China Automotive Systems, Inc. (CAAS or the Company) announced that the ground breaking ceremony of Hubei Henglong KYB Automobile Electric Steering System Co. Ltd. (Hubei KYB), a joint venture between CAAS and Japan KYB Co. Ltd., was held on September 17, 2018 in the Jingzhou Development Zone.

Hubei KYB was formed to design, produce and service automotive electric power steering ("EPS") system products. The ceremony was hosted by Zhou Hanzhong, director of the Jingzhou Development Zone Management Committee. Hanlin Chen, Chairman of the Board of Directors of CAAS, and Qizhou Wu, CEO, jointly laid the foundation for the development zone, and together with other CAAS and KYB executives laid the foundation for the joint venture.

Members of the Standing Committee of the Jingzhou Municipal Committee, senior officials of the Jingzhou Development Zone and Jingzhou Investment Promotion Bureau, senior executives of CAAS and senior executives of Japan KYB Corporation Auto Parts Business Division, all attended the ceremony.