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Honestly, looking at the current 10 and the potential going forward I would believe this should be trading at a minumum $0.50 I reiterate MINIMUM.
GM, F, AZO all on fire. DSHL will follow suit here shortly.
Either way DSHL is in a good position as they are nicely profiting from the aftermarket auto sector as well.
I believe Gentworth will have a deal due to their valuable assets. Could see it trade back above $4 here shortly imo.
DEALTALK-US life insurers talk mergers, but deals are tough
http://www.reuters.com/article/marketsNews/idINN2630740720081126?rpc=44
GM and Ford are soaring, must be good news out for the autos and the bailout package!!!
China slashes interest rate to spur growth
Wednesday November 26, 7:12 am ET
By Joe Mcdonald, AP Business Writer
China slashes rate by biggest amount in 11 years to spur borrowing, support stimulus plan
BEIJING (AP) -- China announced its biggest interest rate cut in 11 years on Wednesday to spur private borrowing and support a multibillion-dollar stimulus package to boost slowing economic growth.
The 1.08 percentage-point rate cut -- the fourth cut in three months -- reflects the government's urgency about raising private consumption and investment to supplement state spending on the stimulus package.
"This is the most aggressive monetary easing in recent years and should bode well for China's market performance," said Jing Ulrich, chairwoman of China equities for JP Morgan & Co., in a report to clients.
The 4 trillion yuan ($586 billion) stimulus aims to insulate China from a global slowdown by injecting money into the economy through spending on new highways and other public facilities. But its ultimate goal is to increase consumer spending, which a rate cut is meant to encourage.
Beijing is trying to shore up consumer and investor confidence and reverse a sharp downturn in growth. China's economy is expected to expand by at least 9 percent this year, down from 11.9 percent last year. But communist leaders worry about rising job losses -- especially in export industries hit by weak global demand -- and possible unrest.
China has avoided a big hit so far from the global financial crisis because its banks are healthy and exports strong. But conditions are expected to worsen in coming months as export demand weakens and growth in real estate and other domestic industries slows.
Just this week, the World Bank cut its forecast for China's growth next year from 9.2 percent to 7.5 percent, the lowest level since 1990.
Beijing had been rumored to be considering a rate cut and Chinese stock markets fell Monday after one failed to materialize over the weekend. The cut Wednesday was announced after markets closed. The Shanghai Composite index, down two-thirds from its peak in October 2007, edged up 0.5 percent to 1,897.88.
Also Wednesday, the central bank cut the amount of money commercial banks must set aside as reserves, expanding the pool available for lending.
The moves are meant to "promote stable credit growth," the People's Bank of China said on its Web site.
Interest on a one-year loan will fall to 5.58 percent, effective Thursday, while interest paid on deposits will fall to 2.52 percent.
The rate cut was several times the size of other recent cuts on Sept. 15, Oct. 8 and Oct. 29, which were only 0.27 percentage points.
It was China's biggest rate cut since 1997, according to Standard Chartered economist Stephen Green. But he cautioned that rate cuts alone might not be enough to trigger a wave of house purchases and corporate investment.
"To be honest, rate policy in this environment is a marginal factor -- businesses think about possible returns on investments, and households will look at house price prospects," he said in a report.
"We have almost exhausted traditional monetary tools now," Green said. "What happens next is mostly fiscal policy and encouraging the banks to lend."
The amount that China's biggest banks must hold in reserve will fall by 1 percentage point to 15.5 percent, effective Dec. 5, the bank said. The minimum reserve for smaller banks would fall by 2 percentage points to 14.5 percent.
The change frees up 360 billion yuan ($53 billion) in additional money for lending, according to Green.
The rate cut will lower borrowing costs for state companies, which are expected to provide a big share of the promised investment in the government stimulus.
A key issue will be whether banks are willing to lend more. They have tried to shield themselves from global turmoil and the slowing real estate industry by cutting back on lending to exporters, developers and small companies.
"The degree of benefit realized from China's monetary stimulus will hinge on whether banks increase their lending to the most troubled sectors of the economy," Ulrich said.
