Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CHINA AUTOMOTIVE SYSTEMS INC | |
Entity Central Index Key | 1,157,762 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | CAAS | |
Entity Common Stock, Shares Outstanding | 32,121,019 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net product sales | $ 90,845 | $ 101,735 | $ 323,455 | $ 331,517 |
Cost of products sold | 74,933 | 81,152 | 264,080 | 268,013 |
Gross profit | 15,912 | 20,583 | 59,375 | 63,504 |
Gain on other sales | 877 | 1,132 | 3,248 | 10,267 |
Less: Operating expenses | ||||
Selling expenses | 3,319 | 3,734 | 10,989 | 11,104 |
General and administrative expenses | 3,080 | 3,734 | 11,316 | 11,056 |
Research and development expenses | 5,440 | 5,441 | 17,746 | 16,509 |
Total operating expenses | 11,839 | 12,909 | 40,051 | 38,669 |
Income from operations | 4,950 | 8,806 | 22,572 | 35,102 |
Other income, net | 221 | 113 | 587 | 491 |
Interest expense | (501) | (728) | (1,040) | (1,552) |
Financial income, net | 556 | 1,140 | 2,018 | 2,150 |
Income before income tax expenses and equity in earnings of affiliated companies | 5,226 | 9,331 | 24,137 | 36,191 |
Less: Income taxes | 945 | 1,387 | 4,001 | 6,488 |
Equity in earnings of affiliated companies | 100 | 82 | 264 | 220 |
Net income | 4,381 | 8,026 | 20,400 | 29,923 |
Net (loss) income attributable to non-controlling interests | 93 | 1,293 | (56) | 5,409 |
Net income attributable to parent company’s common shareholders | 4,288 | 6,733 | 20,456 | 24,514 |
Comprehensive income: | ||||
Net income | 4,381 | 8,026 | 20,400 | 29,923 |
Other comprehensive income: | ||||
Foreign currency translation (loss) gain, net of tax | (12,477) | 9 | (12,316) | (2,413) |
Comprehensive (loss) income | (8,096) | 8,035 | 8,084 | 27,510 |
Comprehensive (loss) income attributable to non-controlling interests | (483) | 1,293 | (649) | 5,006 |
Comprehensive (loss) income attributable to parent company | $ (7,613) | $ 6,742 | $ 8,733 | $ 22,504 |
Net income attributable to parent company’s common shareholders per share | ||||
Basic - (in dollars per share) | $ 0.13 | $ 0.24 | $ 0.64 | $ 0.87 |
Diluted- (in dollars per share) | $ 0.13 | $ 0.24 | $ 0.64 | $ 0.87 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 32,121,019 | 28,043,019 | 32,121,019 | 28,043,019 |
Diluted (in shares) | 32,134,839 | 28,063,661 | 32,136,003 | 28,063,846 |
Condensed Unaudited Consolidat3
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income [Parenthetical] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from Related Parties | $ 8,137,000 | $ 11,890,000 | $ 28,076,000 | $ 38,627,000 |
Related Party Costs | $ 5,721 | $ 6,069 | $ 18,359,000 | $ 20,721,000 |
Condensed Unaudited Consolidat4
Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 76,064 | $ 68,505 | |
Pledged cash deposits | 29,675 | 33,633 | |
Short-term investments | 26,801 | 41,017 | |
Accounts and notes receivable, net - unrelated parties | 242,510 | 282,348 | |
Accounts and notes receivable, net - related parties | 31,423 | 22,760 | |
Advance payments and others - unrelated parties | 3,673 | 2,124 | |
Advance payments and others - related parties | 812 | 741 | |
Inventories | 67,067 | 64,419 | |
Current deferred tax assets | 7,244 | 7,078 | |
Total current assets | 485,269 | 522,625 | |
Non-current assets: | |||
Property, plant and equipment, net | [1] | 76,012 | 82,466 |
Intangible assets, net | 2,973 | 3,419 | |
Other receivables, net - unrelated parties | 3,585 | 1,619 | |
Other receivables, net - related parties | 3 | 76 | |
Advance payment for property, plant and equipment - unrelated parties | 13,658 | 6,755 | |
Advance payment for property, plant and equipment - related parties | 6,185 | 2,085 | |
Long-term investments | 6,203 | 4,575 | |
Goodwill | 621 | 645 | |
Non-current deferred tax assets | 5,388 | 4,896 | |
Total assets | 599,897 | 629,161 | |
Current liabilities: | |||
Bank and government loans | 44,982 | 43,988 | |
Accounts and notes payable - unrelated parties | 186,286 | 213,090 | |
Accounts and notes payable - related parties | 6,233 | 4,857 | |
Customer deposits | 1,477 | 1,885 | |
Accrued payroll and related costs | 6,259 | 7,554 | |
Accrued expenses and other payables | 33,835 | 35,429 | |
Accrued pension costs | 4,535 | 5,586 | |
Taxes payable | 7,580 | 11,557 | |
Amounts due to shareholders/directors | 358 | 380 | |
Current deferred tax liabilities | 177 | 189 | |
Total current liabilities | 291,722 | 324,515 | |
Long-term liabilities: | |||
Advances payable | 1,960 | 6,156 | |
Non-current deferred tax liabilities | 280 | 321 | |
Total liabilities | $ 293,962 | $ 330,992 | |
Commitments and Contingencies (See Note 29) | |||
Stockholders’ equity: | |||
Common stock, $0.0001 par value - Authorized - 80,000,000 shares; Issued - 32,338,302 and 32,338,302 shares as of September 30, 2015 and December 31, 2014, respectively | $ 3 | $ 3 | |
Additional paid-in capital | 64,522 | 64,522 | |
Retained earnings- | |||
Appropriated | 10,349 | 10,178 | |
Unappropriated | 199,720 | 179,435 | |
Accumulated other comprehensive income | 24,396 | 36,119 | |
Treasury stock - 217,283 and 217,283 shares as of September 30, 2015 and December 31, 2014, respectively | (1,000) | (1,000) | |
Total parent company stockholders' equity | 297,990 | 289,257 | |
Non-controlling interests | 7,945 | 8,912 | |
Total stockholders' equity | 305,935 | 298,169 | |
Total liabilities and stockholders' equity | $ 599,897 | $ 629,161 | |
[1] | As of September 30, 2015 and December 31, 2014, the Company had pledged property, plant and equipment with net book value of $41.0 million and $45.5 million, respectively, for its comprehensive credit facilities with banks in China. |
Condensed Unaudited Consolidat5
Condensed Unaudited Consolidated Balance Sheets [Parenthetical] - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 32,338,302 | 32,338,302 |
Treasury stock, shares | 217,283 | 217,283 |
Condensed Unaudited Consolidat6
Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 20,400 | $ 29,923 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Stock-based compensation | 0 | 193 |
Depreciation and amortization | 11,509 | 11,592 |
Increase (decrease) in allowance for doubtful accounts | (124) | 177 |
Inventory write downs | 1,522 | 2,531 |
Deferred income taxes | (1,180) | (907) |
Equity in earnings of affiliated companies | (236) | (182) |
Loss (gain) on disposal of fixed assets | 2 | (7,500) |
(Increase) decrease in: | ||
Pledged deposits | 2,696 | 1,953 |
Accounts and notes receivable | 19,801 | (19,173) |
Advance payments and others | (1,741) | 328 |
Inventories | (6,723) | (17,449) |
Increase (decrease) in: | ||
Accounts and notes payable | (17,021) | 2,363 |
Customer deposits | (381) | 1,313 |
Accrued payroll and related costs | (1,068) | (423) |
Accrued expenses and other payables | 1,109 | 597 |
Accrued pension costs | (842) | 1,460 |
Taxes payable | (3,671) | 1,257 |
Advances payable | 0 | 8 |
Net cash provided by operating activities | 24,052 | 8,061 |
Cash flows from investing activities: | ||
Increase in other receivables | (1,965) | (347) |
Cash received from property, plant and equipment sales | 573 | 6,994 |
Payments to acquire property, plant and equipment | (24,077) | (11,317) |
Payments to acquire intangible assets | (947) | (252) |
Purchase of short-term investments | (12,264) | (46,192) |
Proceeds from maturities of short-term investments | 25,038 | 38,115 |
Acquisition of Fujian Qiaolong, net of cash acquired | 0 | (2,976) |
Investment under cost method | (1,636) | 0 |
Net cash used in investing activities | (15,278) | (15,975) |
Cash flows from financing activities: | ||
Proceeds from government and bank loan | 11,420 | 15,836 |
Repayments of bank loan | (8,685) | (9,590) |
Dividends paid to the non-controlling interest holders | (1,121) | (6,048) |
Dividends paid to the holders of the Company’s common stock | 0 | (4,291) |
Increase (decrease) in amounts due to shareholders/directors | (252) | 69 |
Net cash provided by (used in) financing activities | 1,362 | (4,024) |
Effects of exchange rates on cash and cash equivalents | (2,577) | (472) |
Net increase (decrease) in cash and cash equivalents | 7,559 | (12,410) |
Cash and cash equivalents at beginning of period | 68,505 | 53,979 |
Cash and cash equivalents at end of period | 76,064 | 41,569 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 1,477 | 893 |
Cash paid for income taxes | 7,554 | 3,459 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Advance payments for acquiring property, plant and equipment | 8,456 | 6,303 |
Dividends payable to non-controlling interest holders | 318 | 4,063 |
Accounts payable for acquiring property, plant and equipment | 292 | 0 |
Non-controlling interests arising as a result of acquisition of Fujian Qiaolong | 0 | 2,793 |
Payables for the acquisition of non-controlling interests in Henglong and Jiulong | 0 | 37,314 |
Accounts receivable for the sale of land use rights | 0 | 1,890 |
Dividends payable to the Company’s shareholders | 0 | 757 |
Dividends receivable from joint venture company | $ 0 | $ 508 |
Organization and business
Organization and business | 9 Months Ended |
Sep. 30, 2015 | |
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. Percentage Interest September 30, December 31, Name of Entity 2015 2014 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 100.00 % 100.00 % Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 70.00 % 70.00 % Universal Sensor Application Inc., “USAI” 4 83.34 % 83.34 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 5 85.00 % 85.00 % Wuhu HengLong Automotive Steering System Co., Ltd., “Wuhu” 6 77.33 % 77.33 % Hubei Henglong Automotive System Group Co., Ltd, “Hubei Henglong” 7 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Beijing Henglong Automotive System Co., Ltd., “Beijing Henglong” 9 50.00 % 50.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 70.00 % 70.00 % CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 11 80.00 % 80.00 % Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 51.00 % 51.00 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 13 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong” 14 100.00 % - 1. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears 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 automotive steering columns. 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. Beijing Henglong was established in 2010 and mainly engages in the design, development and manufacture of both hydraulic and electric power steering systems and parts. 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 by the equity accounting 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. 13. In May 2014, together with Hubei Wanlong, Jielong formed a subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in research and development, manufacture and sales of automobile electronic systems and parts. Wuhan Chuguanjie is located in Wuhan, China. The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. Jielong has completed the capital injection of RMB30.0 million, equivalent to approximately $4.9 million. 14. In January 2015, Hubei Henglong formed Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong”, which mainly engages in the design and sales of automotive electronics. The registered capital of Shanghai Henglong was RMB3.0 million, equivalent to approximately $0.5 million. Hubei Henglong has completed the capital injection of RMB3.0 million, equivalent to approximately $0.5 million. On September 22, 2014, Hubei Henglong entered into an agreement with seven other parties to establish a venture capital fund, the “Venture Fund”, which mainly focuses on investments in emerging automobiles and parts industries. Total share capital of the Venture Fund is RMB 280.0 17.9 50.0 8.1 5.0 0.8 10.0 1.6 |
Basis of presentation and signi
