Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 29, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CHINA AUTOMOTIVE SYSTEMS INC | ||
Entity Central Index Key | 1,157,762 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 40.9 | ||
Trading Symbol | CAAS | ||
Entity Common Stock, Shares Outstanding | 31,644,004 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 64,558 | $ 31,092 | |
Pledged cash | 31,535 | 30,799 | |
Short-term investments | 29,587 | 30,475 | |
Accounts and notes receivable, net - unrelated parties | 274,989 | 285,731 | |
Accounts and notes receivable, net - related parties | 19,086 | 20,984 | |
Advance payments and others - unrelated parties | 12,790 | 10,203 | |
Advance payments and others - related parties | [1] | 20,841 | 624 |
Inventories | 79,217 | 68,050 | |
Total current assets | 532,603 | 477,958 | |
Non-current assets: | |||
Long-term time deposits | 0 | 865 | |
Property, plant and equipment, net | 126,033 | 101,478 | |
Intangible assets, net | 661 | 617 | |
Other receivables, net - unrelated parties | 2,188 | 2,252 | |
Advance payment for property, plant and equipment - unrelated parties | 9,657 | 14,506 | |
Advance payment for property, plant and equipment - related parties | 5,264 | 5,005 | |
Long-term investments | 27,596 | 16,431 | |
Deferred tax assets | 13,367 | 12,587 | |
Total assets | 717,369 | 631,699 | |
Current liabilities: | |||
Bank and government loans | 72,711 | 40,820 | |
Accounts and notes payable - unrelated parties | 233,048 | 216,993 | |
Accounts and notes payable - related parties | 7,168 | 6,803 | |
Customer deposits | 1,128 | 700 | |
Accrued payroll and related costs | 8,577 | 6,971 | |
Accrued expenses and other payables | 40,127 | 35,882 | |
Accrued pension costs | 4,051 | 4,130 | |
Taxes payable | 5,927 | 11,674 | |
Amounts due to shareholders/directors | 343 | 312 | |
Advances payable (current portion) | 383 | 382 | |
Total current liabilities | 373,463 | 324,667 | |
Long-term liabilities: | |||
Long-term government loan | 306 | 608 | |
Advances payable | 359 | 339 | |
Deferred tax liabilities | 4,393 | 193 | |
Long-term taxes payable | [2] | 32,719 | 0 |
Total liabilities | 411,240 | 325,807 | |
Commitments and Contingencies (Note 31) | |||
Stockholders' Equity | |||
Common stock, $0.0001 par value - Authorized - 80,000,000 shares Issued - 32,338,302 and 32,338,302 shares at December 31, 2017 and 2016, respectively | 3 | 3 | |
Additional paid-in capital | 64,406 | 64,764 | |
Retained earnings- | |||
Appropriated | 10,707 | 10,549 | |
Unappropriated | 209,459 | 228,963 | |
Accumulated other comprehensive income/(loss) | 17,780 | (892) | |
Treasury stock - 694,298 and 694,298 shares at December 31, 2017 and 2016, respectively | (2,907) | (2,907) | |
Total parent company stockholders' equity | 299,448 | 300,480 | |
Non-controlling interests | 6,681 | 5,412 | |
Total stockholders' equity | 306,129 | 305,892 | |
Total liabilities and stockholders' equity | $ 717,369 | $ 631,699 | |
[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 million 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 6.05%. On December 28, 2017, Henglong Real Estate repaid RMB 70 million to Hubei Henglong. As of December 31, 2017, the outstanding loan balance is RMB 130 million (equivalent to $19.9 million). | ||
[2] | A one-time transition tax of $35.6 million was recognized in the fourth quarter that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company elected to pay the one-time transition tax over eight years commencing in April 2018. As of December 31, 2017, $2.7 million was included in taxes payable as a current liability which the Company believes will be paid within one year and the remaining balance was included in long-term taxes payable. See Note 27 for more details about the U.S. Tax Reform. |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Dec. 31, 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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net product sales ($37,583 and $39,845 sold to related parties for the years ended December 31, 2017 and 2016) | $ 499,063 | $ 462,050 |
Cost of products sold ($28,994 and $27,747 purchased from related parties for the years ended December 31, 2017 and 2016) | 414,429 | 381,131 |
Gross profit | 84,634 | 80,919 |
Net gain on other sales | 7,635 | 3,803 |
Operating expenses: | ||
Selling expenses | 19,912 | 17,159 |
General and administrative expenses | 19,543 | 16,841 |
Research and development expenses | 33,544 | 27,706 |
Total operating expenses | 72,999 | 61,706 |
Operating income | 19,270 | 23,016 |
Other income, net | 678 | 1,116 |
Interest expense | 1,753 | 656 |
Financial income, net | 2,180 | 1,428 |
Income before income tax expenses and equity in earnings of affiliated companies | 20,375 | 24,904 |
Less: Income taxes | 41,633 | 2,484 |
Add: Investment income, net | 2,619 | 557 |
Net (loss)/income | (18,639) | 22,977 |
Net income attributable to non-controlling interest | 707 | 466 |
Net (loss)/income attributable to parent company’s common shareholders | $ (19,346) | $ 22,511 |
Net (loss)/income attributable to parent company’s common shareholders per share - | ||
Basic | $ (0.61) | $ 0.7 |
Diluted | $ (0.61) | $ 0.7 |
Weighted average number of common shares outstanding - | ||
Basic | 31,644,004 | 31,954,407 |
Diluted | 31,646,897 | 31,957,052 |
Consolidated Statements of Inc5
Consolidated Statements of Income [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Related Parties | $ 37,583 | $ 39,845 |
Related Party Costs | $ 28,994 | $ 27,747 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net (loss)/income | $ (18,639) | $ 22,977 |
Other comprehensive income/(loss): | ||
Foreign currency translation income/(loss) | 19,384 | (19,996) |
Comprehensive income | 745 | 2,981 |
Comprehensive income/(loss) attributable to non-controlling interest | 1,352 | (226) |
Comprehensive (loss)/income attributable to parent company | $ (607) | $ 3,207 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings, Appropriated [Member] | Retained Earnings, Unappropriated [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interest [Member] | |
Beginning balance at Dec. 31, 2015 | $ 3 | $ 64,627 | $ 10,379 | $ 206,622 | $ 18,412 | $ (1,000) | $ 8,252 | ||
Stock-based compensation | $ 137 | [1] | 137 | ||||||
Net (loss)/income attributable to parent company | 22,511 | 22,511 | |||||||
Appropriation of retained earnings | 170 | (170) | |||||||
Repurchased stock | (1,907) | ||||||||
Net foreign currency translation adjustment attributable to non-controlling interest | (692) | (692) | |||||||
Net income attributable to non-controlling interest | 466 | 466 | |||||||
Net foreign currency translation adjustment attributable to parent company | (19,304) | (19,304) | |||||||
Acquisition of the non-controlling interest in Brazil Henglong | 0 | 0 | |||||||
Other comprehensive loss related to the non-controlling interests acquired by the Company | 0 | 0 | 0 | ||||||
Non-controlling interests change due to the disposal of Fujian Qiaolong | (2,150) | (2,150) | |||||||
Distribution of retained earnings | (464) | (464) | |||||||
Total parent company stockholders' equity at Dec. 31, 2016 | 300,480 | 300,480 | 305,892 | ||||||
Ending Balance at Dec. 31, 2016 | 305,892 | 3 | 64,764 | 10,549 | 228,963 | (892) | (2,907) | 5,412 | |
Stock-based compensation | 100 | [1] | 100 | ||||||
Net (loss)/income attributable to parent company | (19,346) | (19,346) | |||||||
Appropriation of retained earnings | 158 | (158) | |||||||
Repurchased stock | 0 | ||||||||
Net foreign currency translation adjustment attributable to non-controlling interest | 645 | 645 | |||||||
Net income attributable to non-controlling interest | 707 | 707 | |||||||
Net foreign currency translation adjustment attributable to parent company | 18,739 | 18,739 | |||||||
Acquisition of the non-controlling interest in Brazil Henglong | (458) | 458 | |||||||
Other comprehensive loss related to the non-controlling interests acquired by the Company | (67) | (67) | 67 | ||||||
Non-controlling interests change due to the disposal of Fujian Qiaolong | 0 | 0 | |||||||
Distribution of retained earnings | (608) | (608) | |||||||
Total parent company stockholders' equity at Dec. 31, 2017 | 299,448 | 299,448 | 306,129 | ||||||
Ending Balance at Dec. 31, 2017 | $ 306,129 | $ 3 | $ 64,406 | $ 10,707 | $ 209,459 | $ 17,780 | $ (2,907) | $ 6,681 | |
[1] | 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, respectively. 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. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity [Parenthetical] - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at January 1, Treasury stock | 694,298 | |
Balance at December 31, Treasury stock | 694,298 | 694,298 |
Common Stock [Member] | ||
Balance at January 1, Common stock | 32,338,302 | 32,338,302 |
Balance at December 31, Common stock | 32,338,302 | 32,338,302 |
Treasury Stock [Member] | ||
Balance at January 1, Treasury stock | 694,298 | 217,283 |
Repurchase of Treasury stock | 0 | 477,015 |
Balance at December 31, Treasury stock | 694,298 | 694,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ (18,639) | $ 22,977 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 100 | 137 |
Depreciation and amortization | 15,358 | 13,926 |
Deferred income taxes | 4,143 | (1,628) |
Inventory write downs | 5,109 | 3,210 |
Accrual/(reversal) of provision for doubtful accounts | 887 | (21) |
Equity in earnings of affiliated companies | (2,617) | (556) |
Gain on disposal of Fujian Qiaolong | 0 | (698) |
Gain on disposal of fixed assets | (2,184) | (23) |
(Increase) decrease in: | ||
Pledged cash | 1,254 | (799) |
Accounts and notes receivable | 30,908 | (56,251) |
Advance payments and other | (529) | (2,331) |
Inventories | (12,156) | (15,442) |
Increase (decrease) in: | ||
Accounts and notes payable | 2,533 | 35,455 |
Customer deposits | 411 | (646) |
Accrued payroll and related costs | 1,182 | 1,143 |
Accrued expenses and other payables | 560 | 10,548 |
Accrued pension costs | (331) | (231) |
Taxes payable | (8,555) | 3,130 |
Long-term taxes payable | 32,719 | 0 |
Advances payable | 0 | (75) |
Net cash provided by operating activities | 50,153 | 11,825 |
Cash flows from investing activities: | ||
Purchase of short-term investments and long-term time deposits | (32,145) | (28,210) |
Proceeds from maturities of short-term investments and long-term time deposits | 35,780 | 20,657 |
Decrease in other receivables | 198 | 2,388 |
Cash received from disposal of Fujian Qiaolong | 0 | 1,953 |
Cash received from property, plant and equipment sales | 2,231 | 1,284 |
Cash paid to acquire property, plant and equipment (including $9,791 and $8,021 paid to related parties for the years ended December 31, 2017 and 2016, respectively) | (27,096) | (39,585) |
Cash paid to acquire intangible assets | (201) | (161) |
Loan to a related party | (29,044) | 0 |
Cash received from repayment of the loan to a related party | 10,591 | 0 |
Investment under equity method | (7,629) | (10,556) |
Net cash used in investing activities | (47,315) | (52,230) |
Cash flows from financing activities: | ||
Proceeds from bank and government loans | 72,237 | 14,313 |
Repayment of bank and government loans | (43,154) | (6,973) |
Repurchase of common stock | 0 | (1,907) |
Dividends paid to the holders of the Company’s common stock | 0 | (544) |
Dividends paid to the non-controlling interest holders of joint venture companies | (623) | (464) |
Net cash provided by financing activities | 28,460 | 4,425 |
Cash and cash equivalents affected by foreign currency | 2,168 | (2,604) |
Net increase/(decrease) in cash and cash equivalents | 33,466 | (38,584) |
Cash and equivalents at beginning of year | 31,092 | 69,676 |
Cash and equivalents at end of year | 64,558 | 31,092 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 654 | 720 |
Cash paid for income taxes | 4,643 | 1,838 |
Non-cash investing activities: | ||
Advance payments for acquiring property, plant and equipment | 19,879 | 22,254 |
Accounts payable for acquiring property, plant and equipment | $ 1,180 | $ 1,349 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Payments to Acquire Property, Plant, and Equipment | $ 27,096 | $ 39,585 |
Related Party [Member] | ||
Payments to Acquire Property, Plant, and Equipment | $ 9,791 | $ 8,021 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 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 of Visions-In-Glass, Inc. China Automotive, including, when the context so requires, its subsidiaries and the subsidiaries’ interests in the Sino-foreign 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 on January 3, 2003 under the Companies Ordinance of Hong Kong as a limited liability company, “Genesis,” is a wholly-owned subsidiary of the Company. Henglong USA Corporation, “HLUSA,” which was 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. Aggregate Net Interest Name of Entity 2017 2016 Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 1 100.00 % 100.00 % Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 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 % Wuhu Henglong Auto Steering System Co., Ltd., “Wuhu” 5 77.33 % 77.33 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 6 85.00 % 85.00 % Hubei Henglong Automotive System Group Co., Ltd., “Hubei Henglong” 7 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 9 70.00 % 70.00 % CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 10 95.84 % 80.00 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 11 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd, “Shanghai Henglong” 12 100.00 % 100.00 % Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co., Ltd., “Jingzhou Qingyan” 13 60.00 % - 1. Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light duty vehicles. 2. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears for heavy-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. Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. 6. Jielong was established in 2006 and mainly engages in the production and sales of automobile steering columns. 7. On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. 8. In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. 9. 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. 10. 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 sale 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. 11. 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. 12. 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 sale of automotive electronics. 13. In November 2017, Hubei Henglong formed Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co., Ltd., “Jingzhou Qingyan”, which mainly engages in the research and development of intelligent automotive technology. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation and Significant Accounting Policies Shenyang was formed in 2002, with 70 30 57 43 67 USAI was formed in 2005. At December 31, 2017, 83.34 16.66 67 33 Jielong was formed in April 2006. As at December 31, 2017, 85 15 67 33 Wuhu was formed in May 2006, with 77.33 22.67 60 40 Chongqing Henglong was formed in 2012, with 70 30 60 40 Brazil Henglong was formed in 2012, with 80 20 75 95.84 Beijing Henglong was formed in 2010, with 50 50 57 43 In 2014, Jielong formed a subsidiary, Wuhan Chuguanjie, with 85 15 67 33 Chongqing Jinghua was formed in 2016, with 30 70 20 80 The minority partners of each of the joint ventures are all private companies not controlled, directly or indirectly, by any PRC municipal government or other similar government entity. - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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. The Company is of the opinion that the significant estimates related to impairment of long term assets and investment, the realizable value of accounts receivable and inventories, useful lives of property, plant and equipment, the amounts of accruals, warranty liabilities and deferred tax assets and the determination of fair value of identifiable assets and liabilities acquired through business combinations. Actual results could differ from those estimates. - Cash and cash equivalents include all highly-liquid investments with an original maturity of three months or less at the date of purchase. - Pledged as guarantee for the Company's notes payable and restricted to use. The Company regularly pays some of its suppliers by bank notes. The Company has to deposit a cash deposit, equivalent to 40 100 Short-term Investments - - In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover estimated credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. The Company evaluates the credit risk of its customers utilizing historical data and estimates of future performance. - Inventories are stated at the lower of cost and net realizable value. Cost is calculated on the moving-average basis and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Company evaluates the net realizable value of its inventories on a regular basis and records a provision for loss to reduce the computed moving-average cost if it exceeds the net realizable value. Advance Payments Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized; minor replacements and maintenance and repairs are charged to operations. Category Estimated Useful Life (Years) Land use rights and buildings: Land use rights 45 -50 Buildings 25 Machinery and equipment 6 Electronic equipment 4 Motor vehicles 8 Assets under Construction Gains or losses on disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the relevant asset, and are recognized in the consolidated statements of income on the date of disposal. - Interest costs incurred in connection with borrowings for the acquisition, construction or installation of property, plant and equipment are capitalized (if significant) and depreciated as part of the asset’s total cost when the respective asset is placed into service. Interest costs capitalized for the years ended December 31, 2017 and 2016, were $ 0.7 0.3 - Intangible assets, representing patents and technical know-how acquired, are stated at cost less accumulated amortization and impairment losses. Amortization is calculated on the straight-line method over the estimated useful life of 5 15 Long-term time deposits are comprised of time deposits with terms of more than one year. The carrying values of time deposits approximate fair value because changes in fair value, after considering the discount rate, are immaterial. The interest earned is recognized in the consolidated statements of income over the contractual term of the deposits. - The Company has adopted the provisions of ASC Topic 360 In assessing long-lived assets for impairment, management considered the Company’s product line portfolio, customers and related commercial agreements, labor agreements and other factors in grouping assets and liabilities at the lowest level for which identifiable cash flows are largely independent. The Company considers projected future undiscounted cash flows, trends and other factors in its assessment of whether impairment conditions exist. Whilst the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such factors as future automotive production volumes, customer pricing, economics and productivity and cost saving initiatives, could significantly affect its estimates. In determining fair value of long-lived assets, management uses appraisals, management estimates or discounted cash flow calculations. - Investments in corporations which the Company does not have the ability to exert significant influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in corporations which the Company has the ability to exert significant influence are accounted for using the equity method. Investments in limited partnerships which the Company has virtually no influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in limited partnerships which the Company has more than virtually no influence are accounted for using the equity method. The Company continually reviews its investment to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, including general market conditions, industry-specific or investee-specific reasons, changes in valuation subsequent to the balance sheet date and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the security is written down to fair value. There were no impairment losses for its long-term investment in the years ended December 31, 2017 and 2016. A business combination is recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of income. - The Company recognizes revenue when the significant risks and rewards of ownership have been transferred to the customers including factors such as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value added tax laws have been complied with, and collectability is probable. The Company recognizes product sales generally at the time the product is installed on OEMs’ production line, and a small number of product sales is recognized at the time the product is shipped. Concurrent with the recognition of revenue, the Company reduces revenue for estimated product returns. Revenue is presented net of any sales tax and value added tax. Normally, the Company purchases materials only for its production. Occasionally, some materials will be sold to other suppliers in case of temporary inventory overage of such materials and to make a profit on any price difference. The Company is essentially the agent in these transactions because it does not have any risk of product return. When there is any quality or quantity loss, the suppliers are obligated to restitution. Income generated from selling materials is recorded as the net amount retained, that is, the amount billed to the customers less the amount paid to suppliers, in the consolidated statement of income in accordance with the provisions of ASC Topic 350. - The Company’s PRC based subsidiaries received government subsidies according to related policy from local government. The Company’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are the subsidies that the Chinese government has specified its purpose for, such as product development and renewal of production facilities. Other subsidies are the subsidies that the Chinese government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The Company recorded specific purpose subsidies as advances payable when received. For specific purpose subsidies, upon government acceptance of the related project development or asset acquisition, the specific purpose subsidies are recognized to reduce related R&D expenses or cost of asset acquisition. The unspecific purpose subsidies are recognized as other income upon receipt as further performance by the Company is not required. - The Company is subject to value added tax, “VAT.” The applicable VAT tax rate is 17% for products sold in the PRC. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold less VAT paid on purchases made with the relevant supporting invoices. VAT is collected from customers by the Company on behalf of the PRC tax authorities and is therefore not charged to the consolidated statements of income. - In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of December 31, 2017, the Company has no uncertain tax positions. - The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties were based on, among other things, historical experience, product changes, material expenses, service and transportation expenses arising from the manufactured product. Estimates will be adjusted on the basis of actual claims and circumstances. Year Ended December 31, 2017 2016 Balance at the beginning of year $ 26,225 $ 23,059 Additions during the year 23,354 16,522 Settlement within the year (22,034) (11,781) Foreign currency translation 1,488 (1,575) Balance at end of year $ 29,033 $ 26,225 - Most of the operations and employees of the Company are located in China. The Company records pension costs and various employment benefits in accordance with the relevant Chinese social security laws, which is approximately at a total of 30% of base salary as required by local governments. Base salary levels are the average salary determined by the local governments. - Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of trade accounts receivable. The Company performs ongoing credit evaluations with respect to the financial condition of its debtors, but does not require collateral. In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover probable credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. - As of December 31, 2017, the Company had bank loans of $ 20.6 - The Company accounts for income taxes using the liability method whereby deferred income taxes are recognized for the tax consequences of temporary differences by applying statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of certain assets and liabilities, changes in deferred tax assets and liabilities, if any, include the impact of any tax rate changes enacted during the year. ASC Topic 350 If the amount of the Company’s taxable income or income tax liability is a determinant of the amount of a grant, the grant is treated as a reduction of the income tax provision in the year the grant is realized. - Research and development costs are expensed as incurred. Advertising, shipping and handling costs are expensed as incurred and recorded in selling expense s. 7.4 6.0 - Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities, convertible note holders, based on their participating rights. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effects on income of participating securities as if they were dilutive ordinary shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the convertible notes using the if-converted method, and shares issuable upon the exercise of stock options and warrants for the purchase of ordinary shares using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be antidilutive. ASC Topic 220 ASC Topic 220 Fair Value Measurements For purposes of fair value measurements, the Company applies the applicable provisions of ASC 820 Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. As at December 31, 2017 and 2016, the Company did not have any fair value assets and liabilities classified as Level 1. Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. As at December 31, 2017 and 2016, wealth management financial products were classified as Level 2. Level 3 Inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, an exit price from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). As of December 31, 2017 and 2016, the Company did not have any fair value assets and liabilities classified as Level 3. The Company’s financial instruments consist principally of cash and cash equivalents, pledged cash, time deposits, accounts and notes receivable, accounts and notes payable, advance payment or payable, other receivable or payable, accrued expenses and bank loans. As of December 31, 2017 and 2016, the respective carrying values of all financial instruments approximated fair value because any changes in fair value, after considering the discount rate, are immaterial. - The Company may issue stock options to employees and stock options or warrants to non-employees in non-capital raising transactions for services and for financing costs. The stockholders of the Company approved a stock incentive plan at the Annual Meeting of the Company held on June 28, 2005, and the maximum number of common shares for issuance under this plan is 2,200,000 10 591,350 1,608,650 112,500 The Company has adopted ASC Topic 718 - 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” In translating the financial statements of the Company’s China and Brazil subsidiaries and Genesis from their functional currency into the Company's reporting currency of United States dollars, balance sheet accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using an average exchange rate prevailing during the reporting period. Adjustments resulting from the translation, if any, are included in cumulative other comprehensive income (loss) in stockholders’ equity. The following are the related parties of the Company. The major shareholders of the Company directly or indirectly have interests in these related parties: · Jingzhou Henglong Fulida Textile Co., Ltd., “ Fulida · Xiamen Joylon Co., Ltd., “ Xiamen Joylon · Shanghai Tianxiang Automotive Parts Co., Ltd., “ Shanghai Tianxiang · Shanghai Jinjie Industrial & Trading Co., Ltd., “ Shanghai Jinjie · Changchun Hualong Automotive Technology Co., Ltd., “ Changchun Hualong · Jiangling Tongchuang Machining Co., Ltd., “ Jiangling Tongchuang · Shanghai Hongxi Investment Inc, “ Hongxi · Hubei Wiselink Equipment Manufacturing Co., Ltd., “ Hubei Wiselink · Jingzhou Derun Agricultural S&T Development Co., Ltd., “ Jingzhou Derun · Jingzhou Tongying Alloys Materials Co., Ltd., “ Jingzhou Tongying · WuHan Dida Information S&T Development Co., Ltd., “ WuHan Dida · Hubei Wanlong Investment Co., Ltd., “ Hubei Wanlong · Jingzhou Yude Machining Co., Ltd., “ Jingzhou Yude · Wiselink Holdings Limited, “ Wiselink · Beijing Hainachuan HengLong Automotive Steering System Co., Ltd., “ Beijing Henglong · Honghu Changrun Automotive Parts Co., Ltd., “ Honghu Changrun · Jingzhou Henglong Real Estate Co., Ltd., “ Henglong Real Estate · Xiamen Joylon Automotive Parts Co., Ltd., “Xiamen Automotive Parts · Jingzhou Jiulong Machinery and Electronic Trading Co., Ltd., “ Jiulong Machinery · WuHan Tongkai Automobile Motor Co., Ltd., “ WuHan Tongkai · Jingzhou Natural Astaxanthin Inc, “ Jingzhou Astaxanthin · Hubei Asta Biotech Inc, “ Hubei Asta · Shanghai Yifu Automotive Electronics Technology Co., Ltd., “ Shanghai Yifu · Suzhou Qingyan Venture Capital Fund L.P, “ Suzhou Qingyan · Chongqing Qingyan Venture Capital Fund L.P, “ Chongqing Qingyan · Chongqing Jinghua Automotive Intelligent Manufacturing Technology Research Co., Ltd.,“ Chongqing Jinghua” Products Sold to Related Parties The Company sold products to related parties at fair market prices, and also granted them credit of three to four months on an open account basis. These transactions were consummated under similar terms as the Company's other customers. The Company purchased materials from related parties at fair market prices, and also received from them credit of three to four months on an open account basis. These transactions were consummated under similar terms as the Company's other suppliers. - The Company purchased equipment and production technology from related parties at fair market prices, or reasonable cost plus pricing if fair market prices are not available and was required to pay in advance based on the purchase agreement between the two parties, because such equipment manufacturing and technology development was required for a long period. These transactions are consummated under similar terms as the Company's other suppliers. - The Company provides short-term loans to related parties and assists the borrowing entities in addressing certain cash flow needs. The contractual period of each loan is three months or less from the date of the extension of the loan. In general, the Company charges interest by referencing to the prevailing borrowing interest rates published by PBOC except for the loans to related parties with repayment terms less than 3 days, which bear no interest rate due to their short-term maturities and are required to be approved by the audit committee of the board of directors of the Company. In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606), which was further updated by ASU No. 2016-08 in March 2016, ASU No.2016-10 in April 2016 and ASU No.2016-11 in May 2016. The new guidance clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In July 2015, the FASB approved a deferral of the ASU effective date from annual and interim periods beginning after December 15, 2016 to annual and interim periods beginning after December 15, 2017. The Company has evaluated its material contracts, and has concluded that the impact of adopting the standard on its consolidated financial statements and related disclosures will not be material. The Company will adopt the standard on a modified retrospective basis in 2018. In February 2016, the FASB issued ASU 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. The Company is in the process of evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable recognition threshold for credit impairments. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. This ASU is effective for the Company on December 15, 2019. The Company is in the process of evaluating the impact of the ASU on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 refines how companies classify certain aspects of the cash flow statement in regards to debt prepayment, settlement of debt instruments, contingent consideration payments, proceeds from insurance claims and life insurance policies, distribution from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact of ASU 2016-16 on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Update eliminate the exception for an intra-entity transfer of an asset other than inventory. Two common examples of assets included in the scope of this Update are intellectual property and property, plant, and equipment. The Update does not change GAAP for an intra-entity transfer of inventory. The amendments in this Update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The amendments in this Update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is in the process of evaluating the impact of the Update, and does not expect that the adoption will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will become effective for the reporting periods beginning on or after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance and its impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this Update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the Board has developed more stringent criteria for sets without outputs. Lastly, the amendments in this Update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early application of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company is in the process of evaluating the impact of the Update, and does not expect that the adoption will have a material impact on its 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 thos |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Investments Disclosure [Abstract] | |
Short Term Investments Disclosure [Text Block] | 3. Short-term investments The Company’s short-term investments as of December 31, 2017 and 2016 are summarized as follows (figures are in thousands of USD): December 31 2017 2016 Time deposits $ 12,019 $ 30,217 Wealth management financial products measured at fair value 17,568 258 Total $ 29,587 $ 30,475 As of December 31, 2017 and 2016, the Company had pledged short-term investments of RMB 13.0 39.9 2.0 5.7 |
Accounts and Notes Receivable
Accounts and Notes Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Accounts and Notes Receivable Disclosure [Abstract] | |
Accounts and Notes Receivable Disclosure [Text Block] | 4. Accounts and Notes Receivable December 31, 2017 2016 Accounts receivable - unrelated parties (1) $ 166,889 $ 154,403 Notes receivable - unrelated parties (2) (3) 109,183 132,409 Total accounts and notes receivable- unrelated parties 276,072 286,812 Less: allowance for doubtful accounts- unrelated parties (1,083) (1,081) Accounts and notes receivable- unrelated parties 274,989 285,731 Accounts and notes receivable - related parties 19,086 20,984 Accounts and notes receivable, net $ 294,075 $ 306,715 (1) Notes receivable represents accounts receivable in the form of bills of exchange whose acceptances and settlements are handled by banks. (2) As of December 31, 2017, the Company collateralized its notes receivable in an amount of RMB 258.5 39.6 238.4 36.5 20.0 20.0 3.1 As of December 31, 2016, Henglong collateralized its notes receivable in an amount of RMB 249.9 36.0 224.6 32.4 30.0 25.2 3.6 Year Ended December 31, 2017 2016 Balance at beginning of year $ 1,081 $ 1,208 Amounts provided for during the year 31 65 Amounts reversed of collection during the year (90) (115) Foreign currency translation 61 (77) Balance at end of year $ 1,083 $ 1,081 |
Advance payments and others
Advance payments and others | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Advance Payments And Others Disclosure [Text Block] | 5. Advance payments and others Year Ended December 31, 2017 2016 Advance payments and others - unrelated parties $ 13,801 $ 10,203 Less: allowance for doubtful accounts unrelated parties (2) (1,011) - Advance payments and others, net unrelated parties 12,790 10,203 Advance payments and others - related parties (1) 20,841 624 Total advance payments and others 33,631 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 6.05 70 130 19.9 (2) Provision for the doubtful accounts amounted to $ 1.0 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 6. Inventories December 31, 2017 2016 Raw materials $ 20,033 $ 15,007 Work in process 17,951 10,852 Finished goods 41,233 42,191 Balance at end of year $ 79,217 $ 68,050 Provision for inventories amounted to $ 5.1 3.2 |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Other Receivables Disclosure [Abstract] | |
Other Receivables Disclosure [Text Block] | 7. Other Receivables December 31, 2017 2016 Other receivables- unrelated parties (1) $ 1,109 $ 738 Other receivables - employee housing loans (2) 1,187 1,577 Less: allowance for doubtful accounts - unrelated parties (108) (63) Balance at end of year $ 2,188 $ 2,252 December 31, 2017 2016 Other receivables - related parties $ 585 $ 559 Less: allowance for doubtful accounts - related parties (585) (559) Balance at end of year $ - $ - (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 7.7 3.8 Year Ended December 31, 2017 2016 Balance at beginning of year- unrelated parties $ 63 $ 63 Amounts provided for during the year- unrelated parties 41 4 Amounts reversed of collection during the year- unrelated parties - - Foreign currency translation- unrelated parties 4 (4) Balance at end of year $ 108 $ 63 Year Ended December 31, 2017 2016 Balance at beginning of year - related parties $ 559 $ 607 Amounts provided for during the year - related parties 18 - Amounts reversed due to collection during the year - related parties (26) (9) Foreign currency translation - related parties 34 (39) Balance at end of year $ 585 $ 559 |
Long-term Time Deposits
Long-term Time Deposits | 12 Months Ended |
Dec. 31, 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 December 31, 2017, short-term investments include $ 7.0 As of December 31, 2017 and 2016, the Company had pledged long-term time deposits of nil and RMB 6.0 0.9 |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Investments [Abstract] | |
Long-Term Investments [Text Block] | 9. Long-term Investments In January 2010, the Company invested $ 3.1 50 4.1 3.8 In September 2014, Hubei Henglong entered into an agreement with other parties to establish a venture capital fund, the “Venture Fund”, which mainly focuses on investments in emerging automobiles and parts industries. As of December 31, 2017, Hubei Henglong has completed a capital contribution of RMB 50.0 7.6 14.7 10.3 5.3 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 18.0 17.1 84.0 12.7 23.5 12.7 6.8 In October 2016, Hubei Henglong invested RMB 3.0 0.4 30 0.5 The Company’s consolidated financial statements contain the net income of non-consolidated affiliates of $ 2.6 0.6 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 10. Property, Plant and Equipment The Company’s property, plant and equipment at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Costs: Land use rights and buildings $ 63,173 $ 47,448 Machinery and equipment 165,863 134,361 Electronic equipment 5,819 4,979 Motor vehicles 4,945 4,395 Construction in progress 22,352 24,890 262,152 216,073 Less: Accumulated depreciation (136,119) (114,595) Balance at end of year $ 126,033 $ 101,478 Depreciation charges for the years ended December 31, 2017 and 2016, were $ 14.4 13.6 As of December 31, 2017, the Company has pledged property, plant and equipment with a net book value of approximately $ 57.8 During the year ended December 31, 2017, $ 0.5 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 11. Intangible Assets December 31, 2017 2016 Costs: Patent technology (1) $ 2,108 $ 1,986 Management software license 1,441 1,165 Total intangible assets - at cost 3,549 3,151 Less: Accumulated amortization (2) (2,888) (2,534) Balance at end of the year, net $ 661 $ 617 (1) For the year ended December 31, 2016, patent technology with a cost of $ 2.5 0.5 (2) Amortization expenses were $ 0.3 0.3 0.2 0.2 0.1 0.1 0.1 |
Deferred Income Tax Assets
Deferred Income Tax Assets | 12 Months Ended |
Dec. 31, 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 December 31, 2017 2016 Losses carryforward (U.S.) (1) $ 3,580 $ 6,216 Losses carryforward (Non-U.S.) 2,178 2,887 Product warranties and other reserves 5,264 4,766 Property, plant and equipment 4,607 4,204 Share-based compensation 156 247 Bonus accrual 287 231 Other accruals 1,535 1,551 Deductible temporary difference related to revenue recognition 465 191 Others 1,353 1,206 Total deferred tax assets 19,425 21,499 Less: valuation allowance (6,058) (8,912) Total deferred tax assets, net of valuation allowance $ 13,367 $ 12,587 (1) The net operating loss carry forwards for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These carry forwards will expire, if not utilized, at varying times over the next 20 5 6.1 3.8 2.3 Year Ended December 31, 2017 2016 Balance at beginning of year $ 8,912 $ 9,379 Amounts provided for during the year 860 401 Amounts used during the year (1,309) (698) The effect of change in the tax rate due to the U.S. Tax Reform (2,490) - Foreign currency translation 85 (170) Balance at end of year $ 6,058 $ 8,912 |
Bank and Government Loans
Bank and Government Loans | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 13. Bank and Government Loans December 31, 2017 2016 Short-term bank loans (1) $ 9,948 $ 2,162 Short-term bank loans (2) (3) (4) 30,454 35,054 Short-term bank loans (5) 29,248 - Short-term government loan (6) 3,061 3,604 Total short-term bank and government loans $ 72,711 $ 40,820 Long-term bank and government loan (7) 306 608 Total bank and government loans $ 73,017 $ 41,428 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of December 31, 2017 and 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 LIBOR plus 2.25% per annum 31.6 On May 22, 2012, the Company drew down the full amount of $ 30.0 31.6 207.1 32.6 0.1 0.1 May 12, 2017 LIBOR plus 0.7% per annum 1.7 On April 20, 2017, the Company entered into a credit facility agreement, the “2017 Credit Agreement,” with ICBC Macau to obtain a non-revolving credit facility in the amount of $ 20.0 May 12, 2018 LIBOR plus 1.30% per annum 24.3 On May 5, 2017, the Company drew down the full amount of $ 20.0 24.3 159.0 24.3 0.04 May 12, 2018 (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 amount of $ 9.9 10.0 4.0 0.6 79.4 12.2 (4) 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 October 27, 2017 0.1 On May 6, 2016, Brazil Henglong drew down a loan amounting to $ 0.1 October 9, 2017 8.2 0.1 0.5 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 January 15, 2018 0.9 On August 26, 2016, Brazil Henglong drew down a loan amounting to $ 0.6 4.05 0.9 6.0 0.9 (5) 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 25.6 September 26, 2017 32.5 32.5 30.6 5.0 5.0 4.7 4.99 On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 224.0 34.3 October 27, 2018 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 15.1 September 26, 2017 28.7 28.7 38.2 4.4 4.4 5.8 4.99 On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 140.0 21.4 October 27, 2018 (6) On August 17, 2017, the Company received a Chinese government loan of RMB 20.0 3.0 1.50 August 16, 2018 20.0 3.0 On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 1.5 December 8, 2017 10.0 1.5 (7) On November 13, 2017, the Company received a Chinese government loan of RMB 2.0 0.3 4.75 The Company must use the loans for the purpose specified in the borrowing agreement. If it fails to do so, it may be charged penalty interest or triggered early repayment. Management believes that the Company complied with such financial covenants as of December 31, 2017, and will continue to comply with them. |
Accounts and Notes Payable
Accounts and Notes Payable | 12 Months Ended |
Dec. 31, 2017 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Accounts and Notes Payable Disclosure [Text Block] | 14. Accounts and Notes Payable December 31, 2017 2016 Accounts payable - unrelated parties $ 149,200 $ 138,053 Notes payable - unrelated parties (1) 83,848 78,940 Accounts and notes payable - unrelated parties 233,048 216,993 Accounts and notes payable - related parties 7,168 6,803 Balance at end of year $ 240,216 $ 223,796 (1) Notes payable represent payables 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, 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 | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Expenses and Other Payables Disclosure [Abstract] | |
