China Automotive Systems Reports 17.4% Increase in Earnings Per Share in the First Quarter of 2024
First Quarter 2024 Highlights
- Net sales were
$139.4 million - Gross profit increased by 11.6% to
$24.1 million with a gross margin of 17.3%, compared with$21.6 million of gross profit and a 15.2% gross margin in the first quarter of 2023 - Income from operations increased by 26.0% to
$9.7 million compared with$7.7 million in the first quarter of 2023 - Diluted income per share increased by 17.4% to
$0.27 , compared to diluted income per share of$0.23 in the first quarter of 2023 - Cash, cash equivalents, and short-term investments were
$135.8 million as ofMarch 31, 2024 - Net cash provided by operating activities was
$10.5 million in the first quarter of 2024 compared to net cash used of$1.4 million in the first quarter of 2023.
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We are pleased with achieving higher gross profit, income from operations, diluted income per share and net cash flow from operating activities in the 2024 first quarter. We remain confident in our sales growth in 2024, despite a slight decline in the 2024 first quarter. Our electric power steering ("EPS") sales percentage remained consistent around 34.0% of total sales in the first quarter of 2024. International sales were mixed as sales in
"We continued to invest in our products as research and development ("R&D") expenses remained stable. Investments targeted improving performance of our traditional steering products continued even as we focus on expanding our EPS portfolio of products and enhance our Advanced Driver Assistance Systems ("ADAS") program with
Mr.
First Quarter of 2024
Net sales decreased by 2.0% to
Gross profit increased by 11.6% to
Gain on other sales was
Selling expenses increased by 20.6% to
General and administrative expenses ("G&A expenses") increased to
Research and development expenses ("R&D expenses") decreased by 17.2% to
Other income was
Income from operations was
Interest expense was
Financial expense, net was
Income before income tax expenses and equity in earnings of affiliated companies increased by 37.2% to
Equity in losses of affiliated companies was
Income tax expense was
Net income attributable to parent company's common shareholders was
The weighted average number of diluted common shares outstanding was 30,185,702 in the first quarter of 2024 compared to 30,193,082 in the first quarter of 2023.
Balance Sheet
As of
Business Outlook
Management has reiterated revenue guidance for the full fiscal year 2024 of
Conference Call
Management will conduct a conference call on
Phone Number: +1-888-506-0062 (
Phone Number: +1-973-528-0011 (International)
Mainland
A replay of the call will be available on the Company's website under the investor relations section.
About
Based in
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. 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 Annual Report on Form 10-K as filed with the
For further information, please contact:
Chief Financial Officer
jieli@chl.com.cn
+1-212-510-8922
Kevin@awakenlab.com
-Tables Follow –
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Condensed Unaudited Consolidated Balance Sheets |
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(In thousands of USD unless otherwise indicated) |
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|
|
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|
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ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
112,557 |
|
$ |
114,660 |
Pledged cash |
|
|
44,028 |
|
|
40,534 |
Accounts and notes receivable, net - unrelated parties |
|
|
255,119 |
|
|
261,237 |
Accounts and notes receivable, net - related parties |
|
|
11,599 |
|
|
8,169 |
Inventories |
|
|
109,082 |
|
|
112,392 |
Other current assets |
|
|
38,047 |
|
|
27,083 |
Total current assets |
|
|
570,432 |
|
|
564,075 |
Non-current assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
99,395 |
|
|
101,359 |
Land use rights, net |
|
|
9,151 |
|
|
9,233 |
Long-term investments |
|
|
59,278 |
|
|
60,173 |
Other non-current assets |
|
|
32,416 |
|
|
31,600 |
Total assets |
|
$ |
770,672 |
|
$ |
766,440 |
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term loans |
|
$ |
40,471 |
|
$ |
48,005 |
Accounts and notes payable-unrelated parties |
|
|
228,705 |
|
|
240,739 |
Accounts and notes payable-related parties |
|
|
14,265 |
|
|
12,839 |
Accrued expenses and other payables |
|
|
44,839 |
|
|
44,771 |
Other current liabilities |
|
|
35,409 |
|
|
37,385 |
Total current liabilities |
|
|
363,689 |
|
|
383,739 |
Long-term liabilities: |
|
|
|
|
|
|
Long-term tax payable |
|
|
8,781 |
|
|
8,781 |
Other non-current liabilities |
|
|
5,360 |
|
|
5,498 |
Total liabilities |
|
$ |
377,830 |
|
$ |
398,018 |
|
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
Redeemable non-controlling interests |
|
|
621 |
|
|
613 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock, |
|
$ |
3 |
|
$ |
3 |
Additional paid-in capital |
|
|
69,722 |
|
|
63,731 |
Retained earnings- |
|
|
|
|
|
|
Appropriated |
|
|
12,174 |
|
|
11,851 |
Unappropriated |
|
|
292,776 |
|
|
284,832 |
Accumulated other comprehensive income |
|
|
(8,558) |
|
|
(8,258) |
|
|
|
(7,695) |
|
|
(7,695) |
Total parent company stockholders' equity |
|
|
358,422 |
|
|
344,464 |
Non-controlling interests |
|
|
33,799 |
|
|
23,345 |
Total stockholders' equity |
|
|
392,221 |
|
|
367,809 |
Total liabilities, mezzanine equity and stockholders' equity |
|
$ |
770,672 |
|
$ |
766,440 |
|
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Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income |
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(In thousands of USD, except share and per share amounts) |
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|
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|
|
Three Months Ended |
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|
|
2024 |
|
2023 |
||
Net product sales ( |
|
$ |
139,394 |
|
$ |
142,243 |
Cost of products sold ( |
|
|
115,325 |
|
|
120,625 |
Gross profit |
|
|
24,069 |
|
|
21,618 |
Gain on other sales |
|
|
514 |
|
|
653 |
Less: Operating expenses |
|
|
|
|
|
|
Selling expenses |
|
|
4,073 |
|
|
3,384 |
General and administrative expenses |
|
|
5,547 |
|
|
4,753 |
Research and development expenses |
|
|
5,312 |
|
|
6,390 |
Total operating expenses |
|
|
14,932 |
|
|
14,527 |
Income from operations |
|
|
9,651 |
|
|
7,744 |
Other income, net |
|
|
2,403 |
|
|
1,502 |
Interest expense |
|
|
(258) |
|
|
(249) |
Financial expense, net |
|
|
(12) |
|
|
(422) |
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
11,784 |
|
|
8,575 |
Less: Income taxes |
|
|
1,743 |
|
|
829 |
Add: Equity in (losses)/earnings of affiliated companies |
|
|
(777) |
|
|
137 |
Net income |
|
|
9,264 |
|
|
7,883 |
Less: Net income attributable to non-controlling interests |
|
|
989 |
|
|
1,055 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(8) |
|
|
(8) |
Net income attributable to parent company's common shareholders |
|
$ |
8,267 |
|
$ |
6,820 |
Comprehensive income: |
|
|
|
|
|
|
Net income |
|
$ |
9,264 |
|
$ |
7,883 |
Other comprehensive income: |
|
|
|
|
|
|
Foreign currency translation (loss)/income, net of tax |
|
|
(348) |
|
|
4,554 |
Comprehensive income |
|
|
8,916 |
|
|
12,437 |
Less: Comprehensive income attributable to non-controlling interests |
|
|
941 |
|
|
1,321 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(8) |
|
|
(8) |
Comprehensive income attributable to parent company |
|
$ |
7,967 |
|
$ |
11,108 |
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
Basic |
|
$ |
0.27 |
|
$ |
0.23 |
Diluted |
|
$ |
0.27 |
|
$ |
0.23 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - |
|
|
|
|
|
|
Basic |
|
|
30,185,702 |
|
|
30,185,702 |
Diluted |
|
|
30,185,702 |
|
|
30,193,082 |
|
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Condensed Unaudited Consolidated Statements of Cash Flows |
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(In thousands of USD unless otherwise indicated) |
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|
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|
|
Three Months Ended |
||||
|
|
2024 |
|
2023 |
||
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
9,264 |
|
$ |
7,883 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,114 |
|
|
4,856 |
Reversal of credit losses |
|
|
(114) |
|
|
(217) |
Deferred income taxes |
|
|
136 |
|
|
1,019 |
Equity in losses/(earnings) of affiliated companies |
|
|
777 |
|
|
(137) |
Loss on disposal of property, plant and equipment |
|
|
670 |
|
|
15 |
(Increase)/decrease in: |
|
|
|
|
|
|
Accounts and notes receivable |
|
|
2,335 |
|
|
(17,383) |
Inventories |
|
|
3,109 |
|
|
8,285 |
Other current assets |
|
|
1,091 |
|
|
(1,206) |
Increase/(decrease) in: |
|
|
|
|
|
|
Accounts and notes payable |
|
|
(10,157) |
|
|
1,360 |
Accrued expenses and other payables |
|
|
96 |
|
|
(2,868) |
Other current liabilities |
|
|
(1,870) |
|
|
(3,023) |
Net cash provided by/(used in) operating activities |
|
|
10,451 |
|
|
(1,416) |
Cash flows from investing activities: |
|
|
|
|
|
|
Increase in demand loans included in other non-current assets |
|
|
— |
|
|
(14) |
Cash received from disposal of property, plant and equipment sales |
|
|
108 |
|
|
31 |
Payments to acquire property, plant and equipment (including |
|
|
(4,493) |
|
|
(3,160) |
Payments to acquire intangible assets |
|
|
(18) |
|
|
— |
Investments under the equity method |
|
|
— |
|
|
(5,841) |
Purchase of short-term investments |
|
|
(14,534) |
|
|
(34,795) |
Proceeds from maturities of short-term investments |
|
|
2,370 |
|
|
26,541 |
Cash received from long-term investments |
|
|
84 |
|
|
557 |
Net cash used in investing activities |
|
|
(16,483) |
|
|
(16,681) |
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from bank loans |
|
|
34,347 |
|
|
20,135 |
Repayments of bank loans |
|
|
(41,866) |
|
|
(20,534) |
Cash received from capital contributions of a non-controlling interest |
|
|
15,504 |
|
|
— |
Net cash provided by/(used in) financing activities |
|
|
7,985 |
|
|
(399) |
Effects of exchange rate on cash, cash equivalents and pledged cash |
|
|
(562) |
|
|
2,428 |
Net increase/(decrease) in cash, cash equivalents and pledged cash |
|
|
1,391 |
|
|
(16,068) |
Cash, cash equivalents and pledged cash at beginning of the period |
|
|
155,194 |
|
|
158,951 |
Cash, cash equivalents and pledged cash at end of the period |
|
$ |
156,585 |
|
$ |
142,883 |
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