People's Bank of China (in Chinese): http://www.pbc.gov.cn
And with only about 3M shares in the float at most it could move quickly too.
yes the aftermarket sector is golden, people will continue to fix and take care of their old cars. Have a look at where AutoZone is trading:
http://finance.yahoo.com/q?s=azo
So DSHL is positioned perfectly in this current economy to capitlaize on both the new car production as well as the aftermarket sector.
yes they sure will, they mentioned that they have 70% exposure to the aftermarket sector. And have a look at who they get a ton of business from:
http://www.affiniagroup.com
Affinia's family of aftermarket brands include:
Aimco
AquaChek
McQuay Norris
Nakata
Quinton Hazell
Raybestos
Spicer
WIX
Wix Filtron
BrakePro
Nice news on DSHL today. I highlighted some nice points:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33796691
Great to hear how much business they actually have in the aftermarket sector. I knew they had some exposure , but was not aware it was over 70%. This alone shows the competency of management and that they have a sound business plan in place.
Also, the revenues going forward that are now realized from the salon will nicely pad their exisitng core business. Not to mention the Large revenue the salon can account for on its own...I quote:
"Citing other international auto mall examples, Eric highlighted, "The Tianjin auto park reported in January this year that it achieved 5 billion Chinese Yuan in sales. That is approximately equivalent to US$735 million. If we can achieve a portion of that success here in the Motor City, I am confident that our supporters, from the local government to our shareholders, will feel we have created something special."
Some great highlights from today's PR!!!!
2 Directors Depart as DSHL Sets the Stage for China & India Engagements
Tuesday November 25, 9:55 am ET
ALLEN PARK, MI--(MARKET WIRE)--Nov 25, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News) filed notification today that two of the company's directors voluntarily resigned. "Now that the company is publicly trading in the U.S., I feel that my purpose on the Board is coming to an end," stated Mr. Yung-Hsiang "Paul" Chou who served as a director through the 2008 reverse merger of Componus with JPC Capital Partners, evolving into DIAS Holding, Inc. His sentiments were similarly echoed by Ms. Hsiu-Pin "Sharon" Hsu, who also resigned. "I am proud to have served the company to the point when it became publicly trading in the U.S.," she stated in her letter of 19 November 2008, "...I wish the company success in the future." Ms. Hsu served as a pre-merger director since 2005.
"We will miss the valuable advice and counsel of Ms. Hsu and Mr. Chou," stated Eric Huang, Chairman, CEO and President of DIAS Holding. "But I understand their desire to devote their full-time efforts for their own private enterprises. With their departures, we will be screening for board candidates who have the breadth of experience in public company operations and experience with Asian-based business models." Currently, the remaining board members of DSHL are all Asian.
In the latest 10-Q report filed last week with the SEC, the company disclosed that the bulk of sales was attributed to its Asia Forging Supply subsidiary, but at a slight cumulative loss of $0.0028 per share. "Since 2006, we have succeeded in changing from a balanced sales combination between OEM and aftermarket sales to predominantly aftermarket driven. In 2007 and again in 2008, over 70 percent of our sales are from our spare-parts aftermarket and performance-parts aftermarket customers as part of our strategy to adjust to the decline in the North American OEM automotive market," Mr. Huang stated.
"The slight cumulative loss to date this year is because we are the first to create an auto salon in the U.S., which copies the success of year-round automotive salons in Asia. Even though new car sales are down, the U.S., and especially Detroit is known throughout the Asian automotive business community as the center of automobile technology and excellence, as indicated by the successful sales of Buicks and similar American-designed cars in China. So, Asian automotive systems and component manufacturers naturally want to migrate and establish a presence in the U.S. Thus, we will be concentrating in fulfilling the objectives of our strategic alliances and partnerships in 2009," summarized Chairman Huang.
In 2008, DSHL has established cross-marketing agreements with automotive manufacturing centers and auto parts organizations in Guangzhou, Hangzhou, Beijing, Shanghai and Wuhan, China, and in Pune, India. Collectively, there are over 5,000 automotive component manufacturers and sources are available for DSHL as potential exhibitors for its auto salon subsidiary, as well as potential partners for American companies to joint venture or cooperate with for business in China and India. "2009 will be the year when our auto salon will bear fruit from the first wave of exhibitors from these various locations," affirmed Michael Wesney, president of the auto salon subsidiary of DSHL. "Targeting the top firms for the first 100 exhibitors from each of our strategic alliance partners will result in revenues upwards of $3 million next year for us. Promoting U.S. companies and products into China for business engagements and opportunity will add to the generation of new revenue potential for DIAS," added Mr. Wesney.
Keep an eye on GNW as well.
New information from 10Q: Affinia group is 22% of DSHL's business. Affinia group is huge. raybestos brakes, dana, spicer, wix filters etc etc etc.
http://www.affiniagroup.com
Sales Top $12 Million Through Third Quarter for DIAS Holding, Inc.