Accrued Expenses and Other Payables Disclosure [Text Block] | 15. Accrued Expenses and Other Payables December 31, 2017 2016 Accrued expenses $ 7,944 $ 8,605 Accrued interest 1,347 88 Other payables 1,803 964 Warranty reserves (1) 29,033 26,225 Balance at end of year $ 40,127 $ 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. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2017 | |
Taxes Payables [Abstract] | |
Taxes Payable [Text Block] | 16. Taxes Payable December 31, 2017 2016 Value-added tax payable $ 1,813 $ 7,662 Income tax payable 3,450 3,390 Other tax payable 664 622 Short-term taxes payable 5,927 11,674 Long-term taxes payable (1) 32,719 - Taxes payable $ 38,646 $ 11,674 (1) A one-time transition tax of $ 35.6 2.7 |
Advances Payable
Advances Payable | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Advances Payable [Text Block] | 17. Advances Payable On December 31, 2017 and 2016, advances payable of the Company was $ 0.7 0.7 The amounts are special subsidies made by the Chinese government to the Company, to offset the cost and charges related to the improvement of production capacities and improvement of the quality of products. For the government subsidies with no further conditions to be met, the amounts are recorded as other income when received; for the amounts with certain operating conditions, the government subsidies are recorded as advances payable when received and will be recorded as a deduction of related expenses and cost when the conditions are met. The balances are unsecured and 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 | 12 Months Ended |
Dec. 31, 2017 | |
Additional Paid in Capital [Abstract] | |
Additional Paid in Capital [Text Block] | 18. Additional Paid-In Capital Year Ended December 31, 2017 2016 Balance at beginning of year $ 64,764 $ 64,627 Acquisition of the non-controlling interest in Brazil Henglong (1) (458) - Share-based compensation (2) 100 137 Balance at end of year $ 64,406 $ 64,764 (1) In May 2017, the Company obtained an additional 15.84 (2) On December 2, 2016 and August 16, 2017, the Company granted 22,500 22,500 |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 19. Stock Options The stock option plan was approved at the Annual Meeting of Stockholders held on June 28, 2005, and extended for ten years at the Annual Meeting of Stockholders held on September 16, 2014. The maximum common shares available for issuance under this plan is 2,200,000 593,600 1,586,150 Under the aforementioned plan, the stock options granted will have an exercise price equal to the closing price of the Company’s common stock traded on NASDAQ on the date of grant, and will expire two to five years after the grant date. Except for the 298,850 3 The fair value of stock options was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instruments. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends. 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 and their fair value on the grant date using the Black-Scholes option pricing model were $ 0.1 0.1 0.1 0.1 Weighted-Average Weighted-Average Contractual Shares Exercise Price Term (years) Outstanding - January 1, 2016 105,000 $ 7.03 5 Granted 22,500 6.95 5 Expired (15,000) 4.84 5 Outstanding - December 31, 2016 112,500 $ 7.31 5 Granted 22,500 5.04 5 Expired (22,500) 3.71 5 Outstanding - December 31, 2017 112,500 $ 7.57 5 Outstanding Stock Weighted Average Weighted Average Number of Stock Range of Exercise Prices Options Remaining Life Exercise Price Options Exercisable $3.50 - $10.00 112,500 2.76 $ 7.57 112,500 $10.01 - $18.00 - - $ - - 112,500 112,500 As of December 31, 2017 and 2016, the total intrinsic value of the Company’s stock options that were exercisable was $ 0.1 0.1 For the years ended December 31, 2017 and 2016, no Company’s stock options were exercised. During the years ended December 31, 2017 and 2016, the weighted average fair value of the Company’s stock options granted was $ 4.46 6.08 |
Retained Earnings
Retained Earnings | 12 Months Ended |
Dec. 31, 2017 | |
Retained Earnings Note Disclosure [Abstract] | |
Retained Earnings Disclosure [Text Block] | 20. Retained Earnings 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 9.5 60.0 For the years ended December 31, 2017 and 2016, the subsidiaries in China appropriated statutory reserves of $ 0.2 0.2 |
Accumulated other comprehensive
Accumulated other comprehensive income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income, Noncontrolling Interest [Text Block] | 21. Accumulated other comprehensive income Year Ended December 31, 2017 2016 Balance at beginning of year $ (892) $ 18,412 Other comprehensive income related to the non-controlling interests acquired by the Company (67) - Foreign currency translation adjustment attributable to parent company 18,739 (19,304) Balance at end of year $ 17,780 $ (892) |
Treasury stock
Treasury stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Treasury Stock [Text Block] | 22. 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 | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 23. Non-controlling interests The Company’s activities in respect of the amounts of the non-controlling interests’ equity for the year ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ 5,412 $ 8,252 Change of the non-controlling interests due to disposal of Fujian Qiaolong - (2,150) Income attributable to non-controlling interests 707 466 Dividends declared to the non-controlling interest holders of joint-venture companies (608) (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 - Foreign currency translation adjustment attributable to non-controlling interests 645 (692) Balance at end of year $ 6,681 $ 5,412 |
Gain on Other Sales
Gain on Other Sales | 12 Months Ended |
Dec. 31, 2017 | |
Gain on other sales [Abstract] | |
Gain on other sales [Text Block] | 24. 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 year ended December 31, 2017, gain on other sales amounted to $ 7.6 3.8 2.2 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 25. Other Income, Net The Company recorded government subsidies received with no further condition to be met as other income. As of December 31, 2017 and 2016, the Company has recognized such subsidies in the amounts of $1.2 million and $1.8 million, respectively. The Chinese government provides subsidies to support enterprises in their Research and development, “R&D,” and renewal of equipment. Government subsidies are generally classified as specific purpose subsidies, such as R&D activities and renewal of equipment, and unspecified purpose subsidies. For specific purpose subsidies, accounting by the occurred evidence, subsidies for the R&D activities first offset related R&D expenses that occurred, and subsidies for renewal of equipment offset the cost of related assets. Unspecific purpose subsidies are generally recognized as other income. |
Financial Income, Net
Financial Income, Net | 12 Months Ended |
Dec. 31, 2017 | |
Financial Income Expenses Disclosure [Abstract] | |
Financial Income Expenses Disclosure [Text Block] | 26. Financial Income, Net During the years ended December 31, 2017 and 2016, the Company recorded financial income/(expenses) which are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Interest income $ 3,438 $ 2,080 Foreign exchange loss, net (778) (46) Gain on notes discounted, net - 3 Bank fees (480) (609) Total financial income, net $ 2,180 $ 1,428 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 27. Income Taxes PRC Corporate Income Tax 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 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 would be subject to withholding tax at a rate of 10% if Genesis could not obtain the Hong Kong tax resident certificate from the Hong Kong Inland Revenue Department. If Genesis obtains the Hong Kong tax resident certificate, owns directly at least 25 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 December 31, 2017, the Company has recognized deferred tax liabilities of $ 4.5 44.8 294.2 256.1 29.4 25.6 In 2014, Jiulong was awarded the title of “High& New Technology Enterprise”, and based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15 15 In 2014, Henglong was awarded the title of “High& New Technology Enterprise”, and based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15 15 In 2014, Hubei Henglong was awarded the title of “High& New Technology Enterprise”, and based on the PRC income tax law, it was subject to enterprise income tax at a rate of 15 15 In 2014, 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 2015, 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 In 2013, Jielong was awarded the title of “High& New Technology Enterprise” and, based on the PRC income tax law, it is subject to enterprise income tax at a rate of 15 According to the New CIT, USAI, Wuhan Chuguanjie, Shanghai Henglong, Testing Center and Chongqing Henglong are subject to income tax at a rate of 25 Brazil Corporate Income Tax Based on Brazilian income tax laws, Brazil Henglong is subject to income tax at a uniform rate of 15 10 0.12 0.24 Hong Kong Corporate Income Tax The profits tax rate of Hong Kong is 16.5 U.S. Corporate Income Tax The Company is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35 21 The U.S. Tax Reform also includes provisions for a new tax on GILTI effective for tax years of foreign corporations beginning after December 31, 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of controlled foreign corporations (“CFCs”), subject to the possible use of foreign tax credits and a deduction equal to 50 percent to offset the income tax liability, subject to some limitations. The Company’s management is still evaluating the effect of the U.S. Tax Reform on the Company. Management may update its judgment of that effect based on its continuing evaluation and on future regulations or guidance issued by the U.S. Department of the Treasury, and specific actions the Company may take in the future. To the extent that portions of the Company’s U.S. taxable income, such as Subpart F income or GILTI, are determined to be from sources outside of the U.S., subject to certain limitations, the Company may be able to claim foreign tax credits to offset its U.S. income tax liabilities. If dividends that the Company receives from its subsidiaries are determined to be from sources outside of the U.S., subject to certain limitations, the Company will generally not be required to pay U.S. corporate income tax on those dividends. Any liabilities for U.S. corporate income tax will be accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments will be made when required by U.S. law. One-Time Transition Tax Related to U.S. Tax Reform In the fourth quarter of 2017, the Company recognized a one-time transition tax of $ 35.6 Year Ended December 31, 2017 2016 Tax rate 35 % 35 % Income before income taxes $ 20,375 $ 24,904 Income tax at federal statutory tax rate 7,131 8,716 Tax benefit of super deduction of R&D expense (5,328) (3,969) Effect of differences in foreign tax rate (1,830) (3,367) Change in provision on valuation allowance for deferred income tax U.S. (2,725) (258) Change in provision on valuation allowance for deferred income tax Non-U.S. (128) (208) One-time transition tax related to U.S. Tax Reform 35,564 - Withholding tax resulting from the distribution of dividends from PRC subsidiaries 3,952 - The effect of change in the tax rate due to the U.S. Tax Reform 2,490 - Other differences 2,507 1,570 Total income tax expense $ 41,633 $ 2,484 Year Ended December 31, 2017 2016 Tax holiday effect $ 1,830 $ 3,367 Basic net income per share effect 0.06 0.11 Diluted net income per share effect 0.06 0.11 The Company is subject to examination in the United States and China. The Company's tax years for 2013 through 2017 are still open for examination in China. The Company's tax years for 2008 through 2017 are still open for examination in the United States. Uncertain Tax Positions The Company did not have any uncertain tax positions for the years ended December 31, 2017 and 2016. |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 28. Income Per Share Basic net income per share is computed using the weighted average number of the ordinary shares outstanding during the year. For diluted income per share, the Company uses the treasury stock method for options, assuming the issuance of common shares, if dilutive, resulting from the exercise of options. Year Ended December 31, 2017 2016 Numerator: Net (loss)/income attributable to the parent company’s common shareholders Basic and Diluted $ (19,346) 22,511 Denominator: Weighted average ordinary shares outstanding Basic 31,644,004 31,954,407 Dilutive effects of stock options 2,893 2,645 Denominator for dilutive income per share Diluted 31,646,897 31,957,052 Net (loss)/income per share attributable to the parent company’s common shareholders Basic (0.61) 0.70 Diluted (0.61) 0.70 As of December 31, 2017 and 2016, the exercise prices for 90,000 90,000 |
Significant Concentrations
Significant Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 29. 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. China Automotive, the parent company, may depend on Genesis and HLUSA dividend payments, which are generated from their subsidiaries and their subsidiaries’ interests in the Sino-foreign joint ventures in China, “China-based Subsidiaries,” after they receive payments from the China-based Subsidiaries. Regulations in the PRC currently permit payment of dividends of a PRC company only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Under PRC law China-based Subsidiaries are required to set aside at least 10 50 The PRC government also imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currencies out of China, the China-based Subsidiaries may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currencies. If China Automotive is unable to receive dividend payments from its subsidiaries and China-based subsidiaries, China Automotive may be unable to effectively finance its operations or pay dividends on its shares. 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 U.S. Dollars, 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 People's Republic of China, or the PRC, the Company’s China 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 Chinese 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, Shanghai Fenglong, Beijing Henglong and Jiangling Yude, which are related parties of the Company. The Company’s customers are mostly located in the PRC except for Fiat Chrysler North America, which is in the U.S. In 2017, the Company’s five largest customers accounted for 36.8 10 14.5 72.2 In 2016, the Company’s five largest customers accounted for 41.7 10 11.5 53.1 At December 31, 2017 and 2016, approximately 4.3 3.2 10 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 30. Related Party Transactions The Company’s related party transactions include product sales, material purchases and purchases of equipment and technology. These transactions were consummated at fair market price and under similar terms as those with the Company's customers and suppliers. On some occasions, the Company’s related party transactions also include purchase/sale of capital stock of the joint ventures and sale of property, plant and equipment. Related sales and purchases: During the years ended December 31, 2017 and 2016, the joint ventures entered into related party transactions with companies with common directors as shown below (figures are in thousands of USD): Year Ended December 31, 2017 2016 Beijing Henglong $ 31,089 $ 32,284 Xiamen Automotive Parts 6,042 7,216 Wuhan Tongkai 290 193 Shanghai Jinjie 161 152 Jingzhou Yude 1 - Total $ 37,583 $ 39,845 Rental Income Obtained from Related Parties Year Ended December 31, 2017 2016 Rental income $ 147 $ 116 Materials Sold to Related Parties Year Ended December 31, 2017 2016 Jingzhou Yude $ 711 $ 670 Honghu Changrun 575 272 Jingzhou Tongying 288 227 Jiangling Tongchuang 27 34 Beijing Henglong 2 14 Other Related Parties 2 8 Total $ 1,605 $ 1,225 Materials Purchased from Related Parties Year Ended December 31, 2017 2016 Jingzhou Tongying $ 11,078 $ 11,873 Jiangling Tongchuang 7,930 7,550 Wuhan Tongkai 7,454 6,457 Hubei Wiselink 1,374 848 Honghu Changrun 1,157 1,003 Other Related Parties 1 16 Total $ 28,994 $ 27,747 Technology and Services Purchased from Related Parties (R&D Expenses) Year Ended December 31, 2017 2016 Hubei Wiselink $ 507 $ 251 Changchun Hualong 454 404 Jingzhou Yude 117 128 Jingzhou Derun 46 151 Jiulong Machinery 25 - Hubei Asta 10 170 Shanghai Tianxiang - 89 Other Related Parties - 29 Total $ 1,159 $ 1,222 Property, Plant and Equipment Purchased from Related Parties Year Ended December 31, 2017 2016 Hubei Wiselink $ 9,113 $ 11,941 Related receivables, advance payments and accounts payable: As of December 31, 2017 and 2016, accounts receivable, advance payments and accounts payable between the Company and related parties are as shown below (figures are in thousands of USD): Accounts and Notes Receivable from Related Parties December 31, 2017 2016 Beijing Henglong $ 13,533 $ 14,961 Xiamen Joylon 2,601 1,117 Jingzhou Yude 1,559 1,252 Xiamen Automotive Parts 1,186 3,374 Shanghai Jinjie 101 158 Wuhan Tongkai 90 60 Jingzhou Tongying 16 62 Total $ 19,086 $ 20,984 Other Receivables from Related Parties December 31, 2017 2016 Jiulong Machinery $ 585 $ 559 Total 585 559 Less: provisions for bad debts (585) (559) Balance at end of year $ - $ - Other receivables from related parties are primarily unsecured demand loans, with no stated interest rate or due date. Accounts and Notes Payable to Related Parties December 31, 2017 2016 Jingzhou Tongying $ 2,720 $ 1,979 Wuhan Tongkai 2,259 2,158 Hubei Wiselink 1,379 1,754 Jiangling Tongchuang 739 828 Honghu Changrun 57 27 Shanghai Tianxiang 12 11 Jingzhou Yude 2 2 Henglong Real Estate - 44 Total $ 7,168 $ 6,803 Advance Payments for Property, Plant and Equipment to Related Parties December 31, 2017 2016 Hubei Wiselink $ 5,158 $ 5,005 Henglong Real Estate 106 - Total $ 5,264 $ 5,005 Other Advance Payments and Others to Related Parties December 31, 2017 2016 Henglong Real Estate $ 19,895 $ - Honghu Changrun 481 361 Wuhan Tongkai 188 - Jingzhou Derun 118 161 Changchun Hualong 76 72 Jiangling Tongchuang - 2 Other Related Parties 83 28 Total $ 20,841 $ 624 As of March 29, 2018, the date the Company issued the financial statements, Hanlin Chen, Chairman, owns 55.6 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 31. Commitments and Contingencies a. 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. b. Commitments In addition to bank loans, notes payables and the related interest, the following table summarizes the Company’s noncancelable commitments and contingencies as of December 31, 2017 (figures are in thousands of USD): Payment Obligations by Period 2018 2019 2020 Thereafter Total Obligations for investment contracts (1) $ 6,428 $ - $ - $ - $ 6,428 Obligations for purchasing and service 18,253 7,064 - - 25,317 Total $ 24,681 $ 7,064 $ - $ - $ 31,745 (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 18.0 17.1 84.0 12.7 23.5 36.0 5.5 In November 2017, Hubei Henglong entered into an agreement with other parties to form Jingzhou Qingyan Intelligent Automotive Technology Research Institute Co., Ltd., “Jingzhou Qingyan”. The capital contribution will be RMB 6.0 0.9 60 |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Off Balance Sheet Arrangements Disclosure [Abstract] | |
Off Balance Sheet Arrangements Disclosure [Text Block] | Off-Balance Sheet Arrangements At December 31, 2017 and 2016, the Company did not have any transactions, obligations or relationships that could be considered off-balance sheet arrangements. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 33. 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 December 31, 2017, the Company had 12 product sectors, five of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Shenyang, Wuhu and Hubei Henglong), and one holding company (Genesis). The other seven sectors were engaged in the production and sale of sensor modular (USAI), column (Jielong), provision of after sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), trade (Brazil Henglong), manufacture and sale of automobile electronic systems and parts (Wuhan Chuguanjie) and research and development of intelligent automotive technology (Jingzhou Qingyan). Since the revenues, net income and net assets of these seven sectors collectively are less than 10 As of December 31, 2016, 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), column (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 Net Sales Net Income (Loss) Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 279,706 $ 301,367 $ 3,737 $ 14,407 Jiulong 100,776 76,968 4,064 3,501 Shenyang 40,182 35,191 2,107 1,932 Wuhu 25,599 23,968 264 255 Hubei Henglong 92,293 57,311 10,416 4,043 Other Sectors 59,075 46,928 1,358 1,352 Total Segments 597,631 541,733 21,946 25,490 Corporate - - (39,069) (1,529) Eliminations (98,568) (79,683) (1,516) (984) Total consolidated $ 499,063 $ 462,050 $ (18,639) $ 22,977 Inventories Total Assets Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 34,392 $ 29,332 $ 346,199 $ 324,049 Jiulong 14,868 11,536 82,940 67,508 Shenyang 2,137 4,739 44,693 42,870 Wuhu 2,511 3,388 26,008 24,799 Hubei Henglong 25,404 15,647 318,422 252,465 Other Sectors 6,390 9,466 88,850 113,287 Total Segments 85,702 74,108 907,112 824,978 Corporate - - 121,756 118,409 Eliminations (6,485) (6,058) (311,499) (311,688) Total consolidated $ 79,217 $ 68,050 $ 717,369 $ 631,699 Depreciation and Amortization Capital Expenditures Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 4,721 $ 4,537 $ 4,183 $ 2,010 Jiulong 2,901 2,619 3,477 2,378 Shenyang 605 460 1,265 330 Wuhu 597 666 81 2,187 Hubei Henglong 5,500 4,161 21,309 16,990 Other Sectors 1,991 1,422 3,600 8,826 Total Segments 16,315 13,865 33,915 32,721 Corporate 56 61 - 1 Eliminations - - - - Total consolidated $ 16,371 $ 13,926 $ 33,915 $ 32,722 Net Sales (1) Long-term assets Year Ended December 31, As of December 31, 2017 2016 2017 2016 Geographic region: China $ 383,415 $ 399,526 $ 169,346 $ 142,818 United States 84,240 55,628 797 768 Other foreign countries 31,408 6,896 596 572 Total consolidated $ 499,063 $ 462,050 $ 170,739 (2) $ 144,158 (2) (1) Revenue is attributed to each country based on location of customers. (2) Pursuant to ASC 280-10-50-41, the non-current deferred tax assets of $ 4.5 4.6 0.7 0.6 |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation - For the years ended December 31, 2017 and 2016, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and joint ventures, which are described in Note 1. Significant inter-company balances and transactions have been eliminated upon consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company has no voting control in Beijing Henglong and Chongqing Jinghua, thus such investments were accounted for using the equity method. Shenyang was formed in 2002, with 70 30 57 43 67 USAI was formed in 2005. At December 31, 2017, 83.34 16.66 67 33 Jielong was formed in April 2006. As at December 31, 2017, 85 15 67 33 Wuhu was formed in May 2006, with 77.33 22.67 60 40 Chongqing Henglong was formed in 2012, with 70 30 60 40 Brazil Henglong was formed in 2012, with 80 20 75 95.84 Beijing Henglong was formed in 2010, with 50 50 57 43 In 2014, Jielong formed a subsidiary, Wuhan Chuguanjie, with 85 15 67 33 Chongqing Jinghua was formed in 2016, with 30 70 20 80 The minority partners of each of the joint ventures are all private companies not controlled, directly or indirectly, by any PRC municipal government or other similar government entity. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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. The Company is of the opinion that the significant estimates related to impairment of long term assets and investment, the realizable value of accounts receivable and inventories, useful lives of property, plant and equipment, the amounts of accruals, warranty liabilities and deferred tax assets and the determination of fair value of identifiable assets and liabilities acquired through business combinations. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents - Cash and cash equivalents include all highly-liquid investments with an original maturity of three months or less at the date of purchase. |
Pledged Cash Deposits [Policy Text Block] | Pledged Cash - Pledged as guarantee for the Company's notes payable and restricted to use. The Company regularly pays some of its suppliers by bank notes. The Company has to deposit a cash deposit, equivalent to 40 100 |
Short-term Investment [Policy Text Block] | Short-term Investments - |
Premiums Receivable, Allowance for Doubtful Accounts, Estimation Methodology, Policy [Policy Text Block] | Allowance for Doubtful Accounts - In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover estimated credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. The Company evaluates the credit risk of its customers utilizing historical data and estimates of future performance. |
Inventory, Policy [Policy Text Block] | Inventories - Inventories are stated at the lower of cost and net realizable value. Cost is calculated on the moving-average basis and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Company evaluates the net realizable value of its inventories on a regular basis and records a provision for loss to reduce the computed moving-average cost if it exceeds the net realizable value. |
Advance Payments [Policy Text Block] | Advance Payments |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized; minor replacements and maintenance and repairs are charged to operations. Category Estimated Useful Life (Years) Land use rights and buildings: Land use rights 45 -50 Buildings 25 Machinery and equipment 6 Electronic equipment 4 Motor vehicles 8 |
Assets Under Construction [Policy Text Block] | Assets under Construction Gains or losses on disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the relevant asset, and are recognized in the consolidated statements of income on the date of disposal. |
Interest Capitalization, Policy [Policy Text Block] | Interest Costs Capitalized - Interest costs incurred in connection with borrowings for the acquisition, construction or installation of property, plant and equipment are capitalized (if significant) and depreciated as part of the asset’s total cost when the respective asset is placed into service. Interest costs capitalized for the years ended December 31, 2017 and 2016, were $ 0.7 0.3 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets - Intangible assets, representing patents and technical know-how acquired, are stated at cost less accumulated amortization and impairment losses. Amortization is calculated on the straight-line method over the estimated useful life of 5 15 |
Long Term Time Deposits [Policy Text Block] | Long-term Time Deposits - Long-term time deposits are comprised of time deposits with terms of more than one year. The carrying values of time deposits approximate fair value because changes in fair value, after considering the discount rate, are immaterial. The interest earned is recognized in the consolidated statements of income over the contractual term of the deposits. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets - The Company has adopted the provisions of ASC Topic 360 In assessing long-lived assets for impairment, management considered the Company’s product line portfolio, customers and related commercial agreements, labor agreements and other factors in grouping assets and liabilities at the lowest level for which identifiable cash flows are largely independent. The Company considers projected future undiscounted cash flows, trends and other factors in its assessment of whether impairment conditions exist. Whilst the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such factors as future automotive production volumes, customer pricing, economics and productivity and cost saving initiatives, could significantly affect its estimates. In determining fair value of long-lived assets, management uses appraisals, management estimates or discounted cash flow calculations. |
Investment, Policy [Policy Text Block] | Long-term Investments - Investments in corporations which the Company does not have the ability to exert significant influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in corporations which the Company has the ability to exert significant influence are accounted for using the equity method. Investments in limited partnerships which the Company has virtually no influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in limited partnerships which the Company has more than virtually no influence are accounted for using the equity method. The Company continually reviews its investment to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, including general market conditions, industry-specific or investee-specific reasons, changes in valuation subsequent to the balance sheet date and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the security is written down to fair value. There were no impairment losses for its long-term investment in the years ended December 31, 2017 and 2016. |
Business Combinations Policy [Policy Text Block] | Business Combinations A business combination is recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of income. |
Revenue Recognition, Sales of Goods [Policy Text Block] | Revenue from Product Sales Recognition - The Company recognizes revenue when the significant risks and rewards of ownership have been transferred to the customers including factors such as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value added tax laws have been complied with, and collectability is probable. The Company recognizes product sales generally at the time the product is installed on OEMs’ production line, and a small number of product sales is recognized at the time the product is shipped. Concurrent with the recognition of revenue, the Company reduces revenue for estimated product returns. Revenue is presented net of any sales tax and value added tax. |
Revenue Recognition, Policy [Policy Text Block] | Revenue from Materials and Other Assets Sales Recognition Normally, the Company purchases materials only for its production. Occasionally, some materials will be sold to other suppliers in case of temporary inventory overage of such materials and to make a profit on any price difference. The Company is essentially the agent in these transactions because it does not have any risk of product return. When there is any quality or quantity loss, the suppliers are obligated to restitution. Income generated from selling materials is recorded as the net amount retained, that is, the amount billed to the customers less the amount paid to suppliers, in the consolidated statement of income in accordance with the provisions of ASC Topic 350. |
Government Contractors, Policy [Policy Text Block] | Government Subsidies - The Company’s PRC based subsidiaries received government subsidies according to related policy from local government. The Company’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are the subsidies that the Chinese government has specified its purpose for, such as product development and renewal of production facilities. Other subsidies are the subsidies that the Chinese government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The Company recorded specific purpose subsidies as advances payable when received. For specific purpose subsidies, upon government acceptance of the related project development or asset acquisition, the specific purpose subsidies are recognized to reduce related R&D expenses or cost of asset acquisition. The unspecific purpose subsidies are recognized as other income upon receipt as further performance by the Company is not required. |
Regulatory Income Taxes, Policy [Policy Text Block] | Sales Taxes - The Company is subject to value added tax, “VAT.” The applicable VAT tax rate is 17% for products sold in the PRC. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold less VAT paid on purchases made with the relevant supporting invoices. VAT is collected from customers by the Company on behalf of the PRC tax authorities and is therefore not charged to the consolidated statements of income. |
Income Tax Uncertainties, Policy [Policy Text Block] | Uncertain Tax Positions - In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of December 31, 2017, the Company has no uncertain tax positions. |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | - The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties were based on, among other things, historical experience, product changes, material expenses, service and transportation expenses arising from the manufactured product. Estimates will be adjusted on the basis of actual claims and circumstances. Year Ended December 31, 2017 2016 Balance at the beginning of year $ 26,225 $ 23,059 Additions during the year 23,354 16,522 Settlement within the year (22,034) (11,781) Foreign currency translation 1,488 (1,575) Balance at end of year $ 29,033 $ 26,225 |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Pension - Most of the operations and employees of the Company are located in China. The Company records pension costs and various employment benefits in accordance with the relevant Chinese social security laws, which is approximately at a total of 30% of base salary as required by local governments. Base salary levels are the average salary determined by the local governments. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk - Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of trade accounts receivable. The Company performs ongoing credit evaluations with respect to the financial condition of its debtors, but does not require collateral. In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover probable credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. |
Interest Rate Risk [Policy Text Block] | Interest Rate Risk - As of December 31, 2017, the Company had bank loans of $ 20.6 |
Income Tax, Policy [Policy Text Block] | Income Taxes - The Company accounts for income taxes using the liability method whereby deferred income taxes are recognized for the tax consequences of temporary differences by applying statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of certain assets and liabilities, changes in deferred tax assets and liabilities, if any, include the impact of any tax rate changes enacted during the year. ASC Topic 350 If the amount of the Company’s taxable income or income tax liability is a determinant of the amount of a grant, the grant is treated as a reduction of the income tax provision in the year the grant is realized. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs - Research and development costs are expensed as incurred. |
Shipping and Handling Cost, Policy [Policy Text Block] | Advertising, Shipping and Handling Costs Advertising, shipping and handling costs are expensed as incurred and recorded in selling expense s. 7.4 6.0 |
Earnings Per Share, Policy [Policy Text Block] | Income Per Share - Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities, convertible note holders, based on their participating rights. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effects on income of participating securities as if they were dilutive ordinary shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the convertible notes using the if-converted method, and shares issuable upon the exercise of stock options and warrants for the purchase of ordinary shares using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be antidilutive. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income ASC Topic 220 ASC Topic 220 |
Fair Value Measurement, Policy [Policy Text Block] | For purposes of fair value measurements, the Company applies the applicable provisions of ASC 820 Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. As at December 31, 2017 and 2016, the Company did not have any fair value assets and liabilities classified as Level 1. Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. As at December 31, 2017 and 2016, wealth management financial products were classified as Level 2. Level 3 Inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, an exit price from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). As of December 31, 2017 and 2016, the Company did not have any fair value assets and liabilities classified as Level 3. The Company’s financial instruments consist principally of cash and cash equivalents, pledged cash, time deposits, accounts and notes receivable, accounts and notes payable, advance payment or payable, other receivable or payable, accrued expenses and bank loans. As of December 31, 2017 and 2016, the respective carrying values of all financial instruments approximated fair value because any changes in fair value, after considering the discount rate, are immaterial. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation - The Company may issue stock options to employees and stock options or warrants to non-employees in non-capital raising transactions for services and for financing costs. The stockholders of the Company approved a stock incentive plan at the Annual Meeting of the Company held on June 28, 2005, and the maximum number of common shares for issuance under this plan is 2,200,000 10 591,350 1,608,650 112,500 The Company has adopted ASC Topic 718 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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” In translating the financial statements of the Company’s China and Brazil subsidiaries and Genesis from their functional currency into the Company's reporting currency of United States dollars, balance sheet accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using an average exchange rate prevailing during the reporting period. Adjustments resulting from the translation, if any, are included in cumulative other comprehensive income (loss) in stockholders’ equity. |
Related Party Transactions [Policy Text Block] | Certain Relationships And Related Transactions The following are the related parties of the Company. The major shareholders of the Company directly or indirectly have interests in these related parties: · Jingzhou Henglong Fulida Textile Co., Ltd., “ Fulida · Xiamen Joylon Co., Ltd., “ Xiamen Joylon · Shanghai Tianxiang Automotive Parts Co., Ltd., “ Shanghai Tianxiang · Shanghai Jinjie Industrial & Trading Co., Ltd., “ Shanghai Jinjie · Changchun Hualong Automotive Technology Co., Ltd., “ Changchun Hualong · Jiangling Tongchuang Machining Co., Ltd., “ Jiangling Tongchuang · Shanghai Hongxi Investment Inc, “ Hongxi · Hubei Wiselink Equipment Manufacturing Co., Ltd., “ Hubei Wiselink · Jingzhou Derun Agricultural S&T Development Co., Ltd., “ Jingzhou Derun · Jingzhou Tongying Alloys Materials Co., Ltd., “ Jingzhou Tongying · WuHan Dida Information S&T Development Co., Ltd., “ WuHan Dida · Hubei Wanlong Investment Co., Ltd., “ Hubei Wanlong · Jingzhou Yude Machining Co., Ltd., “ Jingzhou Yude · Wiselink Holdings Limited, “ Wiselink · Beijing Hainachuan HengLong Automotive Steering System Co., Ltd., “ Beijing Henglong · Honghu Changrun Automotive Parts Co., Ltd., “ Honghu Changrun · Jingzhou Henglong Real Estate Co., Ltd., “ Henglong Real Estate · Xiamen Joylon Automotive Parts Co., Ltd., “Xiamen Automotive Parts · Jingzhou Jiulong Machinery and Electronic Trading Co., Ltd., “ Jiulong Machinery · WuHan Tongkai Automobile Motor Co., Ltd., “ WuHan Tongkai · Jingzhou Natural Astaxanthin Inc, “ Jingzhou Astaxanthin · Hubei Asta Biotech Inc, “ Hubei Asta · Shanghai Yifu Automotive Electronics Technology Co., Ltd., “ Shanghai Yifu · Suzhou Qingyan Venture Capital Fund L.P, “ Suzhou Qingyan · Chongqing Qingyan Venture Capital Fund L.P, “ Chongqing Qingyan · Chongqing Jinghua Automotive Intelligent Manufacturing Technology Research Co., Ltd.,“ Chongqing Jinghua” |
Products Sold To Related Parties [Policy Text Block] | Principal policies of the Company in connection with transactions with related parties are as follows: Products Sold to Related Parties The Company sold products to related parties at fair market prices, and also granted them credit of three to four months on an open account basis. These transactions were consummated under similar terms as the Company's other customers. |
Materials Purchased From Related Parties [Policy Text Block] | Materials Purchased from Related Parties The Company purchased materials from related parties at fair market prices, and also received from them credit of three to four months on an open account basis. These transactions were consummated under similar terms as the Company's other suppliers. |
Equipment And Production Technology Purchased From Related Parties [Policy Text Block] | Equipment and Production Technology Purchased from Related Parties - The Company purchased equipment and production technology from related parties at fair market prices, or reasonable cost plus pricing if fair market prices are not available and was required to pay in advance based on the purchase agreement between the two parties, because such equipment manufacturing and technology development was required for a long period. These transactions are consummated under similar terms as the Company's other suppliers. |
Short-term Credits loan Extended To Related Parties [Policy Text Block] | Short-term Loans Extended to Related Parties - The Company provides short-term loans to related parties and assists the borrowing entities in addressing certain cash flow needs. The contractual period of each loan is three months or less from the date of the extension of the loan. In general, the Company charges interest by referencing to the prevailing borrowing interest rates published by PBOC except for the loans to related parties with repayment terms less than 3 days, which bear no interest rate due to their short-term maturities and are required to be approved by the audit committee of the board of directors of the Company. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606), which was further updated by ASU No. 2016-08 in March 2016, ASU No.2016-10 in April 2016 and ASU No.2016-11 in May 2016. The new guidance clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In July 2015, the FASB approved a deferral of the ASU effective date from annual and interim periods beginning after December 15, 2016 to annual and interim periods beginning after December 15, 2017. The Company has evaluated its material contracts, and has concluded that the impact of adopting the standard on its consolidated financial statements and related disclosures will not be material. The Company will adopt the standard on a modified retrospective basis in 2018. In February 2016, the FASB issued ASU 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. The Company is in the process of evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable recognition threshold for credit impairments. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. This ASU is effective for the Company on December 15, 2019. The Company is in the process of evaluating the impact of the ASU on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 refines how companies classify certain aspects of the cash flow statement in regards to debt prepayment, settlement of debt instruments, contingent consideration payments, proceeds from insurance claims and life insurance policies, distribution from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact of ASU 2016-16 on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Update eliminate the exception for an intra-entity transfer of an asset other than inventory. Two common examples of assets included in the scope of this Update are intellectual property and property, plant, and equipment. The Update does not change GAAP for an intra-entity transfer of inventory. The amendments in this Update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The amendments in this Update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is in the process of evaluating the impact of the Update, and does not expect that the adoption will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will become effective for the reporting periods beginning on or after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance and its impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this Update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the Board has developed more stringent criteria for sets without outputs. Lastly, the amendments in this Update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early application of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company is in the process of evaluating the impact of the Update, and does not expect that the adoption will have a material impact on its 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. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to address specific consequences of the U.S. Tax Reform. The update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Reform. The accounting update is effective January 1, 2019, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. Tax Reform is recognized. The Company is currently evaluating the impact of the new standard on the Company's consolidated financial statements. |
Organization and Business (Tabl
Organization and Business (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Equity Method Investments [Table Text Block] | Aggregate Net Interest Name of Entity 2017 2016 Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 1 100.00 % 100.00 % Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 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 % Wuhu Henglong Auto Steering System Co., Ltd., “Wuhu” 5 77.33 % 77.33 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 6 85.00 % 85.00 % Hubei Henglong Automotive System Group Co., Ltd., “Hubei Henglong” 7 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 8 100.00 % 100.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 9 70.00 % 70.00 % CAAS Brazil’s Imports And Trade In Automotive Parts Ltd., “Brazil Henglong” 10 95.84 % 80.00 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 11 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd, “Shanghai Henglong” 12 100.00 % 100.00 % Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co., Ltd., “Jingzhou Qingyan” 13 60.00 % - 1. Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light duty vehicles. 2. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears for heavy-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. Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. 6. Jielong was established in 2006 and mainly engages in the production and sales of automobile steering columns. 7. On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. 8. In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. 9. 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. 10. 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 sale 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. 11. 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. 12. 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 sale of automotive electronics. 13. In November 2017, Hubei Henglong formed Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co., Ltd., “Jingzhou Qingyan”, which mainly engages in the research and development of intelligent automotive technology. |
Basis of Presentation and Sig46
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule Of Depreciation Property Plant And Equipment [Table Text Block] | Depreciation is calculated on the straight-line method over the estimated useful lives of the respective assets as follows: Category Estimated Useful Life (Years) Land use rights and buildings: Land use rights 45 -50 Buildings 25 Machinery and equipment 6 Electronic equipment 4 Motor vehicles 8 |
Schedule Of Product Warranties Activities [Table Text Block] | For the years ended December 31, 2017 and 2016, the warranties activities were as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at the beginning of year $ 26,225 $ 23,059 Additions during the year 23,354 16,522 Settlement within the year (22,034) (11,781) Foreign currency translation 1,488 (1,575) Balance at end of year $ 29,033 $ 26,225 |
Short-term investments (Tables)
Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Investments Disclosure [Abstract] | |
Schedule Of Short Term Investment [Table Text Block] | The Company’s short-term investments as of December 31, 2017 and 2016 are summarized as follows (figures are in thousands of USD): December 31 2017 2016 Time deposits $ 12,019 $ 30,217 Wealth management financial products measured at fair value 17,568 258 Total $ 29,587 $ 30,475 |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts and Notes Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2017 2016 Accounts receivable - unrelated parties (1) $ 166,889 $ 154,403 Notes receivable - unrelated parties (2) (3) 109,183 132,409 Total accounts and notes receivable- unrelated parties 276,072 286,812 Less: allowance for doubtful accounts- unrelated parties (1,083) (1,081) Accounts and notes receivable- unrelated parties 274,989 285,731 Accounts and notes receivable - related parties 19,086 20,984 Accounts and notes receivable, net $ 294,075 $ 306,715 (1) Notes receivable represents accounts receivable in the form of bills of exchange whose acceptances and settlements are handled by banks. (2) As of December 31, 2017, the Company collateralized its notes receivable in an amount of RMB 258.5 39.6 238.4 36.5 20.0 20.0 3.1 As of December 31, 2016, Henglong collateralized its notes receivable in an amount of RMB 249.9 36.0 224.6 32.4 30.0 25.2 3.6 |
Schedule of allowance for doubtful accounts of accounts receivable [Table Text Block] | The activity in the Company’s allowance for doubtful accounts of accounts receivable during the years ended December 31, 2017 and 2016, is summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ 1,081 $ 1,208 Amounts provided for during the year 31 65 Amounts reversed of collection during the year (90) (115) Foreign currency translation 61 (77) Balance at end of year $ 1,083 $ 1,081 |
Advance payments and others (Ta
Advance payments and others (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule Of Advance Payments And Others Disclosure [Table Text Block] | The Company’s advance payments and others as of December 31, 2017 and 2016, consisted of the following: Year Ended December 31, 2017 2016 Advance payments and others - unrelated parties $ 13,801 $ 10,203 Less: allowance for doubtful accounts unrelated parties (2) (1,011) - Advance payments and others, net unrelated parties 12,790 10,203 Advance payments and others - related parties (1) 20,841 624 Total advance payments and others 33,631 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 6.05 70 130 19.9 (2) Provision for the doubtful accounts amounted to $ 1.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory, Current [Table Text Block] | The Company’s inventories at December 31, 2017 and 2016, consisted of the following (figures are in thousands of USD): December 31, 2017 2016 Raw materials $ 20,033 $ 15,007 Work in process 17,951 10,852 Finished goods 41,233 42,191 Balance at end of year $ 79,217 $ 68,050 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Receivables Disclosure [Abstract] | |
Schedule Of Other Receivables [Table Text Block] | The Company’s other receivables at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Other receivables- unrelated parties (1) $ 1,109 $ 738 Other receivables - employee housing loans (2) 1,187 1,577 Less: allowance for doubtful accounts - unrelated parties (108) (63) Balance at end of year $ 2,188 $ 2,252 December 31, 2017 2016 Other receivables - related parties $ 585 $ 559 Less: allowance for doubtful accounts - related parties (585) (559) Balance at end of year $ - $ - (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 7.7 3.8 |
Schedule of Allowance for Doubtful Accounts of Other Accounts Receivable [Table Text Block] | The activity in the Company’s allowance for doubtful accounts of other receivable during the years ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year- unrelated parties $ 63 $ 63 Amounts provided for during the year- unrelated parties 41 4 Amounts reversed of collection during the year- unrelated parties - - Foreign currency translation- unrelated parties 4 (4) Balance at end of year $ 108 $ 63 Year Ended December 31, 2017 2016 Balance at beginning of year - related parties $ 559 $ 607 Amounts provided for during the year - related parties 18 - Amounts reversed due to collection during the year - related parties (26) (9) Foreign currency translation - related parties 34 (39) Balance at end of year $ 585 $ 559 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property, plant and equipment at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Costs: Land use rights and buildings $ 63,173 $ 47,448 Machinery and equipment 165,863 134,361 Electronic equipment 5,819 4,979 Motor vehicles 4,945 4,395 Construction in progress 22,352 24,890 262,152 216,073 Less: Accumulated depreciation (136,119) (114,595) Balance at end of year $ 126,033 $ 101,478 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Impaired Intangible Assets [Table Text Block] | The Company’s intangible assets at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Costs: Patent technology (1) $ 2,108 $ 1,986 Management software license 1,441 1,165 Total intangible assets - at cost 3,549 3,151 Less: Accumulated amortization (2) (2,888) (2,534) Balance at end of the year, net $ 661 $ 617 (1) For the year ended December 31, 2016, patent technology with a cost of $ 2.5 0.5 (2) Amortization expenses were $ 0.3 0.3 0.2 0.2 0.1 0.1 0.1 |
Deferred Income Tax Assets (Tab
Deferred Income Tax Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets at December 31, 2017 and 2016, were as follows (figures are in thousands of USD): December 31, 2017 2016 Losses carryforward (U.S.) (1) $ 3,580 $ 6,216 Losses carryforward (Non-U.S.) 2,178 2,887 Product warranties and other reserves 5,264 4,766 Property, plant and equipment 4,607 4,204 Share-based compensation 156 247 Bonus accrual 287 231 Other accruals 1,535 1,551 Deductible temporary difference related to revenue recognition 465 191 Others 1,353 1,206 Total deferred tax assets 19,425 21,499 Less: valuation allowance (6,058) (8,912) Total deferred tax assets, net of valuation allowance $ 13,367 $ 12,587 (1) The net operating loss carry forwards for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These carry forwards will expire, if not utilized, at varying times over the next 20 5 6.1 3.8 2.3 |
Schedule Of Deferred Tax Assets Valuation Allowance [Table Text Block] | The activity in the Company’s valuation allowance for deferred tax assets during the years ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ 8,912 $ 9,379 Amounts provided for during the year 860 401 Amounts used during the year (1,309) (698) The effect of change in the tax rate due to the U.S. Tax Reform (2,490) - Foreign currency translation 85 (170) Balance at end of year $ 6,058 $ 8,912 |
Bank and Government Loans (Tabl
Bank and Government Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | December 31, 2017 2016 Short-term bank loans (1) $ 9,948 $ 2,162 Short-term bank loans (2) (3) (4) 30,454 35,054 Short-term bank loans (5) 29,248 - Short-term government loan (6) 3,061 3,604 Total short-term bank and government loans $ 72,711 $ 40,820 Long-term bank and government loan (7) 306 608 Total bank and government loans $ 73,017 $ 41,428 (1) These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of December 31, 2017 and 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 LIBOR plus 2.25% per annum 31.6 On May 22, 2012, the Company drew down the full amount of $ 30.0 31.6 207.1 32.6 0.1 0.1 May 12, 2017 LIBOR plus 0.7% per annum 1.7 On April 20, 2017, the Company entered into a credit facility agreement, the “2017 Credit Agreement,” with ICBC Macau to obtain a non-revolving credit facility in the amount of $ 20.0 May 12, 2018 LIBOR plus 1.30% per annum 24.3 On May 5, 2017, the Company drew down the full amount of $ 20.0 24.3 159.0 24.3 0.04 May 12, 2018 (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 amount of $ 9.9 10.0 4.0 0.6 79.4 12.2 (4) 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 October 27, 2017 0.1 On May 6, 2016, Brazil Henglong drew down a loan amounting to $ 0.1 October 9, 2017 8.2 0.1 0.5 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 January 15, 2018 0.9 On August 26, 2016, Brazil Henglong drew down a loan amounting to $ 0.6 4.05 0.9 6.0 0.9 (5) 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 25.6 September 26, 2017 32.5 32.5 30.6 5.0 5.0 4.7 4.99 On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 224.0 34.3 October 27, 2018 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 15.1 September 26, 2017 28.7 28.7 38.2 4.4 4.4 5.8 4.99 On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 140.0 21.4 October 27, 2018 (6) On August 17, 2017, the Company received a Chinese government loan of RMB 20.0 3.0 1.50 August 16, 2018 20.0 3.0 On April 21, 2017, the Company received an interest-free Chinese government loan of RMB 10.0 1.5 December 8, 2017 10.0 1.5 (7) On November 13, 2017, the Company received a Chinese government loan of RMB 2.0 0.3 4.75 The Company must use the loans for the purpose specified in the borrowing agreement. If it fails to do so, it may be charged penalty interest or triggered early repayment. Management believes that the Company complied with such financial covenants as of December 31, 2017, and will continue to comply with them. |
Accounts and Notes Payable (Tab
Accounts and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts and Notes Payable Disclosure [Abstract] | |
Schedule Of Accounts and Notes Payable [Table Text Block] | The Company’s accounts and notes payable at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Accounts payable - unrelated parties $ 149,200 $ 138,053 Notes payable - unrelated parties (1) 83,848 78,940 Accounts and notes payable - unrelated parties 233,048 216,993 Accounts and notes payable - related parties 7,168 6,803 Balance at end of year $ 240,216 $ 223,796 (1) Notes payable represent payables 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, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. |
Accrued Expenses and Other Pa57
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | The Company’s accrued expenses and other payables at December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): December 31, 2017 2016 Accrued expenses $ 7,944 $ 8,605 Accrued interest 1,347 88 Other payables 1,803 964 Warranty reserves (1) 29,033 26,225 Balance at end of year $ 40,127 $ 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. |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxes Payables [Abstract] | |
Schedule Of Income Taxes Payable [Table Text Block] | December 31, 2017 2016 Value-added tax payable $ 1,813 $ 7,662 Income tax payable 3,450 3,390 Other tax payable 664 622 Short-term taxes payable 5,927 11,674 Long-term taxes payable (1) 32,719 - Taxes payable $ 38,646 $ 11,674 (1) A one-time transition tax of $ 35.6 2.7 |
Additional Paid-In Capital (Tab
Additional Paid-In Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Additional Paid in Capital [Abstract] | |
Schedule Of Additional Paid In Capital [Table Text Block] | The Company’s positions in respect of the amounts of additional paid-in capital for the year ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ 64,764 $ 64,627 Acquisition of the non-controlling interest in Brazil Henglong (1) (458) - Share-based compensation (2) 100 137 Balance at end of year $ 64,406 $ 64,764 (1) In May 2017, the Company obtained an additional 15.84 (2) On December 2, 2016 and August 16, 2017, the Company granted 22,500 22,500 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For 2017 and 2016, assumptions used to estimate the fair value of stock options on the grant dates are as follows: Issuance Date Expected volatility Risk-free rate Expected term (years) Dividend yield December 2, 2016 134.8 % 1.84 % 5 0.00 % August 16, 2017 139.2 % 1.79 % 5 0.00 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The activities of stock options are summarized as follows, including granted, exercised and forfeited. Weighted-Average Weighted-Average Contractual Shares Exercise Price Term (years) Outstanding - January 1, 2016 105,000 $ 7.03 5 Granted 22,500 6.95 5 Expired (15,000) 4.84 5 Outstanding - December 31, 2016 112,500 $ 7.31 5 Granted 22,500 5.04 5 Expired (22,500) 3.71 5 Outstanding - December 31, 2017 112,500 $ 7.57 5 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following is a summary of the range of exercise prices for stock options that are outstanding and exercisable at December 31, 2017: Outstanding Stock Weighted Average Weighted Average Number of Stock Range of Exercise Prices Options Remaining Life Exercise Price Options Exercisable $3.50 - $10.00 112,500 2.76 $ 7.57 112,500 $10.01 - $18.00 - - $ - - 112,500 112,500 |
Accumulated other comprehensi61
Accumulated other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ (892) $ 18,412 Other comprehensive income related to the non-controlling interests acquired by the Company (67) - Foreign currency translation adjustment attributable to parent company 18,739 (19,304) Balance at end of year $ 17,780 $ (892) |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 and 2016, are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Balance at beginning of year $ 5,412 $ 8,252 Change of the non-controlling interests due to disposal of Fujian Qiaolong - (2,150) Income attributable to non-controlling interests 707 466 Dividends declared to the non-controlling interest holders of joint-venture companies (608) (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 - Foreign currency translation adjustment attributable to non-controlling interests 645 (692) Balance at end of year $ 6,681 $ 5,412 |
Financial Income, Net (Tables)
Financial Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Income Expenses Disclosure [Abstract] | |
Schedule Of Financial Expenses [Table Text Block] | During the years ended December 31, 2017 and 2016, the Company recorded financial income/(expenses) which are summarized as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Interest income $ 3,438 $ 2,080 Foreign exchange loss, net (778) (46) Gain on notes discounted, net - 3 Bank fees (480) (609) Total financial income, net $ 2,180 $ 1,428 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Provision For Income Taxes [Table Text Block] | The provision for income taxes was calculated as follows (figures are in thousands of USD): Year Ended December 31, 2017 2016 Tax rate 35 % 35 % Income before income taxes $ 20,375 $ 24,904 Income tax at federal statutory tax rate 7,131 8,716 Tax benefit of super deduction of R&D expense (5,328) (3,969) Effect of differences in foreign tax rate (1,830) (3,367) Change in provision on valuation allowance for deferred income tax U.S. (2,725) (258) Change in provision on valuation allowance for deferred income tax Non-U.S. (128) (208) One-time transition tax related to U.S. Tax Reform 35,564 - Withholding tax resulting from the distribution of dividends from PRC subsidiaries 3,952 - The effect of change in the tax rate due to the U.S. Tax Reform 2,490 - Other differences 2,507 1,570 Total income tax expense $ 41,633 $ 2,484 |
Schedule Of Income Tax Exemption And Reduction [Table Text Block] | The combined effects of the income tax exemption and reduction available to the Company are as follows (figures are in thousands of USD unless otherwise indicated): Year Ended December 31, 2017 2016 Tax holiday effect $ 1,830 $ 3,367 Basic net income per share effect 0.06 0.11 Diluted net income per share effect 0.06 0.11 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of basic and diluted income per share attributable to the parent company were (figures are in thousands of USD): Year Ended December 31, 2017 2016 Numerator: Net (loss)/income attributable to the parent company’s common shareholders Basic and Diluted $ (19,346) 22,511 Denominator: Weighted average ordinary shares outstanding Basic 31,644,004 31,954,407 Dilutive effects of stock options 2,893 2,645 Denominator for dilutive income per share Diluted 31,646,897 31,957,052 Net (loss)/income per share attributable to the parent company’s common shareholders Basic (0.61) 0.70 Diluted (0.61) 0.70 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Party Transactions [Table Text Block] | Merchandise Sold to Related Parties Year Ended December 31, 2017 2016 Beijing Henglong $ 31,089 $ 32,284 Xiamen Automotive Parts 6,042 7,216 Wuhan Tongkai 290 193 Shanghai Jinjie 161 152 Jingzhou Yude 1 - Total $ 37,583 $ 39,845 Rental Income Obtained from Related Parties Year Ended December 31, 2017 2016 Rental income $ 147 $ 116 Materials Sold to Related Parties Year Ended December 31, 2017 2016 Jingzhou Yude $ 711 $ 670 Honghu Changrun 575 272 Jingzhou Tongying 288 227 Jiangling Tongchuang 27 34 Beijing Henglong 2 14 Other Related Parties 2 8 Total $ 1,605 $ 1,225 Materials Purchased from Related Parties Year Ended December 31, 2017 2016 Jingzhou Tongying $ 11,078 $ 11,873 Jiangling Tongchuang 7,930 7,550 Wuhan Tongkai 7,454 6,457 Hubei Wiselink 1,374 848 Honghu Changrun 1,157 1,003 Other Related Parties 1 16 Total $ 28,994 $ 27,747 Technology and Services Purchased from Related Parties (R&D Expenses) Year Ended December 31, 2017 2016 Hubei Wiselink $ 507 $ 251 Changchun Hualong 454 404 Jingzhou Yude 117 128 Jingzhou Derun 46 151 Jiulong Machinery 25 - Hubei Asta 10 170 Shanghai Tianxiang - 89 Other Related Parties - 29 Total $ 1,159 $ 1,222 Property, Plant and Equipment Purchased from Related Parties Year Ended December 31, 2017 2016 Hubei Wiselink $ 9,113 $ 11,941 Related receivables, advance payments and accounts payable: As of December 31, 2017 and 2016, accounts receivable, advance payments and accounts payable between the Company and related parties are as shown below (figures are in thousands of USD): Accounts and Notes Receivable from Related Parties December 31, 2017 2016 Beijing Henglong $ 13,533 $ 14,961 Xiamen Joylon 2,601 1,117 Jingzhou Yude 1,559 1,252 Xiamen Automotive Parts 1,186 3,374 Shanghai Jinjie 101 158 Wuhan Tongkai 90 60 Jingzhou Tongying 16 62 Total $ 19,086 $ 20,984 Other Receivables from Related Parties December 31, 2017 2016 Jiulong Machinery $ 585 $ 559 Total 585 559 Less: provisions for bad debts (585) (559) Balance at end of year $ - $ - Other receivables from related parties are primarily unsecured demand loans, with no stated interest rate or due date. Accounts and Notes Payable to Related Parties December 31, 2017 2016 Jingzhou Tongying $ 2,720 $ 1,979 Wuhan Tongkai 2,259 2,158 Hubei Wiselink 1,379 1,754 Jiangling Tongchuang 739 828 Honghu Changrun 57 27 Shanghai Tianxiang 12 11 Jingzhou Yude 2 2 Henglong Real Estate - 44 Total $ 7,168 $ 6,803 Advance Payments for Property, Plant and Equipment to Related Parties December 31, 2017 2016 Hubei Wiselink $ 5,158 $ 5,005 Henglong Real Estate 106 - Total $ 5,264 $ 5,005 Other Advance Payments and Others to Related Parties December 31, 2017 2016 Henglong Real Estate $ 19,895 $ - Honghu Changrun 481 361 Wuhan Tongkai 188 - Jingzhou Derun 118 161 Changchun Hualong 76 72 Jiangling Tongchuang - 2 Other Related Parties 83 28 Total $ 20,841 $ 624 As of March 29, 2018, the date the Company issued the financial statements, Hanlin Chen, Chairman, owns 55.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | In addition to bank loans, notes payables and the related interest, the following table summarizes the Company’s noncancelable commitments and contingencies as of December 31, 2017 (figures are in thousands of USD): Payment Obligations by Period 2018 2019 2020 Thereafter Total Obligations for investment contracts (1) $ 6,428 $ - $ - $ - $ 6,428 Obligations for purchasing and service 18,253 7,064 - - 25,317 Total $ 24,681 $ 7,064 $ - $ - $ 31,745 (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 18.0 17.1 84.0 12.7 23.5 36.0 5.5 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The Company’s product sector information from continuing operations is as follows (figures are in thousands of USD): Net Sales Net Income (Loss) Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 279,706 $ 301,367 $ 3,737 $ 14,407 Jiulong 100,776 76,968 4,064 3,501 Shenyang 40,182 35,191 2,107 1,932 Wuhu 25,599 23,968 264 255 Hubei Henglong 92,293 57,311 10,416 4,043 Other Sectors 59,075 46,928 1,358 1,352 Total Segments 597,631 541,733 21,946 25,490 Corporate - - (39,069) (1,529) Eliminations (98,568) (79,683) (1,516) (984) Total consolidated $ 499,063 $ 462,050 $ (18,639) $ 22,977 Inventories Total Assets Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 34,392 $ 29,332 $ 346,199 $ 324,049 Jiulong 14,868 11,536 82,940 67,508 Shenyang 2,137 4,739 44,693 42,870 Wuhu 2,511 3,388 26,008 24,799 Hubei Henglong 25,404 15,647 318,422 252,465 Other Sectors 6,390 9,466 88,850 113,287 Total Segments 85,702 74,108 907,112 824,978 Corporate - - 121,756 118,409 Eliminations (6,485) (6,058) (311,499) (311,688) Total consolidated $ 79,217 $ 68,050 $ 717,369 $ 631,699 Depreciation and Amortization Capital Expenditures Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Henglong $ 4,721 $ 4,537 $ 4,183 $ 2,010 Jiulong 2,901 2,619 3,477 2,378 Shenyang 605 460 1,265 330 Wuhu 597 666 81 2,187 Hubei Henglong 5,500 4,161 21,309 16,990 Other Sectors 1,991 1,422 3,600 8,826 Total Segments 16,315 13,865 33,915 32,721 Corporate 56 61 - 1 Eliminations - - - - Total consolidated $ 16,371 $ 13,926 $ 33,915 $ 32,722 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information segregated by geographic region is as follows (figures are in thousands of USD): Net Sales (1) Long-term assets Year Ended December 31, As of December 31, 2017 2016 2017 2016 Geographic region: China $ 383,415 $ 399,526 $ 169,346 $ 142,818 United States 84,240 55,628 797 768 Other foreign countries 31,408 6,896 596 572 Total consolidated $ 499,063 $ 462,050 $ 170,739 (2) $ 144,158 (2) (1) Revenue is attributed to each country based on location of customers. (2) Pursuant to ASC 280-10-50-41, the non-current deferred tax assets of $ 4.5 4.6 0.7 0.6 |
Organization and Business (Deta
Organization and Business (Details) | Dec. 31, 2017 | May 31, 2017 | Dec. 31, 2016 | |
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | 15.84% | |||
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [1] | 100.00% | 100.00% | |
Shashi Jiulong Power Steering Gears 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% | |
Wuhu Henglong Auto Steering System Co Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [5] | 77.33% | 77.33% | |
Wuhan Jielong Electric Power Steering Co Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [6] | 85.00% | 85.00% | |
Hubei Henglong Automotive System Group Co Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [7] | 100.00% | 100.00% | |
Jingzhou Henglong Automotive Technology (Testing) Center [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [8] | 100.00% | 100.00% | |
Chongqing Henglong Hongyan Automotive System Co., Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [9] | 70.00% | 70.00% | |
CAAS Brazil's Imports and Trade In Automotive Parts Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [10] | 95.84% | 80.00% | |
Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [11] | 85.00% | 85.00% | |
Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [12] | 100.00% | 100.00% | |
Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co Ltd [Member] | ||||
Organization And Principal Activities [Line Items] | ||||
Percentage Interest | [13] | 60.00% | 0.00% | |
[1] | Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light duty vehicles. | |||
[2] | Jiulong was established in 1993 and mainly engages in the production of integral power steering gears for heavy-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] | Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. | |||
[6] | Jielong was established in 2006 and mainly engages in the production and sales of automobile steering columns. | |||
[7] | On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. | |||
[8] | In December 2009, Henglong, a subsidiary of Genesis, formed the Testing Center, which mainly engages in the research and development of new products. | |||
[9] | 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. | |||
[10] | 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 sale 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. | |||
[11] | 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. | |||
[12] | 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 sale of automotive electronics. | |||
[13] | In November 2017, Hubei Henglong formed Jingzhou Qingyan Intelligent Automotive Technology Rearch Institute Co., Ltd., “Jingzhou Qingyan”, which mainly engages in the research and development of intelligent automotive technology. |
Basis of Presentation and Sig70
Basis of Presentation and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Land [Member] | Minimum [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 45 years |
Land [Member] | Maximum [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Building [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Machinery and Equipment [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Electronic Equipment [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Vehicles [Member] | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Basis of Presentation and Sig71
Basis of Presentation and Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Balance at the beginning of year | $ 26,225 | $ 23,059 |
Additions during the year | 23,354 | 16,522 |
Settlement within the year | (22,034) | (11,781) |
Foreign currency translation | 1,488 | (1,575) |
Balance at end of year | $ 29,033 | $ 26,225 |
Basis of Presentation and Sig72
Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2017 | Oct. 31, 2016 | Dec. 31, 2015 | Jan. 24, 2010 | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Shipping, Handling and Transportation Costs | $ 7.4 | $ 6 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,200,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||||||
Shares, Issued | 591,350 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,608,650 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 112,500 | 112,500 | 105,000 | ||||
Equity Method Investment, Ownership Percentage | 15.84% | ||||||
Floating Interest Rate Charges | $ 20.6 | ||||||
Equity Method Investment, Description of Principal Activities | Investments in corporations which the Company does not have the ability to exert significant influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in corporations which the Company has the ability to exert significant influence are accounted for using the equity method. Investments in limited partnerships which the Company has virtually no influence are stated at cost (if they have no readily determinable fair value), and are reviewed periodically for realization; investments in limited partnerships which the Company has more than virtually no influence are accounted for using the equity method. | ||||||
Interest Costs Capitalized | $ 0.7 | $ 0.3 | |||||
Chongqing Jinghua Automotive Intelligent ManufacturingTechnology Research Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | |||||
Percentage Of Directors Appointed By Entity | 20.00% | ||||||
Other Five Parties [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 70.00% | ||||||
Percentage Of Directors Appointed By Entity | 80.00% | ||||||
Brazil Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Minimum Voting Percentage To Approve Operational Matters | 95.84% | ||||||
Minimum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||
Cash Equivalent Deposit Percentage | 40.00% | ||||||
Maximum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||
Cash Equivalent Deposit Percentage | 100.00% | ||||||
Shenyang Automotive Industry Investment Corporation [Member] | Shenyang Formed in 2002 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 30.00% | ||||||
Wuhu Chery Technology Co Ltd [Member] | Wuhu Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 22.67% | ||||||
Beijing Hainachuan Auto Parts Co Ltd [Member] | Beijing Henglong Formed in 2010 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Percentage Of Directors Appointed By Entity | 43.00% | ||||||
The Saic Iveco Hongyan Company entity | Chongqing Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Percentage Of Directors Appointed By Entity | 40.00% | ||||||
Ozias Gaia Da Silva and Mr Ademir Dal Evedove [Member] | Brazil Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||
SAIC-IVECO [Member] | Chongqing Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 30.00% | ||||||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [1] | 70.00% | 70.00% | ||||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Formed in 2002 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 70.00% | ||||||
Percentage Of Directors Appointed By Entity | 57.00% | ||||||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Board of Directors Chairman [Member] | Shenyang Formed in 2002 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Minimum Voting Percentage To Approve Operational Matters | 67.00% | ||||||
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | Shenyang Automotive Industry Investment Corporation [Member] | Shenyang Formed in 2002 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Percentage Of Directors Appointed By Entity | 43.00% | ||||||
Universal Sensor Application Inc [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [2] | 83.34% | 83.34% | ||||
Universal Sensor Application Inc [Member] | USAI Formed in 2005 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 83.34% | ||||||
Percentage Of Directors Appointed By Entity | 67.00% | ||||||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [3] | 85.00% | 85.00% | ||||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | Jielong Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 85.00% | ||||||
Percentage Of Directors Appointed By Entity | 67.00% | ||||||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | Hong Kong Tongda [Member] | Jielong Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Percentage Of Directors Appointed By Entity | 33.00% | ||||||
Wuhu Henglong Automotive Steering System Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [4] | 77.33% | 77.33% | ||||
Wuhu Henglong Automotive Steering System Co Ltd [Member] | Wuhu Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 77.33% | ||||||
Beijing Henglong Automotive System Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Beijing Henglong Automotive System Co Ltd [Member] | Beijing Henglong Formed in 2010 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Percentage Of Directors Appointed By Entity | 57.00% | ||||||
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [5] | 70.00% | 70.00% | ||||
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | Chongqing Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 70.00% | ||||||
Percentage Of Directors Appointed By Entity | 60.00% | ||||||
Brazil Henglong [Member] | Brazil Henglong Formed in 2012 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 80.00% | ||||||
Percentage Of Directors Appointed By Entity | 75.00% | ||||||
Wuhan Chuguanjie Automotive Science and Technology Ltd [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | [6] | 85.00% | 85.00% | ||||
Percentage Of Directors Appointed By Entity | 67.00% | ||||||
Wuhu Henglong Auto Steering System Co Ltd [Member] | Wuhu Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Percentage Of Directors Appointed By Entity | 60.00% | ||||||
Wuhu Henglong Auto Steering System Co Ltd [Member] | Wuhu Chery Technology Co Ltd [Member] | Wuhu Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Percentage Of Directors Appointed By Entity | 40.00% | ||||||
Hubei Wanlong Investment Inc [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 15.00% | ||||||
Percentage Of Directors Appointed By Entity | 33.00% | ||||||
Hubei Wanlong Investment Inc [Member] | USAI Formed in 2005 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 16.66% | ||||||
Percentage Of Directors Appointed By Entity | 33.00% | ||||||
Hubei Wanlong Investment Inc [Member] | Jielong Formed in 2006 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 15.00% | ||||||
[1] | Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. | ||||||
[2] | USAI was established in 2005 and mainly engages in the production and sales of sensor modules. | ||||||
[3] | Jielong was established in 2006 and mainly engages in the production and sales of automobile steering columns. | ||||||
[4] | Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. | ||||||
[5] | 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. | ||||||
[6] | 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. |
Short-term investments (Details
Short-term investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Investments | $ 29,587 | $ 30,475 |
Bank Time Deposits [Member] | ||
Short-term Investments | 12,019 | 30,217 |
Wealth Management Financial Product [Member] | ||
Short-term Investments | $ 17,568 | $ 258 |
Short-term investments (Detai74
Short-term investments (Details Textual) ¥ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Time Deposits | $ 2 | ¥ 13 | $ 5.7 | ¥ 39.9 |
Accounts and Notes Receivable75
Accounts and Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivables [Line Items] | ||||
Accounts receivable - unrelated parties | [1] | $ 166,889 | $ 154,403 | |
Notes receivable - unrelated parties | [2],[3] | 109,183 | 132,409 | |
Total accounts and notes receivable- unrelated parties | 276,072 | 286,812 | ||
Less: allowance for doubtful accounts- unrelated parties | (1,083) | (1,081) | $ (1,208) | |
Accounts and notes receivable- unrelated parties | 274,989 | 285,731 | ||
Accounts and notes receivable from related parties | 19,086 | 20,984 | ||
Accounts and notes receivable, net | $ 294,075 | $ 306,715 | ||
[1] | Notes receivable represents accounts receivable in the form of bills of exchange whose acceptances and settlements are handled by banks. | |||
[2] | As of December 31, 2016, Henglong collateralized its notes receivable in an amount of RMB 249.9 million, equivalent to approximately $36.0 million, as security for the credit facilities with banks in China and the Chinese government, including RMB 224.6 million, equivalent to approximately $32.4 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 $30.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau,” and RMB 25.2 million, equivalent to approximately $3.6 million, in favor of the Chinese government as security for the low-interest government loan (See Note 13). | |||
[3] | As of December 31, 2017, the Company collateralized its notes receivable in an amount of RMB 258.5 million, equivalent to approximately $39.6 million, as security for the credit facilities with banks in China and the Chinese government, including RMB 238.4 million, equivalent to approximately $36.5 million, in favor of Industrial and Commercial Bank of China, Jingzhou Branch, “ICBC Jingzhou”, and China CITIC Bank, Wuchang branch, “CITIC Wuchang” for the purpose of obtaining the Henglong Standby Letters of Credit (as defined in Note 13), which are used as security for the non-revolving credit facility in the amount of $20.0 million provided by Industrial and Commercial Bank of China (Macau) Limited, “ICBC Macau” and the non-revolving credit facility in the amount of $10.0 million provided by Taishin Bank, and RMB 20.0 million, equivalent to approximately $3.1 million, as security in favor of the Chinese government for the low-interest government loan (See Note 13). |
Accounts and Notes Receivable76
Accounts and Notes Receivable (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivables [Line Items] | ||
Balance at beginning of year | $ 1,081 | $ 1,208 |
Amounts provided for during the year | 31 | 65 |
Amounts reversed of collection during the year | (90) | (115) |
Foreign currency translation | 61 | (77) |
Balance at end of year | $ 1,083 | $ 1,081 |
Accounts and Notes Receivable77
Accounts and Notes Receivable (Details Textual) ¥ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | $ 39.6 | ¥ 258.5 | $ 36 | ¥ 249.9 |
Letters of Credit Outstanding, Amount | 20 | 30 | ||
ICBC Macau [Member] | ||||
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | 3.1 | 20 | 3.6 | 25.2 |
ICBC Jingzhou [Member] | ||||
Financing Receivables [Line Items] | ||||
Financing Receivable, Net | $ 36.5 | ¥ 238.4 | $ 32.4 | ¥ 224.6 |
Advance payments and others (De
Advance payments and others (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Advance payments and others - unrelated parties | $ 13,801 | $ 10,203 | |
Less: allowance for doubtful accounts - unrelated parties | [1] | (1,011) | 0 |
Advance payments and others, net - unrelated parties | 12,790 | 10,203 | |
Advanced payments and others to related parties | [2] | 20,841 | 624 |
Total advance payments and others | $ 33,631 | $ 10,827 | |
[1] | Provision for the doubtful accounts amounted to $1.0 million and nil for December 31, 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 million 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 6.05%. On December 28, 2017, Henglong Real Estate repaid RMB 70 million to Hubei Henglong. As of December 31, 2017, the outstanding loan balance is RMB 130 million (equivalent to $19.9 million). |
Advance payments and others (79
Advance payments and others (Details Textual) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 16, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | |
Payments to Fund Long-term Loans to Related Parties | $ 29,044 | $ 0 | ||
Provision for Doubtful Accounts | 31 | 65 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 10,591 | $ 0 | ||
Loans and Leases Receivable, Related Parties | $ 19,900 | ¥ 130 | ||
Henglong Real Estate [Member] | ||||
Payments to Fund Long-term Loans to Related Parties | ¥ | ¥ 200 | |||
Debt Instrument, Term | 1 year | |||
Related Party Transaction, Rate | 6.05% | |||
Proceeds from Collection of Long-term Loans to Related Parties | ¥ | ¥ 70 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrelated Parties [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | [1] | $ 1,109 | $ 738 |
Other receivables - employee housing loans | 1,187 | 1,577 | |
Less: allowance for doubtful accounts | (108) | (63) | |
Balance at end of year | 2,188 | 2,252 | |
Related Party [Member] | |||
Other Receivables [Line Items] | |||
Other receivables | 585 | 559 | |
Less: allowance for doubtful accounts | (585) | (559) | |
Balance at end of year | $ 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. |
Other Receivables (Details 1)
Other Receivables (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Receivables [Line Items] | ||
Balance at beginning of year- unrelated parties | $ 63 | $ 63 |
Amounts provided for during the year- unrelated parties | 41 | 4 |
Amounts reversed of collection during the year- unrelated parties | 0 | 0 |
Foreign currency translation- unrelated parties | 4 | (4) |
Balance at end of year | $ 108 | $ 63 |
Other Receivables (Details 2)
Other Receivables (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Receivables [Line Items] | ||
Balance at beginning of year- related parties | $ 559 | $ 607 |
Amounts provided for during the year- related parties | 18 | 0 |
Amounts reversed of collection during the year- related parties | (26) | (9) |
Foreign currency translation- related parties | 34 | (39) |
Balance at end of year | $ 585 | $ 559 |
Other Receivables (Details Text
Other Receivables (Details Textual) - 1 months ended May 28, 2014 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Financing Receivables [Line Items] | ||
Loan Receivable Term | 5 years | 5 years |
Board of Directors Chairman [Member] | ||
Financing Receivables [Line Items] | ||
Loans Assumed | $ 7.7 | ¥ 50 |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | 3.80% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 20,033 | $ 15,007 |
Work in process | 17,951 | 10,852 |
Finished goods | 41,233 | 42,191 |
Balance at end of year | $ 79,217 | $ 68,050 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | ||
Valuation Allowances and Reserves, Adjustments | $ 5.1 | $ 3.2 |
Long-term Time Deposits (Detail
Long-term Time Deposits (Details Textual) ¥ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Pledged Assets, Not Separately Reported, Finance Receivables | $ 0.9 | ¥ 6 | $ 0.9 | ¥ 6 |
Long-term Debt, Current Maturities | $ 7 |
Long-term Investments (Details
Long-term Investments (Details Textual) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | May 31, 2017 | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | May 31, 2016USD ($) | May 31, 2016CNY (¥) | Jan. 24, 2010USD ($) | ||
Debt Instrument [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 15.84% | ||||||||||
Net income of non-consolidated affiliates | $ 2.6 | $ 0.6 | |||||||||
Hubei Henglong [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity Method Investments | $ 12.7 | 6.8 | |||||||||
Equity Method Investment, Ownership Percentage | 23.50% | 23.50% | 17.10% | 17.10% | |||||||
Capital | $ 12.7 | ¥ 84 | $ 0.4 | ¥ 3 | $ 18 | ¥ 120 | |||||
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% | 30.00% | 30.00% | |||||||
Venture Capital Funds [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity Method Investments | $ 10.3 | 5.3 | |||||||||
Equity Method Investment, Ownership Percentage | 14.70% | 14.70% | |||||||||
Beijing Henglong Automotive System Co Ltd [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity Method Investments | $ 4.1 | $ 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 | $ 7.6 | ¥ 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 Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. |
Property, Plant and Equipment88
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | $ 262,152 | $ 216,073 |
Less: Accumulated depreciation | (136,119) | (114,595) |
Balance at end of year | 126,033 | 101,478 |
Land use rights and buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | 63,173 | 47,448 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | 165,863 | 134,361 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | 5,819 | 4,979 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | 4,945 | 4,395 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total amount of property, plant and equipment | $ 22,352 | $ 24,890 |
Property, Plant and Equipment89
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 14.4 | $ 13.6 |
Pledged Assets Separately Reported, Loans Pledged for Other Debt Obligations, at Fair Value | 57.8 | |
Subsidy On Property, Plant And Equipment Cost | $ 0.5 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Costs: | |||
Patent technology | [1] | $ 2,108 | $ 1,986 |
Management software license | 1,441 | 1,165 | |
Total intangible assets - at cost | 3,549 | 3,151 | |
Less: Accumulated amortization | [2] | (2,888) | (2,534) |
Balance at end of the year, net | $ 661 | $ 617 | |
[1] | For the year ended December 31, 2016, patent technology with a cost of $2.5 million and accumulated amortization of $0.5 million was disposed of along with the disposal of Fujian Qiaolong as disclosed in Note 1 to the consolidated financial statements. As a result of the disposal, goodwill which arose during the acquisition of Fujian Qiaolong was also reduced to zero. | ||
[2] | Amortization expenses were $0.3 million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. The estimated amortization expense for each of the years from 2018 to 2022 are $0.2 million, $0.2 million, $0.1 million, $0.1 million and $0.1 million, respectively. |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 100 | ||
Amortization of Intangible Assets | 300 | $ 300 | |
Finite-Lived Intangible Assets, Gross | 3,549 | 3,151 | |
Finite-Lived Intangible Assets, Accumulated Amortization | [1] | $ 2,888 | 2,534 |
Fujian Qiaolong Special Purpose Vehicle Co Ltd [Member] | Patent Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [1] | 2,500 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 500 | ||
[1] | Amortization expenses were $0.3 million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. The estimated amortization expense for each of the years from 2018 to 2022 are $0.2 million, $0.2 million, $0.1 million, $0.1 million and $0.1 million, respectively. |
Deferred Income Tax Assets (Det
Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets [Line Items] | ||||
Losses carryforward (U.S.) | [1] | $ 3,580 | $ 6,216 | |
Losses carryforward (Non-U.S.) | 2,178 | 2,887 | ||
Product warranties and other reserves | 5,264 | 4,766 | ||
Property, plant and equipment | 4,607 | 4,204 | ||
Share-based compensation | 156 | 247 | ||
Bonus accrual | 287 | 231 | ||
Other accruals | 1,535 | 1,551 | ||
Deductible temporary difference related to revenue recognition | 465 | 191 | ||
Others | 1,353 | 1,206 | ||
Total deferred tax assets | 19,425 | 21,499 | ||
Less: valuation allowance | (6,058) | (8,912) | $ (9,379) | |
Total deferred tax assets, net of valuation allowance | $ 13,367 | $ 12,587 | ||
[1] | The net operating loss carry forwards for the U.S. entity for income tax purposes are available to reduce future years' taxable income. These carry forwards will expire, if not utilized, at varying times over the next 20 years. Net operating loss carryforwards for China entities can be carried forward for 5 years to offset taxable income. However, as of December 31, 2017, valuation allowance was $8.5 million, including $6.2 million allowance for the Company’s deferred tax assets in the United States and $2.3 million allowance for the Company’s non-U.S. deferred tax assets in China. Based on the Company’s current operations in the United States, management believes that the deferred tax assets in the United States are not likely to be realized in the future. For the non-U.S. deferred tax assets, pursuant to certain tax laws and regulations in China, the management believes such amount will not be used to offset future taxable income. |
Deferred Income Tax Assets (D93
Deferred Income Tax Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax [Line Items] | ||
Balance at beginning of year | $ 8,912 | $ 9,379 |
Amounts provided for during the year | 860 | 401 |
Amounts used during the year | (1,309) | (698) |
The effect of change in the tax rate due to the U.S. Tax Reform | (2,490) | 0 |
Foreign currency translation | 85 | (170) |
Balance at end of year | $ 6,058 | $ 8,912 |
Deferred Income Tax Assets (D94
Deferred Income Tax Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 6,058 | $ 8,912 | $ 9,379 |
U.S [Member] | |||
Deferred Tax Assets [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 3,800 | ||
Amortizing Period Of Net Operating Loss | 20 years | ||
Non U.S [Member] | |||
Deferred Tax Assets [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 2,300 | ||
Amortizing Period Of Net Operating Loss | 5 years |
Bank and Government Loans (Deta
Bank and Government Loans (Details) $ in Thousands, ¥ in Millions | Dec. 31, 2017USD ($) | Nov. 13, 2017USD ($) | Nov. 13, 2017CNY (¥) | Aug. 17, 2017USD ($) | Apr. 21, 2017USD ($) | Apr. 21, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Short-term bank loan | $ 300 | ¥ 2 | $ 20,000 | $ 1,500 | ¥ 10 | |||
Total short-term bank and government loans | $ 72,711 | $ 40,820 | ||||||
Long-term bank and government loan | [1] | 306 | 608 | |||||
Total bank and government loans | 73,017 | 41,428 | ||||||
China Construction Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term bank loan | [2] | 9,948 | 2,162 | |||||
ICBC Macau [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term bank loan | [3],[4],[5] | 30,454 | 35,054 | |||||
China CITIC Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term bank loan | [6] | 29,248 | 0 | |||||
Chinese government loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term bank loan | [7] | $ 3,061 | $ 3,604 | |||||
[1] | On November 13, 2017, the Company received a Chinese government loan of RMB 2.0 million, equivalent to approximately $0.3 million, with an interest rate of 4.75% per annum, which will mature on November 12, 2020. | |||||||
[2] | These loans are secured by property, plant and equipment of the Company and are repayable within one year (See Note 10). As of December 31, 2017 and 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. | |||||||
[3] | 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 expired 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 matured on January 15, 2018 and has an annual interest rate of 4.05%. 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. The Company repaid this bank loan on January 16, 2018. | |||||||
[4] | 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 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 $12.2 million. | |||||||
[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 was 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 “2017 Credit Agreement,” with ICBC Macau to obtain a non-revolving credit facility in the amount of $20.0 million, the “2017 Credit Facility”. The 2017 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 2017 Credit Facility, the “Henglong Standby Letter of Credit”. The interest rate of the 2017 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 2017 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 $24.3 million if the 2017 Credit Facility is fully drawn.On May 5, 2017, the Company drew down the full amount of $20.0 million under the 2017 Credit Facility and provided the Henglong Standby Letter of Credit for an amount of $24.3 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 159.0 million, equivalent to approximately $24.3 million. The Company also paid an arrangement fee of $0.04 million to ICBC Jingzhou. The maturity date of the 2017 Credit Facility is May 12, 2018. | |||||||
[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 million (equivalent to approximately $25.6 million), 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 $5.0 million, $5.0 million and $4.7 million as of December 31, 2017), respectively. The loans matured on February 5, 6 and 7, 2018, respectively. The annual interest rate of the loans is 4.99%. The principal and interest have been repaid.On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 224.0 million (equivalent to $34.3 million as of December 31, 2017), the “Henglong CITIC Credit Facility”. The Henglong CITIC Credit Facility will expire on October 27, 2018. As security for the Henglong CITIC Credit Facility, Henglong’s property, plant and equipment were pledged and Hubei Henglong provided a guarantee.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 approximately $15.1 million), 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 $4.4 million, $4.4 million and $5.8 million), respectively. The loans matured on February 2, 8 and 9, 2018, respectively. The annual interest rate of the loans was 4.99%. The principal and interest have been repaid.On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 140.0 million (equivalent to $21.4 million as of December 31, 2017), the “Hubei Henglong CITIC Credit Facility”. The Hubei Henglong CITIC Credit Facility will expire on October 27, 2018. Henglong provided a guarantee for the Hubei Henglong CITIC Credit Facility. | |||||||
[7] | On August 17, 2017, the Company received a Chinese government loan of RMB 20.0 million, equivalent to approximately $3.0 million, with an interest rate of 1.50% per annum, which will mature on August 16, 2018. The annual interest rate of the loan is 1.50%. 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). The Company repaid this government loan on December 5, 2017. |
Bank and Government Loans (De96
Bank and Government Loans (Details Textual) $ in Thousands, ¥ in Millions | May 05, 2017USD ($) | Mar. 03, 2017USD ($) | Mar. 03, 2017CNY (¥) | May 06, 2016USD ($) | Apr. 01, 2016USD ($) | Oct. 27, 2017CNY (¥) | Aug. 17, 2017USD ($) | Apr. 25, 2017USD ($) | Apr. 21, 2017USD ($) | Apr. 20, 2017USD ($) | Sep. 26, 2016USD ($) | Apr. 26, 2016USD ($) | May 22, 2012USD ($) | May 18, 2012USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Nov. 13, 2017USD ($) | Nov. 13, 2017CNY (¥) | Aug. 17, 2017CNY (¥) | May 05, 2017CNY (¥) | Apr. 28, 2017USD ($) | Apr. 28, 2017CNY (¥) | Apr. 21, 2017CNY (¥) | Apr. 02, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Sep. 26, 2016CNY (¥) | Aug. 26, 2016USD ($) | May 06, 2016CNY (¥) | Apr. 26, 2016CNY (¥) | May 22, 2012CNY (¥) | |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 4.70% | 4.70% | 5.20% | 5.20% | ||||||||||||||||||||||||||||
Non Revolving Credit Facility | $ 10,000 | |||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.50% | 2.70% | 4.75% | 4.75% | 1.50% | |||||||||||||||||||||||||||
Financing Receivable, Net | $ 39,600 | ¥ 258.5 | $ 36,000 | ¥ 249.9 | ||||||||||||||||||||||||||||
Line of Credit, Current | $ 10,000 | |||||||||||||||||||||||||||||||
Short-term Debt, Total | $ 20,000 | $ 1,500 | $ 300 | ¥ 2 | ¥ 10 | |||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 3,000 | $ 1,500 | ¥ 20 | ¥ 10 | ||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Aug. 16, 2018 | Apr. 25, 2018 | Dec. 8, 2017 | May 12, 2017 | ||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | 20,000 | 30,000 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,600 | ¥ 170 | ||||||||||||||||||||||||||||||
Credit Facility [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit, Current | $ 9,900 | |||||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | 10,000 | |||||||||||||||||||||||||||||||
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 | $ 20,000 | $ 30,000 | $ 30,000 | ||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | LIBOR plus 1.30% per annum | LIBOR plus 0.7% per annum | LIBOR plus 2.25% per annum | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.70% | 1.70% | ||||||||||||||||||||||||||||||
Financing Receivable, Net | $ 32,600 | ¥ 207.1 | ||||||||||||||||||||||||||||||
Arrangement Fee | 100 | |||||||||||||||||||||||||||||||
Line of Credit, Current | 24,300 | $ 24,300 | 31,600 | $ 31,600 | ||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | May 12, 2018 | Nov. 3, 2012 | ||||||||||||||||||||||||||||||
Industrial and Commercial Bank Of China Jingzhou Branch [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Financing Receivable, Net | 24,300 | ¥ 159 | ||||||||||||||||||||||||||||||
Arrangement Fee | $ 40 | $ 100 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | May 12, 2018 | |||||||||||||||||||||||||||||||
Industrial and Commercial Bank Of China Wuchang Branch [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Short-term Non-bank Loans and Notes Payable | 600 | ¥ 4 | ||||||||||||||||||||||||||||||
Financing Receivable, Net | $ 12,200 | ¥ 79.4 | ||||||||||||||||||||||||||||||
HSBC Brazil Credit Facility [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Short-term Non-bank Loans and Notes Payable | $ 100 | ¥ 0.5 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 8.20% | 8.20% | ||||||||||||||||||||||||||||||
Line of Credit, Current | $ 100 | $ 100 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Oct. 9, 2017 | Oct. 27, 2017 | ||||||||||||||||||||||||||||||
HSBC Brazil Credit Facility [Member] | Letter of Credit [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit, Current | $ 100 | $ 100 | ||||||||||||||||||||||||||||||
Bank Of China Brazil [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 0.00% | 0.00% | ||||||||||||||||||||||||||||||
Line of Credit, Current | $ 600 | $ 600 | ||||||||||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 900 | ¥ 6 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 15, 2018 | |||||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 900 | |||||||||||||||||||||||||||||||
Bank Of China Brazil [Member] | Letter of Credit [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit, Current | $ 900 | |||||||||||||||||||||||||||||||
China CITIC Bank [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 0.00% | 0.00% | ||||||||||||||||||||||||||||||
Short-term Debt, Total | [1] | 29,248 | $ 0 | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Sep. 26, 2017 | |||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,100 | ¥ 100 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Line Of Credit Maturity On February 02, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | $ 4,400 | ¥ 28.7 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Line Of Credit Maturity On February 08, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 4,400 | 28.7 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Line Of Credit Maturity On February 09, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | $ 5,800 | 38.2 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Henglong CITIC Credit Facility [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Oct. 27, 2018 | |||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 224 | 34,300 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei 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] | Line Of Credit Maturity On February 05, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 32.5 | 5,000 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On February 06, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 32.5 | 5,000 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | Hubei Henglong CITIC Credit Facility [Member] | Line Of Credit Maturity On February 07, 2018 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | ¥ 30.6 | $ 4,700 | ||||||||||||||||||||||||||||||
[1] | 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 approximately $25.6 million), 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 $5.0 million, $5.0 million and $4.7 million as of December 31, 2017), respectively. The loans matured on February 5, 6 and 7, 2018, respectively. The annual interest rate of the loans is 4.99%. The principal and interest have been repaid.On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 224.0 million (equivalent to $34.3 million as of December 31, 2017), the “Henglong CITIC Credit Facility”. The Henglong CITIC Credit Facility will expire on October 27, 2018. As security for the Henglong CITIC Credit Facility, Henglong’s property, plant and equipment were pledged and Hubei Henglong provided a guarantee.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 approximately $15.1 million), 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 $4.4 million, $4.4 million and $5.8 million), respectively. The loans matured on February 2, 8 and 9, 2018, respectively. The annual interest rate of the loans was 4.99%. The principal and interest have been repaid.On October 27, 2017, Henglong entered into a credit facility agreement with China CITIC Bank to obtain credit facilities in the amount of RMB 140.0 million (equivalent to $21.4 million as of December 31, 2017), the “Hubei Henglong CITIC Credit Facility”. The Hubei Henglong CITIC Credit Facility will expire on October 27, 2018. Henglong provided a guarantee for the Hubei Henglong CITIC Credit Facility. |
Accounts and Notes Payable (Det
Accounts and Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts And Notes Payable [Line Items] | |||
Accounts payable - unrelated parties | $ 149,200 | $ 138,053 | |
Notes payable - unrelated parties | [1] | 83,848 | 78,940 |
Accounts and notes payable - unrelated parties | 233,048 | 216,993 | |
Accounts and notes payable - related parties | 7,168 | 6,803 | |
Balance at end of year | $ 240,216 | $ 223,796 | |
[1] | Notes payable represent payables 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, notes receivable and certain property, plant and equipment to secure notes payable granted by banks. |
Accrued Expenses and Other Pa98
Accrued Expenses and Other Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued Expenses [Line Items] | |||
Accrued expenses | $ 7,944 | $ 8,605 | |
Accrued interest | 1,347 | 88 | |
Other payables | 1,803 | 964 | |
Warranty reserves | [1] | 29,033 | 26,225 |
Balance at end of year | $ 40,127 | $ 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. |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes Payable [Line Items] | |||
Value-added tax payable | $ 1,813 | $ 7,662 | |
Income tax payable | 3,450 | 3,390 | |
Other tax payable | 664 | 622 | |
Short-term taxes payable | 5,927 | 11,674 | |
Long-term taxes payable | [1] | 32,719 | 0 |
Taxes payable | $ 38,646 | $ 11,674 | |
[1] | A one-time transition tax of $35.6 million was recognized in the fourth quarter that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company elected to pay the one-time transition tax over eight years commencing in April 2018. As of December 31, 2017, $2.7 million was included in taxes payable as a current liability which the Company believes will be paid within one year and the remaining balance was included in long-term taxes payable. See Note 27 for more details about the U.S. Tax Reform. |
Taxes Payable (Details Textual)
Taxes Payable (Details Textual) $ in Millions | Dec. 31, 2017USD ($) |
One-Time Transition Tax Payable,Noncurren | $ 35.6 |
One-Time Transition Tax Payable,Current | $ 2.7 |
Advances Payable (Details Textu
Advances Payable (Details Textual) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Advance Payable [Line Items] | ||
Advances payable | $ 0.7 | $ 0.7 |
Additional Paid-In Capital (Det
Additional Paid-In Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Additional Paid In Capital [Line Items] | |||
Balance at beginning of year | $ 64,764 | $ 64,627 | |
Acquisition of the non-controlling interest in Brazil Henglong | [1] | (458) | 0 |
Share-based compensation | [2] | 100 | 137 |
Balance at end of year | $ 64,406 | $ 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, respectively. 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 (103
Additional Paid-In Capital (Details Textual) - shares | 1 Months Ended | 12 Months Ended | ||||
Aug. 16, 2017 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 02, 2016 | May 31, 2017 | |
Additional Paid In Capital [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 22,500 | 22,500 | ||||
Equity Method Investment, Ownership Percentage | 15.84% | |||||
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 | ||||
[1] | 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, respectively. 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. |
Stock Options (Details)
Stock Options (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Issuance Date, December 2, 2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance Date | Dec. 2, 2016 |
Expected volatility | 134.80% |
Risk-free rate | 1.84% |
Expected term (years) | 5 years |
Dividend yield | 0.00% |
Issuance Date, August 16, 2017 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance Date | Aug. 16, 2017 |
Expected volatility | 139.20% |
Risk-free rate | 1.79% |
Expected term (years) | 5 years |
Dividend yield | 0.00% |
Stock Options (Details 1)
Stock Options (Details 1) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 02, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning, Shares Outstanding | 112,500 | 105,000 | ||
Shares Granted | 22,500 | 22,500 | ||
Shares Expired | (22,500) | (15,000) | ||
Ending, Shares Outstanding | 112,500 | 112,500 | 105,000 | |
Beginning, Weighted-Average Exercise Price Outstanding | $ 7.31 | $ 7.03 | ||
Weighted-Average Exercise Price Granted | 5.04 | 6.95 | ||
Weighted-Average Exercise Price Expired | 3.71 | 4.84 | ||
Ending, Weighted-Average Exercise Price Outstanding | $ 7.57 | $ 7.31 | $ 7.03 | |
Weighted-Average Contractual Term (years) Outstanding | 5 years | 5 years | 5 years | |
Weighted-Average Contractual Term (years) Granted | 5 years | 5 years | ||
Weighted-Average Contractual Term (years) Expired | 5 years | 5 years |
Stock Options (Details 2)
Stock Options (Details 2) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Stock Options | shares | 112,500 |
Number of Stock Options Exercisable | shares | 112,500 |
Range of Exercise Prices From $3.50 to $10.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum (in dollars per share) | $ / shares | $ 3.50 |
Range of Exercise Prices Maximum (in dollars per share) | $ / shares | $ 10 |
Outstanding Stock Options | shares | 112,500 |
Weighted Average Remaining Life (in years) | 2 years 9 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.57 |
Number of Stock Options Exercisable | shares | 112,500 |
Range of Exercise Prices From $10.01 to $18.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum (in dollars per share) | $ / shares | $ 10.01 |
Range of Exercise Prices Maximum (in dollars per share) | $ / shares | $ 18 |
Outstanding Stock Options | shares | 0 |
Weighted Average Remaining Life (in years) | 0 years |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0 |
Number of Stock Options Exercisable | shares | 0 |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,608,650 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0.1 | $ 0.1 | |
Allocated Share-based Compensation Expense | 0.1 | 0.1 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercisable | $ 0.1 | $ 0.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.46 | $ 6.08 | |
Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 593,600 | 298,850 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,586,150 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | ||
Stock Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,200,000 |
Retained Earnings (Details Text
Retained Earnings (Details Textual) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | |
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices Statutory Surplus Required Percentage | 10.00% | ||
Percentage Of Statutory Surplus Reserve | 50.00% | ||
Statutory Accounting Practices Statutory Capital And Surplus Reserve | $ 0.2 | $ 0.2 | |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 10 | ||
Shashi Jiulong Power Steering Gears Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 4.2 | ¥ 35 | |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 8.1 | 67.5 | |
Universal Sensor Application Inc [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 2.6 | ||
Wuhan Jielong Electric Power Steering Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 6 | ||
Wuhu Henglong Automotive Steering System Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 3.8 | 30 | |
Hubei Henglong Automotive System Group Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 39 | ||
Chongqing Henglong Hongyan Automotive Systems Co Ltd [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 9.5 | ¥ 60 |
Accumulated other comprehens109
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of year | $ (892) | $ 18,412 |
Other comprehensive income related to the non-controlling interests acquired by the Company | (67) | 0 |
Foreign currency translation adjustment attributable to parent company | 18,739 | (19,304) |
Balance at end of year | $ 17,780 | $ (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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||
Balance at beginning of year | $ 5,412 | $ 8,252 |
Change of the non-controlling interests due to disposal of Fujian Qiaolong | 0 | (2,150) |
Income attributable to non-controlling interests | 707 | 466 |
Dividends declared to the non-controlling interest holders of joint-venture companies | (608) | (464) |
Acquisition of the non-controlling interest in Brazil Henglong | 458 | 0 |
Other comprehensive income related to the non-controlling interests acquired by the Company | (67) | 0 |
Foreign currency translation adjustment attributable to non-controlling interests | 645 | (692) |
Balance at end of year | $ 6,681 | $ 5,412 |
Gain on Other Sales (Details Te
Gain on Other Sales (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Gain on other sales disclosure [Line Items] | ||
Gain (Loss) On Other Sales | $ 7,635 | $ 3,803 |
Building [Member] | ||
Gain on other sales disclosure [Line Items] | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,200 |
Other Income, Net (Details Text
Other Income, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Net [Line Items] | ||
Other Nonoperating Income | $ 678 | $ 1,116 |
Government Subsidies [Member] | ||
Other Income And Net [Line Items] | ||
Other Nonoperating Income | $ 1,200 | $ 1,800 |
Financial Income, Net (Details)
Financial Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Expenses [Line Items] | ||
Interest income | $ 3,438 | $ 2,080 |
Foreign exchange loss, net | (778) | (46) |
Gain on notes discounted, net | 0 | 3 |
Bank fees | (480) | (609) |
Total financial income, net | $ 2,180 | $ 1,428 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Provision For Income Taxes [Line Items] | ||
Tax rate | 35.00% | 35.00% |
Income before income taxes | $ 20,375 | $ 24,904 |
Income tax at federal statutory tax rate | 7,131 | 8,716 |
Tax benefit of super deduction of R&D expense | (5,328) | (3,969) |
Effect of differences in foreign tax rate | (1,830) | (3,367) |
One-time transition tax related to U.S. Tax Reform | 35,564 | 0 |
Withholding tax resulting from the distribution of dividends from PRC subsidiaries | 3,952 | |
The effect of change in the tax rate due to the U.S. Tax Reform | (2,490) | 0 |
Other differences | 2,507 | 1,570 |
Total income tax expense | 41,633 | 2,484 |
UNITED STATES | ||
Schedule Provision For Income Taxes [Line Items] | ||
Provision on valuation allowance for deferred income tax | (2,725) | (258) |
Non-US [Member] | ||
Schedule Provision For Income Taxes [Line Items] | ||
Provision on valuation allowance for deferred income tax | $ (128) | $ (208) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Income Tax Exemption And Reduction [Line Items] | ||
Tax holiday effect | $ 1,830 | $ 3,367 |
Basic net income per share effect | $ 0.06 | $ 0.11 |
Diluted net income per share effect | $ 0.06 | $ 0.11 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) R$ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2008 | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ||||||||
Withholding Tax Percentage Applicable To Foreign Investors As Non Resident Enterprises | 10.00% | |||||||
Percentage Owned In Holding Company To Avail Withholding Tax Of Five Percent | 25.00% | 25.00% | ||||||
Undistributed Earnings, Basic | $ 294,200 | $ 256,100 | ||||||
Tax Provision On Retained Earning Not Reinvested | $ 29,400 | $ 25,600 | ||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 15.00% | ||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 50.00% | 50.00% | ||||||
Increase In Income Tax Expense Benefit Percentage | 25.00% | 25.00% | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |||||
Effective Income Tax Rate Reconciliation, transition tax, amount | $ 35,564 | $ 0 | ||||||
Description of Withholding Tax Rate on Dividend | 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 would be subject to withholding tax at a rate of 10% if Genesis could not obtain the Hong Kong tax resident certificate from the Hong Kong Inland Revenue Department. If Genesis obtains the Hong Kong tax resident certificate, owns directly at least 25% of the shares of the foreign invested enterprise and is qualified as the beneficial owner, it could benefit from a lower rate of 5%. | 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 would be subject to withholding tax at a rate of 10% if Genesis could not obtain the Hong Kong tax resident certificate from the Hong Kong Inland Revenue Department. If Genesis obtains the Hong Kong tax resident certificate, owns directly at least 25% of the shares of the foreign invested enterprise and is qualified as the beneficial owner, it could benefit from a lower rate of 5%. | ||||||
Scenario, Plan [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||||
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% | 15.00% | 15.00% | ||||
Jingzhou Henglong Automotive Parts Co Ltd [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 15.00% | 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% | |||||||
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% | |||||
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% | |||||
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% | 25.00% | ||||||
CAAS Brazils Imports and Trade In Automotive Parts Ltd [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 10.00% | 10.00% | ||||||
Additional Tax Payable Subject To Residential Status | $ 120 | |||||||
United States [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | 4,500 | |||||||
Undistributed Earnings, Basic | $ 44,800 | |||||||
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 | R$ | R$ 240 |
Income Per Share (Details)
Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | ||
Net (loss)/income attributable to the parent company’s common shareholders - Basic and Diluted | $ (19,346) | $ 22,511 |
Denominator: | ||
Weighted average ordinary shares outstanding - Basic | 31,644,004 | 31,954,407 |
Dilutive effects of stock options | 2,893 | 2,645 |
Denominator for dilutive income per share - Diluted | 31,646,897 | 31,957,052 |
Net (loss)/income per share attributable to the parent company’s common shareholders | ||
Basic | $ (0.61) | $ 0.7 |
Diluted | $ (0.61) | $ 0.7 |
Income Per Share (Details Textu
Income Per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Option [Member] | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 90,000 | 90,000 |
Significant Concentrations (Det
Significant Concentrations (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Unusual Risk or Uncertainty [Line Items] | |||
Minimum Percentage Of Profit Allocated To Foreign Investment | 10.00% | ||
Registered Capital Percentage | 50.00% | ||
Revenue, Net | [1] | $ 499,063 | $ 462,050 |
Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Hubei Hnglong Automotive System Group Co Ltd [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Revenue, Net | $ 72,200 | $ 53,100 | |
Hubei Hnglong Automotive System Group Co Ltd [Member] | Sales Revenue, Net [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 14.50% | 11.50% | |
Customer One [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Five Largest Customers [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 36.80% | 41.70% | |
Five Largest Customers [Member] | Accounts Receivable [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Concentration Risk, Percentage | 4.30% | 3.20% | |
[1] | Revenue is attributed to each country based on location of customers. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Revenue | |||
Revenue from Related Parties | $ 37,583 | $ 39,845 | |
Related receivables | |||
Accounts and notes receivable from related parties | 19,086 | 20,984 | |
Total | 585 | 559 | |
Less: provisions for bad debts | (585) | (559) | |
Balance at end of year | 0 | 0 | |
Related advances | |||
Advanced equipment payment to related parties | 5,264 | 5,005 | |
Advanced payments and others to related parties | [1] | 20,841 | 624 |
Related payables | |||
Accounts and notes payable | 7,168 | 6,803 | |
Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 1,605 | 1,225 | |
Related Party [Member] | Rental Income [Member] | |||
Related sales | |||
Merchandise sold to related parties | 147 | 116 | |
Other Related Parties [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 2 | 8 | |
Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 1,159 | 1,222 | |
Technology Equipment [Member] | Other Related Parties [Member] | |||
Related purchases | |||
Technology purchased from related parties | 0 | 29 | |
Materials [Member] | |||
Related purchases | |||
Related parties | 28,994 | 27,747 | |
Materials [Member] | Other Related Parties [Member] | |||
Related purchases | |||
Related parties | 1 | 16 | |
Advanced Equipment [Member] | Henglong Real Estate [Member] | |||
Related advances | |||
Advanced equipment payment to related parties | 106 | 0 | |
Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 37,583 | 39,845 | |
Other Receivables [Member] | Jiulong Machinery [Member] | |||
Related receivables | |||
Total | 585 | 559 | |
Accounts Payable [Member] | Henglong Real Estate [Member] | |||
Related payables | |||
Accounts and notes payable | 0 | 44 | |
Other Advance Payments [Member] | Henglong Real Estate [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 19,895 | 0 | |
Other Advance Payments [Member] | Other Related Parties [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 83 | 28 | |
Xiamen Joylon [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 2,601 | 1,117 | |
Hubei Wiselink [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 507 | 251 | |
Hubei Wiselink [Member] | Equipment [Member] | |||
Related purchases | |||
Equipment purchased from related parties | 9,113 | 11,941 | |
Hubei Wiselink [Member] | Materials [Member] | |||
Related purchases | |||
Related parties | 1,374 | 848 | |
Hubei Wiselink [Member] | Advanced Equipment [Member] | |||
Related advances | |||
Advanced equipment payment to related parties | 5,158 | 5,005 | |
Hubei Wiselink [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 1,379 | 1,754 | |
Jingzhou Yude [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 711 | 670 | |
Jingzhou Yude [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 117 | 128 | |
Jingzhou Yude [Member] | Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 1 | 0 | |
Jingzhou Yude [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 1,559 | 1,252 | |
Jingzhou Yude [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 2 | 2 | |
Honghu Changrun [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 575 | 272 | |
Honghu Changrun [Member] | Materials [Member] | |||
Related purchases | |||
Related parties | 1,157 | 1,003 | |
Honghu Changrun [Member] | Other Advance Payments [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 481 | 361 | |
Jiangling Tongchuang [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 27 | 34 | |
Jiangling Tongchuang [Member] | Materials [Member] | |||
Related purchases | |||
Related parties | 7,930 | 7,550 | |
Jiangling Tongchuang [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 739 | 828 | |
Jiangling Tongchuang [Member] | Other Advance Payments [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 0 | 2 | |
Jingzhou Tongying [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 288 | 227 | |
Jingzhou Tongying [Member] | Materials [Member] | |||
Related purchases | |||
Related parties | 11,078 | 11,873 | |
Jingzhou Tongying [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 16 | 62 | |
Jingzhou Tongying [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 2,720 | 1,979 | |
Wuhan Tongkai [Member] | Materials [Member] | |||
Related purchases | |||
Related parties | 7,454 | 6,457 | |
Wuhan Tongkai [Member] | Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 290 | 193 | |
Wuhan Tongkai [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 90 | 60 | |
Wuhan Tongkai [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 2,259 | 2,158 | |
Wuhan Tongkai [Member] | Other Advance Payments [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 188 | 0 | |
Changchun Hualong [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 454 | 404 | |
Changchun Hualong [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 57 | 27 | |
Changchun Hualong [Member] | Other Advance Payments [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 76 | 72 | |
Jiulong Material [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 25 | 0 | |
Shanghai Tianxiang [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 0 | 89 | |
Shanghai Tianxiang [Member] | Accounts Payable [Member] | |||
Related payables | |||
Accounts and notes payable | 12 | 11 | |
Beijing Henglong [Member] | Raw Materials And Others [Member] | |||
Related Party Revenue | |||
Revenue from Related Parties | 2 | 14 | |
Beijing Henglong [Member] | Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 31,089 | 32,284 | |
Beijing Henglong [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 13,533 | 14,961 | |
Jingzhou Derun [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 46 | 151 | |
Jingzhou Derun [Member] | Other Advance Payments [Member] | |||
Related advances | |||
Advanced payments and others to related parties | 118 | 161 | |
Xiamen Automotive Parts [Member] | Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 6,042 | 7,216 | |
Xiamen Automotive Parts [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | 1,186 | 3,374 | |
Hubei Asta [Member] | Technology Equipment [Member] | |||
Related purchases | |||
Technology purchased from related parties | 10 | 170 | |
Shanghai Jinjie [Member] | Merchandise [Member] | |||
Related sales | |||
Merchandise sold to related parties | 161 | 152 | |
Shanghai Jinjie [Member] | Accounts Receivable [Member] | |||
Related receivables | |||
Accounts and notes receivable from related parties | $ 101 | $ 158 | |
[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 million 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 6.05%. On December 28, 2017, Henglong Real Estate repaid RMB 70 million to Hubei Henglong. As of December 31, 2017, the outstanding loan balance is RMB 130 million (equivalent to $19.9 million). |
Related Party Transactions (122
Related Party Transactions (Details Textual) | Mar. 29, 2018 | May 31, 2017 |
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 15.84% | |
Subsequent Event [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 55.60% |
Commitments and Contingencie123
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
2,017 | $ 24,681 | |
2,018 | 7,064 | |
2,019 | 0 | |
Thereafter | 0 | |
Total | 31,745 | |
Obligations for investment contracts [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
2,017 | 6,428 | [1] |
2,018 | 0 | [1] |
2,019 | 0 | [1] |
Thereafter | 0 | [1] |
Total | 6,428 | [1] |
Obligations for purchasing and service [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
2,017 | 18,253 | |
2,018 | 7,064 | |
2,019 | 0 | |
Thereafter | 0 | |
Total | $ 25,317 | |
[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 $18.0 million, representing 17.1% of Chongqing Venture Fund’s shares. As of December 31, 2017, Hubei Henglong has completed a capital contribution of RMB 84.0 million, equivalent to approximately $12.7 million, representing 23.5% of Chongqing Venture Fund’s shares. According to the agreement, the remaining capital commitment of RMB 36.0 million, equivalent to approximately $5.5 million, will be paid upon capital calls received from the Chongqing Venture Fund. |
Commitments and Contingencie124
Commitments and Contingencies (Details Textual) ¥ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017USD ($) | Nov. 30, 2017CNY (¥) | May 31, 2017 | May 31, 2016USD ($) | May 31, 2016CNY (¥) |
Commitments and Contingencies Disclosure [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 15.84% | ||||||
Hubei Henglong [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Capital | $ | $ 12.7 | $ 18 | |||||
Equity Method Investment, Ownership Percentage | 17.10% | 17.10% | |||||
Chongquing Venture Fund [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Unpaid Capital | $ 5.5 | ¥ 36 | |||||
Chongquing Venture Fund [Member] | Hubei Henglong [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Capital | ¥ | ¥ 84 | ¥ 120 | |||||
Equity Method Investment, Ownership Percentage | 23.50% | 23.50% | |||||
Jingzhou Qingyan [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Capital | $ 6 | ¥ 0.9 | |||||
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | $ 499,063 | $ 462,050 |
Net Income (Loss) | (18,639) | 22,977 | |
Inventories | 79,217 | 68,050 | |
Total Assets | 717,369 | 631,699 | |
Depreciation and Amortization | 15,358 | 13,926 | |
Capital Expenditures | 33,915 | 32,722 | |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (98,568) | (79,683) | |
Net Income (Loss) | (1,516) | (984) | |
Inventories | (6,485) | (6,058) | |
Total Assets | (311,499) | (311,688) | |
Depreciation and Amortization | 0 | 0 | |
Capital Expenditures | 0 | 0 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 0 | 0 | |
Net Income (Loss) | (39,069) | (1,529) | |
Inventories | 0 | 0 | |
Total Assets | 121,756 | 118,409 | |
Depreciation and Amortization | 56 | 61 | |
Capital Expenditures | 0 | 1 | |
Jingzhou Henglong Automotive Parts Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 279,706 | 301,367 | |
Net Income (Loss) | 3,737 | 14,407 | |
Inventories | 34,392 | 29,332 | |
Total Assets | 346,199 | 324,049 | |
Depreciation and Amortization | 4,721 | 4,537 | |
Capital Expenditures | 4,183 | 2,010 | |
Shashi Jiulong Power Steering Gears Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 100,776 | 76,968 | |
Net Income (Loss) | 4,064 | 3,501 | |
Inventories | 14,868 | 11,536 | |
Total Assets | 82,940 | 67,508 | |
Depreciation and Amortization | 2,901 | 2,619 | |
Capital Expenditures | 3,477 | 2,378 | |
Shenyang Jinbei Henglong Automotive Steering System Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 40,182 | 35,191 | |
Net Income (Loss) | 2,107 | 1,932 | |
Inventories | 2,137 | 4,739 | |
Total Assets | 44,693 | 42,870 | |
Depreciation and Amortization | 605 | 460 | |
Capital Expenditures | 1,265 | 330 | |
Wuhu Henglong Automotive Steering System Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 25,599 | 23,968 | |
Net Income (Loss) | 264 | 255 | |
Inventories | 2,511 | 3,388 | |
Total Assets | 26,008 | 24,799 | |
Depreciation and Amortization | 597 | 666 | |
Capital Expenditures | 81 | 2,187 | |
Hubei Henglong Automotive System Group Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 92,293 | 57,311 | |
Net Income (Loss) | 10,416 | 4,043 | |
Inventories | 25,404 | 15,647 | |
Total Assets | 318,422 | 252,465 | |
Depreciation and Amortization | 5,500 | 4,161 | |
Capital Expenditures | 21,309 | 16,990 | |
Other Sectors [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 59,075 | 46,928 | |
Net Income (Loss) | 1,358 | 1,352 | |
Inventories | 6,390 | 9,466 | |
Total Assets | 88,850 | 113,287 | |
Depreciation and Amortization | 1,991 | 1,422 | |
Capital Expenditures | 3,600 | 8,826 | |
Total Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 597,631 | 541,733 | |
Net Income (Loss) | 21,946 | 25,490 | |
Inventories | 85,702 | 74,108 | |
Total Assets | 907,112 | 824,978 | |
Depreciation and Amortization | 16,315 | 13,865 | |
Capital Expenditures | $ 33,915 | $ 32,721 | |
[1] | Revenue is attributed to each country based on location of customers. |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | $ 499,063 | $ 462,050 |
Long-term assets | [2] | 170,739 | 144,158 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | 84,240 | 55,628 |
Long-term assets | 797 | 768 | |
China [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | 383,415 | 399,526 |
Long-term assets | 169,346 | 142,818 | |
Other Foreign Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | 31,408 | 6,896 |
Long-term assets | $ 596 | $ 572 | |
[1] | Revenue is attributed to each country based on location of customers. | ||
[2] | Pursuant to ASC 280-10-50-41, the non-current deferred tax assets of $4.5 million and $4.6 million and the intangible assets, net of $0.7 million and $0.6 million were excluded from long-term assets as of December 31, 2017 and 2016, respectively. |
Segment Reporting (Details Text
Segment Reporting (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 13,367 | $ 12,587 |
Intangible Assets, Net (Excluding Goodwill) | $ 661 | $ 617 |
Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |