Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 31,644,004 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net product sales | $ 118,365 | $ 94,626 | $ 355,333 | $ 312,497 |
Cost of products sold | 95,878 | 74,641 | 287,156 | 253,352 |
Gross profit | 22,487 | 19,985 | 68,177 | 59,145 |
Gain on other sales | 553 | 22 | 5,896 | 2,008 |
Less: Operating expenses | ||||
Selling expenses | 4,537 | 3,840 | 13,160 | 12,273 |
General and administrative expenses | 4,390 | 3,741 | 14,027 | 11,998 |
Research and development expenses | 9,194 | 6,723 | 23,666 | 18,849 |
Total operating expenses | 18,121 | 14,304 | 50,853 | 43,120 |
Income from operations | 4,919 | 5,703 | 23,220 | 18,033 |
Other income | 100 | 420 | (2) | 995 |
Interest expense | (318) | (201) | (1,193) | (524) |
Financial income, net | 1,027 | 800 | 1,909 | 1,270 |
Income before income tax expenses and equity in earnings of affiliated companies | 5,728 | 6,722 | 23,934 | 19,774 |
Less: Income taxes | 991 | 1,167 | 4,367 | 3,416 |
Equity in earnings of affiliated companies | 491 | 304 | 480 | 561 |
Net income | 5,228 | 5,859 | 20,047 | 16,919 |
Net income attributable to non-controlling interests | 169 | 177 | 353 | 164 |
Net income attributable to parent company's common shareholders | 5,059 | 5,682 | 19,694 | 16,755 |
Comprehensive income: | ||||
Net income | 5,228 | 5,859 | 20,047 | 16,919 |
Other comprehensive income: | ||||
Foreign currency translation gain/(loss), net of tax | 6,705 | (2,139) | 14,148 | (8,435) |
Comprehensive income | 11,933 | 3,720 | 34,195 | 8,484 |
Comprehensive income attributable to non-controlling interests | 386 | 119 | 819 | (143) |
Comprehensive income attributable to parent company | $ 11,547 | $ 3,601 | $ 33,376 | $ 8,627 |
Net income attributable to parent company’s common shareholders per share | ||||
Basic - (in dollars per share) | $ 0.16 | $ 0.18 | $ 0.62 | $ 0.52 |
Diluted- (in dollars per share) | $ 0.16 | $ 0.18 | $ 0.62 | $ 0.52 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 31,644,004 | 31,911,360 | 31,644,004 | 32,038,933 |
Diluted (in shares) | 31,644,271 | 31,911,722 | 31,647,833 | 32,040,514 |
Condensed Unaudited Consolidat3
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income [Parenthetical] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue from Related Parties | $ 7,563 | $ 9,950 | $ 25,684 | $ 28,589 |
Related Party Costs | $ 6,549 | $ 5,869 | $ 20,195 | $ 18,912 |
Condensed Unaudited Consolidat4
Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 55,382 | $ 31,092 | |
Pledged cash | 31,075 | 30,799 | |
Short-term investments | 23,829 | 30,475 | |
Accounts and notes receivable, net - unrelated parties | 269,943 | 285,731 | |
Accounts and notes receivable, net - related parties | 17,607 | 20,984 | |
Advance payments and others - unrelated parties | 12,235 | 10,203 | |
Advance payments and others - related parties | 31,397 | 624 | |
Inventories | 73,030 | 68,050 | |
Current deferred tax assets | 7,476 | 7,946 | |
Total current assets | 521,974 | 485,904 | |
Non-current assets: | |||
Long-term time deposits | 6,027 | 865 | |
Property, plant and equipment, net | [1],[2] | 115,302 | 101,478 |
Intangible assets, net | 512 | 617 | |
Other receivables, net - unrelated parties | 2,234 | 2,252 | |
Advance payment for property, plant and equipment - unrelated parties | 14,222 | 14,506 | |
Advance payment for property, plant and equipment - related parties | 4,813 | 5,005 | |
Long-term investments | 25,341 | 16,431 | |
Non-current deferred tax assets | 4,295 | 4,641 | |
Total assets | 694,720 | 631,699 | |
Current liabilities: | |||
Bank and government loans | 73,594 | 40,820 | |
Accounts and notes payable - unrelated parties | 224,758 | 216,993 | |
Accounts and notes payable - related parties | 5,749 | 6,803 | |
Customer deposits | 869 | 700 | |
Accrued payroll and related costs | 7,460 | 6,971 | |
Accrued expenses and other payables | 32,883 | 35,882 | |
Accrued pension costs | 4,750 | 4,130 | |
Taxes payable | 3,800 | 11,674 | |
Amounts due to shareholders/directors | 335 | 312 | |
Advances payable (current portion) | 399 | 382 | |
Current deferred tax liabilities | 190 | 193 | |
Total current liabilities | 354,787 | 324,860 | |
Long-term liabilities: | |||
Long-term bank loan | 0 | 608 | |
Advances payable | 354 | 339 | |
Total liabilities | 355,141 | 325,807 | |
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, 2017 and December 31, 2016, respectively | 3 | 3 | |
Additional paid-in capital | 64,406 | 64,764 | |
Retained earnings- | |||
Appropriated | 10,673 | 10,549 | |
Unappropriated | 248,533 | 228,963 | |
Accumulated other comprehensive income/(loss) | 12,722 | (892) | |
Treasury stock - 694,298 and 694,298 shares as of September 30, 2017 and December 31, 2016, respectively | (2,907) | (2,907) | |
Total parent company stockholders' equity | 333,430 | 300,480 | |
Non-controlling interests | 6,149 | 5,412 | |
Total stockholders' equity | 339,579 | 305,892 | |
Total liabilities and stockholders' equity | $ 694,720 | $ 631,699 | |
[1] | Depreciation charges were $3.0 million and $3.3 million for the three months ended September 30, 2017 and 2016, respectively, and $10.7 million and $10.4 million for the nine months ended September 30, 2017 and 2016, respectively. | ||
[2] | Interest costs capitalized for the three months ended September 30, 2017 and 2016, were $0.2 million and $0.1 million, respectively; and $0.5 million and $0.2 million for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Unaudited Consolidat5
Condensed Unaudited Consolidated Balance Sheets [Parenthetical] - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 694,298 | 694,298 |
Condensed Unaudited Consolidat6
Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 20,047 | $ 16,919 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Share-based compensation | 100 | 0 |
Depreciation and amortization | 10,933 | 10,732 |
Increase in/(reversal of) provision for doubtful accounts | 1,034 | (126) |
Inventory write downs | 4,436 | 2,353 |
Deferred income taxes | 1,354 | (142) |
Equity in earnings of affiliated companies | (480) | (561) |
Gain on disposal of Fujian Qiaolong | 0 | (698) |
Gain on fixed assets disposals | (2,204) | (6) |
(Increase) decrease in: | ||
Pledged cash | 1,226 | 9,711 |
Accounts and notes receivable | 32,807 | (18,471) |
Advance payments and others | (1,527) | (2,798) |
Inventories | (6,441) | (18,244) |
Increase (decrease) in: | ||
Accounts and notes payable | (3,023) | 14,990 |
Customer deposits | 158 | (613) |
Accrued payroll and related costs | 182 | 544 |
Accrued expenses and other payables | (6,216) | 1,309 |
Accrued pension costs | 443 | (160) |
Taxes payable | (9,806) | (1,582) |
Advance payable | 0 | (75) |
Net cash provided by operating activities | 43,023 | 13,082 |
Cash flows from investing activities: | ||
Decrease in other receivables | 159 | 2,382 |
Proceeds from disposition of a subsidiary, net of cash disposed of $1,063 | 0 | 1,953 |
Cash received from property, plant and equipment sales | 2,351 | 511 |
Payments to acquire property, plant and equipment (including $7,656 and $5,662 paid to related parties for the nine months ended September 30, 2017 and 2016, respectively) | (19,187) | (27,161) |
Payments to acquire intangible assets | 0 | (60) |
Purchase of short-term investments | (25,017) | (28,181) |
Purchase of long-term time deposit | (5,836) | 0 |
Proceeds from maturities of short-term investments | 33,749 | 13,236 |
Investment under equity method | (7,629) | (8,682) |
Loan to a related party | (29,044) | 0 |
Net cash used in investing activities | (50,454) | (46,002) |
Cash flows from financing activities: | ||
Proceeds from bank and government loans | 69,635 | 12,151 |
Repayments of bank and government loans | (39,271) | (7,145) |
Dividends paid to the non-controlling interest holders | 0 | (464) |
Repurchases of common stock | 0 | (991) |
Net cash provided by financing activities | 30,364 | 3,551 |
Effects of exchange rate on cash and cash equivalents | 1,357 | (1,245) |
Net increase/decrease in cash and cash equivalents | 24,290 | (30,614) |
Cash and cash equivalents at beginning of period | 31,092 | 69,676 |
Cash and cash equivalents at end of period | 55,382 | 39,062 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 573 | 219 |
Cash paid for income taxes | 4,343 | 1,396 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property, plant and equipment recorded during the period which previously were advance payments | 12,331 | 12,771 |
Accounts payable for acquiring property, plant and equipment | 890 | 844 |
Dividends payable to non-controlling interests | $ 621 | $ 0 |
Condensed Unaudited Consolidat7
Condensed Unaudited Consolidated Statements of Cash Flows [Parenthetical] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Divested from Deconsolidation | $ 1,063 | |
Payments to Acquire Property, Plant, and Equipment | $ 19,187 | 27,161 |
Related Party [Member] | ||
Payments to Acquire Property, Plant, and Equipment | $ 7,656 | $ 5,662 |
Organization and business
Organization and business | 9 Months Ended |
Sep. 30, 2017 | |
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. Henglong USA Corporation, “HLUSA,” incorporated on January 8, 2007 in Troy, Michigan, is a wholly-owned subsidiary of the Company, and mainly engages 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 2017 2016 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % JingzhouHenglong 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 % JingzhouHenglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Beijing HainachunHenglong Automotive Steering System Co., Ltd., “Beijing Henglong” 9 50.00 % 50.00 % Chongqing HenglongHongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 70.00 % 70.00 % CAAS Brazil’s Imports and Trade In Automotive Parts Ltd., “Brazil Henglong” 11 95.84 % 80.00 % Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 0.00 % 0.00 % 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 % 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 JingzhouHengsheng 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. 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 using 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. In May 2017, the Company obtained an additional 15.84 12. In the second quarter of 2014, the Company acquired a 51.0 51 20.0 3.0 0.7 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. 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. |
Basis of presentation and signi
Basis of presentation and significant accounting policies | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016. 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, 2016 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 2016 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, 2017 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017. 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. Foreign Currencies - China Automotive, the parent company, and HLUSA maintain their books and records in United States Dollars, “USD,” their functional currency. The Company’s subsidiaries based in the PRC and Genesis maintain their books and records in Renminbi, “RMB,” their functional currency. The Company’s subsidiary based in Brazil maintains its books and records in Brazilian reais, “BRL,” its functional currency. In accordance with ASC Topic 830, “FASB Accounting Standards Codification”, foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the rate of exchange prevailing at the balance sheet date for monetary items. Nonmonetary items are remeasured at historical rates. Income and expenses are remeasured at the rate in effect on the transaction dates. Transaction gains and losses, if any, are included in the determination of net income for the period. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04: IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 is designed to provide guidance on how to recognize gain and losses on sales, including partial sales, of nonfinancial assets to noncustomers. ASU 2017-05 is effective beginning January 1, 2018. Early adoption is permitted but the standard is required to be adopted concurrently with ASU 2014-09. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In May 2017, the FASB issued guidance within ASU 2017-09: Scope of Modification Accounting. The amendments in ASU 2017-09 to Topic 718, Compensation - Stock Compensation, provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following conditions are met: the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments should be applied prospectively to an award modified on or after the adoption date. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017. Early adoption is permitted, including adoption in any interim period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated 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, 2016. |
Short-term investments
Short-term investments | 9 Months Ended |
Sep. 30, 2017 | |
Short Term Investments Disclosure [Abstract] | |
Short Term Investments Disclosure [Text Block] | 3. Short-term investments Short-term investments comprise time deposits with terms of three months or more which are due within one year and wealth management financial products with maturities within one year. The carrying values of time deposits approximate fair value because of their short maturities. The interest earned is recognized in the consolidated statements of income over the contractual term of the deposits. The wealth management financial products are measured at fair value and classified as Level 2 within the fair value measurement hierarchy. The fair values weremeasured by using directly or indirectly observable inputs in the marketplace. Changes in the fair value are reflected in other income in the consolidated statements of operations and comprehensive income. The Company’s short-term investments as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Time deposits $ 5,100 $ 30,217 Wealth management financial products measured at fair value 18,729 258 Total $ 23,829 $ 30,475 As of September 30, 2017, the Company had pledged short-term investments of RMB 13.9 2.1 |
Accounts and notes receivable,
Accounts and notes receivable, net | 9 Months Ended |
Sep. 30, 2017 | |
Accounts and Notes Receivable Disclosure [Abstract] | |
Accounts and Notes Receivable Disclosure [Text Block] | 4. Accounts and notes receivable, net September 30, 2017 December 31, 2016 Accounts receivable - unrelated parties $ 150,696 $ 154,403 Notes receivable - unrelated parties (1) (2) 120,438 132,409 Total accounts and notes receivable- unrelated parties 271,134 286,812 Less: allowance for doubtful accounts - unrelated parties (1,191) (1,081) Accounts and notes receivable, net - unrelated parties 269,943 285,731 Accounts and notes receivable, net - related parties 17,607 20,984 Accounts and notes receivable, net $ 287,550 $ 306,715 (1) Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. (2) As of September 30, 2017, the Company collateralized its notes receivable in an amount of RMB 268.3 40.4 158.9 23.9 30.0 4.5 79.4 12.0 10.0 As of December 31, 2016, the Company collateralized its notes receivable in an amount of RMB 249.9 36.0 224.6 32.4 30.0 25.2 |
Advance payments and others
