Segments | 134,776 | 114,884 | 55,181 | 7,450 | |||||||||||
Corporate | - | - | -1,188 | -1,069 | |||||||||||
Eliminations | -19,300 | -16,995 | -40,407 | -175 | |||||||||||
Total | $ | 115,476 | $ | 97,889 | $ | 13,586 | $ | 6,206 | |||||||
-1 | $40.3 million included in the amount of net income is attributable to the dividend from Henglong, which has been eliminated at the consolidation level. | ||||||||||||||
Net Product Sales | Net Income (Loss) | ||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Henglong | $ | 143,085 | $ | 121,990 | $ | 17,533 | $ | 11,384 | |||||||
Jiulong | 41,789 | 40,043 | 1,582 | 1,237 | |||||||||||
Shenyang | 23,940 | 19,069 | 762 | 516 | |||||||||||
Wuhu | 12,404 | 12,165 | -79 | -167 | |||||||||||
Hubei Henglong | 27,283 | 22,827 | 43,402 | -1 | 1,458 | ||||||||||
Other Sectors | 20,323 | 17,308 | 995 | 894 | |||||||||||
Total Segments | 268,824 | 233,402 | 64,195 | 15,322 | |||||||||||
Corporate | - | - | -2,023 | -2,511 | |||||||||||
Eliminations | -39,042 | -38,350 | -40,275 | 921 | |||||||||||
Total | $ | 229,782 | $ | 195,052 | $ | 21,897 | $ | 13,732 | |||||||
-1 | $40.3 million included in the amount of net income is attributable to the dividend from Henglong, which has been eliminated at the consolidation level. | ||||||||||||||
Organization_and_business_Deta
Organization and business (Details) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Shashi Jiulong Power Steering Gears Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 81.00% | [1] | 81.00% | [1] |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 80.00% | [2] | 80.00% | [2] |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 70.00% | [3] | 70.00% | [3] |
Universal Sensor Application Inc [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 83.34% | [4] | 83.34% | [4] |
Wuhan Jielong Electric Power Steering Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 85.00% | [5] | 85.00% | [5] |
Wuhu Henglong Auto Steering System Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 77.33% | [6] | 77.33% | [6] |
Hubei Henglong Automotive System Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 100.00% | [7] | 100.00% | [7] |
Jingzhou Hubei Henglong Automotive System Co., Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 80.00% | [8] | 80.00% | [8] |
Beijing Henglong Automotive System Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 50.00% | [9] | 50.00% | [9] |
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 70.00% | [10] | 70.00% | [10] |
CAAS Brazils Imports and Trade In Automotive Parts Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 80.00% | [11] | 80.00% | [11] |
Fujian Qiaolong Special Purpose Vehicle Co Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 51.00% | [12] | 0.00% | [12] |
Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] | ' | ' | ||
Organization And Principal Activities [Line Items] | ' | ' | ||
Percentage Interest | 85.00% | [13] | ' | |
[1] | Jiulong was established in 1993 and mainly engages in the production of integral power steering gear for heavy-duty vehicles. | |||
[2] | Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light-duty vehicles. | |||
[3] | Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. | |||
[4] | USAI was established in 2005 and mainly engages in the production and sales of sensor modules. | |||
[5] | Jielong was established in 2006 and mainly engages in the production and sales of electric power steering, “EPS.†| |||
[6] | Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. | |||
[7] | On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. | |||
[8] | In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. The registered capital of the Testing Center was RMB30.0 million, equivalent to approximately $4.4 million. | |||
[9] | On January 24, 2010, Genesis entered into a joint venture contract with Beijing Hainachuan Auto Parts Co., Ltd. to establish Beijing Henglong as a joint venture company to design, develop and manufacture both hydraulic and electric power steering systems and parts. On September 16, 2010, with Beijing Hainachuan’s agreement, Genesis transferred its interest in the joint venture to Hubei Henglong, and left the other terms of the joint venture contract unchanged. According to the joint venture agreement, the Company does not have voting control of Beijing Henglong. Therefore, the Company’s consolidated financial statements do not include Beijing Henglong, and such investment is accounted for through the equity method. | |||
[10] | On February 21, 2012, Hubei Henglong and SAIC-IVECO Hongyan Company, “SAIC-IVECO,†established a Sino-foreign joint venture company, Chongqing Henglong, to design, develop and manufacture both hydraulic and electric power steering systems and parts. | |||
[11] | On August 21, 2012, Brazil Henglong was established as a Sino-foreign joint venture company by Hubei Henglong and two Brazilian citizens, Ozias Gaia Da Silva and Ademir Dal’ Evedove. Brazil Henglong engages mainly in the import and sales of automotive parts in Brazil. | |||
[12] | In the second quarter of 2014, the Company acquired a 51.0% ownership interest in Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolongâ€, a special purpose vehicle manufacturer and dealer with automobile repacking qualifications, based in Fujian China. Fujian Qiaolong mainly manufactures and distributes drainage and rescue vehicles with mass flow, drainage vehicles with vertical downhole operation, crawler-type mobile pump stations, high altitude water supply and discharge drainage vehicles, long-range control crawler-type mobile pump stations and other vehicles. The consideration was approximately $3.0 million. | |||
