Business Description
China Automotive Systems, Inc., was incorporated in the State of Delaware on
June 29, 1999. Through its subsidiary, Great Genesis Holdings Limited, “Genesis,”
a corporation organized under the laws of the Hong Kong Special Administrative
Region, China, it owns interests in eight Sino-joint ventures and five wholly-owned
subsidiaries in the People’s Republic of China, “China” or
the “PRC,” which manufacture power steering systems and/or related
products for different segments of the automobile industry. Genesis also owns
interests in a Brazil-based trading company, which engages mainly in the import
and sales of automotive parts in Brazil.
The Company is a holding company and has no significant business operations
or assets other than its interest in Genesis.
The Company has business relationships with more than sixty vehicle manufacturers,
including FAW Group and Dongfeng Auto Group Co., Ltd, two of the five largest
automobile manufacturers in China; Shenyang Brilliance Jinbei Co., Ltd., the
largest light vehicle manufacturer in China; Chery Automobile Co., Ltd, the
largest state owned car manufacturer in China, and BYD Auto Co., Ltd and Zhejiang
Geely Automobile Co., Ltd., the largest privately owned car manufacturers in
China. The PRC-based joint ventures of General Motors (GM), Volkswagen, Citroen
and Fiat Chrysler North America are all key customers of the Company. Starting
in 2008, the Company has supplied power steering gears to the Sino-foreign joint
ventures established by GM, Citroen and Volkswagen in China. The Company has
supplied power steering gear to Fiat Chrysler North America since 2009.
the Company’s short to medium term strategic plan is to focus on both
domestic and international market expansion. To achieve this goal and higher
profitability, the Company focuses on brand recognition, quality control, cost
efficiency, research and development and strategic acquisitions. Set forth below
are the Company’s programs:
Brand Recognition. Under the brands of Henglong and Jiulong, the Company
offers four separate series of power steering sets and 310 models of power steering
sets, steering columns and steering hoses.
Quality Control. The Henglong and Jiulong manufacturing facilities obtained
the ISO/TS 16949 System Certification in January 2004, a well-recognized quality
control system in the auto industry developed by TUVRheindland of Germany.
Cost Efficiency. By improving the Company’s production ability
and enhancing equipment management, optimizing the process and products structure,
perfecting the supplier system and cutting production cost, the Company’s
goal is to achieve a more competitive profit margin.
Research and Development. The Company established Testing Center for
the research and development of products and, by partnering with Nanyang Ind.
Co. Ltd. and Tsinghua University for the development of advanced steering systems,
the Company’s objective is to gain increased market share in China.
International Expansion. The Company has entered into agreements with
several international vehicle manufacturers and auto parts modules suppliers
and carried on preliminary negotiations regarding future development projects.
During 2015, Hubei Henglong, one of the Company’s subsidiaries, increased
its overseas sales in North America by 5.6%.
1.7% 
67.72 %