Advance payments and others | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Advance Payments And Others Disclosure [Text Block] | 5. Advance payments and others September 30, 2017 December 31, 2016 Advance payments and others - unrelated parties $ 13,307 $ 10,203 Less: allowance for doubtful accounts unrelated parties (2) (1,072 ) - Advance payments and others, net unrelated parties 12,235 10,203 Advance payments and others - related parties (1) 31,397 624 Total advance payments and others $ 43,632 $ 10,827 (1) On March 16, 2017, in order to generate higher returns for the Company’s idle cash, one of the Company's subsidiaries, Hubei Henglong, lent RMB 200.0 million (equivalent to $30.1 million as of September 30, 2017) to Henglong Real Estate, one of the Company's related parties, through an independent financial institution by way of an entrusted loan. The term of the loan is one year and the annual interest rate is 6.35%. (2) Provision for the doubtful accounts amounted to $1.1 million and nil for the nine months ended September 30, 2017 and 2016, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 6. Inventories The Company’s inventories as of September 30, 2017 and December 31, 2016 consisted of the following (figures are in thousands of USD): September 30, 2017 December 31, 2016 Raw materials $ 16,637 $ 15,007 Work in process 17,379 10,852 Finished goods 39,014 42,191 Total $ 73,030 $ 68,050 Provision for inventories amounted to $4.4 million and $2.4 million for the nine months ended September 30, 2017 and 2016, respectively. |
Other receivables, net
Other receivables, net | 9 Months Ended |
Sep. 30, 2017 | |
Other Receivables Disclosure [Abstract] | |
Other Receivables Disclosure [Text Block] | 7. Other receivables, net The Company’s other receivables as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31,2016 Other receivables - unrelated parties (1) $ 1,009 $ 738 Other receivables - employee housing loans (2) 1,291 1,577 Less: allowance for doubtful accounts - unrelated parties (66 ) (63 ) Other receivables, net - unrelated parties $ 2,234 $ 2,252 September 30, 2017 December 31, 2016 Other receivables - related parties (1) $ 576 $ 559 Less: allowance for doubtful accounts - related parties (576 ) (559 ) Other receivables, net - related parties $ - $ - (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 million, equivalent to approximately $7.5 million, to the employees of the Company to assist them in purchasing houses. Employees are required to pay interest at an annual rate of 3.8%. These loans are unsecured and the term of the loans is generally five years. |
Long-term time deposits
Long-term time deposits | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | 8. Long-term time deposits Long-term time deposits are time deposits with maturities of longer than one year. Time deposits with original maturities of longer than one year but due within the next 12 months are included in short-term investments. As of September 30, 2017 and December 31, 2016, short-term investments include $1.0 million and $4.8 million, respectively, of time deposits with original maturities of longer than one year but due within the next 12 months. As of September 30, 2017 and December 31, 2016, the Company had pledged long-term time deposits of nil and RMB 6.0 million (equivalent to approximately $0.9 million), respectively, to secure loans under the credit facility issued by ICBC Brazil. The use of the pledged long-term time deposits is restricted (See Note 13). |
Long-term investments
Long-term investments | 9 Months Ended |
Sep. 30, 2017 | |
Long-term Investments [Abstract] | |
Long-Term Investments [Text Block] | 9. Long-term investments On January 24, 2010, the Company invested $3.1 million to establish a joint venture company, Beijing Henglong, with Hainachuan. The Company owns 50% of the equity in Beijing Henglong and can exercise significant influence over Beijing Henglong’s operating and financial policies. The Company accounted for Beijing Henglong’s operational results using the equity method. As of September 30, 2017 and December 31, 2016, the Company had $4.2 million and $3.8 million, respectively, of net equity in Beijing Henglong. On September 22, 2014, Hubei Henglong entered into an agreement with other parties to establish a venture capital fund, the “Suzhou Venture Fund”, which mainly focuses on investments in emerging automobiles and parts industries. Hubei Henglong has committed to make investments of RMB 50.0 million, equivalent to approximately $7.5 million, in the Suzhou Venture Fund in three installments. As of September 30, 2017, Hubei Henglong has completed a capital contribution of RMB 50.0 million, equivalent to approximately $7.5 million, representing 12.5% of the Suzhou Venture Fund’s shares. As a limited partner, Hubei Henglong has more than virtually no influence over the Suzhou Venture Fund’s operating and financial policies. The investment is accounted for using the equity method. As of September 30, 2017 and December 31, 2016, the Company had $8.1 million and $5.3 million, respectively, of net equity in the Suzhou Venture Fund. In May 2016, Hubei Henglong entered into an agreement with other parties to establish a venture capital fund, the “Chongqing Venture Fund”. Hubei Henglong has committed to make investments of RMB 120.0 million, equivalent to approximately $18.1 million, in the Chongqing Venture Fund in three installments. As of September 30, 2017, Hubei Henglong has completed a capital contribution of RMB 84.0 million, equivalent to approximately $12.7 million, representing 35.0% of the Chongqing Venture Fund’s shares. As a limited partner, Hubei Henglong has more than virtually no influence over the Chongqing Venture Fund’s operating and financial policies. The investment is accounted for using the equity method. As of September 30, 2017 and December 31, 2016, the Company had $12.5 million and $6.8 million, respectively, of net equity in the Chongqing Venture Fund. In October 2016, Hubei Henglong invested RMB 3.0 million, equivalent to approximately $0.5 million, to establish a joint venture company, Chongqing Jinghua Automotive Intelligent Manufacturing Technology Research Co., Ltd., “Chongqing Jinghua”, with five other parties. The Company owns 30% of the equity in Chongqing Jinghua, and can exercise significant influence over Chongqing Jinghua’s operating and financial policies. The Company accounts for Chongqing Jinghua’s operational results with the equity method. As of September 30, 2017 and December 31, 2016, the Company had $0.5 million and $0.4 million, respectively, of net equity in Chongqing Jinghua. The Company’s consolidated financial statements reflect the net income of non-consolidated affiliates of $0.5 million and $0.6 million for the nine months ended September 30, 2017 and 2016, respectively. |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 10. Property, plant and equipment, net The Company’s property, plant and equipment as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Land use rights and buildings $ 55,067 $ 47,448 Machinery and equipment 150,928 134,361 Electronic equipment 5,636 4,979 Motor vehicles 4,954 4,395 Construction in progress 28,832 24,890 Total amount of property, plant and equipment 245,417 216,073 Less: Accumulated depreciation (1) (130,115 ) (114,595 ) Total amount of property, plant and equipment, net (2)(3) $ 115,302 $ 101,478 (1) As of September 30, 2017 and December 31, 2016, the Company pledged property, plant and equipment with a net book value of approximately $25.9 million and $28.5 million, respectively as security for its comprehensive credit facilities with banks in China. (2) Depreciation charges were $3.0 million and $3.3 million for the three months ended September 30, 2017 and 2016, respectively, and $10.7 million and $10.4 million for the nine months ended September 30, 2017 and 2016, respectively. (3) Interest costs capitalized for the three months ended September 30, 2017 and 2016, were $0.2 million and $0.1 million, respectively; and $0.5 million and $0.2 million for the nine months ended September 30, 2017 and 2016, respectively. |
Intangible assets
Intangible assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 11. Intangible assets The Company’s intangible assets as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Costs: Patent technology $ 2,076 $ 1,986 Management software license 1,218 1,165 Total intangible assets 3,294 3,151 Less: Amortization (1) (2,782 ) (2,534 ) Total intangible assets, net $ 512 $ 617 (1) Amortization expenses were $0.1 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $0.2 million and $0.3 million for the nine months ended September 30, 2017 and 2016, respectively. |
Deferred income tax assets
Deferred income tax assets | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Deferred Income Tax Assets Disclosure [Text Block] | 12. Deferred income tax assets In accordance with the provisions of ASC Topic 740, “Income Taxes”, The components of estimated deferred income tax assets as of September 30, 2017 and December 31, 2016 are as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Losses carry forward (U.S.) (1) $ 6,389 $ 6,216 Losses carry forward (Non-U.S.) (1) 2,307 2,887 Product warranties and other reserves 4,290 4,766 Property, plant and equipment 4,422 4,204 Share-based compensation 220 247 Bonus accrual 230 231 Other accruals 1,439 1,551 Deductible temporary difference related to revenue recognition 153 191 Others 1,365 1,206 Total deferred tax assets, net 20,815 21,499 Less: Valuation allowance (9,044 ) (8,912 ) Total deferred tax assets, net of valuation allowance (2) $ 11,771 $ 12,587 (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 carry forward losses will expire, if not utilized, at various times over the next 20 years. Net operating losses carry forward for China entities can be carried forward for 5 years to offset taxable income. As of September 30, 2017, the valuation allowance was $9.0 million, including $6.6 million allowance for the Company’s deferred tax assets in the United States and $2.4 million allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the deferred tax assets in other countries, pursuant to certain tax laws and regulations, management believes such amount will not be used to offset future taxable income. (2) Approximately $4.3 million and $4.6 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $7.5 million and $7.9 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in current deferred tax assets. |
Bank and government loans
Bank and government loans | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 13. Bank and government loans September 30, 2017 December 31, 2016 Short-term bank loan (1) $ 9,794 $ 2,162 Short-term bank loan (2) (3) (4) (5) 30,484 35,054 Short-term bank loans (6) 28,796 - Short-term government loan (7) 4,520 3,604 Bank and government loans $ 73,594 $ 40,820 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of September 30, 2017 and December 31, 2016, the weighted average interest rate was 4.7 5.2 (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 of $ 31.6 207.1 0.1 0.1 . The original maturity date of the Credit Facility was May 22, 2013 and was extended to May 12, 2017. The interest rate of the Credit Facility under the extended term is three-month LIBOR plus 0.7% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remained unchanged. As of December 31, 2016, the interest rate of the Credit Facility was 1.7 On April 20, 2017, 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 $ 20.0 May 12, 2018 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 of not less than $ 23.9 On May 5, 2017, the Company drew down the full amount of $ 20.0 23.4 158.9 23.9 0.04 . (3) On April 25, 2017, Great Genesis entered into a credit facility agreement, the “Taishin Bank Credit Facility”, with Taishin Bank to obtain a non-revolving credit facility in the amount of $ 10.0 April 25, 2018 2.7 10.0 On April 28, 2017, Great Genesis drew down the full amount of $ 9.9 10.0 4.0 79.4 12.0 (4) 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 .8 million . On July 7, 2016, HSBC HK agreed to extend the maturity date of the HSBC Credit Facility to July 1, 2017. Hubei Henglong provided a Standby Letter of Credit in an amount of $ 5.1 36.0 5.2 1.95 (5) 0.1 0.1 O n May 6, 2016, Brazil Henglong drew down a loan amounting to $ 0.1 October 9, 2017 8.2 0.1 to approximately $ 0.1 On August 26, 2016, Brazil Henglong entered into a credit facility agreement with Bank of China (Brazil) to obtain a credit facility in the amount of $0.6 million, the “Bank of China Credit Facility”. The Bank of China Credit Facility will expire on January 15, 2018. As security for the Bank of China Credit Facility, the Company’s subsidiary Hubei Henglong is required to provide Bank of China (Brazil) with a Standby Letter of Credit for a total amount of $0.9 million if the Bank of China Credit Facility is fully drawn. On August 26, 2016, Brazil Henglong drew down a loan amounting to $ 0.6 January 15, 2018 4.0 0.9 6.0 0.9 (6) On September 26, 2016, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 170.0 September 26, 2017 30.6 4.9 4.9 4.9 On September 26, 2016, Hubei Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 100.0 September 26, 2017 28.7 38.2 4.3 5.0 (7) On August 17, 2017, the Company received an interest-free Chinese government loan of RMB 20.0 million, equivalent to approximately $3.0 million, which will mature on August 16, 2018. Henglong pledged RMB 20.0 million, equivalent to approximately $3.0 million, of notes receivable as security for the Chinese government loan (See Note 4). On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 December 8, 2017 10.0 |
Accounts and notes payable
Accounts and notes payable | 9 Months Ended |
Sep. 30, 2017 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Accounts and Notes Payable Disclosure [Text Block] | 14. Accounts and notes payable September 30, 2017 December 31, 2016 Accounts payable - unrelated parties $ 142,594 $ 138,053 Notes payable - unrelated parties (1) 82,164 78,940 Accounts and notes payable- unrelated parties 224,758 216,993 Accounts payable - related parties 5,749 6,803 Balance at end of period $ 230,507 $ 223,796 (1) Notes payable represent accounts payable in the form of notes issued by the Company. The notes are endorsed by banks to ensure that noteholders will be paid after maturity. The Company has pledged cash deposits, short-term investments, 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, 2017 | |
Accrued Expenses and Other Payables Disclosure [Abstract] | |
Accrued Expenses and Other Payables Disclosure [Text Block] | 15. Accrued expenses and other payables September 30, 2017 December 31, 2016 Accrued expenses $ 7,975 $ 8,605 Accrued interest 953 88 Dividends payable to holders of non-controlling interests (3) 621 - Other payables 2,483 964 Warranty reserves (1) (2) 20,851 26,225 Total $ 32,883 $ 35,882 (1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. (2) In January 2017, the Company initiated two recalls related to the Company’s products. The Company has accrued anticipated costs for handling the recalls amounting to $ 5.0 (3) In accordance with the resolution of the Board of Directors of Shenyang, in the second quarter of 2017, Shenyang declared a dividend amounting to $ 2.0 0.6 Three Months Ended September 30, 2017 2016 Balance at beginning of the period $ 23,898 $ 21,238 Additions during the period 4,426 1,693 Settlement within period, by cash or actual materials (6,814) (2,378) Foreign currency translation (gain)/loss (659) 160 Balance at end of the period $ 20,851 $ 20,713 For the nine months ended September 30, 2017 and 2016, and for the year ended December 31, 2016, the warranties activities were as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 26,225 $ 23,059 $ 23,059 Additions during the period 11,182 5,433 16,522 Settlement within period, by cash or actual materials (15,423) (8,434) (11,781) Foreign currency translation loss (1,133) 655 (1,575) Balance at end of the period $ 20,851 $ 20,713 $ 26,225 |
Taxes payable
Taxes payable | 9 Months Ended |
Sep. 30, 2017 | |
Taxes Payables [Abstract] | |
Taxes Payable [Text Block] | 16. Taxes payable September 30, 2017 December 31, 2016 Value-added tax payable $ 2,374 $ 7,662 Income tax payable 1,019 3,390 Other tax payable 407 622 Total $ 3,800 $ 11,674 |
Advances payable
Advances payable | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Advances Payable [Text Block] | 17. Advances payable As of September 30, 2017 and December 31, 2016, advances payable by the Company were $ 0.8 0.7 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 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, 2017 | |
Additional Paid in Capital [Abstract] | |
Additional Paid in Capital [Text Block] | 18. Additional paid-in capital Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 64,764 $ 64,627 $ 64,627 Acquisition of the non-controlling interest in Brazil Henglong (1) (458) - - Share-based compensation (2) 100 - 137 Balance at end of the period $ 64,406 $ 64,627 $ 64,764 (1) In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. (2) On December 2, 2016 and August 16, 2017, the Company granted 22,500 22,500 Issuance Date Expected volatility Risk-free rate Expected term (years) Dividend yield December 2, 2016 134.8 % 1.84 % 5 0.00 % August 16, 2017 139.2 % 1.79 % 5 0.00 % The stock options granted during 2017 and 2016 were exercisable immediately. Their fair values on the grant dates using the Black-Scholes option pricing model were $ 0.1 0.1 0.1 0.1 |
Retained earnings
Retained earnings | 9 Months Ended |
Sep. 30, 2017 | |
Retained Earnings Note Disclosure [Abstract] | |
Retained Earnings Disclosure [Text Block] | 19. Retained earnings Appropriated Pursuant to the relevant PRC laws, the profits distribution of the Company’s Sino-foreign subsidiaries, which are based on their PRC statutory financial statements, other than the financial statement that was prepared in accordance with generally accepted accounting principles in the United States of America, 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 2.6 6.0 3.8 30.0 39.0 9.5 60.0 Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 10,549 $ 10,379 $ 10,379 Appropriation of retained earnings 124 142 170 Balance at end of the period $ 10,673 $ 10,521 $ 10,549 Unappropriated Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 228,963 $ 206,622 $ 206,622 Net income attributable to parent company 19,694 16,755 22,511 Appropriation of retained earnings (124) (142) (170) Balance at end of the period $ 248,533 $ 223,235 $ 228,963 |
Accumulated other comprehensive
Accumulated other comprehensive income | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income, Noncontrolling Interest [Text Block] | Accumulated other comprehensive income Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ (892) $ 18,412 $ 18,412 Other comprehensive income related to the non-controlling interests acquired by the Company (67) - - Foreign currency translation adjustment attributable to parent company 13,681 (8,128) (19,304) Balance at end of the period $ 12,722 $ 10,284 $ (892) |
Treasury stock
Treasury stock | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Treasury Stock [Text Block] | Treasury stock Treasury stock represents shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method. On December 18, 2015, the Board of Directors of the Company approved a share repurchase program under which the Company was permitted to repurchase up to $ 5.0 477,015 1.9 |
Non-controlling interests
Non-controlling interests | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 22. Non-controlling interests Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 5,412 $ 8,252 $ 8,252 Income attributable to non-controlling interests 353 164 466 Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 15) (608) (464) (464) Acquisition of the non-controlling interest in Brazil Henglong 458 - - Other comprehensive income related to the non-controlling interests acquired by the Company 67 - - Non-controlling interests change due to the disposal of Fujian Qiaolong - (2,150) (2,150) Foreign currency translation adjustment attributable to non-controlling interests 467 (307) (692) Balance at end of the period $ 6,149 $ 5,495 $ 5,412 |
Gain on other sales
Gain on other sales | 9 Months Ended |
Sep. 30, 2017 | |
Gain on other sales [Abstract] | |
Gain on other sales [Text Block] | Gain on other sales Gain on other sales mainly consisted of net amount retained from sales of materials, property, plant and equipment, and scraps. For the nine months ended September 30, 2017, gain on other sales amounted to $ 5.9 2.0 3.9 2.2 |
Financial income, net
Financial income, net | 9 Months Ended |
Sep. 30, 2017 | |
Financial Income Expenses Disclosure [Abstract] | |
Financial Income Expenses Disclosure [Text Block] | 24. Financial income, net Nine Months Ended September 30, 2017 2016 Interest income $ 2,474 $ 1,777 Foreign exchange loss, net (173) (30) Gain of cash discount, net - 3 Bank fees (392) (480) Total financial income, net $ 1,909 $ 1,270 |
Income tax rate
Income tax rate | 9 Months Ended |
Sep. 30, 2017 | |
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% on the taxable income as reported in their PRC statutory financial statements in accordance with the relevant income tax laws applicable to foreign invested enterprise, unless preferential tax treatment is granted by local tax authorities. If the enterprise meets certain preferential terms according to the China income tax law, such as assessment as a “High & New Technology Enterprise” by the government, the enterprise will be subject to enterprise income tax at a rate of 15%. Pursuant to the New China Income Tax Law and the Implementing Rules, “New CIT”, which became effective as of January 1, 2008, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise to its foreign investors will be subject to a 10 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 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, 2017, the Company has recognized deferred tax liabilities of $ 0.2 4.5 266.4 239.8 December 31, 2016 13.3 12.0 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 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 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 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 was subject to enterprise income tax at a rate of 15 In 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, Wuhan Chuguanjie, Shanghai Henglong 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 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 17.3 18.2 17.4 17.3 |
Income per share
Income per share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 26. Income per share Basic income per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted income per share is computed 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, 2017 2016 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 5,059 $ 5,682 Denominator: Weighted average shares outstanding 31,644,004 31,911,360 Dilutive effects of stock options 267 362 Denominator for dilutive income per share Diluted 31,644,271 31,911,722 Net income per share attributable to parent company’s common shareholders Basic $ 0.16 $ 0.18 Net income per share attributable to parent company’s common shareholders Diluted $ 0.16 $ 0.18 The calculation of basic and diluted income per share attributable to the parent company for the nine months ended September 30, 2017 and 2016, was (figures are in thousands of USD, except share and per share amounts): Nine Months Ended September 30, 2017 2016 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 19,694 $ 16,755 Denominator: Weighted average shares outstanding 31,644,004 32,038,933 Dilutive effects of stock options 3,829 1,581 Denominator for dilutive income per share Diluted 31,647,833 32,040,514 Net income per share attributable to parent company’s common shareholders Basic $ 0.62 $ 0.52 Net income per share attributable to parent company’s common shareholders Diluted $ 0.62 $ 0.52 As of September 30, 2017 and 2016, the exercise prices for 90,000 82,500 |
Significant concentrations
Significant concentrations | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 27. Significant concentrations A significant portion of the Company’s business is conducted in China where the currency is the RMB. Regulations in China permit foreign owned entities to freely convert the RMB into foreign currency for transactions that fall under the "current account," which includes trade related receipts and payments, interest and dividends. Accordingly, the Company’s Chinese subsidiaries may use RMB to purchase foreign exchange for settlement of such "current account" transactions without pre-approval. However, pursuant to applicable regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with the PRC law. In calculating accumulated profits, foreign investment enterprises in China are required to allocate at least 10% of their annual net income each year, if any, to fund certain reserve funds, including mandated employee benefits funds, unless these reserves have reached 50% of the registered capital of the enterprises. Transactions other than those that fall under the "current account" and that involve conversion of RMB into foreign currency are classified as "capital account" transactions; examples of "capital account" transactions include repatriations of investment by or loans to foreign owners, or direct equity investments in a foreign entity by a China domiciled entity. "Capital account" transactions require prior approval from China's State Administration of Foreign Exchange, or SAFE, or its provincial branch to convert a remittance into a foreign currency, such as USD, and transmit the foreign currency outside of China. This system could be changed at any time and any such change may affect the ability of the Company or its subsidiaries in China to repatriate capital or profits, if any, outside China. Furthermore, SAFE has a significant degree of administrative discretion in implementing the laws and has used this discretion to limit convertibility of current account payments out of China. Whether as a result of a deterioration in the Chinese balance of payments, a shift in the Chinese macroeconomic prospects or any number of other reasons, China could impose additional restrictions on capital remittances abroad. As a result of these and other restrictions under the laws and regulations of the PRC, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the parent. The Company has no assurance that the relevant Chinese governmental authorities in the future will not limit further or eliminate the ability of the Company’s PRC subsidiaries to purchase foreign currencies and transfer such funds to the Company to meet its liquidity or other business needs. Any inability to access funds in China, if and when needed for use by the Company outside of China, could have a material and adverse effect on the Company’s liquidity and its business. The Company grants credit to its customers including Xiamen Joylon, Xiamen Automotive Parts, Shanghai Fenglong and JingzhouYude, which are related parties of the Company. The Company’s customers are mostly located in the PRC. During the nine months ended September 30, 2017, the Company’s ten largest customers accounted for 56.1% of its consolidated net product sales, with one customer individually accounting for more than 10% of consolidated net sales i.e., 14.75%. As of September 30, 2017, approximately 6.6% of accounts receivable were from trade transactions with the aforementioned customer and there was no individual customer with a receivables balance of more than 10% of total accounts receivable. During the nine months ended September 30, 2016, the Company’s ten largest customers accounted for 62.7% of its consolidated net product sales, with one customer individually accounting for more than 10% of consolidated net sales, i.e., 12.9%. As of September 30, 2016, approximately 3.8% of accounts receivable were from trade transactions with the aforementioned customer and there was no individual customer with a receivables balance of more than 10% of total accounts receivable. |
Related party transactions and
Related party transactions and balances | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 28. Related party transactions and balances Related sales Three Months Ended September 30, 2017 2016 Merchandise sold to related parties $ 7,563 $ 9,950 Rental income obtained from related parties 20 23 Materials and others sold to related parties 376 551 Total $ 7,959 $ 10,524 Nine Months Ended September 30, 2017 2016 Merchandise sold to related parties $ 25,684 $ 28,589 Rental income obtained from related parties 66 91 Materials and others sold to related parties 1,186 1,231 Total $ 26,936 $ 29,911 Related purchases Three Months Ended September 30, 2017 2016 Materials purchased from related parties $ 6,549 $ 5,869 Technology purchased from related parties - 135 Equipment purchased from related parties 4,857 4,370 Others purchased from related parties 156 149 Total $ 11,562 $ 10,523 Nine Months Ended September 30, 2017 2016 Materials purchased from related parties $ 20,195 $ 18,912 Technology purchased from related parties - 362 Equipment purchased from related parties 9,281 7,900 Others purchased from related parties 371 524 Total $ 29,847 $ 27,698 Loan transaction to a related party Nine Months Ended September 30, 2017 2016 Related party loan $ 29,182 $ - Related receivables September 30, 2017 December 31, 2016 Accounts and notes receivable from related parties $ 17,607 $ 20,984 Related advances and loan balance September 30, 2017 December 31, 2016 Advance payments for property, plant and equipment to related parties $ 4,813 $ 5,005 Advance payments and others to related parties 31,397 624 Total $ 36,210 $ 5,629 Related payables September 30, 2017 December 31, 2016 Accounts and notes payable $ 5,749 $ 6,803 These transactions were consummated under similar terms as those with the Company's third party customers and suppliers. As of November 9, 2017, Hanlin Chen, the Company’s Chairman, owns 56.4 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2017 | |
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 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, 2017 (figures are in thousands of USD): Payment obligations by period 2017 (1) 2018 2019 2020 Thereafter Total Obligations for investment contracts (1) - $ 5,424 $ - $ - $ - $ 5,424 Obligations for purchasing and service agreements 16,496 5,650 2,530 - - 24,676 Total $ 16,496 $ 11,074 $ 2,530 $ - $ - $ 30,100 (1) In May 2016, Hubei Henglong entered into an agreement with other parties to establish a venture capital fund, the “Chongqing Venture Fund”. Hubei Henglong has committed to make investments of RMB 120.0 million, equivalent to approximately $18.1 million, in the Chongqing Venture Fund in three installments. As of September 30, 2017, Hubei Henglong has completed a capital contribution of RMB 84.0 million, equivalent to approximately $12.7 million, representing 35.0% of the Chongqing Venture Fund’s shares. According to the agreement, the remaining capital commitment of RMB 36.0 million, equivalent to approximately $5.4 million, will be paid upon capital calls received from the Chongqing Venture Fund. |
Off-balance sheet arrangements
Off-balance sheet arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Off Balance Sheet Arrangements Disclosure [Abstract] | |
Off Balance Sheet Arrangements Disclosure [Text Block] | 30. Off-balance sheet arrangements As of September 30, 2017 and December 31, 2016, 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, 2017 | |
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, 2017, the Company had 11 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 six 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), and manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie). Since the revenues, net income and net assets of these six sectors collectively are less than 10 As of September 30, 2016, the Company had eleven 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 six 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), and manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie). Since the revenues, net income and net assets of these seven sectors collectively are less than 10 ome and net assets, respectively, in the condensed unaudited consolidated financial statements, the Company incorporated these six sectors into “Other Sectors.” The Company’s product sector information for the three months and nine months ended September 30, 2017 and 2016, is as follows (figures are in thousands of USD): Net Product Sales Net Income (Loss) Three Months Ended Three Months Ended September 30 September 30 2017 2016 2017 2016 Henglong $ 55,790 $ 57,530 $ 689 $ 3,771 Jiulong 26,067 17,787 478 1,083 Shenyang 10,103 8,239 486 457 Wuhu 6,503 5,088 118 21 Hubei Henglong 24,812 13,912 2,680 735 Other Sectors 14,961 11,588 777 (269) Total Segments 138,236 114,144 5,228 5,798 Corporate - - 317 808 Eliminations (19,871) (19,518) (317) (747) Total $ 118,365 $ 94,626 $ 5,228 $ 5,859 Net Product Sales Net Income (Loss) Nine Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Henglong $ 191,093 $ 195,940 $ 6,300 $ 13,389 Jiulong 75,525 54,976 3,739 2,219 Shenyang 28,777 24,898 1,271 995 Wuhu 18,254 15,897 215 96 Hubei Henglong 66,855 42,815 5,518 2,286 Other Sectors 40,821 29,558 1,341 162 Total Segments 421,325 364,084 18,384 19,147 Corporate - - 3,367 (1,317) Eliminations (65,992) (51,587) (1,704) (911) Total $ 355,333 $ 312,497 $ 20,047 $ 16,919 |
Basis of presentation and sig39
Basis of presentation and significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016. 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, 2016 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 2016 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, 2017 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017. 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. Foreign Currencies - China Automotive, the parent company, and HLUSA maintain their books and records in United States Dollars, “USD,” their functional currency. The Company’s subsidiaries based in the PRC and Genesis maintain their books and records in Renminbi, “RMB,” their functional currency. The Company’s subsidiary based in Brazil maintains its books and records in Brazilian reais, “BRL,” its functional currency. In accordance with ASC Topic 830, “FASB Accounting Standards Codification”, foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the rate of exchange prevailing at the balance sheet date for monetary items. Nonmonetary items are remeasured at historical rates. Income and expenses are remeasured at the rate in effect on the transaction dates. Transaction gains and losses, if any, are included in the determination of net income for the period. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04: IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 is designed to provide guidance on how to recognize gain and losses on sales, including partial sales, of nonfinancial assets to noncustomers. ASU 2017-05 is effective beginning January 1, 2018. Early adoption is permitted but the standard is required to be adopted concurrently with ASU 2014-09. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In May 2017, the FASB issued guidance within ASU 2017-09: Scope of Modification Accounting. The amendments in ASU 2017-09 to Topic 718, Compensation - Stock Compensation, provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following conditions are met: the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments should be applied prospectively to an award modified on or after the adoption date. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017. Early adoption is permitted, including adoption in any interim period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated 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, 2016. |
Organization and business (Tabl
Organization and business (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Equity Method Investments [Table Text Block] | Percentage Interest September 30, December 31, Name of Entity 2017 2016 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % JingzhouHenglong 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 % JingzhouHenglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Beijing HainachunHenglong Automotive Steering System Co., Ltd., “Beijing Henglong” 9 50.00 % 50.00 % Chongqing HenglongHongyan Automotive System Co., Ltd., “Chongqing Henglong” 10 70.00 % 70.00 % CAAS Brazil’s Imports and Trade In Automotive Parts Ltd., “Brazil Henglong” 11 95.84 % 80.00 % Fujian Qiaolong Special Purpose Vehicle Co., Ltd., “Fujian Qiaolong” 12 0.00 % 0.00 % 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 % 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 JingzhouHengsheng 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. 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 using 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. In May 2017, the Company obtained an additional 15.84 12. In the second quarter of 2014, the Company acquired a 51.0 51 20.0 3.0 0.7 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. 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. |
Short-term investments (Tables)
Short-term investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Short-term Investments [Abstract] | |
Schedule Of Short Term Investment [Table Text Block] | The Company’s short-term investments as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Time deposits $ 5,100 $ 30,217 Wealth management financial products measured at fair value 18,729 258 Total $ 23,829 $ 30,475 |
Accounts and notes receivable42
Accounts and notes receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts and Notes Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, 2017 December 31, 2016 Accounts receivable - unrelated parties $ 150,696 $ 154,403 Notes receivable - unrelated parties (1) (2) 120,438 132,409 Total accounts and notes receivable- unrelated parties 271,134 286,812 Less: allowance for doubtful accounts - unrelated parties (1,191) (1,081) Accounts and notes receivable, net - unrelated parties 269,943 285,731 Accounts and notes receivable, net - related parties 17,607 20,984 Accounts and notes receivable, net $ 287,550 $ 306,715 (1) Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. (2) As of September 30, 2017, the Company collateralized its notes receivable in an amount of RMB 268.3 40.4 158.9 23.9 30.0 4.5 79.4 12.0 10.0 |
Advance payments and others (Ta
Advance payments and others (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule Of Advance Payments And Others Disclosure [Table Text Block] | The Company’s advance payments and others as of September 30, 2017 and December 31, 2016 consisted of the following: September 30, 2017 December 31, 2016 Advance payments and others - unrelated parties $ 13,307 $ 10,203 Less: allowance for doubtful accounts unrelated parties (2) (1,072 ) - Advance payments and others, net unrelated parties 12,235 10,203 Advance payments and others - related parties (1) 31,397 624 Total advance payments and others $ 43,632 $ 10,827 (1) On March 16, 2017, in order to generate higher returns for the Company’s idle cash, one of the Company's subsidiaries, Hubei Henglong, lent RMB 200.0 million (equivalent to $30.1 million as of September 30, 2017) to Henglong Real Estate, one of the Company's related parties, through an independent financial institution by way of an entrusted loan. The term of the loan is one year and the annual interest rate is 6.35%. (2) Provision for the doubtful accounts amounted to $1.1 million and nil for the nine months ended September 30, 2017 and 2016, respectively. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory, Current [Table Text Block] | The Company’s inventories as of September 30, 2017 and December 31, 2016 consisted of the following (figures are in thousands of USD): September 30, 2017 December 31, 2016 Raw materials $ 16,637 $ 15,007 Work in process 17,379 10,852 Finished goods 39,014 42,191 Total $ 73,030 $ 68,050 |
Other receivables, net (Tables)
Other receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Receivables Disclosure [Abstract] | |
Schedule Of Other Receivables [Table Text Block] | The Company’s other receivables as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31,2016 Other receivables - unrelated parties (1) $ 1,009 $ 738 Other receivables - employee housing loans (2) 1,291 1,577 Less: allowance for doubtful accounts - unrelated parties (66 ) (63 ) Other receivables, net - unrelated parties $ 2,234 $ 2,252 September 30, 2017 December 31, 2016 Other receivables - related parties (1) $ 576 $ 559 Less: allowance for doubtful accounts - related parties (576 ) (559 ) Other receivables, net - related parties $ - $ - (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 million, equivalent to approximately $7.5 million, to the employees of the Company to assist them in purchasing houses. Employees are required to pay interest at an annual rate of 3.8%. These loans are unsecured and the term of the loans is generally five years. |
Property, plant and equipment46
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property, plant and equipment as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Land use rights and buildings $ 55,067 $ 47,448 Machinery and equipment 150,928 134,361 Electronic equipment 5,636 4,979 Motor vehicles 4,954 4,395 Construction in progress 28,832 24,890 Total amount of property, plant and equipment 245,417 216,073 Less: Accumulated depreciation (1) (130,115 ) (114,595 ) Total amount of property, plant and equipment, net (2)(3) $ 115,302 $ 101,478 (1) As of September 30, 2017 and December 31, 2016, the Company pledged property, plant and equipment with a net book value of approximately $25.9 million and $28.5 million, respectively as security for its comprehensive credit facilities with banks in China. (2) Depreciation charges were $3.0 million and $3.3 million for the three months ended September 30, 2017 and 2016, respectively, and $10.7 million and $10.4 million for the nine months ended September 30, 2017 and 2016, respectively. (3) Interest costs capitalized for the three months ended September 30, 2017 and 2016, were $0.2 million and $0.1 million, respectively; and $0.5 million and $0.2 million for the nine months ended September 30, 2017 and 2016, respectively. |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Impaired Intangible Assets [Table Text Block] | The Company’s intangible assets as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Costs: Patent technology $ 2,076 $ 1,986 Management software license 1,218 1,165 Total intangible assets 3,294 3,151 Less: Amortization (1) (2,782 ) (2,534 ) Total intangible assets, net $ 512 $ 617 (1) Amortization expenses were $0.1 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $0.2 million and $0.3 million for the nine months ended September 30, 2017 and 2016, respectively. |
Deferred income tax assets (Tab
Deferred income tax assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and December 31, 2016 are as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Losses carry forward (U.S.) (1) $ 6,389 $ 6,216 Losses carry forward (Non-U.S.) (1) 2,307 2,887 Product warranties and other reserves 4,290 4,766 Property, plant and equipment 4,422 4,204 Share-based compensation 220 247 Bonus accrual 230 231 Other accruals 1,439 1,551 Deductible temporary difference related to revenue recognition 153 191 Others 1,365 1,206 Total deferred tax assets, net 20,815 21,499 Less: Valuation allowance (9,044 ) (8,912 ) Total deferred tax assets, net of valuation allowance (2) $ 11,771 $ 12,587 (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 carry forward losses will expire, if not utilized, at various times over the next 20 years. Net operating losses carry forward for China entities can be carried forward for 5 years to offset taxable income. As of September 30, 2017, the valuation allowance was $9.0 million, including $6.6 million allowance for the Company’s deferred tax assets in the United States and $2.4 million allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the deferred tax assets in other countries, pursuant to certain tax laws and regulations, management believes such amount will not be used to offset future taxable income. (2) Approximately $4.3 million and $4.6 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $7.5 million and $7.9 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in current deferred tax assets. |
Bank and government loans (Tabl
Bank and government loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Loans consist of the following as of September 30, 2017 and December 31, 2016 (figures are in thousands of USD): September 30, 2017 December 31, 2016 Short-term bank loan (1) $ 9,794 $ 2,162 Short-term bank loan (2) (3) (4) (5) 30,484 35,054 Short-term bank loans (6) 28,796 - Short-term government loan (7) 4,520 3,604 Bank and government loans $ 73,594 $ 40,820 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of September 30, 2017 and December 31, 2016, the weighted average interest rate was 4.7 5.2 (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 of $ 31.6 207.1 0.1 0.1 . The original maturity date of the Credit Facility was May 22, 2013 and was extended to May 12, 2017. The interest rate of the Credit Facility under the extended term is three-month LIBOR plus 0.7% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remained unchanged. As of December 31, 2016, the interest rate of the Credit Facility was 1.7 On April 20, 2017, 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 $ 20.0 May 12, 2018 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 of not less than $ 23.9 On May 5, 2017, the Company drew down the full amount of $ 20.0 23.4 158.9 23.9 0.04 . (3) On April 25, 2017, Great Genesis entered into a credit facility agreement, the “Taishin Bank Credit Facility”, with Taishin Bank to obtain a non-revolving credit facility in the amount of $ 10.0 April 25, 2018 2.7 10.0 On April 28, 2017, Great Genesis drew down the full amount of $ 9.9 10.0 4.0 79.4 12.0 (4) 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 .8 million . On July 7, 2016, HSBC HK agreed to extend the maturity date of the HSBC Credit Facility to July 1, 2017. Hubei Henglong provided a Standby Letter of Credit in an amount of $ 5.1 36.0 5.2 1.95 (5) 0.1 0.1 O n May 6, 2016, Brazil Henglong drew down a loan amounting to $ 0.1 October 9, 2017 8.2 0.1 to approximately $ 0.1 On August 26, 2016, Brazil Henglong entered into a credit facility agreement with Bank of China (Brazil) to obtain a credit facility in the amount of $0.6 million, the “Bank of China Credit Facility”. The Bank of China Credit Facility will expire on January 15, 2018. As security for the Bank of China Credit Facility, the Company’s subsidiary Hubei Henglong is required to provide Bank of China (Brazil) with a Standby Letter of Credit for a total amount of $0.9 million if the Bank of China Credit Facility is fully drawn. On August 26, 2016, Brazil Henglong drew down a loan amounting to $ 0.6 January 15, 2018 4.0 0.9 6.0 0.9 (6) On September 26, 2016, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 170.0 September 26, 2017 30.6 4.9 4.9 4.9 On September 26, 2016, Hubei Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 100.0 September 26, 2017 28.7 38.2 4.3 5.0 (7) On August 17, 2017, the Company received an interest-free Chinese government loan of RMB 20.0 million, equivalent to approximately $3.0 million, which will mature on August 16, 2018. Henglong pledged RMB 20.0 million, equivalent to approximately $3.0 million, of notes receivable as security for the Chinese government loan (See Note 4). On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 December 8, 2017 10.0 |
Accounts and notes payable (Tab