[13] | In May 2014, Jielong formed a wholly-owned subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjieâ€, which mainly engages in D&R, manufacture and sales of automobile electronic systems and parts. The new wholly-owned subsidiary is located in Wuhan, China.The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. At the date of release of this quarterly report, Jielong has not completed the capital injection. |
Organization_and_business_Deta1
Organization and business (Details Textual) | Jun. 30, 2014 | Dec. 31, 2009 | Dec. 31, 2009 | 31-May-14 | 31-May-14 |
In Millions, unless otherwise specified | Fujian Qiaolong Acquisition [Member] | Jingzhou Hengsheng Automotive System Co Ltd [Member] | Jingzhou Hengsheng Automotive System Co Ltd [Member] | Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] | Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] |
USD ($) | USD ($) | CNY | USD ($) | CNY | |
Organization And Principal Activities [Line Items] | ' | ' | ' | ' | ' |
Capital | $3 | $4.40 | 30 | $4.90 | 30 |
Acquisition_Details
Acquisition (Details) (USD $) | 1 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Total purchase price: | ' | ' | ' | ' |
Cash consideration paid to acquire ownership interest | $3,007 | ($3,007) | $0 | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | ' | 31 | 0 | ' |
Goodwill | ' | 642 | ' | 0 |
Liabilities | ' | ' | ' | ' |
Non-controlling interests at fair value | ' | 2,800 | ' | ' |
Fujian Qiaolong Acquisition [Member] | ' | ' | ' | ' |
Total purchase price: | ' | ' | ' | ' |
Cash consideration paid to acquire ownership interest | 3,000 | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 31 | ' | ' | ' |
Current assets, net of cash acquired | 8,428 | ' | ' | ' |
Deferred tax asset | 69 | ' | ' | ' |
Property and equipment | 3,694 | 3,700 | ' | ' |
Intangible assets | 864 | ' | ' | ' |
Goodwill | 642 | ' | ' | ' |
Total assets consolidated into the Group | 13,728 | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Current liabilities, excluding current deferred tax liabilities | -7,352 | ' | ' | ' |
Deferred tax liabilities | -448 | ' | ' | ' |
Other liabilities | -128 | ' | ' | ' |
Total liabilities consolidated into the Group | -7,928 | ' | ' | ' |
Non-controlling interests at fair value | -2,793 | ' | ' | ' |
Total equity consolidated into the Group | $3,007 | ' | ' | ' |
Acquisition_Details_Textual
Acquisition (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | 51.00% | ' |
Payments to Acquire Businesses, Gross | $3,007 | ($3,007) | $0 |
Fujian Qiaolong Acquisition [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ' | ' |
Payments to Acquire Businesses, Gross | $3,000 | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '4 years 8 months 12 days | ' | ' |
Pledged_cash_deposits_Details_
Pledged cash deposits (Details Textual) | 6 Months Ended |
Jun. 30, 2014 | |
Minimum [Member] | ' |
Cash and Cash Equivalents [Line Items] | ' |
Percentage Of Cash And Cash Equivalent Reserve Deposit Required | 30.00% |
Maximum [Member] | ' |
Cash and Cash Equivalents [Line Items] | ' |
Percentage Of Cash And Cash Equivalent Reserve Deposit Required | 100.00% |
Accounts_and_notes_receivable_2
Accounts and notes receivable, net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivables [Line Items] | ' | ' | ||
Accounts receivable - unrelated parties | $157,495 | [1] | $140,920 | [1] |
Notes receivable - unrelated parties | 129,111 | [2],[3] | 128,068 | [2],[3] |
Total accounts and notes receivable- unrelated parties | 286,606 | 268,988 | ||
Less: allowance for doubtful accounts - unrelated parties | -1,424 | -1,349 | ||
Accounts and notes receivable, net - unrelated parties | 285,182 | 267,639 | ||
Accounts and notes receivable, net - related parties | 24,658 | 17,194 | ||
Accounts and notes receivable, net | $309,840 | $284,833 | ||
[1] | As of June 30, 2014 and December 31, 2013, the Company has pledged $11.9 million and $19.1 million, respectively, of accounts receivable as security for its comprehensive credit facility with banks in China. | |||
[2] | Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. | |||
[3] | As of June 30, 2014, Henglong collateralized its notes receivable in an amount of RMB 228.1 million (equivalent to approximately $37.1 million) as security for the credit facility with banks in China and the Chinese government, including RMB 197.1 million (equivalent to approximately $32.0 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,†for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau,†and RMB 31.0 million (equivalent to approximately $5.0 million) in favor of the Chinese government as security for the low-interest government loan (see Note 14). As of December 31, 2013, Henglong collateralized its notes receivable in an amount of RMB 196.3 million (equivalent to approximately $32.2 million) in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou,†for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 14) which is used as security for the non-revolving credit facility in the amount of $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau.†|
Accounts_and_notes_receivable_3
Accounts and notes receivable, net (Details Textual) | Jun. 30, 2014 | Dec. 31, 2013 | 22-May-13 | 22-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | CNY | Henglongs Collateralization [Member] | Henglongs Collateralization [Member] | Henglongs Collateralization [Member] | Henglongs Collateralization [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | ICBC Macau [Member] | ICBC Macau [Member] |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||
Financing Receivables [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Net | ' | ' | $32 | 197.1 | $37.10 | 228.1 | $32.20 | 196.3 | $32 | 197.1 | $5 | 31 |
Non Revolving Credit Facility | 30 | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable Pledged As Security Value | $11.90 | $19.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $14,465 | $12,185 |
Work in process | 13,256 | 8,079 |
Finished goods | 35,587 | 31,128 |
Total | $63,308 | $51,392 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Inventory [Line Items] | ' | ' |
Valuation Allowances and Reserves, Adjustments | $1.90 | $0.30 |
Other_receivables_net_Details
Other receivables, net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Unrelated Parties [Member] | ' | ' | ||
Other Receivables [Line Items] | ' | ' | ||
Other receivables | $507 | [1] | $314 | [1] |
Less: allowance for doubtful accounts | -66 | -62 | ||
Other receivables, net | 441 | 252 | ||
Related Parties [Member] | ' | ' | ||
Other Receivables [Line Items] | ' | ' | ||
Other receivables | 714 | [1] | 729 | [1] |
Less: allowance for doubtful accounts | -653 | -621 | ||
Other receivables, net | $61 | $108 | ||
[1] | Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans, with no stated interest rate or due date. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. |
Assets_held_for_sale_Details_T
Assets held for sale (Details Textual) (USD $) | 6 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Apr. 14, 2014 | |||
sqm | Jingzhou Land Reserve Center [Member] | Jingzhou Land Reserve Center [Member] | Jingzhou Land Reserve Center [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ||
Area of Land | 136,392 | ' | ' | ' | ' | ||
Land Available-for-sale | $13,000,000 | ' | ' | ' | ' | ||
Accounts Receivable, Gross | 157,495,000 | [1] | 140,920,000 | [1] | 1,900,000 | ' | ' |
Proceeds from Sale of Intangible Assets | ' | ' | 6,500,000 | 4,600,000 | ' | ||
Disposal Group, Including Discontinued Operation, Long Lived Assets | ' | ' | ' | ' | 8,400,000 | ||
Gain (Loss) on Disposition of Intangible Assets | $7,500,000 | ' | ' | ' | ' | ||
[1] | As of June 30, 2014 and December 31, 2013, the Company has pledged $11.9 million and $19.1 million, respectively, of accounts receivable as security for its comprehensive credit facility with banks in China. |
Long_term_investments_Details_
Long term investments (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 24, 2010 | |
Beijing Henglong Automotive System Co Ltd [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Long-term investments | $4,114,000 | ' | $4,114,000 | ' | $4,023,000 | ' |
Equity Method Investments | ' | ' | ' | ' | ' | 3,100,000 |
Equity in earnings of affiliated companies | $75,000 | $68,000 | $137,000 | $126,000 | ' | ' |
Property_plant_and_equipment_n2
Property, plant and equipment, net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | $179,995 | [1] | $169,913 | [1] |
Less: Accumulated depreciation | -96,297 | [2] | -89,895 | [2] |
Total amount of property, plant and equipment, net | 83,698 | [3] | 80,018 | [3] |
Land Use Rights and Buildings [Member] | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | 46,895 | 43,849 | ||
Machinery and Equipment [Member] | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | 114,549 | 110,322 | ||
Electronic Equipment [Member] | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | 7,517 | 7,414 | ||
Motor Vechicles [Member] | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | 4,058 | 3,195 | ||
Construction in Progress [Member] | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Total amount of property, plant and equipment | $6,976 | $5,133 | ||
[1] | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $3.7 million of property, plant and equipment, consisting of $3.4 million of land use rights and buildings, $0.2 million of machinery and equipment, and $0.1 million of motor vehicles, which are depreciated over a weighted average life of 43.0 years, 3.5 years, and 3.1 years, respectively. | |||
[2] | Depreciation charges were $4.0 million and $3.7 million for the three months ended June 30, 2014 and 2013, respectively, and $7.63 million and $7.13 million for the six months ended June 30, 2014 and 2013, respectively. | |||
[3] | As of June 30, 2014 and December 31, 2013, the Company had pledged property, plant and equipment with net book value of $51.0 million and $51.4 million, respectively, for its comprehensive credit facilities with banks in China. |
Property_plant_and_equipment_n3
Property, plant and equipment, net (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | |
Property, Plant and Equipment [Member] | Property, Plant and Equipment [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | |||||
Land and Building [Member] | Machinery and Equipment [Member] | Equipment [Member] | Vehicles [Member] | |||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | $3,694,000 | $3,700,000 | $3,400,000 | $200,000 | $0 | $100,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | ' | ' | '4 years 8 months 12 days | ' | '43 years | '3 years 6 months | ' | '3 years 1 month 6 days |
Depreciation, Nonproduction | 4,000,000 | 3,700,000 | 7,630,000 | 7,130,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value | ' | ' | ' | ' | $51,000,000 | $51,400,000 | ' | ' | ' | ' | ' | ' |
Intangible_assets_Details
Intangible assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Costs: | ' | ' | ||
Patent technology | $2,911 | $2,067 | ||
Management software license | 699 | 699 | ||
Total intangible assets | 3,610 | [1] | 2,766 | [1] |
Less: Amortization | -2,186 | [2] | -2,080 | [2] |
Total intangible assets, net | $1,424 | $686 | ||
[1] | Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $0.9 million of intangible assets, consisting of $0.9 million of patent technology and $nil of management software licenses, which are amortized over a weighted average life of 4.7 years and 1.1 years, respectively. | |||
[2] | Amortization expenses were $0.08 million and $0.04 million for the three months ended June 30, 2014 and 2013, respectively, and $0.12 million and $0.09 million for the six months ended June 30, 2014 and 2013, respectively. |
Intangible_assets_Details_Text
Intangible assets (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | |
Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | |||||
Patented Technology [Member] | Patented Technology [Member] | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | ' | $864,000 | ' | $900,000 | ' | $0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | '4 years 8 months 12 days | '4 years 8 months 12 days | ' | '1 year 1 month 6 days | ' |
Amortization of Intangible Assets | $80,000 | $40,000 | $120,000 | $90,000 | ' | ' | ' | ' | ' |
Deferred_income_tax_assets_Det
Deferred income tax assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred Tax Assets [Line Items] | ' | ' | ||
Losses carry forward (U.S.) | $6,946 | [1] | $6,825 | [1] |
Losses carry forward (PRC) | 2,150 | [1] | 1,838 | [1] |
Product warranties and other reserves | 4,408 | 4,207 | ||
Property, plant and equipment | 4,480 | 4,346 | ||
Share-based compensation | 297 | 296 | ||
Bonus accrual | 418 | 557 | ||
Other accruals | 721 | 850 | ||
Others | 1,070 | 1,103 | ||
Total deferred tax assets | 20,490 | 20,022 | ||
Less: taxable temporary difference related to revenue recognition | -586 | -793 | ||
Total deferred tax assets, net | 19,904 | 19,229 | ||
Less: Valuation allowance | -9,212 | -8,918 | ||
Total deferred tax assets, net of valuation allowance | $10,692 | [2] | $10,311 | [2] |
[1] | The net operating losses carry forward for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These losses will expire, if not utilized, in 20 years. Net operating losses carry forward for non-U.S. entities can be carried forward for 5 years to offset taxable income. However, as of June 30, 2014 and December 31, 2013, the valuation allowance was $9.2 million and $8.9 million, respectively, including $7.2 million and $7.3 million, respectively, allowance for the Company’s deferred tax assets in the United States and $2.0 million and $1.7 million, respectively, allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the non-U.S. deferred tax assets, pursuant to certain tax laws and regulations in China, the management believes such amount will not be used to offset future taxable income. | |||
[2] | Approximately $4.7 million and $4.5 million of net deferred income tax asset as of June 30, 2014 and December 31, 2013, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $6.0 million and $5.8 million of net deferred income tax assets as of June 30, 2014 and December 31, 2013, respectively, are included in current deferred tax assets. |
Deferred_income_tax_assets_Det1
Deferred income tax assets (Details Textual) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Deferred Tax Assets [Line Items] | ' | ' |
Deferred Tax Assets, Valuation Allowance | $9,212 | $8,918 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 4,660 | 4,528 |
Current deferred tax assets | 6,032 | 5,783 |
U.S [Member] | ' | ' |
Deferred Tax Assets [Line Items] | ' | ' |
Deferred Tax Assets, Valuation Allowance | 7,200 | 7,300 |
Amortizing Period Of Net Operating Loss | '20 years | ' |
Non U.S [Member] | ' | ' |
Deferred Tax Assets [Line Items] | ' | ' |
Deferred Tax Assets, Valuation Allowance | $2,000 | $1,700 |
Amortizing Period Of Net Operating Loss | '5 years | ' |
Bank_and_government_loans_net_1
Bank and government loans, net (Details) | 6 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | ||||||
USD ($) | USD ($) | China Construction Bank [Member] | China Construction Bank [Member] | ICBC Macau [Member] | ICBC Macau [Member] | Chinese government loan [Member] | Chinese government loan [Member] | Chinese government loan [Member] | Chinese government loan [Member] | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Short-term bank loan | ' | ' | $7,964 | [1],[2] | $7,381 | [1],[2] | $30,000 | [3] | $30,000 | [3] | $4,876 | [4] | $4,900 | 30,000 | $0 | [4] |
Subtotal | 42,840 | 37,381 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt issue cost | 0 | -57 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Amortization | 0 | 57 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Bank and government loans, net | $42,840 | $37,381 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | These loans are secured by property, plant and equipment of the Company and are repayable within one year (see Note 11). As of June 30, 2014 and December 31, 2013, the weighted average interest rate was 6.86% and 6.22% per annum, respectively. Interest is paid on the twentieth day of each month and the principal repayment is at maturity. | |||||||||||||||
[2] | On July 18, 2013, Jiulong entered into a one-year loan agreement with China Construction Bank Jingzhou branch in the amount of $1.6 million. The agreement contains certain financial and non-financial covenants, including but not limited to restrictions on the utilization of the funds and the maintenance of an asset-liability ratio not exceeding 60%. As of June 30, 2014, the asset-liability ratio of Jiulong was 53.4% and the Company was in compliance with these covenants at June 30, 2014. | |||||||||||||||
[3] | On May 18, 2012, the Company entered into a credit facility agreement, the “Credit Agreement,†with ICBC Macau to obtain a non-revolving credit facility in the amount of $30.0 million, the “Credit Facilityâ€. The Credit Facility would have expired on November 3, 2012 unless the Company drew down the line of credit in full prior to such expiration date, and the maturity date for the loan drawdown was the earlier of (i) 18 months from the drawdown or (ii) 1 month before the expiry of the standby letter of credit obtained by Henglong from ICBC Jingzhou as security for the Credit Facility, the “Henglong Standby Letter of Creditâ€. The interest rate of the Credit Facility is calculated based on a three-month LIBOR plus 2.25% per annum, subject to the availability of funds and fluctuation at ICBC Macau’s discretion. The interest is calculated daily based on a 360-day year and it is fixed one day before the first day of each interest period. The interest period is defined as three months from the date of drawdown. As security for the Credit Facility, the Company was required to provide ICBC Macau with the Henglong Standby Letter of Credit for a total amount not less than $31.6 million if the Credit Facility is fully drawn.On May 22, 2012, the Company drew down the full amount of $30.0 million under the Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $31.6 million in favor of ICBC Macau. The Henglong Standby Letter of Credit issued by ICBC Jingzhou is collateralized by Henglong’s notes receivable of RMB 197.1 million (equivalent to approximately $32.0 million). The Company also paid an arrangement fee of $0.1 million to ICBC Macau and $0.1 million to ICBC Jingzhou. The original maturity date of the Credit Facility was May 22, 2013.On May 7, 2013, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2014. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.0% per annum, Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. On May 13, 2014, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 12, 2015. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 2.55% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of June 30, 2014, the interest rate of the Credit Facility was 2.78% per annum. | |||||||||||||||
[4] | On March 28, 2014, the Company received a Chinese government loan of RMB 30.0 million (equivalent to approximately $4.9 million), with an interest rate of 3% per annum, that will mature on March 15, 2015. Henglong has pledged RMB 31.0 million (equivalent to approximately $5.0 million) of notes receivable as security for such government loan (see Note 6). |
Bank_and_government_loans_net_2
Bank and government loans, net (Details Textual) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||||
13-May-14 | 7-May-13 | 18-May-12 | Jun. 30, 2014 | Dec. 31, 2013 | 22-May-13 | 22-May-13 | 22-May-13 | 18-May-12 | 22-May-13 | Jul. 18, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | |||
USD ($) | USD ($) | USD ($) | CNY | Industrial and Commercial Bank Of China Macau [Member] | Industrial and Commercial Bank Of China Macau [Member] | Industrial and Commercial Bank Of China Jingzhou Branch [Member] | China Construction Bank Jingzhou Branch [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Chinese government loan [Member] | Chinese government loan [Member] | Chinese government loan [Member] | Chinese government loan [Member] | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Short-term Debt, Weighted Average Interest Rate | ' | ' | ' | 6.86% | 6.22% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Short-term Non-bank Loans and Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | ' | ' | ' | ' | ' | ||
Non Revolving Credit Facility | ' | ' | ' | 30,000,000 | 30,000,000 | 30,000,000 | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Description | 'LIBOR plus 2.55% per annum | 'LIBOR plus 2.0% per annum | 'LIBOR plus 2.25% per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | 2.78% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Net | ' | ' | ' | ' | ' | 32,000,000 | 197,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Arrangement Fee | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ||
Asset Liability Ratio | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | 53.40% | ' | ' | ' | ' | ||
Line of Credit, Current | ' | ' | ' | ' | ' | ' | ' | 31,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Maturity Date | ' | ' | ' | 15-Mar-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Short-term Debt, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,876,000 | [1] | 4,900,000 | 30,000,000 | 0 | [1] |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ||
Notes, Loans and Financing Receivable, Net, Current, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | 31,000,000 | ' | ||
[1] | On March 28, 2014, the Company received a Chinese government loan of RMB 30.0 million (equivalent to approximately $4.9 million), with an interest rate of 3% per annum, that will mature on March 15, 2015. Henglong has pledged RMB 31.0 million (equivalent to approximately $5.0 million) of notes receivable as security for such government loan (see Note 6). |
Accounts_and_notes_payable_Det
Accounts and notes payable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts And Notes Payable [Line Items] | ' | ' | ||
Accounts payable - unrelated parties | $137,471 | $120,202 | ||
Notes payable - unrelated parties | 70,418 | [1] | 78,217 | [1] |
Total accounts and notes payable - unrelated parties | 207,889 | 198,419 | ||
Total accounts and notes payable - related parties | 4,921 | 4,634 | ||
Total accounts and notes payable | $212,810 | $203,053 | ||
[1] | Notes payable represent accounts payable in the form of bills of exchange whose acceptances are guaranteed and settlements are handled by banks. The Company has pledged cash deposits, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. |
Accrued_expenses_and_other_pay2
Accrued expenses and other payables (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses [Line Items] | ' | ' | ||
Accrued expenses | $4,492 | $4,980 | ||
Accrued interest | 112 | 85 | ||
Other payables | 2,204 | 1,858 | ||
Warranty reserves | 23,986 | [1] | 22,104 | [1] |
Total | 43,968 | 29,062 | ||
Dividends payable to common shareholders | 5,047 | [2] | 0 | [2] |
Dividends payable to non-controlling interests | $8,127 | [3] | $35 | [3] |
[1] | The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties were based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. | |||
[2] | On May 27, 2014, the Company announced the payment of a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. | |||
[3] | In accordance with the resolution of the board of directors of Henglong, in June 2014, Henglong declared a dividend amounting to $40.6 million to its shareholders, of which $8.1 million was payable to the holder of the non-controlling interests. |
Accrued_expenses_and_other_pay3
Accrued expenses and other payables (Details 1) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accrued Expenses [Line Items] | ' | ' | ' |
Balance at beginning of the period | $22,104 | $18,081 | $18,081 |
Additions during the period | 5,055 | 5,637 | 12,707 |
Settlement within period, by cash or actual material | -2,972 | -4,013 | -9,244 |
Foreign currency translation gain (loss) | -201 | 313 | 560 |
Balance at end of the period | $23,986 | $20,018 | $22,104 |
Accrued_expenses_and_other_pay4
Accrued expenses and other payables (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Accrued Expenses [Line Items] | ' |
Dividends, Common Stock, Cash | $0.18 |
Dividend Payable To Non Controlling Interest | 8,100,000 |
Dividends Payable | $40,600,000 |
Taxes_payable_Details
Taxes payable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Taxes Payable [Line Items] | ' | ' |
Value-added tax payable | $4,007 | $5,494 |
Income tax payable | 3,904 | 1,841 |
Other tax payable | 376 | 457 |
Total | $8,287 | $7,792 |
Advances_payable_Details_Textu
Advances payable (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Advance Payable [Line Items] | ' | ' |
Advances payable | $2.90 | $2.80 |
Additional_paidin_capital_Deta
Additional paid-in capital (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Schedule Of Additional Paid In Capital [Line Items] | ' | ' | ' | |||
Balance at beginning of the period | $39,565 | $39,371 | $39,371 | |||
Share-based compensation | 0 | 0 | 194 | |||
Return of common shareholders’ investment cost | -5,047 | [1] | 0 | [1] | 0 | [1] |
Balance at end of the period | $34,518 | $39,371 | $39,565 | |||
[1] | On May 27, 2014, the Company announced a special cash dividend of $0.18 per common share to the Company’s shareholders of record as of the close of business on June 26, 2014. As China Automotive Systems, the parent company, had an accumulated deficit position as of the date of the dividend declaration, the dividends distributed to the Company’s common shareholders described above are treated as a return of common shareholders’ investment cost. |
Additional_paidin_capital_Deta1
Additional paid-in capital (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Schedule Of Additional Paid In Capital [Line Items] | ' |
Dividends, Common Stock, Cash | $0.18 |
Retained_earnings_Details
Retained earnings (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Retained Earnings, Appropriated [Member] | Retained Earnings, Appropriated [Member] | Retained Earnings, Appropriated [Member] | Retained Earnings, Unappropriated [Member] | Retained Earnings, Unappropriated [Member] | Retained Earnings, Unappropriated [Member] | |||||
Retained Earnings Adjustments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | $146,023 | ' | $10,048 | $9,953 | $9,953 | $146,023 | $119,329 | $119,329 |
Net income attributable to parent company | 11,006 | 4,981 | 17,781 | 10,921 | ' | ' | ' | 17,781 | 10,921 | 26,789 |
Appropriation of retained earnings | ' | ' | ' | ' | 130 | 95 | 95 | -130 | -95 | -95 |
Balance at end of the period | $163,674 | ' | $163,674 | ' | $10,178 | $10,048 | $10,048 | $163,674 | $130,155 | $146,023 |
Retained_Earnings_Details_Text
Retained Earnings (Details Textual) | 6 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Universal Sensor Application Inc [Member] | Wuhan Jielong Electric Power Steering Co Ltd [Member] | Wuhu Henglong Auto Steering System Co Ltd [Member] | Wuhu Henglong Auto Steering System Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | ||
USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | ||
Retained Earnings Adjustments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory Accounting Practices Statutory Surplus Required Percentage | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory Accounting Practices, Statutory Capital and Surplus Required | ' | $10 | $4.20 | 35 | $8.10 | 67.5 | $2.60 | $6 | $3.80 | 30 | $39 | $9.50 | 60 |
Percentage Of Statutory Surplus Reserve | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance at beginning of the period | $32,061 | $25,898 | $25,898 |
Foreign currency translation adjustment attributable to parent company | -2,017 | 3,361 | 6,163 |
Balance at end of the period | $30,044 | $29,259 | $32,061 |
Noncontrolling_interests_Detai
Non-controlling interests (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Noncontrolling Interests Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Balance at beginning of the period | ' | ' | $45,071 | $38,846 | $38,846 | |||
Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong | ' | ' | 2,793 | [1] | 0 | [1] | 0 | [1] |
Income attributable to non-controlling interests | 2,580 | 1,225 | 4,116 | 2,811 | 6,276 | |||
Dividends declared to the non-controlling interest holders of joint-venture companies | ' | ' | -10,077 | -405 | -1,299 | |||
Foreign currency translation adjustment attributable to non-controlling interests | ' | ' | -405 | 687 | 1,248 | |||
Balance at end of the period | $41,498 | $41,939 | $41,498 | $41,939 | $45,071 | |||
[1] | In the second quarter of 2014, the Company acquired a 51.0% equity interest in Fujian Qiaolong (see Note 3). The fair value of the non-controlling interest of Fujian Qiaolong is $2.8 million. |
Noncontrolling_interests_Detai1
Non-controlling interests (Details Textual) (USD $) | 6 Months Ended | 1 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Apr. 30, 2014 |
Fujian Qiaolong [Member] | ||
Noncontrolling Interests Disclosure [Line Items] | ' | ' |
Ownership Interest Percentage | ' | 51.00% |
Noncontrolling Interest Increase Decrease from Business Combination Fair Value | $2,800 | ' |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ' |
Gain_on_other_sales_Details_Te
Gain on other sales (Details Textual) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Gain on other sales disclosure [Line Items] | ' | ' |
Gain (Loss) on Disposition of Other Assets | $9.10 | $1.70 |
Selling Price Of Land Use Right And Plant | 8.4 | ' |
Net Book Value Of Land Use Right And Plant | 0.9 | ' |
Gain On Sale Of Idle Use Right And Plant Before Tax | 7.5 | ' |
Increase (Decrease) in Operating Assets | $7.40 | ' |
Financial_income_expenses_net_1
Financial (income) expenses, net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Financial Expenses [Line Items] | ' | ' | ' | ' |
Interest expense | $546 | $582 | $824 | $1,005 |
Interest income | -496 | -698 | -1,253 | -1,155 |
Foreign exchange gain, net | -196 | -21 | -1 | 47 |
Loss (gain) of cash discount, net | -3 | 5 | -62 | 12 |
Bank fees | 177 | 240 | 306 | 400 |
Total financial (income) expense, net | $28 | $108 | ($186) | $309 |
Income_tax_rate_Details_Textua
Income tax rate (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 2 Months Ended | 6 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2008 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 |
USD ($) | BRL | USD ($) | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Shashi Jiulong Power Steering Gears Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Wuhan Jielong Electric Power Steering Co Ltd [Member] | Wuhan Jielong Electric Power Steering Co Ltd [Member] | Wuhan Jielong Electric Power Steering Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Hubei Henglong Automotive System Group Co Ltd [Member] | Universal Sensor Application Inc [Member] | Universal Sensor Application Inc [Member] | Universal Sensor Application Inc [Member] | Universal Sensor Application Inc [Member] | Universal Sensor Application Inc [Member] | Hong Kong Enterprise [Member] | Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | CAAS Brazils Imports and Trade In Automotive Parts Ltd [Member] | United States [Member] | United States [Member] | Fujian Qiaolong Acquisition [Member] | Fujian Qiaolong Acquisition [Member] | |||||
2015 [Member] | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax rate | ' | ' | ' | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' |
Withholding Tax Percentage Applicable To Foreign Investors As Non Resident Enterprises | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Withholding Tax Percentage Applicable To Foreign Investors To Direct Holding Company | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Owned In Holding Company To Avail Withholding Tax Of Five Percent | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Foreign Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.50 | $1.40 | ' | ' |
Deferred State and Local Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.07 | 0.07 | ' | ' |
Undistributed Earnings, Basic | ' | ' | ' | 176.5 | ' | ' | 158.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Provision On Retained Earning Not Reinvested | ' | ' | ' | 8.8 | ' | ' | 7.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | ' | ' | ' | 15.00% | 15.00% | ' | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 12.50% | 12.50% | 12.50% | 25.00% | 25.00% | 25.00% | 12.50% | 12.50% | 16.50% | 25.00% | 15.00% | ' | ' | 15.00% | 15.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Additional Tax Payable Subject To Residential Status | ' | ' | ' | $0.12 | 0.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase In Income Tax Expense Benefit Percentage | ' | 18.80% | 20.40% | 19.00% | 19.00% | 19.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_per_share_Details
Income per share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income attributable to the parent company’s common shareholders - Basic and Diluted | $11,006 | $4,981 | $17,781 | $10,921 |
Denominator: | ' | ' | ' | ' |
Weighted average shares outstanding (in shares) | 28,043,019 | 28,043,019 | 28,043,019 | 28,043,019 |
Dilutive effects of stock options (in shares) | 21,357 | 5,770 | 20,920 | 6,844 |
Denominator for dilutive income per share - Diluted (in shares) | 28,064,376 | 28,048,789 | 28,063,939 | 28,049,863 |
Net income per share attributable to parent company's common shareholders - Basic (in dollars per share) | $0.39 | $0.18 | $0.63 | $0.39 |
Net income per share attributable to parent company's common shareholders - Diluted (in dollars per share) | $0.39 | $0.18 | $0.63 | $0.39 |
Income_per_share_Details_Textu
Income per share (Details Textual) (Equity Option [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Equity Option [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic and Diluted [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 60,000 | 45,000 | 60,000 | 45,000 |
Significant_concentrations_Det
Significant concentrations (Details Textual) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Minimum Percentage Of Profit Allocated To Foreign Investment | 10.00% | ' |
Registered Capital Percentage | 50.00% | ' |
Ten Largest Customers [Member] | ' | ' |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Concentration Risk, Percentage | 68.70% | 74.00% |
Customer One [Member] | ' | ' |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Accounts Receivable Trade Percentage | 4.90% | 6.40% |
Concentration Risk, Percentage | 11.60% | ' |
Customer Two [Member] | ' | ' |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Accounts Receivable Trade Percentage | 12.30% | 11.90% |
Concentration Risk, Percentage | 10.00% | 11.50% |
Customer Three [Member] | ' | ' |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Accounts Receivable Trade Percentage | ' | 12.40% |
Customers One And Two [Member] | ' | ' |
Unusual Risk or Uncertainty [Line Items] | ' | ' |
Accounts Receivable Trade Percentage | ' | 10.00% |
Concentration Risk, Percentage | 10.00% | 10.00% |
Related_party_transactions_and2
Related party transactions and balances (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related sales | ' | ' | ' | ' | ' |
Merchandise Sold to Related Parties | $14,928 | $9,035 | ' | ' | ' |
Related purchases | ' | ' | ' | ' | ' |
Related parties | 7,869 | 7,478 | 16,070 | 14,571 | ' |
Related Loans | ' | ' | ' | ' | ' |
Loan to related parties | 0 | 686 | 0 | 686 | ' |
Related receivables | ' | ' | ' | ' | ' |
Accounts receivable | 24,658 | ' | 24,658 | ' | 17,194 |
Other receivables | 61 | ' | 61 | ' | 108 |
Total | 24,719 | ' | 24,719 | ' | 17,302 |
Related advances | ' | ' | ' | ' | ' |
Advance equipment payment to related parties | 1,522 | ' | 1,522 | ' | 2,097 |
Advance payments and others to related parties | 625 | ' | 625 | ' | 866 |
Total | 2,147 | ' | 2,147 | ' | 2,963 |
Related payables | ' | ' | ' | ' | ' |
Accounts payable | 4,921 | ' | 4,921 | ' | 4,634 |
Technology Equipment [Member] | ' | ' | ' | ' | ' |
Related purchases | ' | ' | ' | ' | ' |
Related parties | 72 | 421 | 164 | 517 | ' |
Equipment [Member] | ' | ' | ' | ' | ' |
Related purchases | ' | ' | ' | ' | ' |
Related parties | 336 | 1,051 | 1,254 | 1,383 | ' |
Materials [Member] | ' | ' | ' | ' | ' |
Related purchases | ' | ' | ' | ' | ' |
Related parties | 7,461 | 6,006 | 14,652 | 12,671 | ' |
Mechandise [Member] | ' | ' | ' | ' | ' |
Related sales | ' | ' | ' | ' | ' |
Merchandise Sold to Related Parties | 14,928 | 9,035 | 26,738 | 17,178 | ' |
Accounts Receivable [Member] | ' | ' | ' | ' | ' |
Related receivables | ' | ' | ' | ' | ' |
Accounts receivable | 24,658 | ' | 24,658 | ' | 17,194 |
Other Receivables [Member] | ' | ' | ' | ' | ' |
Related receivables | ' | ' | ' | ' | ' |
Other receivables | $61 | ' | $61 | ' | $108 |
Related_party_transactions_and3
Related party transactions and balances (Details Textual) | Jun. 30, 2013 | Jun. 30, 2013 | Aug. 13, 2014 |
In Millions, unless otherwise specified | USD ($) | CNY | Hanlin Chen [Member] |
Scenario, Forecast [Member] | |||
Subsequent Event [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 63.65% |
Due from Related Parties, Current | $0.70 | 4.3 | ' |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Line Items] | ' | |
2014 | $5,113 | [1] |
2015 | 4,528 | |
2016 | 0 | |
2017 | 0 | |
Thereafter | 0 | |
Total | 9,641 | |
Interest on short-term bank loan [Member] | ' | |
Commitments and Contingencies Disclosure [Line Items] | ' | |
2014 | 643 | [1] |
2015 | 331 | |
2016 | 0 | |
2017 | 0 | |
Thereafter | 0 | |
Total | 974 | |
Obligations for purchasing agreements [Member] | ' | |
Commitments and Contingencies Disclosure [Line Items] | ' | |
2014 | 4,470 | [1] |
2015 | 4,197 | |
2016 | 0 | |
2017 | 0 | |
Thereafter | 0 | |
Total | $8,667 | |
[1] | Remaining 6 months in 2014 |
Segment_reporting_Details
Segment reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | $115,476 | $97,889 | $229,782 | $195,052 | ||
Net Income (Loss) | 13,586 | 6,206 | 21,897 | 13,732 | ||
Henglong [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 71,665 | 57,829 | 143,085 | 121,990 | ||
Net Income (Loss) | 11,799 | 5,071 | 17,533 | 11,384 | ||
Jiulong [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 20,155 | 21,019 | 41,789 | 40,043 | ||
Net Income (Loss) | 399 | 615 | 1,582 | 1,237 | ||
Shenyang [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 12,043 | 10,202 | 23,940 | 19,069 | ||
Net Income (Loss) | 506 | 227 | 762 | 516 | ||
Wuhu [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 5,857 | 5,689 | 12,404 | 12,165 | ||
Net Income (Loss) | -35 | -10 | -79 | -167 | ||
Hubei Henglong [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 13,684 | 12,422 | 27,283 | 22,827 | ||
Net Income (Loss) | 42,106 | [1] | 719 | 43,402 | [1] | 1,458 |
Other Sector [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 11,372 | 7,723 | 20,323 | 17,308 | ||
Net Income (Loss) | 406 | 828 | 995 | 894 | ||
Total Segments [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 134,776 | 114,884 | 268,824 | 233,402 | ||
Net Income (Loss) | 55,181 | 7,450 | 64,195 | 15,322 | ||
Corporate [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | 0 | 0 | 0 | 0 | ||
Net Income (Loss) | -1,188 | -1,069 | -2,023 | -2,511 | ||
Eliminations [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net Product Sales | -19,300 | -16,995 | -39,042 | -38,350 | ||
Net Income (Loss) | ($40,407) | ($175) | ($40,275) | $921 | ||
[1] | $40.3 million included in the amount of net income is attributable to the dividend from Henglong, which has been eliminated at the consolidation level. |
Segment_reporting_Details_Text
Segment reporting (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Sales Revenue, Net [Member] | Zhejiang Henglong and Vie Pump Manu Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | Jingzhou Henglong Automotive Parts Co Ltd [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Investment Income, Net | ' | ' | ' | $40.30 | $40.30 |
Concentration Risk, Percentage | ' | 10.00% | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ' | 51.00% | ' | ' |
Subsequent_events_Details_Text
Subsequent events (Details Textual) (Subsequent Event [Member], USD $) | 0 Months Ended |
Aug. 11, 2014 | |
Henglong [Member] | ' |
Subsequent Event [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $3,260,000 |
Jiulong [Member] | ' |
Subsequent Event [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 19.00% |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 818,000 |
Jingzhou City Jiulong Machinery Electricity Manufacturing Co Ltd [Member] | ' |
Subsequent Event [Line Items] | ' |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $4,078,000 |