Thursday November 20, 1:09 pm ET
ALLEN PARK, MI--(MARKET WIRE)--Nov 20, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News) filed its 10-Q report to the SEC, and announced today that sales through the third calendar quarter topped $12 million. "We expect to top our 2007 sales," stated Sara Wang, CFO of DIAS Holding. According to audited financial statements, the company recorded $14.5 million in sales for 2007. "Despite encountering expediting costs in the third quarter caused by last-minute contract surcharge negotiations, our AFS subsidiary has performed well," she said.
"We expect our business mix that is weighted towards our aftermarket customers, position us well despite the downturn in the U.S. automotive market," commented Jack Jiang, Vice President for AFS operations. "People tend to keep their cars longer in difficult times, such as in a recession. The majority of our North American deliveries this year go to our customers who fill the spare parts pipeline," he added. " Furthermore, even with difficulties in the U.S. automotive market, AFS has begun to receive customer forecasts for 2009 that we believe is the start of our North American customer backlog next year," Mr. Jiang concluded.
The 10-Q report cites several cooperative agreements and partnerships established this year with the company and its Detroit International Auto Salon -- from Wayne County, containing Detroit Metro International Airport, and most of the Detroit metropolitan area, to the Hubei Provincial Mechanical and Automotive Promotions Center (China). "We are excited about our strong relations and connections to the manufacturers in China and Taiwan," stated Eric Huang, Chairman and CEO of DIAS Holding. "The central government, through their recent economic stimulus package, reinforces their manufacturing bases, so we will continue to see not only strong sources of supply for export, but also opportunities to engage them with a higher technological content," summarized Eric.
"With the current slump in the automotive market, a lot of companies and corporations are looking for new and positive solutions; DIAS has the means to provide the connections that will allow strategic partnerships and resources to be developed. Lowering costs and showcasing new and innovative products are just a few of the services that are being sought from both customers and suppliers alike," stated Michael Wesney, President of Detroit International Auto Salon.
http://biz.yahoo.com/iw/081120/0454609.html
Sales Top $12 Million Through Third Quarter for DIAS Holding, Inc.
Thursday November 20, 1:09 pm ET
ALLEN PARK, MI--(MARKET WIRE)--Nov 20, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News) filed its 10-Q report to the SEC, and announced today that sales through the third calendar quarter topped $12 million. "We expect to top our 2007 sales," stated Sara Wang, CFO of DIAS Holding. According to audited financial statements, the company recorded $14.5 million in sales for 2007. "Despite encountering expediting costs in the third quarter caused by last-minute contract surcharge negotiations, our AFS subsidiary has performed well," she said.
"We expect our business mix that is weighted towards our aftermarket customers, position us well despite the downturn in the U.S. automotive market," commented Jack Jiang, Vice President for AFS operations. "People tend to keep their cars longer in difficult times, such as in a recession. The majority of our North American deliveries this year go to our customers who fill the spare parts pipeline," he added. " Furthermore, even with difficulties in the U.S. automotive market, AFS has begun to receive customer forecasts for 2009 that we believe is the start of our North American customer backlog next year," Mr. Jiang concluded.
The 10-Q report cites several cooperative agreements and partnerships established this year with the company and its Detroit International Auto Salon -- from Wayne County, containing Detroit Metro International Airport, and most of the Detroit metropolitan area, to the Hubei Provincial Mechanical and Automotive Promotions Center (China). "We are excited about our strong relations and connections to the manufacturers in China and Taiwan," stated Eric Huang, Chairman and CEO of DIAS Holding. "The central government, through their recent economic stimulus package, reinforces their manufacturing bases, so we will continue to see not only strong sources of supply for export, but also opportunities to engage them with a higher technological content," summarized Eric.
"With the current slump in the automotive market, a lot of companies and corporations are looking for new and positive solutions; DIAS has the means to provide the connections that will allow strategic partnerships and resources to be developed. Lowering costs and showcasing new and innovative products are just a few of the services that are being sought from both customers and suppliers alike," stated Michael Wesney, President of Detroit International Auto Salon.
Auto agreement has been reached fyi!!!!
Yes definately going to be a great stock to have here as it should see a nice pop for sure. Like you said how many companies can say they are making a profit in current market. Also, the stock is trading pre-merger company results. These results are from new company, their first 10Q so once people see the numbers we should start the move back up to reflect new company numbers.
You don't have to worry about that c'mon!!! If anything will be merger.