Accounts and notes payable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Schedule Of Accounts and Notes Payable [Table Text Block] | The Company’s accounts and notes payable as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Accounts payable - unrelated parties $ 142,594 $ 138,053 Notes payable - unrelated parties (1) 82,164 78,940 Accounts and notes payable- unrelated parties 224,758 216,993 Accounts payable - related parties 5,749 6,803 Balance at end of period $ 230,507 $ 223,796 (1) Notes payable represent accounts payable in the form of notes issued by the Company. The notes are endorsed by banks to ensure that noteholders will be paid after maturity. The Company has pledged cash deposits, short-term investments, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. |
Accrued expenses and other pa51
Accrued expenses and other payables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Accrued expenses $ 7,975 $ 8,605 Accrued interest 953 88 Dividends payable to holders of non-controlling interests (3) 621 - Other payables 2,483 964 Warranty reserves (1) (2) 20,851 26,225 Total $ 32,883 $ 35,882 (1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. (2) In January 2017, the Company initiated two recalls related to the Company’s products. The Company has accrued anticipated costs for handling the recalls amounting to $ 5.0 (3) In accordance with the resolution of the Board of Directors of Shenyang, in the second quarter of 2017, Shenyang declared a dividend amounting to $ 2.0 0.6 |
Schedule of Product Warranty Liability [Table Text Block] | For the three months ended September 30, 2017 and 2016, the warranties activities were as follows (figures are in thousands of USD): Three Months Ended September 30, 2017 2016 Balance at beginning of the period $ 23,898 $ 21,238 Additions during the period 4,426 1,693 Settlement within period, by cash or actual materials (6,814) (2,378) Foreign currency translation (gain)/loss (659) 160 Balance at end of the period $ 20,851 $ 20,713 For the nine months ended September 30, 2017 and 2016, and for the year ended December 31, 2016, the warranties activities were as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 26,225 $ 23,059 $ 23,059 Additions during the period 11,182 5,433 16,522 Settlement within period, by cash or actual materials (15,423) (8,434) (11,781) Foreign currency translation loss (1,133) 655 (1,575) Balance at end of the period $ 20,851 $ 20,713 $ 26,225 |
Taxes payable (Tables)
Taxes payable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Taxes Payables [Abstract] | |
Schedule Of Income Taxes Payable [Table Text Block] | The Company’s taxes payable as of September 30, 2017 and December 31, 2016 are summarized as follows (figures are in thousands of USD): September 30, 2017 December 31, 2016 Value-added tax payable $ 2,374 $ 7,662 Income tax payable 1,019 3,390 Other tax payable 407 622 Total $ 3,800 $ 11,674 |
Additional paid-in capital (Tab
Additional paid-in capital (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Additional Paid in Capital [Abstract] | |
Schedule Of Additional Paid In Capital [Table Text Block] | Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 64,764 $ 64,627 $ 64,627 Acquisition of the non-controlling interest in Brazil Henglong (1) (458) - - Share-based compensation (2) 100 - 137 Balance at end of the period $ 64,406 $ 64,627 $ 64,764 (1) In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. (2) On December 2, 2016 and August 16, 2017, the Company granted 22,500 22,500 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions used to estimate the fair value of the stock options on the grant dates are as follows: Issuance Date Expected volatility Risk-free rate Expected term (years) Dividend yield December 2, 2016 134.8 % 1.84 % 5 0.00 % August 16, 2017 139.2 % 1.79 % 5 0.00 % |
Retained earnings (Tables)
Retained earnings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016, and the year ended December 31, 2016 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 10,549 $ 10,379 $ 10,379 Appropriation of retained earnings 124 142 170 Balance at end of the period $ 10,673 $ 10,521 $ 10,549 |
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, 2017 and 2016, and the year ended December 31, 2016 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 228,963 $ 206,622 $ 206,622 Net income attributable to parent company 19,694 16,755 22,511 Appropriation of retained earnings (124) (142) (170) Balance at end of the period $ 248,533 $ 223,235 $ 228,963 |
Accumulated other comprehensi55
Accumulated other comprehensive income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016, and the year ended December 31, 2016 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ (892) $ 18,412 $ 18,412 Other comprehensive income related to the non-controlling interests acquired by the Company (67) - - Foreign currency translation adjustment attributable to parent company 13,681 (8,128) (19,304) Balance at end of the period $ 12,722 $ 10,284 $ (892) |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016, and the year ended December 31, 2016 are summarized as follows (figures are in thousands of USD): Year Ended Nine Months Ended September 30, December 31, 2017 2016 2016 Balance at beginning of the period $ 5,412 $ 8,252 $ 8,252 Income attributable to non-controlling interests 353 164 466 Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 15) (608) (464) (464) Acquisition of the non-controlling interest in Brazil Henglong 458 - - Other comprehensive income related to the non-controlling interests acquired by the Company 67 - - Non-controlling interests change due to the disposal of Fujian Qiaolong - (2,150) (2,150) Foreign currency translation adjustment attributable to non-controlling interests 467 (307) (692) Balance at end of the period $ 6,149 $ 5,495 $ 5,412 |
Financial income, net (Tables)
Financial income, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Financial Income Expenses Disclosure [Abstract] | |
Schedule Of Financial Expenses [Table Text Block] | During the nine months ended September 30, 2017 and 2016, the Company recorded financial income, net which is summarized as follows (figures are in thousands of USD): Nine Months Ended September 30, 2017 2016 Interest income $ 2,474 $ 1,777 Foreign exchange loss, net (173) (30) Gain of cash discount, net - 3 Bank fees (392) (480) Total financial income, net $ 1,909 $ 1,270 |
Income per share (Tables)
Income per share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016, was (figures are in thousands of USD, except share and per share amounts): Three Months Ended September 30, 2017 2016 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 5,059 $ 5,682 Denominator: Weighted average shares outstanding 31,644,004 31,911,360 Dilutive effects of stock options 267 362 Denominator for dilutive income per share Diluted 31,644,271 31,911,722 Net income per share attributable to parent company’s common shareholders Basic $ 0.16 $ 0.18 Net income per share attributable to parent company’s common shareholders Diluted $ 0.16 $ 0.18 The calculation of basic and diluted income per share attributable to the parent company for the nine months ended September 30, 2017 and 2016, was (figures are in thousands of USD, except share and per share amounts): Nine Months Ended September 30, 2017 2016 Numerator: Net income attributable to the parent company’s common shareholders Basic and Diluted $ 19,694 $ 16,755 Denominator: Weighted average shares outstanding 31,644,004 32,038,933 Dilutive effects of stock options 3,829 1,581 Denominator for dilutive income per share Diluted 31,647,833 32,040,514 Net income per share attributable to parent company’s common shareholders Basic $ 0.62 $ 0.52 Net income per share attributable to parent company’s common shareholders Diluted $ 0.62 $ 0.52 |
Related party transactions an59
Related party transactions and balances (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 Merchandise sold to related parties $ 7,563 $ 9,950 Rental income obtained from related parties 20 23 Materials and others sold to related parties 376 551 Total $ 7,959 $ 10,524 Nine Months Ended September 30, 2017 2016 Merchandise sold to related parties $ 25,684 $ 28,589 Rental income obtained from related parties 66 91 Materials and others sold to related parties 1,186 1,231 Total $ 26,936 $ 29,911 Related purchases Three Months Ended September 30, 2017 2016 Materials purchased from related parties $ 6,549 $ 5,869 Technology purchased from related parties - 135 Equipment purchased from related parties 4,857 4,370 Others purchased from related parties 156 149 Total $ 11,562 $ 10,523 Nine Months Ended September 30, 2017 2016 Materials purchased from related parties $ 20,195 $ 18,912 Technology purchased from related parties - 362 Equipment purchased from related parties 9,281 7,900 Others purchased from related parties 371 524 Total $ 29,847 $ 27,698 Loan transaction to a related party Nine Months Ended September 30, 2017 2016 Related party loan $ 29,182 $ - Related receivables September 30, 2017 December 31, 2016 Accounts and notes receivable from related parties $ 17,607 $ 20,984 Related advances and loan balance September 30, 2017 December 31, 2016 Advance payments for property, plant and equipment to related parties $ 4,813 $ 5,005 Advance payments and others to related parties 31,397 624 Total $ 36,210 $ 5,629 Related payables September 30, 2017 December 31, 2016 Accounts and notes payable $ 5,749 $ 6,803 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 (figures are in thousands of USD): Payment obligations by period 2017 (1) 2018 2019 2020 Thereafter Total Obligations for investment contracts (1) - $ 5,424 $ - $ - $ - $ 5,424 Obligations for purchasing and service agreements 16,496 5,650 2,530 - - 24,676 Total $ 16,496 $ 11,074 $ 2,530 $ - $ - $ 30,100 (1) In May 2016, Hubei Henglong entered into an agreement with other parties to establish a venture capital fund, the “Chongqing Venture Fund”. Hubei Henglong has committed to make investments of RMB 120.0 18.1 84.0 12.7 35.0 36.0 5.4 |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The Company’s product sector information for the three months and nine months ended September 30, 2017 and 2016, is as follows (figures are in thousands of USD): Net Product Sales Net Income (Loss) Three Months Ended Three Months Ended September 30 September 30 2017 2016 2017 2016 Henglong $ 55,790 $ 57,530 $ 689 $ 3,771 Jiulong 26,067 17,787 478 1,083 Shenyang 10,103 8,239 486 457 Wuhu 6,503 5,088 118 21 Hubei Henglong 24,812 13,912 2,680 735 Other Sectors 14,961 11,588 777 (269) Total Segments 138,236 114,144 5,228 5,798 Corporate - - 317 808 Eliminations (19,871) (19,518) (317) (747) Total $ 118,365 $ 94,626 $ 5,228 $ 5,859 Net Product Sales Net Income (Loss) Nine Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Henglong $ 191,093 $ 195,940 $ 6,300 $ 13,389 Jiulong 75,525 54,976 3,739 2,219 Shenyang 28,777 24,898 1,271 995 Wuhu 18,254 15,897 215 96 Hubei Henglong 66,855 42,815 5,518 2,286 Other Sectors 40,821 29,558 1,341 162 Total Segments 421,325 364,084 18,384 19,147 Corporate - - 3,367 (1,317) Eliminations (65,992) (51,587) (1,704) (911) Total $ 355,333 $ 312,497 $ 20,047 $ 16,919 |
Organization and business (Deta
Organization and business (Details) | Sep. 30, 2017 | May 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |||
Shashi Jiulong Power Steering Gears Co Ltd [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | [1] | 100.00% | 100.00% | ||||
JingzhouHenglong 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 Auto Steering System Co Ltd [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | [6] | 77.33% | 77.33% | ||||
Hubei Henglong Automotive System Group Co Ltd [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | [7] | 100.00% | 100.00% | ||||
JingzhouHenglong Automotive Technology (Testing) Center, “Testing Center” [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | [8] | 100.00% | 100.00% | ||||
Beijing HainachunHenglong Automotive Steering System Co., Ltd., “Beijing Henglong” [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | [9] | 50.00% | 50.00% | ||||
Chongqing HenglongHongyan Automotive System Co., Ltd., “Chongqing Henglong” [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 | 95.84% | [11] | 0.00% | 80.00% | [11] | ||
Fujian Qiaolong Special Purpose Vehicle Co., Ltd [Member] | |||||||
Organization And Principal Activities [Line Items] | |||||||
Percentage Interest | 0.00% | [12] | 0.00% | [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% | 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 JingzhouHengsheng 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. | ||||||
[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 using 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. In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. | ||||||
[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. On April 17, 2016, Hubei Henglong entered into a share purchase agreement, the “Share Purchase Agreement”, with LongyanHuanyu Emergency Equipment Technology Co., Ltd., “LongyanHuanyu”. Pursuant to the Share Purchase Agreement, Hubei Henglong transferred its 51% equity interests in Fujian Qiaolong to LongyanHuanyu for total consideration of RMB 20.0 million, equivalent to $3.0 million, in the second quarter of 2016. The Company recognized a gain on disposal of Fujian Qiaolong of $0.7 million, which is included in other income in the consolidated statement of operations and comprehensive income for the year ended December 31, 2016. | ||||||
[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. | ||||||
[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. |
Organization and business (De63
Organization and business (Details Textual) $ in Thousands, ¥ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 31, 2017 | |||
Organization And Principal Activities [Line Items] | ||||||||
Gain (Loss) on Disposition of Business | $ 0 | $ 698 | ||||||
CAAS Brazils Imports and Trade In Automotive Parts Ltd [Member] | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 95.84% | [1] | 80.00% | [1] | 0.00% | |||
Fujian Qiaolong Acquisition [Member] | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | 0.00% | [2] | 0.00% | [2] | ||
Proceeds from Divestiture of Businesses | $ 3,000 | ¥ 20 | ||||||
Gain (Loss) on Disposition of Business | $ 700 | |||||||
[1] | 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. In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. | |||||||
[2] | 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. On April 17, 2016, Hubei Henglong entered into a share purchase agreement, the “Share Purchase Agreement”, with LongyanHuanyu Emergency Equipment Technology Co., Ltd., “LongyanHuanyu”. Pursuant to the Share Purchase Agreement, Hubei Henglong transferred its 51% equity interests in Fujian Qiaolong to LongyanHuanyu for total consideration of RMB 20.0 million, equivalent to $3.0 million, in the second quarter of 2016. The Company recognized a gain on disposal of Fujian Qiaolong of $0.7 million, which is included in other income in the consolidated statement of operations and comprehensive income for the year ended December 31, 2016. |
Short-term investments (Details
Short-term investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Short-term Investments | $ 23,829 | $ 30,475 |
Bank Time Deposits [Member] | ||
Short-term Investments | 5,100 | 30,217 |
Wealth Management Financial Product [Member] | ||
Short-term Investments | $ 18,729 | $ 258 |
Short-term investments (Detai65
Short-term investments (Details Textual) - Sep. 30, 2017 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Time Deposits | $ 2.1 | ¥ 13.9 |
Accounts and notes receivable66
Accounts and notes receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Financing Receivables [Line Items] | |||
Accounts receivable - unrelated parties | $ 150,696 | $ 154,403 | |
Notes receivable - unrelated parties | [1],[2] | 120,438 | 132,409 |
Total accounts and notes receivable - unrelated parties | 271,134 | 286,812 | |
Less: allowance for doubtful accounts- unrelated parties | (1,191) | (1,081) | |