Basis of presentation and significant accounting policies | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014. 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, 2014 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 2014 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. The results of operations for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2015. 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 May 2014, the 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, 2017, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2016, including interim periods within that reporting period. 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 the Company’s ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-3, "Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For the Company, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The new guidance will be applied on a retrospective basis and early adoption is permitted. The Company is in the process of evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (“ASU 2015-11”) which applies to inventory that is measured using the first-in, first-out ("FIFO") or average cost method. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using the last-in, first-out ("LIFO") method. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company expects that the adoption of this guidance will not have a material effect on its financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. This standard is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016. Early adoption is permitted as of annual reporting periods beginning after December 15, 2015, including interim reporting periods within those annual periods. The Company expects that the adoption of this guidance will not have a material effect on its financial statements. (c) Significant Accounting Policies There have been no updates to the significant accounting policies set forth in the notes to the consolidated financial statements for the year ended December 31, 2014. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. Acquisition In the second quarter of 2014, the Company acquired a 51.0 3.0 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 Company $ 13,728 Liabilities Current liabilities, excluding current deferred tax liabilities (7,352) Deferred tax liabilities (448) Other liabilities (128) Total liabilities consolidated into the Company (7,928) Non-controlling interests at fair value (2,793) Total equity consolidated into the Company $ (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 |
Pledged cash deposits
Pledged cash deposits | 9 Months Ended |
Sep. 30, 2015 | |
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, generally equivalent to 30 100 |
Short-term investments
Short-term investments | 9 Months Ended |
Sep. 30, 2015 | |
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. As of September 30, 2015, the Company had pledged short-term investments of RMB 33.0 million, equivalent to approximately $ 5.4 15.0 2.4 , respectively, to secure loans under the credit facility issued by HSBC Bank (China) Company Limited Hong Kong branch, “HSBC HK” (see Note 14), and notes payable under Hubei Bank, and the use of the pledged short-term investments is restricted. |
Accounts and notes receivable,
Accounts and notes receivable, net | 9 Months Ended |
Sep. 30, 2015 | |
Accounts and Notes Receivable Disclosure [Abstract] | |
Accounts and Notes Receivable Disclosure [Text Block] | 6. Accounts and notes receivable, net September 30, 2015 December 31, 2014 Accounts receivable - unrelated parties (1) $ 117,129 $ 137,165 Notes receivable - unrelated parties (2) (3) 126,615 146,597 Total accounts and notes receivable- unrelated parties 243,744 283,762 Less: allowance for doubtful accounts - unrelated parties (1,234) (1,414) Accounts and notes receivable, net - unrelated parties 242,510 282,348 Accounts and notes receivable, net - related parties 31,423 22,760 Accounts and notes receivable, net $ 273,933 $ 305,108 (1) As of September 30, 2015 and December 31, 2014, the Company has pledged $ 33.0 34.3 (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 September 30, 2015, Henglong collateralized its notes receivable in an amount of RMB 232.6 36.6 207.1 32.6 30.0 25.5 4.0 As of December 31, 2014, Henglong collateralized its notes receivable in an amount of RMB 232.5 38.0 201.8 33.0 30.0 30.7 5.0 |
Payment to customer
Payment to customer | 9 Months Ended |
Sep. 30, 2015 | |
Payment To Customer [Abstract] | |
Payment To Customer [Text Block] | 7. Payment to customer In the first quarter of 2015, the Company made 2.4 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 8. Inventories The Company’s inventories as of September 30, 2015 and December 31, 2014 consisted of the following (figures are in thousands of USD): September 30, 2015 December 31, 2014 Raw materials $ 15,060 $ 15,842 Work in process 13,468 11,849 Finished goods 38,539 36,728 Total $ 67,067 $ 64,419 Provision for inventories amounted to $ 1.5 2.5 |
Other receivables, net
Other receivables, net | 9 Months Ended |
Sep. 30, 2015 | |
Other Receivables Disclosure [Abstract] | |
Other Receivables Disclosure [Text Block] | 9. Other receivables, net September 30, 2015 December 31, 2014 Other receivables - unrelated parties (1) $ 1,400 $ 707 Other receivables - employee housing loans (2) 2,249 990 Less: allowance for doubtful accounts- unrelated parties (64) (78) Other receivables, net - unrelated parties $ 3,585 $ 1,619 September 30, 2015 December 31, 2014 Other receivables - related parties (1) $ 643 $ 725 Less: allowance for doubtful accounts- related parties (640) (649) Other receivables, net - related parties $ 3 $ 76 (1) Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. (2) On May 28, 2014, the board of directors of the Company approved a loan program under which the Company will lend an aggregate of up to RMB 50.0 8.1 5.4 |
Long-term investments
Long-term investments | 9 Months Ended |
Sep. 30, 2015 | |
Long-term Investments [Abstract] | |
Long-Term Investments [Text Block] | 10. Long-term investments As of September 30, 2015 and December 31, 2014, the Company’s balance of long-term investment was $ 6.2 4.6 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 $ 0.3 0.2 |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 11. Property, plant and equipment, net September 30, 2015 December 31, 2014 Land use rights and buildings $ 52,538 $ 48,956 Machinery and equipment 116,759 119,597 Electronic equipment 7,693 7,706 Motor vehicles 4,686 4,609 Construction in progress 4,611 5,463 Total amount of property, plant and equipment (1) 186,287 186,331 Less: Accumulated depreciation (2) (110,275) (103,865) Total amount of property, plant and equipment, net (3) $ 76,012 $ 82,466 (1) Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $ 3.7 3.4 0.2 0.1 43.0 3.5 3.1 (2) Depreciation charges were $ 3.4 3.7 11.0 11.4 (3) As of September 30, 2015 and December 31, 2014, the Company had pledged property, plant and equipment with net book value of $ 41.0 45.5 (4) During the nine months ended September 30, 2015, $ 1.6 |
Intangible assets
Intangible assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 12. Intangible assets September 30, 2015 December 31, 2014 Costs: Patent technology $ 4,536 $ 4,887 Management software license 1,015 932 Total intangible assets (1) 5,551 5,819 Less: Amortization (2) (2,578) (2,400) Total intangible assets, net $ 2,973 $ 3,419 (1) Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $ 0.9 0.9 4.7 1.1 (2) Amortization expenses were $ 0.2 0.1 0.5 0.2 |
Deferred income tax assets
Deferred income tax assets | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Deferred Income Tax Assets Disclosure [Text Block] | 13. Deferred income tax assets In accordance with the provisions of ASC Topic 740, “Income Taxes”, September 30, 2015 December 31, 2014 Losses carry forward (U.S.) (1) $ 6,877 $ 7,014 Losses carry forward (Non-US) (1) 2,781 2,000 Product warranties and other reserves 4,505 4,531 Property, plant and equipment 4,623 4,684 Share-based compensation 266 266 Bonus accrual 476 372 Other accruals 1,053 1,319 Others 1,397 1,496 Total deferred tax assets 21,978 21,682 Less: taxable temporary difference related to revenue recognition (187) (472) Total deferred tax assets, net 21,791 21,210 Less: Valuation allowance (9,159) (9,236) Total deferred tax assets, net of valuation allowance (2) $ 12,632 $ 11,974 (1) The net operating losses carry forward for the U.S. entities 20 5 9.2 7.1 2.1 (2) Approximately $ 5.4 4.9 7.2 7.1 |
Bank and government loans
Bank and government loans | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 14. Bank and government loans September 30, 2015 December 31, 2014 Short-term bank loan (1) $ 6,052 $ 4,085 Short-term bank loan (2) (3) 35,000 35,000 Short-term government loan (4) 3,930 4,903 Bank and government loans $ 44,982 $ 43,988 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 11). As of September 30, 2015 and December 31, 2014, the weighted average interest rate was 7.0 6.5 (2) 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 November 3, 2012 31.6 On May 22, 2012, the Company drew down the full amount of $ 30.0 31.6 207.1 32.6 0.1 0.1 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 was 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 remained 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 was 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 remained unchanged. On May 8, 2015, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2016. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 1.40% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of September 30, 2015, the interest rate of the Credit Facility was 1.73 (3) On July 16, 2014, Great Genesis entered into a credit facility agreement with HSBC HK to obtain a non-revolving credit facility in the amount of $ 5.0 July 1, 2015 1.7 5.4 On July 22, 2014, Great Genesis drew down a loan amounting to $ 5.0 5.4 33.0 5.4 On October 6, 2015, HSBC HK agreed to extend the maturity date of the Credit Facility to July 1, 2016. The interest rate of the Credit Facility under the extended term is revised as 1.5 (4) On March 31, 2015, the Company received a Chinese government loan of RMB 25.0 4.1 2.5 April 20, 2016 25.3 4.1 |
Accounts and notes payable
Accounts and notes payable | 9 Months Ended |
Sep. 30, 2015 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Accounts and Notes Payable Disclosure [Text Block] | 15. Accounts and notes payable September 30, 2015 December 31, 2014 Accounts payable - unrelated parties $ 112,791 $ 132,389 Notes payable - unrelated parties (1) 73,495 80,701 Total accounts and notes payable - unrelated parties 186,286 213,090 Total accounts and notes payable - related parties 6,233 4,857 Total accounts and notes payable $ 192,519 $ 217,947 (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 paya
Accrued expenses and other payables | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses and Other Payables Disclosure [Abstract] | |
Accrued Expenses and Other Payables Disclosure [Text Block] | 16. Accrued expenses and other payables September 30, 2015 December 31, 2014 Accrued expenses $ 7,353 $ 6,988 Accrued interest 69 121 Other payables 1,612 1,735 Dividends payable to common shareholders (1) 508 757 Dividends payable to non-controlling interests (2) - 817 Warranty reserves (3) 24,293 25,011 Total $ 33,835 $ 35,429 (1) On May 27, 2014, the Company announced the payment of a special cash dividend of $ 0.18 0.5 (2) In accordance with the resolution of the board of directors of Shenyang, in March 2015, Shenyang declared a dividend amounting to $ 1.1 0.3 (3) 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. Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 25,011 $ 22,104 $ 22,104 Additions during the period 6,779 8,333 12,341 Settlement within period, by cash or actual materials (6,543) (5,816) (9,354) Foreign currency translation loss (954) (200) (80) Balance at end of the period $ 24,293 $ 24,421 $ 25,011 |
Taxes payable
Taxes payable | 9 Months Ended |
Sep. 30, 2015 | |
Taxes Payables [Abstract] | |
Taxes Payable [Text Block] | 17. Taxes payable The Company’s taxes payable as of September 30, 2015 and December 31, 2014 are summarized as follows (figures are in thousands of USD): September 30, 2015 December 31, 2014 Value-added tax payable $ 5,146 $ 6,393 Income tax payable 2,122 4,537 Other tax payable 312 627 Total $ 7,580 $ 11,557 |
Advances payable
Advances payable | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Advances Payable [Text Block] | 18. Advances payable As of September 30, 2015 and December 31, 2014, advances payable by the Company were $ 2.0 6.2 The amounts are special subsidies made by the Chinese government to the Company to offset the costs 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 paid-in capital
Additional paid-in capital | 9 Months Ended |
Sep. 30, 2015 | |
Additional Paid in Capital [Abstract] | |
Additional Paid in Capital [Text Block] | Additional paid-in capital Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 64,522 $ 39,565 $ 39,565 Return of common shareholders’ investment cost (1) - (5,047) (5,047) Acquisition of the non-controlling interests in Henglong and Jiulong (2) - (7,502) (7,502) Issuance of common stock in exchange for the non-controlling interests in Henglong and Jiulong (2) - - 37,313 Share-based compensation (3) - 193 193 Balance at end of the period $ 64,522 $ 27,209 $ 64,522 (1) On May 27, 2014, the Company announced a special cash dividend of $ 0.18 (2) On August 11, 2014, the Company entered into the Exchange Agreement with Jiulong Machinery Electricity, under which the Company issued 3,260,000 818,000 20 19 20 19 100 34.5 4.7 29.8 34.5 4,078,000 37.3 9.15 37.3 34.5 2.8 4.7 (3) On September 16, 2014, the Company granted 22,500 Issuance Date Expected volatility Risk-free rate Expected term (years) Dividend yield September 16, 2014 120.6 % 1.78 % 5 0.00 % The above stock options were vested and exercisable immediately. Their fair value on the grant dates of September 16, 2014 and August 13, 2013 using the Black-Scholes option pricing model was $ 0.2 0.2 0.2 |
Retained earnings
Retained earnings | 9 Months Ended |
Sep. 30, 2015 | |
Retained Earnings Note 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 10.0 4.2 35.0 8.1 67.5 6.0 3.8 30.0 39 9.5 60.0 2.6 Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 10,178 $ 10,048 $ 10,048 Appropriation of retained earnings 171 130 130 Balance at end of the period $ 10,349 $ 10,178 $ 10,178 Unappropriated Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 179,435 $ 146,023 $ 146,023 Net income attributable to parent company 20,456 24,514 33,542 Appropriation of retained earnings (171) (130) (130) Balance at end of the period $ 199,720 $ 170,407 $ 179,435 |
Accumulated other comprehensive
Accumulated other comprehensive income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income, Noncontrolling Interest [Text Block] | 21. Accumulated other comprehensive income Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 36,119 $ 32,061 $ 32,061 Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) - 4,743 4,743 Foreign currency translation adjustment attributable to parent company (11,723) (2,010) (685) Balance at end of the period $ 24,396 $ 34,794 $ 36,119 |
Non-controlling interests
Non-controlling interests | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 22. Non-controlling interests Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 8,912 $ 45,071 $ 45,071 Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong (1) - 2,793 2,793 Acquisition of the non-controlling interests in Henglong and Jiulong (See Note 19) - (29,812) (29,812) Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) - (4,743) (4,743) Income attributable to non-controlling interests (56) 5,409 6,052 Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 16) (318) (10,077) (10,077) Foreign currency translation adjustment attributable to non-controlling interests (593) (403) (372) Balance at end of the period $ 7,945 $ 8,238 $ 8,912 (1) In the second quarter of 2014, the Company acquired a 51.0 2.8 |
Gain on other sales
Gain on other sales | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ended September 30, 2015, gain on other sales amounted to $ 3.2 10.3 7.1 7.5 8.4 0.9 |
Financial income, net
Financial income, net | 9 Months Ended |
Sep. 30, 2015 | |
Financial Income Expenses Disclosure [Abstract] | |
Financial Income Expenses Disclosure [Text Block] | 24. Financial income, net During the three months and nine months ended September 30, 2015 and 2014 Three Months Ended September 30, 2015 2014 Interest income $ 873 $ 1,404 Foreign exchange loss, net (172) (63) Gain of cash discount, net 13 3 Bank fees (158) (204) Total financial income, net $ 556 $ 1,140 Nine Months Ended September 30, 2015 2014 Interest income $ 2,259 $ 2,657 Foreign exchange gain (loss), net 205 (62) Gain of cash discount, net 41 65 Bank fees (487) (510) Total financial income, net $ 2,018 $ 2,150 |
Income tax rate
Income tax rate | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 25. Income tax rate The Company’s subsidiaries registered in the PRC are subject to national and local income taxes within the PRC at the applicable tax rate of 25 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 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, it is required to pay an additional 5 According to PRC tax regulation, the Company should withhold income taxes for the profits distributed from the PRC subsidiaries to Genesis, the subsidiaries’ holding company incorporated in Hong Kong. For the profits that the PRC subsidiaries intended to distribute to Genesis, the Company accrues the withholding income tax as deferred tax liabilities. As of September 30, 2015, the Company has recognized deferred tax liabilities of $ 0.17 3.4 201.1 188.3 10.1 9.4 In 2014, Jiulong 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 of 15 In 2014, Henglong 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 of 15 In 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 of 15 15 15 In 2012, Wuhu 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 15 In 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 of 15 In November 2011, Hubei Henglong was awarded the title of “High & New Technology Enterprise”. Based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15 15 According to the New CIT, USAI and Testing Center are subject to income tax at a rate of 25 Chongqing Henglong was established in 2012. According to the New CIT, Chongqing Henglong is subject to income tax at a uniform rate of 25 Based on Brazilian income tax laws, Brazil Henglong is subject to income tax at a uniform rate of 15 10 0.12 0.24 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 15 The profits tax rate of Hong Kong is 16.5 The enterprise income tax rate of the United States is 35 The Company’s effective tax rate was 18.1 16.6 14.9 17.9 |
Income per share
Income per share | 9 Months Ended |
Sep. 30, 2015 | |
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. Three Months Ended September 30, 2015 2014 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 4,288 $ 6,733 Denominator: Weighted average shares outstanding 32,121,019 28,043,019 Dilutive effects of stock options 13,820 20,642 Denominator for dilutive income per share Diluted 32,134,839 28,063,661 Net income per share attributable to parent company’s common shareholders Basic $ 0.13 $ 0.24 Net income per share attributable to parent company’s common shareholders Diluted $ 0.13 $ 0.24 As of September 30, 2015 and 2014, the exercise prices for 60,000 60,000 Nine Months Ended September 30, 2015 2014 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 20,456 $ 24,514 Denominator: Weighted average shares outstanding 32,121,019 28,043,019 Dilutive effects of stock options 14,984 20,827 Denominator for dilutive income per share Diluted 32,136,003 28,063,846 Net income per share attributable to parent company’s common shareholders Basic $ 0.64 $ 0.87 Net income per share attributable to parent company’s common shareholders Diluted $ 0.64 $ 0.87 As of September 30, 2015 and 2014, the exercise prices for 60,000 60,000 |
Significant concentrations
Significant concentrations | 9 Months Ended |
Sep. 30, 2015 | |
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 50 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 nine months ended September 30, 2015, the Company’s ten largest customers accounted for 69.6 13.4 6.9 During the nine months ended September 30, 2014, the Company’s ten largest customers accounted for 68.0 12.1 6.2 12.9% |
Related party transactions and
Related party transactions and balances | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 28. Related party transactions and balances Related sales Three Months Ended September 30, 2015 2014 Merchandise sold to related parties $ 8,137 $ 11,890 Rental income obtained from related parties 48 199 Materials and others sold to related parties 418 657 Total $ 8,603 $ 12,746 Nine Months Ended September 30, 2015 2014 Merchandise sold to related parties $ 28,076 $ 38,627 Rental income obtained from related parties 104 199 Materials and others sold to related parties 1,411 657 Total $ 29,591 $ 39,483 Related purchases Three Months Ended September 30, 2015 2014 Materials purchased from related parties $ 5,721 $ 6,069 Technology purchased from related parties 145 114 Equipment purchased from related parties 1,386 1,274 Others purchased from related parties 106 - Total $ 7,358 $ 7,457 Nine Months Ended September 30, 2015 2014 Materials purchased from related parties $ 18,359 $ 20,721 Technology purchased from related parties 292 278 Equipment purchased from related parties 4,456 2,528 Others purchased from related parties 460 - Total $ 23,567 $ 23,527 Related receivables September 30, December 31, 2015 2014 Accounts and notes receivable from related parties $ 31,423 $ 22,760 Other receivables from related parties 3 76 Total $ 31,426 $ 22,836 Related advances September 30, December 31, 2015 2014 Advance equipment payment to related parties $ 6,185 $ 2,085 Advance payments and others to related parties 812 741 Total $ 6,997 $ 2,826 Related payables September 30, December 31, 2015 2014 Accounts and notes payable $ 6,233 $ 4,857 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. As of November 12, 2015, Hanlin Chen, the Company’s Chairman, owns 55.6 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 29. Commitments and contingencies Legal proceedings 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 Payment obligations by period 2015 (1) 2016 2017 2018 Thereafter Total Obligations for investment contracts (2) - $ 3,256 $ 2,442 $ - $ - $ 5,698 Obligations for purchasing and service agreements 23,388 1,859 397 - - 25,644 Total $ 23,388 $ 5,115 $ 2,839 $ - $ - $ 31,342 (1) Remaining 3 months in 2015. (2) Capital Commitment to the Venture Fund As disclosed in Note 1, on September 22, 2014, Hubei Henglong entered into an agreement with seven other parties to establish the Venture Fund, under which Hubei Henglong has committed to make investments of 17.9 50.0 8.1 5.0 0.8 10.0 1.6 35.0 5.7 |
Off-balance sheet arrangements
Off-balance sheet arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Off Balance Sheet Arrangements Disclosure [Abstract] | |
Off Balance Sheet Arrangements Disclosure [Text Block] | 30. Off-balance sheet arrangements As of September 30, 2015 and December 31, 2014, the Company did not have any significant transactions, obligations or relationships that could be considered off-balance sheet arrangements. |
Segment reporting
Segment reporting | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015, the Company had 13 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 eight sectors were engaged in the production and sale of sensor modular (USAI), automobile steering columns (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), manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie), and design and sales of automobile electronics (Shanghai Henglong). Since the revenues, net income and net assets of these eight sectors collectively are less than 10 As of September 30, 2014, 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), automobile steering columns (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 Net Product Sales Net Income (Loss) Three Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 Henglong $ 53,932 $ 60,902 $ 2,866 $ 5,127 Jiulong 16,183 15,964 154 168 Shenyang 7,516 8,988 609 998 Wuhu 3,925 5,941 (110) (88) Hubei Henglong 13,818 14,425 1,737 1,110 Other Sectors 8,656 9,887 (260) 252 Total Segments 104,030 116,107 4,996 7,567 Corporate - - (996) 231 Eliminations (13,185) (14,372) 381 228 Total $ 90,845 $ 101,735 $ 4,381 $ 8,026 Net Product Sales Net Income (Loss) Nine Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Henglong $ 206,061 $ 203,987 $ 15,768 $ 22,660 Jiulong 53,251 57,753 75 1,750 Shenyang 24,056 32,928 1,418 1,760 Wuhu 16,096 18,345 (181) (167) Hubei Henglong 44,463 41,708 5,594 44,512 (1) Other Sectors 27,433 30,210 (1,021) 1,246 Total Segments 371,360 384,931 21,653 71,761 Corporate - - (1,538) (1,792) Eliminations (47,905) (53,414) 285 (40,046) Total $ 323,455 $ 331,517 $ 20,400 $ 29,923 (1) $ 40.3 million included in the balance of $ 44.5 million was income from the investment in Henglong in 2014, which has been eliminated at the consolidation |
Basis of presentation and sig38
Basis of presentation and significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014. 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, 2014 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 2014 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. The results of operations for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2015. 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 May 2014, the 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, 2017, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2016, including interim periods within that reporting period. 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 the Company’s ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-3, "Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For the Company, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The new guidance will be applied on a retrospective basis and early adoption is permitted. The Company is in the process of evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (“ASU 2015-11”) which applies to inventory that is measured using the first-in, first-out ("FIFO") or average cost method. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using the last-in, first-out ("LIFO") method. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company expects that the adoption of this guidance will not have a material effect on its financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. This standard is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016. Early adoption is permitted as of annual reporting periods beginning after December 15, 2015, including interim reporting periods within those annual periods. The Company expects that the adoption of this guidance will not have a material effect on its financial statements. |
Significant Accounting Policies [Policy Text Block] | (c) Significant Accounting Policies There have been no updates to the significant accounting policies set forth in the notes to the consolidated financial statements for the year ended December 31, 2014. |