The purpose and greatest benefit of the auto salon is to get U.S. exposure for asian suppliers; as the auto industry gets restructured they still want to have a U.S. presence which is easily accessible.....all the other U.S. manufacturers not subject to the uaw are doing much better.
DSHL benefits as all manufacturers get access to the highest quality lowest cost provider and are able to do so without flying all over the world.
The auto salons in japan and china are billion dollar enterprises as was mentioned in this previous PR:
"The Tianjin auto park reported in January this year that it achieved 5 billion Chinese Yuan in sales. That is approximately equivalent to US$735 million. If we can achieve a portion of that success here in the Motor City, I am confident that our supporters, from the local government to our shareholders, will feel we have created something special."
http://biz.yahoo.com/iw/081105/0448376.html
Yeah but all of the revenue right now we are seeing in the 10Q is not at all coming from the auto salon anyhow, its just the gravy so to speak but could turn into something HUGE down the road. Their global market clients and the forging industry is where we are seeing the nice profits as of now.
Yes there will be survivors within this Big 3 for sure and the auto salon will continue to be a success and pad future revenues nicely.
DSHL 10Q is out....no way it should be trading at current levels with the revenue they are seeing.
This is the first 10Q out for the new company (was a merger in Sept.) showing some very nice numbers. It's currently trading at old company levels when no money was being realized. Expect this to get noticed in short order and for the stock price to jump to reflect new business operations.
http://www.sec.gov/Archives/edgar/data/1162867/000095014408008837/g16736e10vq.htm
10Q is out....no way it should be trading at current levels with the revenue they are seeing.
http://www.sec.gov/Archives/edgar/data/1162867/000095014408008837/g16736e10vq.htm
DSHL 10Q is out....no way it should be trading at current levels with the revenue they are seeing.
http://www.sec.gov/Archives/edgar/data/1162867/000095014408008837/g16736e10vq.htm
I personally won't be selling any shares under 3.50 and believe it will head back over 5
Toyota announced today that it forecasts 20% growth in sales year over year in China. Very good news, nice to see growth occuring right now during current economic slow-down.
Seems as though this is holding up very well considering the large drop in oil prices.
If the automakers don't get bailed out I believe it won't have a great affect on DSHL's revenues as the global market is still robust as was mentioned by the Big 3 in their hearing yesterday. Also DSHL work's with many other auto makers besides just the Big 3. And even so if the Big 3 don't get the bailout they will just merge or restructure, they will still need to buy supplies to make cars and buy supplies to meet the new eco-friendly initiatives of car production.
Also, DSHL will benefit greatly during current economic times as people need supplies to keep their current cars running. All in all a win-win situation.
Another showing the strength of the market DSHL is positioned in....very exciting.
Shell Company Merges With Chinese Battery Maker
Posted November 14, 2008 5:29PM PST
A Chinese battery maker became publicly traded in the U.S. after its parent company acquired about 70% of the stock in a shell company that formerly sold big game hunting expeditions.
In the Nov. 12 merger, World Trophy Outfitters acquired all the equity of Fast More Limited, a Hong Kong investment company that controls Changxing Chisen Electric Co. World Trophy issued 35 million new shares to Fast More's shareholders, Cheer Gold Development Limited and Floster Investment Limited.
Changxing Chisen makes about 5.6 million batteries for electric bicycles each year, which are sold in China. Electric bicycles are becoming increasingly popular in China, the company says, and the type of battery it makes is the preferred choice to run them because of their low cost.
The company had $65.4 million in sales revenues in its fiscal year ending in March, more than double its sales the previous year.
Attorney Clayton Parker in the Miami office of K&L Gates advised Fast More in the merger. Utah attorney Cletha Walstrand, who has advised numerous shell companies, counseled World Trophy.
World Trophy was formed in 2005 to sell big game hunting licenses and guided trips. It had sold all its packages by March of this year and had shut down by April. It had about $51,000 in assets, according to a merger filing, and no liabilities by the merger's closing date.
World Trophy's stock closed at $3.98 on Nov. 14, up 5% from the previous day.
Looks like were perfectly positioned to benefit greatly or else why would they want to go through with this merger? And seems like the company is doing exceelent by looking at the numbers!!!
Advertising Firm Merges with Chinese Luxury Auto Seller
Posted November 14, 2008 2:51PM PST
Fresh Ideas Media, an advertising and consulting firm, said it reverse merged with Ever Auspicious International Limited, a Hong Kong holding company for a luxury auto importer in China.
Fresh Ideas acquired all of the stock in Ever Auspicious, in the Nov. 10 deal, in exchange for about 65% of its stock.
Phillip Ray and Ruth Daily, principal shareholders of Fresh Ideas, canceled 1.14 million shares just before the merger closed.
Fresh Ideas subsidiary Community Alliance, which the company says markets sub-licenses for take-home school folders, was spun off as part of the transaction.
The combined company will change its name to China Auto Logistics.
Ever Auspicious had $81.1 million in net revenues during the first half of 2008, compared with $61.8 million in the year-earlier period. Net income for the first half was $2.2 million, up from $1.2 million.
Fresh Ideas registered with the Securities and Exchange Commission in March 2006 to launch an advertising and marketing firm catering to small and mid-sized companies. It had just $34,421 in revenues from its inception, according to an October financial filing.
Shares of Fresh Ideas closed at $3.20 on Nov. 12. The stock had run up 60% in the week before the merger closed.
related: WATG,Wonder Auto Technology Announces Penetration into New Energy Auto Market
Monday November 17, 7:00 am ET
Development Agreement with Korean CT&T on Electrical Motors and Drivers
JINZHOU CITY, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG - News; "Wonder Auto" or the "Company"), a leading manufacturer of automotive electrics, suspension products and engine accessories in China, announced that one of its subsidiaries, Jinzhou Wonder Motor Co. Ltd ("Jinzhou Motor"), has entered into a development agreement with Korean CT&T Co. Ltd. ("Korean CT&T") stating that Jinzhou Motor will design and manufacture electric motor and driver products for Korean CT&T's electric vehicles. The products will have the following specifications: Voltage: 48V - 120V; Power: 4kw - 12Kw; Model: Traction motor and wheel-in-motor.
As scheduled in the agreement, Jinzhou Motor will deliver the first sample of traction motors and drivers of 72V, 7Kw to Korean CT&T for road testing by the end of March 2009, while batch deliveries will begin from June 2009. Korean CT&T will purchase, in priority, all motor and driver products developed by Jinzhou Motor according to the agreement, and the total expected purchase volume will be approximately $330 million from 2010 to 2013.
Korean CT&T is a specialized manufacturer of electric vehicles categorized as e-zone, utility vehicles for country clubs, and c-zone, including two- and four-seater family cars, sightseeing cars, golf-course carts and those used for police patrols, etc. Its main manufacturing facilities are located in Korea, China and Canada.
Wonder Auto has been dedicated to the research and development of core components of electric vehicles for years. Foreseeing the great potential of new energy automobiles (including electric vehicles and hybrid vehicles), the Company founded Jinzhou Motor in early 2007, so as to become one of the few suppliers of core components for new energy vehicles in the world. The Company has invested $1.1 million in building up the capacity of Jinzhou Motor. By June 2009, the expected annual production capacity will be about 400,000 sets of electric motors and drivers.
Mr. Qingjie Zhao, Chairman and Chief Executive Officer of Wonder Auto, said: "The electric motor products for this Korean customer is just an extension of our starter products, which is in line with our strategy of developing new products by sharing existing resources. It also represents our strategic decision of providing core components for the new-energy auto market, including electrical and hybrid vehicles, which, no doubt, will contribute to the sustainable and fast growth of Wonder Auto."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrics, suspension products and engine accessories. Wonder Auto was ranked second in sales revenue in the China market for automotive alternator and starter in 2007. With respective 5 different series and over 150 models of alternators, 70 models of starters, various suspension, engine related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both domestically and internationally. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., Tianjin FAW Xiali Automotive Co., Ltd, Shanghai VW and Weifang Diesel Engine. For more information, please log on http://www.watg.cn .
I am thinking GNW will head back over $5 though anyhow Buckey as it is way undervalued at current levels.
For immediate release
Nov. 11, 2008
Chinese companies learn how to do business in Wayne County
Beijing, China – Hundreds of Chinese companies, mostly auto suppliers, will learn how to do business in Wayne County during a seminar hosted by the county Friday, Nov. 14 in Beijing.
About five Chinese companies that already do business in Wayne County will provide testimonials on their successful experiences.
"This is the best time to do business in Wayne County, " said Eric Huang, Chairman and CEO of Detroit International Auto Salon (DIAS). "They represent the greater Detroit area and they are the largest market in the world for the automotive industry."
Also at the seminar, the DIAS will sign an agreement with the China International Auto Parts EXPO that will focus on sending more business to Detroit.
"With the challenges that Southeast Michigan is facing, bringing foreign investment and jobs to our region is our top priority,” said Wayne County Executive Robert Ficano. "In a global economy, having existing Chinese companies recruit fellow Chinese companies to our region is a dramatic tool and testimony for future growth."
Executive Ficano is heading his fourth trade mission to China this week.
###
Executive Ficano is available for media interviews while in China. Contact Press Secretary Vanessa Denha-Garmo at 313-213-5274 or Dennis Niemiec at 313-224-5575 to schedule a phone interview.
http://www.detroitautosalon.com/Visitors/news-view.asp?NID=128
Here's a very nice site showing a whole bunch of chinese cars http://www.chinacarforums.com and as they grow so will DSHL, and as as their rep grows so will DSHL's!
Yes no volume whatsoever to speak of. Pure manipulation. Once buying pressure comes in it won't take much to get this moving for sure with only 3M float.
Expecting the earnings report to be released here shortly and if previous reports from other companies in the same sector are used as any indication of what to expect here then we are in GREAT shape. As eanrings have been superb as you can see from my previous posts. A little patience here will pay off IMMENSELY imo.
Also, the bailout package for the auto industry will be coming at anytime and there is no doubt that the industry will again flourish once thier business model is fine tuned and they start producing more efficient model cars.
And lastly, don't forget that DSHL can capitalize on the used auto parts industry as well, wish will FLOURISH during this current economic cycle.
related.. CAAS, China Automotive Systems Announces First Purchase Order From a Global North American Automotive Manufacturer
Tuesday November 11, 7:00 am ET
WUHAN, Hubei, China, Nov. 11 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS - News), a leading power steering components and systems supplier in China, today announced it has received its initial purchase order for power steering gears from a global automotive manufacturer headquartered in North America. This first purchase order is part of an agreement to supply power steering gears to this automotive manufacturer.
This agreement represents a major milestone as it is the first contract for China Automotive Systems in the North American original equipment manufacturer (OEM) market. These power steering gears are intended for one model of a well-known automobile brand. The vehicle dynamic evaluation of these gears has shown them to be compatible or superior to the current product.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We are very excited to have been selected by this major North American automotive manufacturer to become a supplier of important power steering gears. This contract win is further evidence of our dedication to quality products, our R & D and engineering capabilities, and the Company's financial strength and large-scale production. We were able to meet the strict high- standard quality requirements from a global automotive OEM, which positions us to successfully compete in the global marketplace. As a leading independent power steering component and systems supplier in China, we are on our way to broaden our geographic reach and to penetrate into other world-class automotive OEMs."
About CAAS
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com .
related.....Tongxin International, Ltd. Reports Third Quarter 2008 Financial Results
Monday November 10, 9:00 am ET
NEW YORK and CHANGSHA, China, Nov. 10 /Xinhua-PRNewswire-FirstCall/ -- Tongxin International Ltd. ("Tongxin") ("Company") (Nasdaq: TXIC - News) a manufacturer of engineered commercial vehicle body structures ("EVBS"), SUV passenger vehicle bodies and stamped body parts for the Chinese commercial vehicle market, today announced the Company's third quarter financial results ended September 30th, 2008.
-- Third quarter revenues increased 4.7 % to $22.8 million vs. Q3 2007
-- Third quarter net income decreased 16.2 % to $2.1 million vs. Q3 2007
-- Nine-month revenues increased 21.3 % to $76.3 million vs. the same
period in 2007
-- Nine-month net income increased 8.0 % to $8.1 million vs. the same
period in 2007
2008 Third Quarter Financial Results
Net revenues for the third quarter ended September 30, 2008 reached $22.8 million, an approximate $1.1 million or 4.7% increase over the same period of the prior year. As reported earlier this year, the third quarter for Tongxin International and other companies in the automotive and steel sectors were hampered by factory reductions in preparation for, and during, the Beijing Olympics this summer. Government restrictions on power and emissions were placed on many automotive manufacturers and supply from steel mills producing cold-rolled steel for the months of July, August and half of September were also reduced. The effects of these measures anticipated a slow quarter for the entire sector. As reported by the UK Telegraph on September 21st, manufacturers including both sectors of automotive, passenger and commercial, resumed full production in mid September. Further adding to the challenges for the third quarter were slowdowns in production as the industry prepared for Euro III emission regulations in China.
Cost of goods sold were $18.5 million in the third quarter 2008, an increase of 13 % versus the same period, 2007. Gross profits for the third quarter were $4.4 million compared to $5.5 million in the third quarter of 2007. Gross margin percentages decreased to 19.2% in 2008 from 25.1% for the three months ended September 30, 2007. The decrease was directly attributed to higher costs in raw materials, specifically the 29% price increase in cold- rolled steel since January 1, 2008. Pricing increases are yet being passed on to customers, particularly Tongxin's largest customers in the Company's network of 130 commercial vehicle manufacturers throughout China. The Company anticipates a return to its standard gross margins of approximately 25% as steel pricing levels and material increases in contracts are recorded from recent invoices.
Total operating expenses for the third quarter of 2008 were $1.5 million versus $1.4 million for the same period in 2007. Operating expenses as a percentage of revenues were 6.5% compared with 6.2% for the same period, 2007. Operating income and operating margin for the quarter were $2.9 million and 12.6%, versus $4.1 million and 18.9% in 2007.
Net income was $2.1 million, representing a decrease of 16.2% from $2.5 million reported in the same period prior year. The net income reflects the $175,000 one-time transaction costs recorded by Tongxin International, Ltd (previously Automotive Acquisition Corporation) for the Company's business combination with Hunan Tongxin. The Company incurred $521,000 in taxes for the quarter and pays an effective tax rate of 23.5% for the year. Corresponding net profit margins were 9.1% for the quarter which represented a 230-basis point decrease versus the same quarter, 2007. This decrease was related to increases in raw material costs. Earnings per share for the quarter was $0.19 based on 11.2 million shares.
"We believe our management team properly estimated the effects of the factory restrictions and associated demands of the Euro III emission standards on our sales and shipments in the third quarter," opened Rudy Wilson, CEO of Tongxin International. "Despite our predictions, we were encouraged to see a slight increase in revenues quarter over quarter especially since the same set of circumstances were not present for our 2007 third quarter. Considering the highly-restrictive environment in which we were operating around the dates of the Olympics, an increase in revenues during third quarter demonstrates the resilience of the commercial market and our position as the leading EVBS supplier," Wilson concluded.
2008 Nine-Month Financial Results
Revenue increased approximately 21.3% to $76.3 million for the nine months ended September 30, 2008 as compared to $62.9 million for the same period last year. Operating expenses for the nine months ended September 30, 2008 were $4.7 million compared to $3.9 million for the same period in 2007. Operating expenses as a percentage of revenues remained steady at 6.2% for the nine months ended September 30, 2008 compared to the same period in 2007. Operating income for the nine months ended September 30, 2008 was $11.9 million, a decrease of 5.3% compared to $12.6 million for the nine months ended September 30, 2007. Net income was $8.1 million for the nine months ended September 30, 2008, an increase of 8.0% compared to same period last year. Net income for the nine months ended September 30th, 2008 reflected an one-time transaction cost of $320,000 associated with the Company's business combination on April 17th, 2008. Earnings per diluted share were $0.73 based on 11.2 million shares.
"We are very confident about our business operation and that our team will reach our guidance of the year. After polling our top customers and scheduling our builds and deliveries of the fourth quarter, the market has responded with added demand pent up from manufacturers and their customers in October. A combination of lowered steel prices, strong order bookings from our customers and the relaxing of the Euro III compliance time table should result in a return to our standard margins and pace of business we experienced during the first quarter of this year," Wilson added.
Balance Sheet and Cash Flow Discussion
As of September 30, 2008, Tongxin International had approximately $19.0 million in cash and cash equivalents. The company maintained a current ratio of 1.1 to 1 and $12.0 million in accounts receivable on September 30, 2008. Corresponding days sales outstanding (DSO) were 47 days. Stockholders' equity was $34.2 million on September 30, 2008, representing an increase of 52.8% versus same period 2007.
The Company has approximately five million warrants with strike price of $5.00 and callable at $10.00. If exercised, warrants would yield $25.2 million in proceeds to the company.
Business Outlook
Based on its order bookings and accrued demand for the same time period, the Company anticipates a strong fourth quarter as its customer base completely resumes production and the extension of timetables to meet Euro III regulations. Additionally, the Company is completing USGAAP audit of Meihua Bus for which a framework agreement was signed on July 28th, 2008. Preliminary results for Meihua Bus indicate higher than expected revenues and net income for the 2008 year. Tongxin anticipates closing the Meihua acquisition before year end.
China says stimulus plan important for world
Monday November 10, 7:22 am ET
By Joe Mcdonald, AP Business Writer
China's premier says stimulus package `biggest contribution' to world; Asian stocks rise
BEIJING (AP) -- China's massive stimulus package is meant to help support global growth by boosting Chinese investment and consumer spending, Premier Wen Jiabao said Monday.
"We must implement the measures to ensure a fast and stable economic development," Wen, the country's top economic official, said at a meeting of government leaders, according to a report read out on the state television evening news. "They are not only the needs of the development of ourselves, but also our biggest contribution to the world."
Stock markets in Japan, Hong Kong and mainland China soared after Sunday's announcement of the 4 trillion yuan, or $586 billion, package as Beijing joined moves by governments around the world to cushion the blow of the global slowdown. The plan calls for higher spending on roads, airports and other infrastructure, tax deductions for exporters and more aid to the poor and farmers. Spending on health and education will increase, as well as on environmental protection and high technology.
Wen said China must increase investment and consumer spending, maintain export growth, enhance corporate competitiveness, reform financial industries and improve the health development of the real estate industry, according to the state television report. It gave no other details.
China's announcement came as economic officials from the Group of 20 leading economies, which includes major wealthy and developing nations, called Sunday for increased government spending to boost the troubled global economy. At a meeting in Brazil, G20 finance ministers and central bank governors also said emerging economies deserve a prominent role in talks to overhaul the world financial system.
China's move follows an unexpectedly sharp downturn in economic growth that has raised the prospect of job losses and unrest.
Exporters say orders have fallen sharply, leading to an increase in factory closures and layoffs. Chinese economic growth fell to 9 percent in the latest quarter, its lowest level in five years, and analysts expect export growth to fall as low as zero in coming months as global demand weakens.
The plan represents another drastic step away from lending curbs and other anti-inflation measures that Beijing imposed over the past three years but has been rolling back since mid-2008 as government alarm about slowing economic growth mounts.
Economists noted that the plan depends on corporate investment and promises bank lending for rural projects, smaller companies and consumers.
"I don't believe a fiscal stimulus alone is enough to keep growth going. I see it as the jump-starting of a car. Corporate investment and bank lending are the fuel that will be necessary to keep it going," said UBS Securities economist Tao Wang.
Beijing might supply one-quarter of the announced spending, or 1 trillion yuan ($145 billion), with the rest coming from increased investment by Chinese state companies, bank lending or bond sales by local authorities for individual projects, said Ting Lu, a Merrill Lynch economist.
"Many state companies have a lot of cash. They just need to use it," Lu said.
News of the plan sparked rallies on many Asian markets, with the Shanghai Composite index -- which has plunged by two-thirds since it peaked last October -- jumping 7.3 percent to 1,874.80. Japan's Nikkei 225 index surged 5.8 percent to 9,081.43.
It also lifted sagging oil prices on hopes that it would stimulate energy demand. Oil rose $2.69 to $63.70 a barrel in Asian trading on the New York Mercantile exchange.
Also Monday, the government said China's wholesale inflation eased in October, which gives authorities more leeway to stimulate the economy without the threat that they might ignite new price rises. Producer prices rose 6.6 percent in October from the year-earlier period, down from August's 12-year high of 10.1 percent.
Alarmed at falling growth, the government switched its official goal in mid-2008 from a single focus on fighting inflation to a dual target of ensuring fast economic expansion while also containing price rises. It has cut interest rates three times in recent weeks and lifted limits on how much each Chinese bank can lend.
The government's announcement appears to exaggerate the size of its plan by including projects already under way, including reconstruction from the devastating May earthquake in China's southwest, said Sherman Chan, an economist for Moody's Economy.com.
"The exaggeration highlights the government's desperation to revive sentiment, which is perhaps the key factor to sustaining growth amid global turmoil," Chan said in a report.
The promise of more social spending represents an expansion of efforts in recent years to spread China's new prosperity to the countryside and urban poor -- an effort that some dubbed China's "New Deal" after programs launched by U.S. President Franklin D. Roosevelt during the Great Depression of the 1930s.
"Higher social welfare spending and rural reforms will help boost consumption," said a report by Jing Ulrich, JP Morgan & Co.'s chairwoman for China equities
....China's central government is also expected to reach into its own deep pockets, plowing tens of billions of dollars into projects such as high-speed rail, gas transmission pipelines and power plants to create jobs and keep businesses busy.
http://www.latimes.com/business/investing/la-fi-china21-2008oct21,0,6845764.story
http://www.hntx.com/en2/csview.asp
Should help quite a bit.