Accounts and notes receivable, net - unrelated parties | 269,943 | 285,731 | |
Accounts and notes receivable, net - related parties | 17,607 | 20,984 | |
Accounts and notes receivable, net | $ 287,550 | $ 306,715 | |
[1] | As of September 30, 2017, the Company collateralized its notes receivable in an amount of RMB 268.3 million, equivalent to approximately $40.4 million, as security for the credit facilities with banks in China and the Chinese government, including RMB 158.9 million, equivalent to approximately $23.9 million, in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou”, for the purpose of obtaining the Henglong Standby Letter of Credit (as defined in Note 13), which is used as security for the non-revolving credit facility in the amount of $23.9 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau”, RMB 30.0 million, equivalent to approximately $4.5 million, as security in favor of the Chinese government for the low interest government loan (See Note 13), and RMB 79.4 million, equivalent to approximately $12.0 million, in favor of China CITIC Bank, Wuhan Branch, “CITIC Wuhan”, for the purpose of obtaining the Henglong Standby Letter of Credit(as defined in Note 13), which was used to obtain the facility of Taishin Bank in the amount of $10.0 million(See Note 13). | ||
[2] | 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, 2017USD ($) | Sep. 30, 2017CNY (¥) | Apr. 25, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | $ 40.4 | ¥ 268.3 | $ 36 | ||
Non Revolving Credit Facility | 30 | ||||
Letters of Credit Outstanding, Amount | 23.9 | ||||
Taishin Bank [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | 10 | ||||
Non Revolving Credit Facility | $ 10 | ||||
Henglongs Collateralization [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | ¥ | ¥ 249.9 | ||||
JingzhouHenglong Automotive Parts Co Ltd [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | ¥ | 224.6 | ||||
ICBC Macau [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | 4.5 | 30 | ¥ 25.2 | ||
ICBC Jingzhou [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | ¥ 158.9 | $ 32.4 | |||
CITIC Wuhan [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | 79.4 | ||||
China CITIC Bank [Member] | |||||
Financing Receivables [Line Items] | |||||
Financing Receivable, Net | $ 12 |
Advance payments and others (De
Advance payments and others (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Advance payments and others - unrelated parties | $ 13,307 | $ 10,203 | |
Less: allowance for doubtful accounts - unrelated parties | [1] | (1,072) | 0 |
Advance payments and others, net - unrelated parties | 12,235 | 10,203 | |
Advance payments and others - related parties | [2] | 31,397 | 624 |
Total advance payments and others | $ 43,632 | $ 10,827 | |
[1] | Provision for the doubtful accounts amounted to $1.1 million and nil for the nine months ended September 30, 2017 and 2016, respectively. | ||
[2] | On March 16, 2017, in order to generate higher returns for the Company’s idle cash, one of the Company's subsidiaries, Hubei Henglong, lent RMB 200.0 million (equivalent to $30.1 million as of September 30, 2017) to Henglong Real Estate, one of the Company's related parties, through an independent financial institution by way of an entrusted loan. The term of the loan is one year and the annual interest rate is 6.35%. |
Advance payments and others (69
Advance payments and others (Details Textual) ¥ in Millions | 1 Months Ended | 9 Months Ended | ||
Mar. 16, 2017USD ($) | Mar. 16, 2017CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Payments to Fund Long-term Loans to Related Parties | $ 29,044,000 | $ 0 | ||
Provision for Doubtful Accounts | $ 1,100,000 | $ 0 | ||
Henglong Real Estate [Member] | ||||
Payments to Fund Long-term Loans to Related Parties | $ 30,100,000 | ¥ 200 | ||
Debt Instrument, Term | 1 year | 1 year | ||
Related Party Transaction, Rate | 6.35% | 6.35% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 16,637 | $ 15,007 |
Work in process | 17,379 | 10,852 |
Finished goods | 39,014 | 42,191 |
Total | $ 73,030 | $ 68,050 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory [Line Items] | ||
Valuation Allowances and Reserves, Adjustments | $ 4.4 | $ 2.4 |
Other receivables, net (Details
Other receivables, net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Unrelated Parties [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | [1] | $ 1,009 | $ 738 |
Other receivables - employee housing loans | [2] | 1,291 | 1,577 |
Less: allowance for doubtful accounts | (66) | (63) | |
Other receivables, net | 2,234 | 2,252 | |
Related Party [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | [1] | 576 | 559 |
Less: allowance for doubtful accounts | (576) | (559) | |
Other receivables, net | $ 0 | $ 0 | |
[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 million, equivalent to approximately $7.5 million, to the employees of the Company to assist them in purchasing houses. Employees are required to pay interest at an annual rate of 3.8%. These loans are unsecured and the term of the loans is generally five years. |
Other receivables, net (Detai73
Other receivables, net (Details Textual) ¥ in Millions, $ in Millions | 1 Months Ended | |
May 28, 2014USD ($) | May 28, 2014CNY (¥) | |
Financing Receivables [Line Items] | ||
Loans Assumed | $ | $ 7.5 | |
Board of Directors Chairman [Member] | ||
Financing Receivables [Line Items] | ||
Loans Assumed | ¥ | ¥ 50 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | 3.80% |
Long-term time deposits (Detail
Long-term time deposits (Details Textual) ¥ in Millions, $ in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Dec. 31, 2016USD ($) |
Pledged Assets, Not Separately Reported, Finance Receivables | ¥ 6 | $ 0.9 | |
Long-term Debt, Current Maturities | $ 1 | $ 4.8 |
Long-term investments (Details
Long-term investments (Details Textual) ¥ in Millions, $ in Millions | 9 Months Ended | ||||||||||||
Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2017CNY (¥) | Dec. 31, 2016USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | May 31, 2016USD ($) | May 31, 2016CNY (¥) | Sep. 22, 2014USD ($) | Sep. 22, 2014CNY (¥) | Jan. 24, 2010USD ($) | ||
Debt Instrument [Line Items] | |||||||||||||
Net income of non-consolidated affiliates | $ 0.5 | $ 0.6 | |||||||||||
Hubei Henglong [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Equity Method Investments | $ 12.5 | $ 6.8 | |||||||||||
Equity Method Investment, Ownership Percentage | 35.00% | 35.00% | |||||||||||
Capital | $ 12.7 | ¥ 84 | $ 0.5 | ¥ 3 | $ 18.1 | ¥ 120 | $ 7.5 | ¥ 50 | |||||
Chongqing Jinghua Automotive Intelligent ManufacturingTechnology Research Co Ltd [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Equity Method Investments | 0.5 | 0.4 | |||||||||||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | |||||||||||
Venture Capital Funds [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Equity Method Investments | $ 8.1 | 5.3 | |||||||||||
Equity Method Investment, Ownership Percentage | 12.50% | 12.50% | |||||||||||
Beijing Henglong Automotive System Co Ltd [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Equity Method Investments | $ 4.2 | $ 3.8 | $ 3.1 | ||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||
Hubei Henglong Automotive System Group Co Ltd [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from Partnership Contribution | $ 7.5 | ¥ 50 | |||||||||||
Equity Method Investment, Ownership Percentage | [1] | 100.00% | 100.00% | 100.00% | |||||||||
[1] | On March 7, 2007, Genesis established Hubei Henglong, formerly known as JingzhouHengsheng 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. |
Property, plant and equipment76
Property, plant and equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | $ 245,417 | $ 216,073 | |
Less: Accumulated depreciation | [1] | (130,115) | (114,595) |
Total amount of property, plant and equipment, net | [2],[3] | 115,302 | 101,478 |
Land use rights and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 55,067 | 47,448 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 150,928 | 134,361 | |
Electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 5,636 | 4,979 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | 4,954 | 4,395 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total amount of property, plant and equipment | $ 28,832 | $ 24,890 | |
[1] | As of September 30, 2017 and December 31, 2016, the Company pledged property, plant and equipment with a net book value of approximately $25.9 million and $28.5 million, respectively as security for its comprehensive credit facilities with banks in China. | ||
[2] | Depreciation charges were $3.0 million and $3.3 million for the three months ended September 30, 2017 and 2016, respectively, and $10.7 million and $10.4 million for the nine months ended September 30, 2017 and 2016, respectively. | ||
[3] | Interest costs capitalized for the three months ended September 30, 2017 and 2016, were $0.2 million and $0.1 million, respectively; and $0.5 million and $0.2 million for the nine months ended September 30, 2017 and 2016, respectively. |
Property, plant and equipment77
Property, plant and equipment, net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 3 | $ 3.3 | $ 10.7 | $ 10.4 | |
Pledged Assets Separately Reported, Loans Pledged for Other Debt Obligations, at Fair Value | 25.9 | 25.9 | $ 28.5 | ||
Interest Costs Capitalized | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.2 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Costs: | |||
Patent technology | $ 2,076 | $ 1,986 | |
Management software license | 1,218 | 1,165 | |
Total intangible assets | 3,294 | 3,151 | |
Less: Amortization | [1] | (2,782) | (2,534) |
Total intangible assets, net | $ 512 | $ 617 | |
[1] | Amortization expenses were $0.1 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $0.2 million and $0.3 million for the nine months ended September 30, 2017 and 2016, respectively. |
Intangible assets (Details Text
Intangible assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.3 |
Deferred income tax assets (Det
Deferred income tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Deferred Tax Assets [Line Items] | |||
Losses carry forward (U.S.) | [1] | $ 6,389 | $ 6,216 |
Losses carry forward (Non-U.S.) | [1] | 2,307 | 2,887 |
Product warranties and other reserves | 4,290 | 4,766 | |
Property, plant and equipment | 4,422 | 4,204 | |
Share-based compensation | 220 | 247 | |
Bonus accrual | 230 | 231 | |
Other accruals | 1,439 | 1,551 | |
Deductible temporary difference related to revenue recognition | 153 | 191 | |
Others | 1,365 | 1,206 | |
Total deferred tax assets, net | 20,815 | 21,499 | |
Less: Valuation allowance | (9,044) | (8,912) | |
Total deferred tax assets, net of valuation allowance | [2] | $ 11,771 | $ 12,587 |
[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 carry forward losses will expire, if not utilized, at various times over the next 20 years. Net operating losses carry forward for China entities can be carried forward for 5 years to offset taxable income. As of September 30, 2017, the valuation allowance was $9.0 million, including $6.6 million allowance for the Company’s deferred tax assets in the United States and $2.4 million allowance for the Company’s non-U.S. deferred tax assets. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the deferred tax assets in other countries, pursuant to certain tax laws and regulations, management believes such amount will not be used to offset future taxable income. | ||
[2] | Approximately $4.3 million and $4.6 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in non-current deferred tax assets in the accompanying condensed unaudited consolidated balance sheets. The remaining $7.5 million and $7.9 million of net deferred income tax assets as of September 30, 2017 and December 31, 2016, respectively, are included in current deferred tax assets. |
Deferred income tax assets (D81
Deferred income tax assets (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 9,044 | $ 8,912 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 4,295 | 4,641 |
Current deferred tax assets | 7,476 | $ 7,946 |
U.S [Member] | ||
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 6,600 | |
Amortizing Period Of Net Operating Loss | 20 years | |
Non U.S [Member] | ||
Deferred Tax Assets [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 2,400 | |
Amortizing Period Of Net Operating Loss | 5 years |
Bank and government loans (Deta
Bank and government loans (Details) $ in Thousands, ¥ in Millions | Sep. 30, 2017USD ($) | Aug. 17, 2017USD ($) | Aug. 17, 2017CNY (¥) | Apr. 21, 2017USD ($) | Apr. 21, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Short-term bank loans | $ 3,000 | ¥ 20 | $ 1,500 | ¥ 10 | |||
Bank and government loans | $ 73,594 | $ 40,820 | |||||
China Construction Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loans | [1] | 9,794 | 2,162 | ||||
ICBC Macau [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loans | [2],[3],[4],[5] | 30,484 | 35,054 | ||||
Chinese government loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loans | [6] | 4,520 | 3,604 | ||||
China CITIC Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term bank loans | [7] | $ 28,796 | $ 0 | ||||
[1] | These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of September 30, 2017 and December 31, 2016, the weighted average interest rate was 4.7% and 5.2% per annum, respectively. Interest is to be paid monthly or quarterly on the twentieth day of the applicable month or quarter and the principal repayment is at maturity. | ||||||
[2] | On April 1, 2016, Brazil Henglong entered into a credit facility agreement with HSBC Brazil to obtain a credit facility in the amount of $0.1 million, the “HSBC Brazil Credit Facility”. The HSBC Brazil Credit Facility expired on October 27, 2017. As security for the HSBC Credit Facility, the Company’s subsidiary Hubei Henglong was required to provide HSBC Brazil with the Standby Letter of Credit for a total amount of $0.1 million if the HSBC Brazil Credit Facility is fully drawn. On May 6, 2016, Brazil Henglong drew down a loan amounting to $0.1 million provided by HSBC Brazil. The loan matured on October 9, 2017 and has an annual interest rate of 8.2%.Hubei Henglong provided a Standby Letter of Credit for an amount of $0.1 million in favor of HSBC Brazil. Hubei Henglong’s Standby Letter of Credit was issued by China CITIC Bank Wuhan branch and is collateralized by short-term investments of Hubei Henglong of RMB 0.5 million, equivalent to approximately $0.1 million. The Company repaid this bank loan on October 9, 2017. On August 26, 2016, Brazil Henglong entered into a credit facility agreement with Bank of China (Brazil) to obtain a credit facility in the amount of $0.6 million, the “Bank of China Credit Facility”. The Bank of China Credit Facility will expire on January 15, 2018. As security for the Bank of China Credit Facility, the Company’s subsidiary Hubei Henglong is required to provide Bank of China (Brazil) with a Standby Letter of Credit for a total amount of $0.9 million if the Bank of China Credit Facility is fully drawn. On August 26, 2016, Brazil Henglong drew down a loan amounting to $0.6 million provided by Bank of China (Brazil). The loan will mature on January 15, 2018 and has an annual interest rate of 4.0%. Interest is paid semiannually and the principal repayment is at maturity. Hubei Henglong provided a Standby Letter of Credit for an amount of $0.9 million in favor of Bank of China (Brazil). Hubei Henglong’s Standby Letter of Credit was issued by Bank of China Jingzhou branch and is collateralized by long-term time deposits of Hubei Henglong of RMB 6.0 million, equivalent to approximately $0.9 million. | ||||||
[3] | On April 25, 2017, Great Genesis entered into a credit facility agreement, the “Taishin Bank Credit Facility”, with Taishin Bank to obtain a non-revolving credit facility in the amount of $10.0 million. The Taishin Bank Credit Facility will expire on April 25, 2018 and has an annual interest rate of 2.7%. Interest is paid quarterly and the principal repayment is payable at maturity. As security for the Taishin Bank Credit Facility, the Company’s subsidiary Henglong was required to provide Taishin Bank with the Standby Letter of Credit for a total amount of not less than $10.0 million if the Taishin Bank Credit Facility is fully drawn. On April 28, 2017, Great Genesis drew down the full amount of $9.9 million under the Taishin Bank Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $10.0 million in favor of Taishin Bank. Henglong’s Standby Letter of Credit issued by China CITIC Bank Wuchang branch is collateralized by Henglong’s short-term investments of RMB 4.0 million, equivalent to approximately $0.6 million, and notes receivable of RMB 79.4 million, equivalent to approximately $12.0 million. | ||||||
[4] | 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 a 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 long-term time deposits of Hubei Henglong of RMB 33.0 million, equivalent to approximately $4.8 million. On July 7, 2016, HSBC HK agreed to extend the maturity date of the HSBC Credit Facility to July 1, 2017. Hubei Henglong provided a Standby Letter of Credit in an amount of $5.1 million in favor of HSBC HK. The Standby Letter of Credit was issued by HSBC Bank (China) Company Limited Wuhan branch and was collateralized by short-term time deposits of Hubei Henglong of RMB 36.0 million, equivalent to approximately $5.2 million. The interest rate of the HSBC Credit Facility under the extended term was revised as three-month LIBOR plus 0.8% per annum, i.e. 1.95% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remained unchanged. The Company repaid this bank loan on July 14, 2017. | ||||||
[5] | 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) one 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 of not less than $31.6 million if the Credit Facility is fully drawn. On May 22, 2012, the Company drew down the full amount of $30.0 million under the Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $31.6 million in favor of ICBC Macau. The Henglong Standby Letter of Credit issued by ICBC Jingzhou is collateralized by Henglong’s notes receivable of RMB 207.1 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 and was extended to May 12, 2017. The interest rate of the Credit Facility under the extended term is three-month LIBOR plus 0.7% per annum. Except for the above, all other terms and conditions as stipulated in the Credit Agreement remained unchanged. As of December 31, 2016, the interest rate of the Credit Facility was 1.7% per annum. On April 20, 2017, 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 $20.0 million, the “Credit Facility”. The Credit Facility will expire on May 12, 2018 unless the Company draws down the line of credit in full prior to such expiration date, and the maturity date for the loan drawdown is the earlier of (i) 12 months from the date of drawdown or (ii) one 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 1.30% per annum, subject to the availability of funds and fluctuation at ICBC Macau’s discretion. 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 of not less than $23.9 million if the Credit Facility is fully drawn. On May 5, 2017, the Company drew down the full amount of $20.0 million under the Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $23.4 million in favor of ICBC Macau. The Henglong Standby Letter of Credit issued by ICBC Jingzhou is collateralized by Henglong’s notes receivable of RMB 158.9 million, equivalent to approximately $23.9 million. The Company also paid an arrangement fee of $0.04 million to ICBC Jingzhou. The maturity date of the Credit Facility is May 12, 2018. | ||||||
[6] | On August 17, 2017, the Company received an interest-free Chinese government loan of RMB 20.0 million, equivalent to approximately $3.0 million, which will mature on August 16, 2018. Henglong pledged RMB 20.0 million, equivalent to approximately $3.0 million, of notes receivable as security for the Chinese government loan (See Note 4). On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 million, equivalent to approximately $1.5 million, which will mature on December 8, 2017. Jiulong pledged RMB 10.0 million, equivalent to approximately $1.5 million, of notes receivable as security for the Chinese government loan (See Note 4). | ||||||
[7] | On September 26, 2016, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 170.0 million (equivalent to $25.6 million as of September 30, 2017), the “Henglong CITIC Credit Facility”. The Henglong CITIC Credit Facility expired on September 26, 2017. As security for the Henglong CITIC Credit Facility, Henglong’s property, plant and equipment were pledged and Hubei Henglong provided a guarantee. On March 3, 2017, Henglong drew down loans amounting to RMB 32.5 million, RMB 32.5 million and 30.6 million (equivalent to $4.9 million, $4.9 million and $4.6 million as of September 30, 2017), respectively. The loans will mature on February 5, 6 and 7, 2018, respectively. The annual interest rate of the loans is 4.99%. The principal and interest will be paid at maturity. On September 26, 2016, Hubei Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 100.0 million (equivalent to $15.1 million as of September 30, 2017), the “Hubei Henglong CITIC Credit Facility”. The Hubei Henglong CITIC Credit Facility expired on September 26, 2017. Henglong provided a guarantee for the Hubei Henglong CITIC Credit Facility. On March 3, 2017, Hubei Henglong drew down loans amounting to RMB 28.7 million, RMB 28.7 million and 38.2 million (equivalent to $4.3 million, $4.3 million and $5.8 million), respectively. The loans will mature on February 2, 8 and 9, 2018, respectively. The annual interest rate of the loans is 5.0%. The principal and interest will be paid at maturity. |
Bank and government loans (De83
Bank and government loans (Details Textual) $ in Thousands, ¥ in Millions | May 05, 2017USD ($) | Jul. 07, 2016USD ($) | Aug. 17, 2017USD ($) | Apr. 25, 2017USD ($) | Apr. 20, 2017USD ($) | Mar. 03, 2017USD ($) | Mar. 03, 2017CNY (¥) | Sep. 26, 2016USD ($) | Aug. 26, 2016USD ($) | May 06, 2016USD ($) | Apr. 30, 2016USD ($) | Jul. 16, 2014USD ($) | May 22, 2012USD ($) | May 18, 2012USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Aug. 17, 2017CNY (¥) | May 05, 2017CNY (¥) | Apr. 28, 2017USD ($) | Apr. 28, 2017CNY (¥) | Apr. 21, 2017USD ($) | Apr. 21, 2017CNY (¥) | Dec. 31, 2016USD ($) | Sep. 26, 2016CNY (¥) | Aug. 26, 2016CNY (¥) | Jul. 07, 2016CNY (¥) | May 06, 2016CNY (¥) | Jul. 22, 2014USD ($) | Jul. 22, 2014CNY (¥) | May 22, 2012CNY (¥) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 4.70% | 4.70% | 5.20% | ||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 30,000 | ||||||||||||||||||||||||||||||
Financing Receivable, Net | $ 40,400 | ¥ 268.3 | $ 36,000 | ||||||||||||||||||||||||||||
Time Deposits | 2,100 | ¥ 13.9 | |||||||||||||||||||||||||||||
Short-term Debt, Total | $ 3,000 | ¥ 20 | $ 1,500 | ¥ 10 | |||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 3,000 | ¥ 20 | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Aug. 16, 2018 | Sep. 26, 2017 | |||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | 23,900 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,600 | ¥ 170 | |||||||||||||||||||||||||||||
ICBC Macau [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 20,000 | $ 30,000 | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | three-month LIBOR plus 2.25 | ||||||||||||||||||||||||||||||
Line of Credit, Current | 23,400 | $ 31,600 | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Nov. 3, 2012 | ||||||||||||||||||||||||||||||
Taishin Bank [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 10,000 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 2.70% | ||||||||||||||||||||||||||||||
Financing Receivable, Net | 10,000 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Apr. 25, 2018 | ||||||||||||||||||||||||||||||
Credit Facility [Member] | Taishin Bank [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Financing Receivable, Net | $ 12,000 | ¥ 79.4 | |||||||||||||||||||||||||||||
Line of Credit, Current | 9,900 | ||||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 10,000 | 10,000 | |||||||||||||||||||||||||||||
Henglong CITIC Credit Facility [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Financing Receivable, Net | 23,900 | ¥ 158.9 | |||||||||||||||||||||||||||||
Hubei Henglong CITIC Credit Facility [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Sep. 26, 2017 | ||||||||||||||||||||||||||||||
Industrial and Commercial Bank Of China Macau [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 20,000 | $ 30,000 | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | LIBOR plus 1.30% per annum | LIBOR plus 0.7% per annum | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.70% | ||||||||||||||||||||||||||||||
Financing Receivable, Net | $ 32,600 | ¥ 207.1 | |||||||||||||||||||||||||||||
Arrangement Fee | 100 | ||||||||||||||||||||||||||||||
Line of Credit, Current | $ 23,900 | 31,600 | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | May 12, 2018 | ||||||||||||||||||||||||||||||
Industrial and Commercial Bank Of China Jingzhou Branch [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Arrangement Fee | $ 40 | ||||||||||||||||||||||||||||||
HSBC Bank China Company Limited [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 5,000 | $ 5,000 | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | LIBOR plus 0.8% per annum | ||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.95% | 1.70% | 1.95% | ||||||||||||||||||||||||||||
Line of Credit, Current | $ 5,100 | $ 5,400 | 5,400 | ||||||||||||||||||||||||||||
Time Deposits | $ 5,200 | ¥ 36 | $ 4,800 | ¥ 33 | |||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 1, 2015 | ||||||||||||||||||||||||||||||
Chinese government loan [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Short-term Debt, Total | [1] | 4,520 | $ 3,604 | ||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 1,500 | ¥ 10 | |||||||||||||||||||||||||||||
HSBC Bank Brazil [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit, Current | $ 100 | ||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.20% | 8.20% | |||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 100 | $ 100 | ¥ 0.5 | ||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Oct. 9, 2017 | Oct. 27, 2017 | |||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 100 | ||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 100 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 4.99% | 4.99% | |||||||||||||||||||||||||||||
Financing Receivable, Net | 12,000 | ||||||||||||||||||||||||||||||
Short-term Debt, Total | [2] | $ 28,796 | $ 0 | ||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 100 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Henglong CITIC Credit Facility [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 4.99% | 4.99% | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,100 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 50218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | $ 4,900 | ¥ 32.5 | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 60218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 4,900 | 32.5 | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 70218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 4,600 | 30.6 | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 20218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 4,300 | 28.7 | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 80218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 4,300 | 28.7 | |||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On 90218 [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | $ 5,800 | ¥ 38.2 | |||||||||||||||||||||||||||||
Bank of China Brazil [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit, Current | $ 600 | $ 600 | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 900 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 15, 2018 | ||||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 900 | ||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 600 | ||||||||||||||||||||||||||||||
Bank of China Jingzhou [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Arrangement Fee | $ 100 | ||||||||||||||||||||||||||||||
Time Deposits | $ 900 | ||||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ | ¥ 6 | ||||||||||||||||||||||||||||||
[1] | On August 17, 2017, the Company received an interest-free Chinese government loan of RMB 20.0 million, equivalent to approximately $3.0 million, which will mature on August 16, 2018. Henglong pledged RMB 20.0 million, equivalent to approximately $3.0 million, of notes receivable as security for the Chinese government loan (See Note 4). On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 million, equivalent to approximately $1.5 million, which will mature on December 8, 2017. Jiulong pledged RMB 10.0 million, equivalent to approximately $1.5 million, of notes receivable as security for the Chinese government loan (See Note 4). | ||||||||||||||||||||||||||||||
[2] | On September 26, 2016, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 170.0 million (equivalent to $25.6 million as of September 30, 2017), the “Henglong CITIC Credit Facility”. The Henglong CITIC Credit Facility expired on September 26, 2017. As security for the Henglong CITIC Credit Facility, Henglong’s property, plant and equipment were pledged and Hubei Henglong provided a guarantee. On March 3, 2017, Henglong drew down loans amounting to RMB 32.5 million, RMB 32.5 million and 30.6 million (equivalent to $4.9 million, $4.9 million and $4.6 million as of September 30, 2017), respectively. The loans will mature on February 5, 6 and 7, 2018, respectively. The annual interest rate of the loans is 4.99%. The principal and interest will be paid at maturity. On September 26, 2016, Hubei Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 100.0 million (equivalent to $15.1 million as of September 30, 2017), the “Hubei Henglong CITIC Credit Facility”. The Hubei Henglong CITIC Credit Facility expired on September 26, 2017. Henglong provided a guarantee for the Hubei Henglong CITIC Credit Facility. On March 3, 2017, Hubei Henglong drew down loans amounting to RMB 28.7 million, RMB 28.7 million and 38.2 million (equivalent to $4.3 million, $4.3 million and $5.8 million), respectively. The loans will mature on February 2, 8 and 9, 2018, respectively. The annual interest rate of the loans is 5.0%. The principal and interest will be paid at maturity. |
Accounts and notes payable (Det
Accounts and notes payable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Accounts And Notes Payable [Line Items] | |||
Accounts payable - unrelated parties | $ 142,594 | $ 138,053 | |
Notes payable - unrelated parties | [1] | 82,164 | 78,940 |
Accounts and notes payable - unrelated parties | 224,758 | 216,993 | |
Accounts and notes payable - related parties | 5,749 | 6,803 | |
Balance at end of period | $ 230,507 | $ 223,796 | |
[1] | Notes payable represent accounts payable in the form of notes issued by the Company. The notes are endorsed by banks to ensure that noteholders will be paid after maturity. The Company has pledged cash deposits, short-term investments, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. |
Accrued expenses and other pa85
Accrued expenses and other payables (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | ||
Accrued Expenses [Line Items] | ||||
Accrued expenses | $ 7,975 | $ 8,605 | ||
Accrued interest | 953 | 88 | ||
Dividends payable to holders of non-controlling interests | [1] | 621 | 0 | |
Other payables | 2,483 | 964 | ||
Warranty reserves | 20,851 | [2],[3] | 26,225 | |
Total | $ 32,883 | $ 35,882 | ||
[1] | In accordance with the resolution of the Board of Directors of Shenyang, in the second quarter of 2017, Shenyang declared a dividend amounting to $2.0 million to its shareholders, of which $0.6 million was payable to the holders of the non-controlling interests. As of September 30, 2017, the dividends have not been paid. | |||
[2] | In January 2017, the Company initiated two recalls related to the Company’s products. The Company has accrued anticipated costs for handling the recalls amounting to $5.0 million in warranty reserves for the year ended December 31, 2016. | |||
[3] | The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. |
Accrued expenses and other pa86
Accrued expenses and other payables (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accrued Expenses [Line Items] | |||||
Balance at beginning of the period | $ 23,898 | $ 21,238 | $ 26,225 | $ 23,059 | $ 23,059 |
Additions during the period | 4,426 | 1,693 | 11,182 | 5,433 | 16,522 |
Settlement within period, by cash or actual materials | (6,814) | (2,378) | (15,423) | (8,434) | (11,781) |
Foreign currency translation (gain)/loss | (659) | 160 | (1,133) | 655 | (1,575) |
Balance at end of the period | $ 20,851 | $ 20,713 | $ 20,851 | $ 20,713 | $ 26,225 |
Accrued expenses and other pa87
Accrued expenses and other payables (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2017 | ||
Accrued Expenses [Line Items] | |||
Dividends Declared Amount | $ 2,000 | ||
Revenue Recognition, Sales Returns, Reserve for Sales Returns | $ 5,000 | ||
Dividends Payable, Current | [1] | $ 0 | $ 621 |
[1] | In accordance with the resolution of the Board of Directors of Shenyang, in the second quarter of 2017, Shenyang declared a dividend amounting to $2.0 million to its shareholders, of which $0.6 million was payable to the holders of the non-controlling interests. As of September 30, 2017, the dividends have not been paid. |
Taxes payable (Details)
Taxes payable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Taxes Payable [Line Items] | ||
Value-added tax payable | $ 2,374 | $ 7,662 |
Income tax payable | 1,019 | 3,390 |
Other tax payable | 407 | 622 |
Total | $ 3,800 | $ 11,674 |
Advances payable (Details Textu
Advances payable (Details Textual) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Advance Payable [Line Items] | ||
Advances payable | $ 0.8 | $ 0.7 |
Additional paid-in capital (Det
Additional paid-in capital (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Additional Paid In Capital [Line Items] | ||||
Balance at beginning of the period | $ 64,764 | $ 64,627 | $ 64,627 | |
Acquisition of the non-controlling interest in Brazil Henglong | [1] | (458) | 0 | 0 |
Share-based compensation | [2] | 100 | 0 | 137 |
Balance at end of the period | $ 64,406 | $ 64,627 | $ 64,764 | |
[1] | In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. | |||
[2] | On December 2, 2016 and August 16, 2017, the Company granted 22,500 and 22,500 stock options, respectively, to the Company’s independent directors, with the exercise price equal to the closing price of the Company’s common stock traded on NASDAQ one day before the date of grant and on the date of grant. The fair value of the 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 (D91
Additional paid-in capital (Details 1) | 9 Months Ended |
Sep. 30, 2017 | |
December 2, 2016 | |
Additional Paid In Capital [Line Items] | |
Expected volatility | 134.80% |
Risk-free rate | 1.84% |
Expected term (years) | 5 years |
Dividend yield | 0.00% |
August 16, 2017 | |
Additional Paid In Capital [Line Items] | |
Expected volatility | 139.20% |
Risk-free rate | 1.79% |
Expected term (years) | 5 years |
Dividend yield | 0.00% |
Additional paid-in capital (D92
Additional paid-in capital (Details Textual) - USD ($) $ in Millions | Dec. 02, 2016 | Aug. 16, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Additional Paid In Capital [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 | ||
Share-based Compensation Arrangement By Share-based Payment Award Options Exercisable Grant Date Fair Value | $ 0.1 | $ 0.1 | ||
Employee Stock Option [Member] | ||||
Additional Paid In Capital [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 22,500 | 22,500 |
Retained earnings (Details)
Retained earnings (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Retained Earnings Adjustments [Line Items] | |||
Balance at beginning of the period | $ 10,549 | $ 10,379 | $ 10,379 |
Appropriation of retained earnings | 124 | 142 | 170 |
Balance at end of the period | $ 10,673 | $ 10,521 | $ 10,549 |
Retained earnings (Details 1)
Retained earnings (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Retained Earnings Adjustments [Line Items] | |||||
Balance at beginning of the period | $ 228,963 | $ 206,622 | $ 206,622 | ||
Net income attributable to parent company | $ 5,059 | $ 5,682 | 19,694 | 16,755 | 22,511 |
Appropriation of retained earnings | (124) | (142) | (170) | ||
Balance at end of the period | $ 248,533 | $ 223,235 | $ 248,533 | $ 223,235 | $ 228,963 |
Retained earnings (Details Text
Retained earnings (Details Textual) - 9 months ended Sep. 30, 2017 ¥ 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% | |
JingzhouHenglong 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 comprehensi96
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of the period | $ (892) | $ 18,412 | $ 18,412 |
Other comprehensive income related to the non-controlling interests acquired by the Company | (67) | 0 | 0 |
Foreign currency translation adjustment attributable to parent company | 13,681 | (8,128) | (19,304) |
Balance at end of the period | $ 12,722 | $ 10,284 | $ (892) |
Treasury stock (Details Textual
Treasury stock (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Dec. 18, 2015 | Dec. 31, 2016 | |
Treasury Stock [Line Items] | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 1.9 | |
Stock Repurchased During Period, Value | $ 5 | |
Stock Repurchased During Period, Shares | 477,015 |
Non-controlling interests (Deta
Non-controlling interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||||
Balance at beginning of the period | $ 5,412 | $ 8,252 | $ 8,252 | ||
Income/(loss) attributable to non-controlling interests | $ 169 | $ 177 | 353 | 164 | 466 |
Dividends declared to the non-controlling interest holders of joint-venture companies (See Note 15) | (608) | (464) | (464) | ||
Acquisition of the non-controlling interest in Brazil Henglong | 458 | 0 | 0 | ||
Other comprehensive income related to the non-controlling interests acquired by the Company | 67 | ||||
Non-controlling interests change due to the disposal of Fujian Qiaolong | 0 | (2,150) | (2,150) | ||
Foreign currency translation adjustment attributable to non-controlling interests | 467 | (307) | (692) | ||
Balance at end of the period | $ 6,149 | $ 5,495 | $ 6,149 | $ 5,495 | $ 5,412 |
Gain on other sales (Details Te
Gain on other sales (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gain on other sales disclosure [Line Items] | ||||
Gain (Loss) On Other Sales | $ 553 | $ 22 | $ 5,896 | $ 2,008 |
Increase (Decrease) In Gain (Loss) On Other Sale | $ 3,900 | |||
Building [Member] | ||||
Gain on other sales disclosure [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,200 |
Financial income, net (Details)
Financial income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financial Expenses [Line Items] | ||||
Interest income | $ 2,474 | $ 1,777 | ||
Foreign exchange loss, net | (173) | (30) | ||
Gain of cash discount, net | 0 | 3 | ||
Bank fees | (392) | (480) | ||
Total financial income, net | $ 1,027 | $ 800 | $ 1,909 | $ 1,270 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL | Sep. 30, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Tax Disclosure [Line Items] | |||||||||||||
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% | 25.00% | ||||||||||
Undistributed Earnings, Basic | $ 266,400 | $ 239,800 | |||||||||||
Tax Provision On Retained Earning Not Reinvested | $ 13,300 | $ 12,000 | |||||||||||
Increase In Income Tax Expense Benefit Percentage | 17.30% | 17.40% | 18.20% | 18.20% | 17.30% | ||||||||
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% | 15.00% | 239.80% | 15.00% | |||||||||
JingzhouHenglong Automotive Parts 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% | 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% | 15.00% | 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% | 15.00% | 15.00% | |||||||||
Hong Kong Enterprise [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 16.50% | 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] | |||||||||||||
Tax rate | 35.00% | 35.00% | 35.00% | ||||||||||
Deferred State and Local Income Tax Expense (Benefit) | $ 200 | ||||||||||||
Undistributed Earnings, Basic | $ 4,500 | ||||||||||||
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 | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Numerator: | |||||
Net income attributable to the parent company’s common shareholders - Basic and Diluted | $ 5,059 | $ 5,682 | $ 19,694 | $ 16,755 | $ 22,511 |
Denominator: | |||||
Weighted average shares outstanding | 31,644,004 | 31,911,360 | 31,644,004 | 32,038,933 | |
Dilutive effects of stock options | 267 | 362 | 3,829 | 1,581 | |
Denominator for dilutive income per share - Diluted | 31,644,271 | 31,911,722 | 31,647,833 | 32,040,514 | |
Net income per share attributable to parent company’s common shareholders | |||||
Basic | $ 0.16 | $ 0.18 | $ 0.62 | $ 0.52 | |
Diluted | $ 0.16 | $ 0.18 | $ 0.62 | $ 0.52 |
Income per share (Details Textu
Income per share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity Option [Member] | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 90,000 | 82,500 |
Significant concentrations (Det
Significant concentrations (Details Textual) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | |
Unusual Risk or Uncertainty [Line Items] | |||
Minimum Percentage Of Profit Allocated To Foreign Investment | 10.00% | ||
Registered Capital Percentage | 50.00% | ||
Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Ten Largest Customers [Member] | Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 56.10% | 62.70% | |
Customer One [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Accounts Receivable Trade Percentage | 6.60% | 3.80% | |
Customer One [Member] | Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 14.75% | 12.90% | |
Customer Two [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Accounts Receivable Trade Percentage | 10.00% | 10.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Accounts Receivable Trade Percentage | 10.00% |
Related party transactions a105
Related party transactions and balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related receivables | |||||
Accounts and notes receivable, net - related parties | $ 17,607 | $ 17,607 | $ 20,984 | ||
Related advances | |||||
Advance payments for property, plant and equipment to related parties | 4,813 | 4,813 | 5,005 | ||
Advanced payments and others to related parties | 31,397 | 31,397 | 624 | ||
Related payables | |||||
Accounts and notes payable | 5,749 | 5,749 | 6,803 | ||
Related Loans | |||||
Related party loan | 29,182 | $ 0 | |||
Related Party [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 7,959 | $ 10,524 | 26,936 | 29,911 | |
Related purchases | |||||
Related parties | 11,562 | 10,523 | 29,847 | 27,698 | |
Related advances | |||||
Total | 36,210 | 36,210 | 5,629 | ||
Related Party [Member] | Raw Materials And Others [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 376 | 551 | 1,186 | 1,231 | |
Related Party [Member] | Rental Income [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 20 | 23 | 66 | 91 | |
Technology Equipment [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 0 | 135 | 0 | 362 | |
Equipment [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 4,857 | 4,370 | 9,281 | 7,900 | |
Materials [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 6,549 | 5,869 | 20,195 | 18,912 | |
Advanced Equipment [Member] | Related Party [Member] | |||||
Related advances | |||||
Advance payments for property, plant and equipment to related parties | 4,813 | 4,813 | 5,005 | ||
Merchandise [Member] | Related Party [Member] | |||||
Related sales | |||||
Merchandise sold to related parties | 7,563 | 9,950 | 25,684 | 28,589 | |
Other purchased [Member] | Related Party [Member] | |||||
Related purchases | |||||
Related parties | 156 | $ 149 | 371 | $ 524 | |
Accounts Receivable [Member] | Related Party [Member] | |||||
Related receivables | |||||
Accounts and notes receivable, net - related parties | 17,607 | 17,607 | 20,984 | ||
Other Advance Payments [Member] | Related Party [Member] | |||||
Related advances | |||||
Advanced payments and others to related parties | $ 31,397 | $ 31,397 | $ 624 |
Related party transactions a106
Related party transactions and balances (Details Textual) | Nov. 09, 2017 |
Hanlin Chen [Member] | Subsequent Event [Member] | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 56.40% |
Commitments and contingencie107
Commitments and contingencies (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
2,017 | $ 16,496 |
2,018 | 11,074 |
2,019 | 2,530 |
2,020 | 0 |
Thereafter | 0 |
Total | 30,100 |
Obligations for investment contracts [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
2,017 | 0 |
2,018 | 5,424 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total | 5,424 |
Obligations for purchasing and service [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
2,017 | 16,496 |
2,018 | 5,650 |
2,019 | 2,530 |
2,020 | 0 |
Thereafter | 0 |
Total | $ 24,676 |
Commitments and contingencie108
Commitments and contingencies (Details Textual) - Chongquing Venture Fund [Member] ¥ in Millions, $ in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | May 31, 2016USD ($) | May 31, 2016CNY (¥) |
Commitments and Contingencies Disclosure [Line Items] | ||||
Unpaid Capital | $ 5.4 | ¥ 36 | ||
Hubei Henglong [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Capital | $ 12.7 | ¥ 84 | $ 18.1 | ¥ 120 |
Equity Method Investment, Ownership Percentage | 35.00% | 35.00% |
Segment reporting (Details)
Segment reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 118,365 | $ 94,626 | $ 355,333 | $ 312,497 |
Net Income (Loss) | 5,228 | 5,859 | 20,047 | 16,919 |
Consolidation, Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (19,871) | (19,518) | (65,992) | (51,587) |
Net Income (Loss) | (317) | (747) | (1,704) | (911) |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Net Income (Loss) | 317 | 808 | 3,367 | (1,317) |
JingzhouHenglong Automotive Parts Co Ltd [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 55,790 | 57,530 | 191,093 | 195,940 |
Net Income (Loss) | 689 | 3,771 | 6,300 | 13,389 |
Shashi Jiulong Power Steering Gears Co Ltd [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 26,067 | 17,787 | 75,525 | 54,976 |
Net Income (Loss) | 478 | 1,083 | 3,739 | 2,219 |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 10,103 | 8,239 | 28,777 | 24,898 |
Net Income (Loss) | 486 | 457 | 1,271 | 995 |
Wuhu Henglong Automotive Steering System Co Ltd [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 6,503 | 5,088 | 18,254 | 15,897 |
Net Income (Loss) | 118 | 21 | 215 | 96 |
Hubei Henglong Automotive System Group Co Ltd [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 24,812 | 13,912 | 66,855 | 42,815 |
Net Income (Loss) | 2,680 | 735 | 5,518 | 2,286 |
Other Sectors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 14,961 | 11,588 | 40,821 | 29,558 |
Net Income (Loss) | 777 | (269) | 1,341 | 162 |
Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 138,236 | 114,144 | 421,325 | 364,084 |
Net Income (Loss) | $ 5,228 | $ 5,798 | $ 18,384 | $ 19,147 |
Segment reporting (Details Text
Segment reporting (Details Textual) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |