China Automotive Systems Receives SGS TÜV Certification

WUHAN, China, July 12, 2021 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that its wholly owned subsidiary, Hubei Henglong Automotive Systems Group Co. Ltd. ("Henglong"), received the SGS TÜV ISO26262:2018 ASIL-D certification.

This certification demonstrated that Henglong has established the highest functional safety product development procedure by SGS TÜV, ASIL-D system, to meet all the requirements by the ISO26262:2018 standard. With increased complexity of vehicle systems, ISO26262:2018 provides a reliable safety standard guidance for the entire life cycle of a vehicle that encompasses management, development, production, sales, services and recycling. ISO26262:2018 mandates a thorough functional safety development procedure that covers product planning, design, production, assembly, testing, confirmation, and installation. Classifying both software systems and hardware components with different safety risks, ISO26262:2018 ASIL (Automotive Safety Integrity Level) features safety standards from A to D, with D being the highest and most stringent safety standard.  

SGS is the world's leading inspection, verification, testing and certification company.  Founded in 1878, the SGS standard is recognized as the global benchmark for quality and integrity. With more than 90,000 employees, SGS operates a network of more than 2,000 offices and laboratories around the world. The SGS-TÜV functional safety team, as an accredited body for functional safety, operates globally to ensure that products and systems are safe and ready for world markets.  ISO26262:2018 applies to safety-related systems that include one or more electrical and/or electronic systems that are installed in a series of production road vehicles.

Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We are fully committed to best-in-class quality to meet the demand of our customers in China and abroad. Coinciding with the newly introduced GB17675-2021 standard by the Chinese government, this SGS-TÜV certification further endorses our excellence in quality and separates us from smaller competitors in the marketplace."

About China Automotive Systems, Inc.

Based in Hubei Province, the 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 ten Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 6 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Fiat Chrysler Automobiles (FCA) and Ford Motor Company in North America. For more information, please visit: https://www.caasauto.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 30, 2021, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. If the outbreak of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for automobile sales, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue.  We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

For further information, please contact:

Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn

Kevin Theiss
Awaken Advisors
+1-212-521-4050
Email: Kevin@awakenlab.com

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SOURCE China Automotive Systems, Inc.