Organization and business (Tabl
Organization and business (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014. Percentage Interest September 30, December 31, Name of Entity 2015 2014 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 100.00 % 100.00 % Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 70.00 % 70.00 % Universal Sensor Application Inc., “USAI” 4 83.34 % 83.34 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 5 85.00 % 85.00 % Wuhu HengLong Automotive Steering System Co., Ltd., “Wuhu” 6 77.33 % 77.33 % Hubei Henglong Automotive System Group Co., Ltd, “Hubei Henglong” 7 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Beijing Henglong Automotive System Co., Ltd., “Beijing Henglong” 9 50.00 % 50.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 70.00 % 70.00 % CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 11 80.00 % 80.00 % Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 51.00 % 51.00 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 13 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong” 14 100.00 % - 1. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears 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 automotive steering columns. 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. Beijing Henglong was established in 2010 and mainly engages in the design, development and manufacture of both hydraulic and electric power steering systems and parts. 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 by the equity accounting 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. 13. In May 2014, together with Hubei Wanlong, Jielong formed a subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in research and development, manufacture and sales of automobile electronic systems and parts. Wuhan Chuguanjie is located in Wuhan, China. The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. Jielong has completed the capital injection of RMB30.0 million, equivalent to approximately $4.9 million. 14. In January 2015, Hubei Henglong formed Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong”, which mainly engages in the design and sales of automotive electronics. The registered capital of Shanghai Henglong was RMB3.0 million, equivalent to approximately $0.5 million. Hubei Henglong has completed the capital injection of RMB3.0 million, equivalent to approximately $0.5 million. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Company $ 13,728 Liabilities Current liabilities, excluding current deferred tax liabilities (7,352) Deferred tax liabilities (448) Other liabilities (128) Total liabilities consolidated into the Company (7,928) Non-controlling interests at fair value (2,793) Total equity consolidated into the Company $ (3,007) |
Accounts and notes receivable41
Accounts and notes receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014 are summarized as follows (figures are in thousands of USD): September 30, 2015 December 31, 2014 Accounts receivable - unrelated parties (1) $ 117,129 $ 137,165 Notes receivable - unrelated parties (2) (3) 126,615 146,597 Total accounts and notes receivable- unrelated parties 243,744 283,762 Less: allowance for doubtful accounts - unrelated parties (1,234) (1,414) Accounts and notes receivable, net - unrelated parties 242,510 282,348 Accounts and notes receivable, net - related parties 31,423 22,760 Accounts and notes receivable, net $ 273,933 $ 305,108 (1) As of September 30, 2015 and December 31, 2014, the Company has pledged $ 33.0 34.3 (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 September 30, 2015, Henglong collateralized its notes receivable in an amount of RMB 232.6 36.6 207.1 32.6 30.0 25.5 4.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The Company’s inventories as of September 30, 2015 and December 31, 2014 consisted of the following (figures are in thousands of USD): September 30, 2015 December 31, 2014 Raw materials $ 15,060 $ 15,842 Work in process 13,468 11,849 Finished goods 38,539 36,728 Total $ 67,067 $ 64,419 |
Other receivables, net (Tables)
Other receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Receivables Disclosure [Abstract] | |
Schedule Of Other Receivables [Table Text Block] | September 30, 2015 December 31, 2014 Other receivables - unrelated parties (1) $ 1,400 $ 707 Other receivables - employee housing loans (2) 2,249 990 Less: allowance for doubtful accounts- unrelated parties (64) (78) Other receivables, net - unrelated parties $ 3,585 $ 1,619 September 30, 2015 December 31, 2014 Other receivables - related parties (1) $ 643 $ 725 Less: allowance for doubtful accounts- related parties (640) (649) Other receivables, net - related parties $ 3 $ 76 (1) Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. (2) On May 28, 2014, the board of directors of the Company approved a loan program under which the Company will lend an aggregate of up to RMB 50.0 8.1 5.4 |
Property, plant and equipment44
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | September 30, 2015 December 31, 2014 Land use rights and buildings $ 52,538 $ 48,956 Machinery and equipment 116,759 119,597 Electronic equipment 7,693 7,706 Motor vehicles 4,686 4,609 Construction in progress 4,611 5,463 Total amount of property, plant and equipment (1) 186,287 186,331 Less: Accumulated depreciation (2) (110,275) (103,865) Total amount of property, plant and equipment, net (3) $ 76,012 $ 82,466 (1) Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $ 3.7 3.4 0.2 0.1 43.0 3.5 3.1 (2) Depreciation charges were $ 3.4 3.7 11.0 11.4 (3) As of September 30, 2015 and December 31, 2014, the Company had pledged property, plant and equipment with net book value of $ 41.0 45.5 (4) During the nine months ended September 30, 2015, $ 1.6 |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Impaired Intangible Assets [Table Text Block] | September 30, 2015 December 31, 2014 Costs: Patent technology $ 4,536 $ 4,887 Management software license 1,015 932 Total intangible assets (1) 5,551 5,819 Less: Amortization (2) (2,578) (2,400) Total intangible assets, net $ 2,973 $ 3,419 (1) Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $ 0.9 0.9 4.7 1.1 (2) Amortization expenses were $ 0.2 0.1 0.5 0.2 |
Deferred income tax assets (Tab
Deferred income tax assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of estimated deferred income tax assets as of September 30, 2015 and December 31, 2014 are as follows (figures are in thousands of USD): September 30, 2015 December 31, 2014 Losses carry forward (U.S.) (1) $ 6,877 $ 7,014 Losses carry forward (Non-US) (1) 2,781 2,000 Product warranties and other reserves 4,505 4,531 Property, plant and equipment 4,623 4,684 Share-based compensation 266 266 Bonus accrual 476 372 Other accruals 1,053 1,319 Others 1,397 1,496 Total deferred tax assets 21,978 21,682 Less: taxable temporary difference related to revenue recognition (187) (472) Total deferred tax assets, net 21,791 21,210 Less: Valuation allowance (9,159) (9,236) Total deferred tax assets, net of valuation allowance (2) $ 12,632 $ 11,974 (1) The net operating losses carry forward for the U.S. entities 20 5 9.2 7.1 2.1 (2) Approximately $ 5.4 4.9 7.2 7.1 |
Bank and government loans (Tabl
Bank and government loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Loans consist of the following as of September 30, 2015 and December 31, 2014 (figures are in thousands of USD): September 30, 2015 December 31, 2014 Short-term bank loan (1) $ 6,052 $ 4,085 Short-term bank loan (2) (3) 35,000 35,000 Short-term government loan (4) 3,930 4,903 Bank and government loans $ 44,982 $ 43,988 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 11). As of September 30, 2015 and December 31, 2014, the weighted average interest rate was 7.0 6.5 (2) 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 November 3, 2012 31.6 On May 22, 2012, the Company drew down the full amount of $ 30.0 31.6 207.1 32.6 0.1 0.1 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 was 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 remained 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 was 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 remained unchanged. On May 8, 2015, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2016. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 1.40% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of September 30, 2015, the interest rate of the Credit Facility was 1.73 (3) On July 16, 2014, Great Genesis entered into a credit facility agreement with HSBC HK to obtain a non-revolving credit facility in the amount of $ 5.0 July 1, 2015 1.7 5.4 On July 22, 2014, Great Genesis drew down a loan amounting to $ 5.0 5.4 33.0 5.4 On October 6, 2015, HSBC HK agreed to extend the maturity date of the Credit Facility to July 1, 2016. The interest rate of the Credit Facility under the extended term is revised as 1.5 (4) On March 31, 2015, the Company received a Chinese government loan of RMB 25.0 4.1 2.5 April 20, 2016 25.3 4.1 |
Accounts and notes payable (Tab
Accounts and notes payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Schedule Of Accounts and Notes Payable [Table Text Block] | September 30, 2015 December 31, 2014 Accounts payable - unrelated parties $ 112,791 $ 132,389 Notes payable - unrelated parties (1) 73,495 80,701 Total accounts and notes payable - unrelated parties 186,286 213,090 Total accounts and notes payable - related parties 6,233 4,857 Total accounts and notes payable $ 192,519 $ 217,947 (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 pa49
Accrued expenses and other payables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | The Company’s accrued expenses and other payables as of September 30, 2015 and December 31, 2014 are summarized as follows (figures are in thousands of USD): September 30, 2015 December 31, 2014 Accrued expenses $ 7,353 $ 6,988 Accrued interest 69 121 Other payables 1,612 1,735 Dividends payable to common shareholders (1) 508 757 Dividends payable to non-controlling interests (2) - 817 Warranty reserves (3) 24,293 25,011 Total $ 33,835 $ 35,429 (1) On May 27, 2014, the Company announced the payment of a special cash dividend of $ 0.18 0.5 (2) In accordance with the resolution of the board of directors of Shenyang, in March 2015, Shenyang declared a dividend amounting to $ 1.1 0.3 (3) 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 nine months ended September 30, 2015 and 2014, and for the year ended December 31, 2014, the warranties activities were as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 25,011 $ 22,104 $ 22,104 Additions during the period 6,779 8,333 12,341 Settlement within period, by cash or actual materials (6,543) (5,816) (9,354) Foreign currency translation loss (954) (200) (80) Balance at end of the period $ 24,293 $ 24,421 $ 25,011 |
Taxes payable (Tables)
Taxes payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Taxes Payables [Abstract] | |
Schedule Of Income Taxes Payable [Table Text Block] | The Company’s taxes payable as of September 30, 2015 and December 31, 2014 are summarized as follows (figures are in thousands of USD): September 30, 2015 December 31, 2014 Value-added tax payable $ 5,146 $ 6,393 Income tax payable 2,122 4,537 Other tax payable 312 627 Total $ 7,580 $ 11,557 |
Additional paid-in capital (Tab
Additional paid-in capital (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ended September 30, 2015 and 2014, and the year ended December 31, 2014 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 64,522 $ 39,565 $ 39,565 Return of common shareholders’ investment cost (1) - (5,047) (5,047) Acquisition of the non-controlling interests in Henglong and Jiulong (2) - (7,502) (7,502) Issuance of common stock in exchange for the non-controlling interests in Henglong and Jiulong (2) - - 37,313 Share-based compensation (3) - 193 193 Balance at end of the period $ 64,522 $ 27,209 $ 64,522 (1) On May 27, 2014, the Company announced a special cash dividend of $ 0.18 (2) On August 11, 2014, the Company entered into the Exchange Agreement with Jiulong Machinery Electricity, under which the Company issued 3,260,000 818,000 20 19 20 19 100 34.5 4.7 29.8 34.5 4,078,000 37.3 9.15 37.3 34.5 2.8 4.7 (3) On September 16, 2014, the Company granted 22,500 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions used to estimate the fair value of stock options on the grant dates are as follows: Issuance Date Expected volatility Risk-free rate Expected term (years) Dividend yield September 16, 2014 120.6 % 1.78 % 5 0.00 % |
Retained earnings (Tables)
Retained earnings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Retained Earnings Disclosure [Abstract] | |
Schedule of Appropriated Retained Earnings [Table Text Block] | The Company’s activities in respect of the amounts of appropriated retained earnings for the nine months ended September 30, 2015 and 2014, and the year ended December 31, 2014 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 10,178 $ 10,048 $ 10,048 Appropriation of retained earnings 171 130 130 Balance at end of the period $ 10,349 $ 10,178 $ 10,178 |
Schedule of Unappropriated Retained Earnings [Table Text Block] | The Company’s activities in respect of the amounts of the unappropriated retained earnings for the nine months ended September 30, 2015 and 2014, and the year ended December 31, 2014 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 179,435 $ 146,023 $ 146,023 Net income attributable to parent company 20,456 24,514 33,542 Appropriation of retained earnings (171) (130) (130) Balance at end of the period $ 199,720 $ 170,407 $ 179,435 |
Accumulated other comprehensi53
Accumulated other comprehensive income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ended September 30, 2015 and 2014, and the year ended December 31, 2014 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 36,119 $ 32,061 $ 32,061 Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) - 4,743 4,743 Foreign currency translation adjustment attributable to parent company (11,723) (2,010) (685) Balance at end of the period $ 24,396 $ 34,794 $ 36,119 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ended September 30, 2015 and 2014, and the year ended December 31, 2014 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2015 2014 2014 Balance at beginning of the period $ 8,912 $ 45,071 $ 45,071 Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong (1) - 2,793 2,793 Acquisition of the non-controlling interests in Henglong and Jiulong (See Note 19) - (29,812) (29,812) Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) - (4,743) (4,743) Income attributable to non-controlling interests (56) 5,409 6,052 Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 16) (318) (10,077) (10,077) Foreign currency translation adjustment attributable to non-controlling interests (593) (403) (372) Balance at end of the period $ 7,945 $ 8,238 $ 8,912 (1) In the second quarter of 2014, the Company acquired a 51.0 2.8 |
Financial income, net (Tables)
Financial income, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Income Expenses Disclosure [Abstract] | |
Schedule Of Financial Expenses [Table Text Block] | During the three months and nine months ended September 30, 2015 and 2014 Three Months Ended September 30, 2015 2014 Interest income $ 873 $ 1,404 Foreign exchange loss, net (172) (63) Gain of cash discount, net 13 3 Bank fees (158) (204) Total financial income, net $ 556 $ 1,140 Nine Months Ended September 30, 2015 2014 Interest income $ 2,259 $ 2,657 Foreign exchange gain (loss), net 205 (62) Gain of cash discount, net 41 65 Bank fees (487) (510) Total financial income, net $ 2,018 $ 2,150 |
Income per share (Tables)
Income per share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and 2014, was (figures are in thousands of USD, except share and per share amounts): Three Months Ended September 30, 2015 2014 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 4,288 $ 6,733 Denominator: Weighted average shares outstanding 32,121,019 28,043,019 Dilutive effects of stock options 13,820 20,642 Denominator for dilutive income per share Diluted 32,134,839 28,063,661 Net income per share attributable to parent company’s common shareholders Basic $ 0.13 $ 0.24 Net income per share attributable to parent company’s common shareholders Diluted $ 0.13 $ 0.24 The calculation of basic and diluted income per share attributable to the parent company for the nine months ended September 30, 2015 and 2014, were (figures are in thousands of USD , except share and per share amounts): Nine Months Ended September 30, 2015 2014 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 20,456 $ 24,514 Denominator: Weighted average shares outstanding 32,121,019 28,043,019 Dilutive effects of stock options 14,984 20,827 Denominator for dilutive income per share Diluted 32,136,003 28,063,846 Net income per share attributable to parent company’s common shareholders Basic $ 0.64 $ 0.87 Net income per share attributable to parent company’s common shareholders Diluted $ 0.64 $ 0.87 |
Related party transactions an57
Related party transactions and balances (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 2014 Merchandise sold to related parties $ 8,137 $ 11,890 Rental income obtained from related parties 48 199 Materials and others sold to related parties 418 657 Total $ 8,603 $ 12,746 Nine Months Ended September 30, 2015 2014 Merchandise sold to related parties $ 28,076 $ 38,627 Rental income obtained from related parties 104 199 Materials and others sold to related parties 1,411 657 Total $ 29,591 $ 39,483 Related purchases Three Months Ended September 30, 2015 2014 Materials purchased from related parties $ 5,721 $ 6,069 Technology purchased from related parties 145 114 Equipment purchased from related parties 1,386 1,274 Others purchased from related parties 106 - Total $ 7,358 $ 7,457 Nine Months Ended September 30, 2015 2014 Materials purchased from related parties $ 18,359 $ 20,721 Technology purchased from related parties 292 278 Equipment purchased from related parties 4,456 2,528 Others purchased from related parties 460 - Total $ 23,567 $ 23,527 Related receivables September 30, December 31, 2015 2014 Accounts and notes receivable from related parties $ 31,423 $ 22,760 Other receivables from related parties 3 76 Total $ 31,426 $ 22,836 Related advances September 30, December 31, 2015 2014 Advance equipment payment to related parties $ 6,185 $ 2,085 Advance payments and others to related parties 812 741 Total $ 6,997 $ 2,826 Related payables September 30, December 31, 2015 2014 Accounts and notes payable $ 6,233 $ 4,857 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 (figures are in thousands of USD): Payment obligations by period 2015 (1) 2016 2017 2018 Thereafter Total Obligations for investment contracts (2) - $ 3,256 $ 2,442 $ - $ - $ 5,698 Obligations for purchasing and service agreements 23,388 1,859 397 - - 25,644 Total $ 23,388 $ 5,115 $ 2,839 $ - $ - $ 31,342 (1) Remaining 3 months in 2015. (2) Capital Commitment to the Venture Fund |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Net Product Sales Net Income (Loss) Three Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 Henglong $ 53,932 $ 60,902 $ 2,866 $ 5,127 Jiulong 16,183 15,964 154 168 Shenyang 7,516 8,988 609 998 Wuhu 3,925 5,941 (110) (88) Hubei Henglong 13,818 14,425 1,737 1,110 Other Sectors 8,656 9,887 (260) 252 Total Segments 104,030 116,107 4,996 7,567 Corporate - - (996) 231 Eliminations (13,185) (14,372) 381 228 Total $ 90,845 $ 101,735 $ 4,381 $ 8,026 Net Product Sales Net Income (Loss) Nine Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Henglong $ 206,061 $ 203,987 $ 15,768 $ 22,660 Jiulong 53,251 57,753 75 1,750 Shenyang 24,056 32,928 1,418 1,760 Wuhu 16,096 18,345 (181) (167) Hubei Henglong 44,463 41,708 5,594 44,512 (1) Other Sectors 27,433 30,210 (1,021) 1,246 Total Segments 371,360 384,931 21,653 71,761 Corporate - - (1,538) (1,792) Eliminations (47,905) (53,414) 285 (40,046) Total $ 323,455 $ 331,517 $ 20,400 $ 29,923 (1) $ 40.3 million included in the balance of $ 44.5 million was income from the investment in Henglong in 2014, which has been eliminated at the consolidation |
Organization and business (Deta
Organization and business (Details) | Sep. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |||
Shashi Jiulong Power Steering Gears Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [1] | 100.00% | 100.00% | |||
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [2] | 100.00% | 100.00% | |||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [3] | 70.00% | 70.00% | |||
Universal Sensor Application Inc [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [4] | 83.34% | 83.34% | |||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [5] | 85.00% | 85.00% | |||
Wuhu Henglong Automotive Steering System Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [6] | 77.33% | 77.33% | |||
Hubei Henglong Automotive System Co Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [7] | 100.00% | 100.00% | |||
Jingzhou Henglong Automotive Technology (Testing) Center [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [8] | 100.00% | 100.00% | |||
Beijing Hainachun Henglong Automotive Steering System Co., Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [9] | 50.00% | 50.00% | |||
Chongqing Henglong Hongyan Automotive Systems Co., Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [10] | 70.00% | 70.00% | |||
CAAS Brazil's Imports and Trade In Automotive Parts Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [11] | 80.00% | 80.00% | |||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | 51.00% | [12] | 51.00% | [12] | 51.00% | |
Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [13] | 85.00% | 85.00% | |||
Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage Interest | [14] | 100.00% | 0.00% | |||
[1] | Jiulong was established in 1993 and mainly engages in the production of integral power steering gears 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 automotive steering columns. | |||||
[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] | Beijing Henglong was established in 2010 and mainly engages in the design, development and manufacture of both hydraulic and electric power steering systems and parts. 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 by the equity accounting 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. | |||||
[13] | In May 2014, together with Hubei Wanlong, Jielong formed a subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in research and development, manufacture and sales of automobile electronic systems and parts. Wuhan Chuguanjie is located in Wuhan, China. The registered capital of Wuhan Chuguanjie is RMB30.0 million, equivalent to approximately $4.9 million. Jielong has completed the capital injection of RMB30.0 million, equivalent to approximately $4.9 million. | |||||
[14] | In January 2015, Hubei Henglong formed Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong”, which mainly engages in the design and sales of automotive electronics. The registered capital of Shanghai Henglong was RMB3.0 million, equivalent to approximately $0.5 million. Hubei Henglong has completed the capital injection of RMB3.0 million, equivalent to approximately $0.5 million. |
Organization and business (De61
Organization and business (Details Textual) ¥ in Millions, $ in Millions | 1 Months Ended | ||||||||||||||||
Apr. 24, 2015USD ($) | Apr. 24, 2015CNY (¥) | Oct. 20, 2014USD ($) | Oct. 20, 2014CNY (¥) | Sep. 30, 2015 | [1] | Jan. 31, 2015USD ($) | Jan. 31, 2015CNY (¥) | Dec. 31, 2014 | [1] | Sep. 22, 2014USD ($) | Sep. 22, 2014CNY (¥) | Jun. 30, 2014 | May. 31, 2014USD ($) | May. 31, 2014CNY (¥) | Dec. 31, 2009USD ($) | Dec. 31, 2009CNY (¥) | |
Henglong USA Corporation [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Capital | $ 4.4 | ¥ 30 | |||||||||||||||
Hubei Henglong Automotive System Group Co Ltd [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Capital | $ 0.5 | ¥ 3 | $ 8.1 | ¥ 50 | |||||||||||||
Partners' Capital | $ 45.5 | ¥ 280 | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 17.90% | 17.90% | |||||||||||||||
Proceeds from Partnership Contribution | $ 1.6 | ¥ 10 | $ 0.8 | ¥ 5 | |||||||||||||
Fujian Qiaolong Acquisition [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | 51.00% | ||||||||||||||
Wuhan Chuguanjie [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Capital | $ 4.9 | ¥ 30 | |||||||||||||||
Jielong [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Capital | $ 4.9 | ¥ 30 | |||||||||||||||
Shanghai Henglong [Member] | |||||||||||||||||
Organization And Principal Activities [Line Items] | |||||||||||||||||
Capital | $ 0.5 | ¥ 3 | |||||||||||||||
[1] | 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. |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Total purchase price: | |||
Cash consideration paid to acquire ownership interest | $ 3,000 | ||
Assets | |||
Goodwill | $ 621 | $ 645 | |
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | |||
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 Company | 13,728 | ||
Liabilities | |||
Current liabilities, excluding current deferred tax liabilities | (7,352) | ||
Deferred tax liabilities | (448) | ||
Other liabilities | (128) | ||
Total liabilities consolidated into the Company | (7,928) | ||
Non-controlling interests at fair value | (2,793) | ||
Total equity consolidated into the Company | $ (3,007) |
Acquisition (Details Textual)
Acquisition (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | |
Payments to Acquire Businesses, Gross | $ 3 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 8 months 12 days |
Pledged cash deposits (Details
Pledged cash deposits (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
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% |
Short-term investments (Details
Short-term investments (Details Textual) ¥ in Millions, $ in Millions | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) |
Time Deposits | $ 5.4 | ¥ 33 | $ 2.4 | ¥ 15 |
Accounts and notes receivable66
Accounts and notes receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivables [Line Items] | |||
Accounts receivable - unrelated parties | [1] | $ 117,129 | $ 137,165 |
Notes receivable - unrelated parties | [2],[3] | 126,615 | 146,597 |
Total accounts and notes receivable- unrelated parties | 243,744 | 283,762 | |
Less: allowance for doubtful accounts - unrelated parties | (1,234) | (1,414) | |
Accounts and notes receivable, net - unrelated parties | 242,510 | 282,348 | |
Accounts and notes receivable, net - related parties | 31,423 | 22,760 | |
Accounts and notes receivable, net | $ 273,933 | $ 305,108 | |
[1] | As of September 30, 2015 and December 31, 2014, the Company has pledged $33.0 million and $34.3 million, respectively, of accounts receivable as security for its comprehensive credit facilities with banks in China. | ||
[2] | As of September 30, 2015, Henglong collateralized its notes receivable in an amount of RMB232.6 million, equivalent to approximately $36.6 million, including RMB207.1 million, equivalent to approximately $32.6 million, as security 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 RMB25.5 million, equivalent to approximately $4.0 million, as security in favor of the Chinese government for the low-interest government loan (See Note 14). | ||
[3] | Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. |
Accounts and notes receivable67
Accounts and notes receivable, net (Details Textual) ¥ in Millions, $ in Millions | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) |
Financing Receivables [Line Items] | ||||
Non Revolving Credit Facility | $ 30 | $ 30 | ||
Accounts Receivable Pledged As Security Value | 33 | 34.3 | ||
Henglongs Collateralization [Member] | ||||
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | 36.6 | ¥ 232.6 | 38 | ¥ 232.5 |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ||||
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | 32.6 | 207.1 | 33 | 201.8 |
ICBC Macau [Member] | ||||
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | $ 4 | ¥ 25.5 | $ 5 | ¥ 30.7 |
Payment to customer (Details Te
Payment to customer (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Payment To Customer | $ 2.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 15,060 | $ 15,842 |
Work in process | 13,468 | 11,849 |
Finished goods | 38,539 | 36,728 |
Total | $ 67,067 | $ 64,419 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Inventory [Line Items] | ||
Valuation Allowances and Reserves, Adjustments | $ 1.5 | $ 2.5 |
Other receivables, net (Details
Other receivables, net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Unrelated Parties [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | [1] | $ 1,400 | $ 707 |
Other receivables - employee housing loans | [2] | 2,249 | 990 |
Less: allowance for doubtful accounts | (64) | (78) | |
Other receivables, net | 3,585 | 1,619 | |
Related Party [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | [1] | 643 | 725 |
Less: allowance for doubtful accounts | (640) | (649) | |
Other receivables, net | $ 3 | $ 76 | |
[1] | Other receivables consist of amounts advanced to both related and unrelated parties, primarily as unsecured demand loans. These receivables originate as part of the Company's normal operating activities and are periodically settled in cash. | ||
[2] | On May 28, 2014, the board of directors of the Company approved a loan program under which the Company will lend an aggregate of up to RMB50.0 million, equivalent to approximately $8.1 million, to the employees of the Company to assist them in purchasing houses. Employees are required to pay interest at an annual rate of 5.4%. The term of the loans is generally five years. |
Other receivables, net (Detai72
Other receivables, net (Details Textual) - 1 months ended May. 28, 2014 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Financing Receivables [Line Items] | ||
Debt Instrument, Term | 5 years | 5 years |
Board of Directors Chairman [Member] | ||
Financing Receivables [Line Items] | ||
Loans Assumed | $ 8.1 | ¥ 50 |
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% |
Long-term investments (Details
Long-term investments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Long-term investments | $ 6,203 | $ 6,203 | $ 4,575 | ||
Equity in earnings of affiliated companies | $ 100 | $ 82 | 264 | $ 220 | |
Long-term Investments [Member] | |||||
Debt Instrument [Line Items] | |||||
Equity in earnings of affiliated companies | $ 300 | $ 200 |
Property, plant and equipment74
Property, plant and equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | [1] | $ 186,287 | $ 186,331 |
Less: Accumulated depreciation | [2] | (110,275) | (103,865) |
Total amount of property, plant and equipment, net | [3] | 76,012 | 82,466 |
Land Use Rights and Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 52,538 | 48,956 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 116,759 | 119,597 | |
Electronic Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 7,693 | 7,706 | |
Motor Vechicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 4,686 | 4,609 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | $ 4,611 | $ 5,463 | |
[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 $3.4 million and $3.7 million for the three months ended September 30, 2015 and 2014, respectively, and $11.0 million and $11.4 million for the nine months ended September 30, 2015 and 2014, respectively. | ||
[3] | As of September 30, 2015 and December 31, 2014, the Company had pledged property, plant and equipment with net book value of $41.0 million and $45.5 million, respectively, for its comprehensive credit facilities with banks in China. |
Property, plant and equipment75
Property, plant and equipment, net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 3.4 | $ 3.7 | $ 11 | $ 11.4 | ||
Pledged Assets Separately Reported, Loans Pledged for Other Debt Obligations, at Fair Value | $ 41 | 41 | $ 45.5 | |||
Subsidy On Property, Plant And Equipment Cost | $ 1.6 | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 3.7 | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | Land and Building [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 3.4 | |||||
Property, Plant and Equipment, Useful Life | 43 years | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | Machinery and Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 0.2 | |||||
Property, Plant and Equipment, Useful Life | 3 years 6 months | |||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | Vehicles [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 0.1 | |||||
Property, Plant and Equipment, Useful Life | 3 years 1 month 6 days |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Costs: | |||
Patent technology | $ 4,536 | $ 4,887 | |
Management software license | 1,015 | 932 | |
Total intangible assets | [1] | 5,551 | 5,819 |
Less: Amortization | [2] | (2,578) | (2,400) |
Total intangible assets, net | $ 2,973 | $ 3,419 | |
[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 $0.2 million and $ 0.1 million for the three months ended September 30, 2015 and 2014, respectively, and $0.5 million and $ 0.2 million for the nine months ended September 30, 2015 and 2014, respectively. |
Intangible assets (Details Text
Intangible assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.2 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 8 months 12 days | ||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 0.9 | ||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | Patent Technology [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 0.9 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 8 months 12 days | ||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | Management Software Licenses [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 1 month 6 days |
Deferred income tax assets (Det
Deferred income tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets [Line Items] | |||
Losses carry forward (U.S.) | [1] | $ 6,877 | $ 7,014 |
Losses carry forward (Non-US) | [1] | 2,781 | 2,000 |
Product warranties and other reserves | 4,505 | 4,531 | |
Property, plant and equipment | 4,623 | 4,684 | |
Share-based compensation | 266 | 266 | |
Bonus accrual | 476 | 372 | |
Other accruals | 1,053 | 1,319 | |
Others | 1,397 | 1,496 | |
Total deferred tax assets | 21,978 | 21,682 | |
Less: taxable temporary difference related to revenue recognition | (187) | (472) | |
Total deferred tax assets, net | 21,791 | 21,210 | |
Less: Valuation allowance | (9,159) | (9,236) | |
Total deferred tax assets, net of valuation allowance | [2] | $ 12,632 | $ 11,974 |
[1] | The net operating losses carry forward for the U.S. entities 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 China entities can be carried forward for 5 years to offset taxable income. However, as of September 30, 2015, the valuation allowance was $9.2 million, including $7.1 million allowance for the Company’s deferred tax assets in the United States and $2.1 million allowance for the Company’s non-U.S. deferred tax assets in China. 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 deferred tax assets in China, 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 $5.4 million and $4.9 million of net deferred income tax asset as of September 30, 2015 and December 31, 2014, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $7.2 million and $7.1 million of net deferred income tax assets as of September 30, 2015 and December 31, 2014, respectively, are included in current deferred tax assets. |
Deferred income tax assets (D79
Deferred income tax assets (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 9,159 | $ 9,236 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 5,388 | 4,896 |
Current deferred tax assets | 7,244 | $ 7,078 |
U.S [Member] | ||
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 7,100 | |
Amortizing Period Of Net Operating Loss | 20 years | |
Non U.S [Member] | ||
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 2,100 | |
Amortizing Period Of Net Operating Loss | 5 years |
Bank and government loans (Deta
Bank and government loans (Details) $ in Thousands, ¥ in Millions | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |||
Debt Instrument [Line Items] | |||||||
Bank and government loans | $ 44,982 | $ 43,988 | |||||
China Construction Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loan | [1] | 6,052 | 4,085 | ||||
ICBC Macau [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loan | [2],[3] | 35,000 | 35,000 | ||||
Chinese government loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loan | $ 3,930 | [4] | $ 4,100 | ¥ 25 | $ 4,903 | [4] | |
[1] | These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 11). As of September 30, 2015 and December 31, 2014, the weighted average interest rate was 7.0% and 6.5% per annum, respectively. Interest is paid on the twentieth day of each month or quarter, as applicable, and the principal repayment is at maturity. | ||||||
[2] | On July 16, 2014, Great Genesis entered into a credit facility agreement with HSBC HK to obtain a non-revolving credit facility in the amount of $5.0 million, the “HSBC Credit Facility”. The HSBC Credit Facility expired on July 1, 2015, and had an annual interest rate of 1.7%. Interest was paid on the twentieth day of each month and the principal repayment was at maturity. As security for the HSBC Credit Facility, the Company’s subsidiary Hubei Henglong was required to provide HSBC HK with the Standby Letter of Credit for a total amount of not less than $5.4 million if the HSBC Credit Facility was fully drawn. On July 22, 2014, Great Genesis drew down a loan amounting to $5.0 million provided by HSBC HK and Hubei Henglong provided a Standby Letter of Credit for an amount of $5.4 million in favor of HSBC HK. Hubei Henglong’s Standby Letter of Credit was issued by HSBC Bank (China) Company Limited Wuhan branch and is collateralized by short-term investments of Hubei Henglong of RMB33.0 million, equivalent to approximately $5.4 million. On October 6, 2015, HSBC HK agreed to extend the maturity date of the Credit Facility to July 1, 2016. The interest rate of the Credit Facility under the extended term is revised as 1.5% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remained unchanged. | ||||||
[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 RMB207.1 million, equivalent to approximately $32.6 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 was 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 remained 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 was 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 remained unchanged. On May 8, 2015, ICBC Macau agreed to extend the maturity date of the Credit Facility to May 13, 2016. The interest rate of the Credit Facility under the extended term is revised as the three-month LIBOR plus 1.40% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remain unchanged. As of September 30, 2015, the interest rate of the Credit Facility was 1.73% per annum. | ||||||
[4] | On March 31, 2015, the Company received a Chinese government loan of RMB25.0 million, equivalent to approximately $4.1 million, with an interest rate of 2.5% per annum. The government loan will mature on April 20, 2016. Henglong pledged RMB25.3 million, equivalent to approximately $4.1 million, of notes receivable as security for such Chinese government loan (See Note 6). |
Bank and government loans (De81
Bank and government loans (Details Textual) $ in Thousands, ¥ in Millions | May. 08, 2015 | May. 13, 2014 | May. 07, 2013 | May. 22, 2012USD ($) | May. 18, 2012USD ($) | Mar. 31, 2015USD ($) | Oct. 06, 2015 | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Mar. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Jul. 22, 2014USD ($) | Jul. 22, 2014CNY (¥) | Jul. 16, 2014USD ($) | May. 22, 2012CNY (¥) | ||
Debt Instrument [Line Items] | ||||||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 7.00% | 7.00% | 6.50% | 6.50% | ||||||||||||||
Non Revolving Credit Facility | $ 30,000 | $ 30,000 | ||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.73% | 1.73% | ||||||||||||||||
Time Deposits | $ 5,400 | ¥ 33 | 2,400 | ¥ 15 | ||||||||||||||
Industrial and Commercial Bank Of China Macau [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Non Revolving Credit Facility | $ 30,000 | $ 30,000 | ||||||||||||||||
Line of Credit Facility, Description | LIBOR plus 1.40% per annum | LIBOR plus 2.55% per annum | LIBOR plus 2.0% per annum | LIBOR plus 2.25% per annum | ||||||||||||||
Arrangement Fee | 100 | |||||||||||||||||
Line of Credit, Current | $ 31,600 | $ 31,600 | ||||||||||||||||
Line of Credit Facility, Expiration Date | May 22, 2013 | Nov. 3, 2012 | ||||||||||||||||
Industrial and Commercial Bank Of China Jingzhou Branch [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Arrangement Fee | $ 100 | |||||||||||||||||
HSBC Bank China Company Limited [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Non Revolving Credit Facility | $ 5,000 | $ 5,000 | ||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.50% | 1.70% | ||||||||||||||||
Line of Credit, Current | 5,400 | $ 5,400 | ||||||||||||||||
Time Deposits | $ 5,400 | ¥ 33 | ||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 1, 2015 | |||||||||||||||||
Chinese government loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Short-term Debt, Total | $ 4,100 | $ 3,930 | [1] | ¥ 25 | $ 4,903 | [1] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | ||||||||||||||||
Line of Credit Facility, Expiration Date | Apr. 20, 2016 | |||||||||||||||||
Henglong [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Financing Receivable, Net | $ 32,600 | ¥ 207.1 | ||||||||||||||||
Short-term Debt, Total | $ 4,100 | ¥ 25.3 | ||||||||||||||||
[1] | On March 31, 2015, the Company received a Chinese government loan of RMB25.0 million, equivalent to approximately $4.1 million, with an interest rate of 2.5% per annum. The government loan will mature on April 20, 2016. Henglong pledged RMB25.3 million, equivalent to approximately $4.1 million, of notes receivable as security for such Chinese government loan (See Note 6). |
Accounts and notes payable (Det
Accounts and notes payable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts And Notes Payable [Line Items] | |||
Accounts payable - unrelated parties | $ 112,791 | $ 132,389 | |
Notes payable - unrelated parties | [1] | 73,495 | 80,701 |
Total accounts and notes payable - unrelated parties | 186,286 | 213,090 | |
Total accounts and notes payable - related parties | 6,233 | 4,857 | |
Total accounts and notes payable | $ 192,519 | $ 217,947 | |
[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 pa83
Accrued expenses and other payables (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Accrued Expenses [Line Items] | |||
Accrued expenses | $ 7,353 | $ 6,988 | |
Accrued interest | 69 | 121 | |
Other payables | 1,612 | 1,735 | |
Dividends payable to common shareholders | [1] | 508 | 757 |
Dividends payable to non-controlling interests | [2] | 0 | 817 |
Warranty reserves | [3] | 24,293 | 25,011 |
Total | $ 33,835 | $ 35,429 | |
[1] | 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. As of September 30, 2015, dividends payable of $0.5 million remained unpaid. | ||
[2] | In accordance with the resolution of the board of directors of Shenyang, in March 2015, Shenyang declared a dividend amounting to $1.1 million to its shareholders, of which $0.3 million was payable to the holder of the non-controlling interests. As of September 30, 2015, all of the dividends have been paid to the holder of the non-controlling interests. | ||
[3] | The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. |
Accrued expenses and other pa84
Accrued expenses and other payables (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accrued Expenses [Line Items] | |||
Balance at the beginning of year | $ 25,011 | $ 22,104 | $ 22,104 |
Additions during the period | 6,779 | 8,333 | 12,341 |
Settlement within period, by cash or actual materials | (6,543) | (5,816) | (9,354) |
Foreign currency translation loss | (954) | (200) | (80) |
Balance at end of year | $ 24,293 | $ 24,421 | $ 25,011 |
Accrued expenses and other pa85
Accrued expenses and other payables (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
May. 27, 2014 | Sep. 30, 2015 | Mar. 31, 2015 | |
Accrued Expenses [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.18 | ||
Dividends Declared Amount | $ 0.5 | ||
Shenyang [Member] | |||
Accrued Expenses [Line Items] | |||
Dividend Payable To Non Controlling Interest | $ 0.3 | ||
Dividends Declared Amount | $ 1.1 |
Taxes payable (Details)
Taxes payable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Taxes Payable [Line Items] | ||
Value-added tax payable | $ 5,146 | $ 6,393 |
Income tax payable | 2,122 | 4,537 |
Other tax payable | 312 | 627 |
Total | $ 7,580 | $ 11,557 |
Advances payable (Details Textu
Advances payable (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Advance Payable [Line Items] | ||
Advances payable | $ 2 | $ 6.2 |
Additional paid-in capital (Det
Additional paid-in capital (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Additional Paid In Capital [Line Items] | ||||
Balance at beginning of the period | $ 64,522 | $ 39,565 | $ 39,565 | |
Return of common shareholders' investment cost | [1] | 0 | (5,047) | (5,047) |
Acquisition of the non-controlling interests in Henglong and Jiulong | [2] | 0 | (7,502) | (7,502) |
Issuance of common stock in exchange for the non-controlling interests in Henglong and Jiulong | [2] | 0 | 0 | 37,313 |
Share-based compensation | [3] | 0 | 193 | 193 |
Balance at end of the period | $ 64,522 | $ 27,209 | $ 64,522 | |
[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. | |||
[2] | On August 11, 2014, the Company entered into the Exchange Agreement with Jiulong Machinery Electricity, under which the Company issued 3,260,000 and 818,000 of its common shares in consideration for the acquisition of the 20% and 19% equity interests in Henglong and Jiulong, respectively, held by Jiulong Machinery Electricity. On September 26, 2014, the Company obtained the 20% and 19% equity interests in Henglong and Jiulong, respectively, and completed its share registrations with the local government administrative bureau. The Company owned 100% of the equity interests in both Henglong and Jiulong as of September 30, 2014. The Company’s acquisitions of the non-controlling interests were accounted for as equity transactions in the year ended December 31, 2014. The total carrying value for the non-controlling interests in both Henglong and Jiulong was $34.5 million, including the accumulated other comprehensive income of $4.7 million related to the noncontrolling interests acquired and other non-controlling interests of $29.8 million. Therefore, the total carrying value of $34.5 million for the non-controlling interests acquired was reclassified from non-controlling interests to the controlling interest’s equity as of September 30, 2014. On October 13, 2014, the Company completed its issuance of 4,078,000 common shares to nominee holders designated by Jiulong Machinery Electricity. The fair market value of the Company’s common stock issued was $37.3 million or $9.15 per share, which was determined on the issuance date of the common shares. The difference between the fair market value of $37.3 million for the Company’s common shares issued and the carrying value of $34.5 million for the non-controlling interest acquired of $2.8 million was recorded as a reduction of additional paid-in capital. Additional paid-in capital of the Company was also decreased by $4.7 million and the accumulated other comprehensive income attributable to Henglong and Jiulong was increased by a corresponding amount. | |||
[3] | On September 16, 2014, the Company granted 22,500 stock options to the Company’s independent directors, with the exercise price equal to the closing price of the Company’s common stock traded on NASDAQ on the date of grant. The fair value of stock options was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instruments. The dividend yield assumption is based on historical patterns and future expectations for the Company’s dividends. |
Additional paid-in capital (D89
Additional paid-in capital (Details 1) - September 16, 2014 [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Additional Paid In Capital [Line Items] | |
Expected volatility | 120.60% |
Risk-free rate | 1.78% |
Expected term (years) | 5 years |
Dividend yield | 0.00% |
Additional paid-in capital (D90
Additional paid-in capital (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Oct. 13, 2014 | Sep. 16, 2014 | Aug. 11, 2014 | Aug. 13, 2013 | May. 27, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 26, 2014 |
Additional Paid In Capital [Line Items] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.18 | ||||||||
Allocated Share-based Compensation Expense | $ 200 | ||||||||
Share-based Compensation Arrangement By Share-based Payment Award Options Exercisable Grant Date Fair Value | $ 200 | $ 200 | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 0 | $ 29,812 | $ 29,812 | ||||||
Director [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 22,500 | ||||||||
Henglong [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||||
Henglong [Member] | Private Placement [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 3,260,000 | ||||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||||
Jiulong [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 19.00% | ||||||||
Jiulong [Member] | Private Placement [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 818,000 | ||||||||
Equity Method Investment, Ownership Percentage | 19.00% | ||||||||
Henglong and Jiulong [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Business Acquisition Cost Of Non Controlling Interest | 34,500 | $ 34,500 | |||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||
Stock Issued During Period, Value, Acquisitions | $ 37,300 | ||||||||
Sale of Stock, Price Per Share | $ 9.15 | ||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 4,700 | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Fair Value | 37,300 | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | 34,500 | ||||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | 2,800 | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 4,700 | ||||||||
Henglong and Jiulong [Member] | Noncontrolling Interest [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Adjustments to Additional Paid in Capital, Other | $ 29,800 | ||||||||
Jiulong Machinery Electricity [Member] | |||||||||
Additional Paid In Capital [Line Items] | |||||||||
Business Combination Consideration Transferred Equity Interests Issued | 4,078,000 |
Retained earnings (Details)
Retained earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Retained Earnings Adjustments [Line Items] | |||||
Balance at beginning of the period | $ 179,435 | ||||
Net income attributable to parent company | $ 4,288 | $ 6,733 | 20,456 | $ 24,514 | |
Balance at end of the period | 199,720 | 199,720 | $ 179,435 | ||
Retained Earnings, Appropriated [Member] | |||||
Retained Earnings Adjustments [Line Items] | |||||
Balance at beginning of the period | 10,178 | 10,048 | 10,048 | ||
Appropriation of retained earnings | 171 | 130 | 130 | ||
Balance at end of the period | 10,349 | 10,178 | 10,349 | 10,178 | 10,178 |
Retained Earnings, Unappropriated [Member] | |||||
Retained Earnings Adjustments [Line Items] | |||||
Balance at beginning of the period | 179,435 | 146,023 | 146,023 | ||
Net income attributable to parent company | 20,456 | 24,514 | 33,542 | ||
Appropriation of retained earnings | (171) | (130) | (130) | ||
Balance at end of the period | $ 199,720 | $ 170,407 | $ 199,720 | $ 170,407 | $ 179,435 |
Retained earnings (Details Text
Retained earnings (Details Textual) - 9 months ended Sep. 30, 2015 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices Statutory Surplus Required Percentage | 10.00% | |
Percentage Of Statutory Surplus Reserve | 50.00% | |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 10 | |
Shashi Jiulong Power Steering Gears Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 4.2 | ¥ 35 |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 8.1 | 67.5 |
Universal Sensor Application Inc [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 2.6 | |
Wuhan Jielong Electric Power Steering Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 6 | |
Wuhu Henglong Automotive Steering System Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 3.8 | 30 |
Hubei Henglong Automotive System Group Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 39 | |
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 9.5 | ¥ 60 |
Accumulated other comprehensi93
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of the period | $ 36,119 | $ 32,061 | $ 32,061 |
Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) | 4,743 | 4,743 | |
Foreign currency translation adjustment attributable to parent company | $ (11,723) | (2,010) | (685) |
Balance at end of the period | $ 24,396 | $ 34,794 | $ 36,119 |
Non-controlling interests (Deta
Non-controlling interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Noncontrolling Interest [Line Items] | ||||||
Balance at beginning of the period | $ 8,912 | $ 45,071 | $ 45,071 | |||
Fair value of the non-controlling interests arising from the acquisition of Fujian Qiaolong | [1] | 0 | 2,793 | 2,793 | ||
Acquisition of the non-controlling interests in Henglong and Jiulong (See Note 19) | $ 0 | (29,812) | (29,812) | |||
Other comprehensive income related to the non-controlling interests acquired by the Company (See Note 19) | (4,743) | (4,743) | ||||
Income attributable to non-controlling interests | $ 93 | $ 1,293 | $ (56) | 5,409 | 6,052 | |
Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 16) | (318) | (10,077) | (10,077) | |||
Foreign currency translation adjustment attributable to non-controlling interests | (593) | (403) | (372) | |||
Balance at end of the period | $ 7,945 | $ 8,238 | $ 7,945 | $ 8,238 | $ 8,912 | |
[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. |
Non-controlling interests (De95
Non-controlling interests (Details Textual) $ in Millions | 3 Months Ended |
Jun. 30, 2014USD ($) | |
Noncontrolling Interest [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% |
Fujian Qiaolong [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest Increase Decrease from Business Combination Fair Value | $ 2.8 |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% |
Gain on other sales (Details Te
Gain on other sales (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gain on other sales disclosure [Line Items] | |||||
Gain (Loss) On Other Sales | $ 877 | $ 1,132 | $ 3,248 | $ 10,267 | |
Gain On Sale Of Idle Use Right And Plant Before Tax | $ 7,500 | ||||
Net Book Value Of Land Use Right And Plant | 900 | ||||
Selling Price Of Land Use Right And Plant | $ 8,400 | ||||
Gain Loss On Other Sales Period Decrease | $ 7,100 |
Financial income, net (Details)
Financial income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financial Expenses [Line Items] | ||||
Interest income | $ 873 | $ 1,404 | $ 2,259 | $ 2,657 |
Foreign exchange gain (loss), net | (172) | (63) | 205 | (62) |
Gain of cash discount, net | 13 | 3 | 41 | 65 |
Bank fees | (158) | (204) | (487) | (510) |
Total financial income, net | $ 556 | $ 1,140 | $ 2,018 | $ 2,150 |
Income tax rate (Details Textua
Income tax rate (Details Textual) BRL in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2008 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015USD ($) | Sep. 30, 2015BRL | Sep. 30, 2014 | Dec. 31, 2014USD ($) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | |
Income Tax Disclosure [Line Items] | |||||||||||
Tax rate | 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% | |||||||||
Undistributed Earnings, Basic | $ 201,100 | $ 188,300 | |||||||||
Tax Provision On Retained Earning Not Reinvested | $ 10,100 | $ 9,400 | |||||||||
Increase In Income Tax Expense Benefit Percentage | 18.10% | 14.90% | 16.60% | 16.60% | 17.90% | ||||||
Shashi Jiulong Power Steering Gears Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | ||||||||||
Jingzhou Henglong Automotive Parts Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | ||||||||||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | 15.00% | 15.00% | |||||||
Wuhu Henglong Automotive Steering System Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | 15.00% | ||||||||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | ||||||||||
Hubei Henglong Automotive System Group Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | |||||||||
Universal Sensor Application Inc [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 25.00% | 25.00% | |||||||||
Hong Kong Enterprise [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 16.50% | 16.50% | |||||||||
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 25.00% | ||||||||||
CAAS Brazils Imports and Trade In Automotive Parts Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 10.00% | 10.00% | |||||||||
Additional Tax Payable Subject To Residential Status | $ 120 | ||||||||||
United States [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Deferred State and Local Income Tax Expense (Benefit) | 170 | ||||||||||
Undistributed Earnings, Basic | $ 3,400 | ||||||||||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | |||||||||
CAAS Brazils Imports and Trade In Automotive Part Ltd [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | |||||||||
Additional Tax Payable Subject To Residential Status | BRL | BRL 240 |
Income per share (Details)
Income per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income attributable to the parent company’s common shareholders - Basic and Diluted | $ 4,288 | $ 6,733 | $ 20,456 | $ 24,514 |
Denominator: | ||||
Weighted average shares outstanding | 32,121,019 | 28,043,019 | 32,121,019 | 28,043,019 |
Dilutive effects of stock options | 13,820 | 20,642 | 14,984 | 20,827 |
Denominator for dilutive income per share - Diluted | 32,134,839 | 28,063,661 | 32,136,003 | 28,063,846 |
Net income per share attributable to the parent company's common shareholders | ||||
Net income per share attributable to parent company’s common shareholders - Basic | $ 0.13 | $ 0.24 | $ 0.64 | $ 0.87 |
Net income per share attributable to parent company’s common shareholders - Diluted | $ 0.13 | $ 0.24 | $ 0.64 | $ 0.87 |
Income per share (Details Textu
Income per share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity Option [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 60,000 | 60,000 | 60,000 | 60,000 |
Significant concentrations (Det
Significant concentrations (Details Textual) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Unusual Risk or Uncertainty [Line Items] | ||
Minimum Percentage Of Profit Allocated To Foreign Investment | 10.00% | |
Registered Capital Percentage | 50.00% | |
Accounts Receivable Trade Percentage | 12.90% | |
Ten Largest Customers [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Concentration Risk, Percentage | 69.60% | 68.00% |
Customer One [Member] | ||
Unusual Risk or Uncertainty [Line Items] | ||
Accounts Receivable Trade Percentage | 6.90% | 6.20% |
Concentration Risk, Percentage | 13.40% | 12.10% |
Related party transactions a102
Related party transactions and balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related receivables | |||||
Accounts and notes receivable from related parties | $ 31,423 | $ 31,423 | $ 22,760 | ||
Other receivables from related parties | 3 | 3 | 76 | ||
Total | 31,426 | 31,426 | 22,836 | ||
Related advances | |||||
Advanced equipment payment to related parties | 6,185 | 6,185 | 2,085 | ||
Advanced payments and others to related parties | 812 | 812 | 741 | ||
Total | 6,997 | 6,997 | 2,826 | ||
Related payables | |||||
Accounts and notes payable | 6,233 | 6,233 | 4,857 | ||
Related Party [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 8,603 | $ 12,746 | 29,591 | $ 39,483 | |
Related purchases | |||||
Related parties | 7,358 | 7,457 | 23,567 | 23,527 | |
Related Party [Member] | Raw Materials And Others [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 418 | 657 | 1,411 | 657 | |
Related Party [Member] | Rental Income [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 48 | 199 | 104 | 199 | |
Technology Equipment [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 145 | 114 | 292 | 278 | |
Equipment [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 1,386 | 1,274 | 4,456 | 2,528 | |
Materials [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 5,721 | 6,069 | 18,359 | 20,721 | |
Advanced Equipment [Member] | Related Party [Member] | |||||
Related advances | |||||
Advanced equipment payment to related parties | 6,185 | 6,185 | 2,085 | ||
Merchandise [Member] | Related Party [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 8,137 | 11,890 | 28,076 | 38,627 | |
Other purchased [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 106 | $ 0 | 460 | $ 0 | |
Accounts Receivable [Member] | Related Party [Member] | |||||
Related receivables | |||||
Accounts and notes receivable from related parties | 31,423 | 31,423 | 22,760 | ||
Other Receivables [Member] | Related Party [Member] | |||||
Related receivables | |||||
Other receivables from related parties | 3 | 3 | 76 | ||
Accounts Payable [Member] | |||||
Related payables | |||||
Accounts and notes payable | 5,992 | 5,992 | 4,857 | ||
Other Advance Payments [Member] | Related Party [Member] | |||||
Related advances | |||||
Advanced payments and others to related parties | $ 812 | $ 812 | $ 741 |
Related party transactions a103
Related party transactions and balances (Details Textual) | Nov. 12, 2015 |
Scenario, Forecast [Member] | Subsequent Event [Member] | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 55.60% |
Commitments and contingencie104
Commitments and contingencies (Details) $ in Thousands | Sep. 30, 2015USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
2,015 | $ 23,388 | [1] |
2,016 | 5,115 | |
2,017 | 2,839 | |
2,018 | 0 | |
Thereafter | 0 | |
Total | 31,342 | |
Obligations for investment contracts [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
2,015 | 0 | [1],[2] |
2,016 | 3,256 | [2] |
2,017 | 2,442 | [2] |
2,018 | 0 | [2] |
Thereafter | 0 | [2] |
Total | 5,698 | [2] |
Obligations for purchasing and service agreements [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
2,015 | 23,388 | [1] |
2,016 | 1,859 | |
2,017 | 397 | |
2,018 | 0 | |
Thereafter | 0 | |
Total | $ 25,644 | |
[1] | Remaining 3 months in 2015. | |
[2] | Capital Commitment to the Venture Fund |
Commitments and contingencie105
Commitments and contingencies (Details Textual) ¥ in Millions, $ in Millions | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Apr. 24, 2015USD ($) | Apr. 24, 2015CNY (¥) | Oct. 20, 2014USD ($) | Oct. 20, 2014CNY (¥) | Sep. 22, 2014USD ($) | Sep. 22, 2014CNY (¥) |
Hubei Henglong [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Capital | $ 1.6 | ¥ 10 | $ 0.8 | ¥ 5 | $ 8.1 | ¥ 50 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 17.90% | 17.90% | ||||||
Suzhou Qingyan Automobile Industry Venture Firm [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Unpaid Capital | $ 5.7 | ¥ 35 |
Segment reporting (Details)
Segment reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | $ 90,845 | $ 101,735 | $ 323,455 | $ 331,517 | |
Net Income (Loss) | 4,381 | 8,026 | 20,400 | 29,923 | |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 53,932 | 60,902 | 206,061 | 203,987 | |
Net Income (Loss) | 2,866 | 5,127 | 15,768 | 22,660 | |
Shashi Jiulong Power Steering Gears Co Ltd [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 16,183 | 15,964 | 53,251 | 57,753 | |
Net Income (Loss) | 154 | 168 | 75 | 1,750 | |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 7,516 | 8,988 | 24,056 | 32,928 | |
Net Income (Loss) | 609 | 998 | 1,418 | 1,760 | |
Wuhu Henglong Automotive Steering System Co Ltd [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 3,925 | 5,941 | 16,096 | 18,345 | |
Net Income (Loss) | (110) | (88) | (181) | (167) | |
Hubei Henglong Automotive System Group Co Ltd [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 13,818 | 14,425 | 44,463 | 41,708 | |
Net Income (Loss) | 1,737 | 1,110 | 5,594 | 44,512 | [1] |
Other Sector [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 8,656 | 9,887 | 27,433 | 30,210 | |
Net Income (Loss) | (260) | 252 | (1,021) | 1,246 | |
Total Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 104,030 | 116,107 | 371,360 | 384,931 | |
Net Income (Loss) | 4,996 | 7,567 | 21,653 | 71,761 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | 0 | 0 | 0 | 0 | |
Net Income (Loss) | (996) | 231 | (1,538) | (1,792) | |
Consolidation, Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Product Sales | (13,185) | (14,372) | (47,905) | (53,414) | |
Net Income (Loss) | $ 381 | $ 228 | $ 285 | $ (40,046) | |
[1] | $ 40.3 million included in the balance of $ 44.5 million was income from the investment in Henglong in 2014, which has been eliminated at the consolidation level. |
Segment reporting (Details Text
Segment reporting (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Hubei Henglong Automotive System Group Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment Income, Net | $ 44.5 | ||
Investment Owned, at Fair Value | $ 40.3 |