China Automotive Systems Reports Record Annual Revenue, and a 81.2% Increase in Diluted Net Income Per Share to $1.25 in Fiscal Year 2023
- Electric Power Steering ("EPS") Sales Increased by 24.6% in 2023 -
Fourth Quarter 2023 Highlights
- Net sales increased by 23.6% year-over-year to
$159.2 million - Gross profit increased by 38.8% to
$34.7 million from$25.0 million . Gross margin increased to 21.8% from 19.4% in the fourth quarter of 2022 - Operating income was
$13.6 million , compared with an operating loss of$2.6 million in the fourth quarter of 2022 - Net income attributable to parent company's common shareholders increased by 153.5% to
$10.9 million , or diluted net income per share of$0.36 , compared to net income of$4.3 million , or diluted net income per share of$0.14 in the fourth quarter of 2022.
Fiscal Year 2023 Highlights
- Net sales increased by 8.8% to an annual record of
$576.4 million compared to$529.6 million in 2022 - Gross profit increased by 24.5% to
$103.8 million compared to$83.4 million in 2022. Gross margin increased to 18.0% from 15.7% in 2022 - Operating income increased by 390.0% to
$39.2 million compared to$8.0 million in 2022 - Diluted net income per share increased by 81.2% to
$1.25 in 2023 compared to$0.69 in 2022 - Total cash and cash equivalents, pledged cash and short-term investments were
$166.3 million at year end - Net cash flow provided by operating activities was
$19.9 million in 2023.
Mr.
"In the first two months of 2024, automobile sales in
Mr.
Fourth Quarter of 2023
In the fourth quarter of 2023, net sales increased by 23.6% to
Gross profit increased by 38.8% to
Selling expenses were $4.6 million in the fourth quarter of 2023, which is stable compared with
General and administrative expenses ("G&A expenses") were
Research and development expenses ("R&D expenses") were $9.3 million in the fourth quarter of 2023, compared to
Operating income was
Interest expense was
Financial income was
Income before income tax expenses and equity in earnings of affiliated companies was
Income tax expense was
Net income attributable to parent company's common shareholders rose by 153.5% to
The weighted average number of diluted common shares outstanding was 30,189,421 in the fourth quarter of 2023, compared with 30,229,987 in the fourth quarter of 2022.
Fiscal Year 2023
Net sales increased by 8.8% to
Gross profit in 2023 increased by 24.5% year-over-year to
Net gain on other sales in 2023 increased to
Selling expenses declined by 7.7% year-over-year to
G&A expenses decreased by 2.3% year-over-year to
R&D expenses declined by 19.1% to
Operating income increased by 390.0% to
Interest expense was
Net financial income was
Income before income tax expenses and equity in earnings of affiliated companies rose by 109.6% to
Income tax expense was
Net income attributable to parent company's common shareholders was
The weighted average number of diluted common shares outstanding was 30,189,421 in 2023 compared with 30,641,274 in 2022.
Balance Sheet
As of
Business Outlook
Management provides revenue guidance for the 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
Email: jieli@chl.com.cn
Investor Relations
+1-212-510-8922
Email: Kevin@awakenlab.com
-Tables Follow –
|
||||||
Consolidated Balance Sheets |
||||||
(In thousands of USD, except share and per share amounts) |
||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
114,660 |
|
$ |
121,216 |
Pledged cash |
|
|
40,534 |
|
|
37,735 |
Short-term investments |
|
|
11,084 |
|
|
12,861 |
Accounts and notes receivable, net - unrelated parties (Allowance for credit losses of $14,359, respectively) |
|
|
261,237 |
|
|
214,308 |
Accounts and notes receivable, net - related parties (Allowance for credit losses of |
|
|
8,169 |
|
|
10,016 |
Advance payments and others, net - unrelated parties (Allowance for credit losses of |
|
|
14,008 |
|
|
10,907 |
Advance payments and others - related parties |
|
|
1,991 |
|
|
1,439 |
Inventories |
|
|
112,392 |
|
|
112,236 |
Total current assets |
|
|
564,075 |
|
|
520,718 |
Non-current assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
101,359 |
|
|
106,606 |
Land use rights, net |
|
|
9,233 |
|
|
9,555 |
Intangible assets, net |
|
|
3,865 |
|
|
1,273 |
Operating lease assets |
|
|
278 |
|
|
477 |
Long-term time deposits |
|
|
8,647 |
|
|
— |
Other receivables, net (Allowance for credit losses of |
|
|
598 |
|
|
46 |
Advance payment for property, plant and equipment - unrelated parties |
|
|
3,554 |
|
|
6,331 |
Advance payment for property, plant and equipment - related parties |
|
|
5,759 |
|
|
1,884 |
Long-term investments |
|
|
60,173 |
|
|
59,810 |
Deferred tax assets |
|
|
8,899 |
|
|
7,652 |
Total assets |
|
$ |
766,440 |
|
$ |
714,352 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term bank loans |
|
$ |
48,005 |
|
$ |
45,671 |
Accounts and notes payable - unrelated parties |
|
|
240,739 |
|
|
218,412 |
Accounts and notes payable - related parties |
|
|
12,839 |
|
|
16,695 |
Customer deposits |
|
|
8,633 |
|
|
5,654 |
Accrued payroll and related costs |
|
|
11,282 |
|
|
11,628 |
Accrued expenses and other payables |
|
|
44,771 |
|
|
48,311 |
Taxes payable |
|
|
17,267 |
|
|
17,598 |
Operating lease liabilities - current portion |
|
|
203 |
|
|
226 |
Total current liabilities |
|
|
383,739 |
|
|
364,195 |
Long-term liabilities: |
|
|
|
|
|
|
Advances payable |
|
|
282 |
|
|
2,144 |
Operating lease liabilities - non-current portion |
|
|
52 |
|
|
255 |
Long-term loans |
|
|
1,221 |
|
|
528 |
Deferred tax liabilities |
|
|
3,943 |
|
|
4,010 |
Long-term taxes payable |
|
|
8,781 |
|
|
15,805 |
|
|
|
|
|
|
|
Total liabilities |
|
|
398,018 |
|
|
386,937 |
Commitments and Contingencies |
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
Redeemable non-controlling interests |
|
|
613 |
|
|
582 |
Stockholders' Equity |
|
|
|
|
|
|
Common stock, |
|
|
3 |
|
|
3 |
Additional paid-in capital |
|
|
63,731 |
|
|
63,731 |
Retained earnings- |
|
|
|
|
|
|
Appropriated |
|
|
11,851 |
|
|
11,851 |
Unappropriated |
|
|
284,832 |
|
|
247,174 |
Accumulated other comprehensive income |
|
|
(8,258) |
|
|
(3,413) |
|
|
|
(7,695) |
|
|
(7,695) |
Total parent company stockholders' equity |
|
|
344,464 |
|
|
311,651 |
Non-controlling interests |
|
|
23,345 |
|
|
15,182 |
Total stockholders' equity |
|
|
367,809 |
|
|
326,833 |
Total liabilities, mezzanine equity and stockholders' equity |
|
$ |
766,440 |
|
$ |
714,352 |
|
||||||
Consolidated Statements of Income or Loss |
||||||
(In thousands of USD, except share and per share amounts) |
||||||
|
|
|
|
|
|
|
|
|
Year Ended |
||||
|
|
2023 |
|
2022 |
||
Net product sales ( |
|
$ |
576,354 |
|
$ |
529,551 |
Cost of products sold ( |
|
|
472,603 |
|
|
446,157 |
Gross profit |
|
|
103,751 |
|
|
83,394 |
Net gain on other sales |
|
|
5,788 |
|
|
3,696 |
Operating expenses: |
|
|
|
|
|
|
Selling expenses |
|
|
15,610 |
|
|
16,910 |
General and administrative expenses |
|
|
25,503 |
|
|
26,120 |
Research and development expenses |
|
|
29,181 |
|
|
36,109 |
Total operating expenses |
|
|
70,294 |
|
|
79,139 |
Operating income |
|
|
39,245 |
|
|
7,951 |
Other income, net |
|
|
5,345 |
|
|
5,782 |
Interest expense |
|
|
(1,021) |
|
|
(1,450) |
Financial income, net |
|
|
4,666 |
|
|
10,753 |
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
48,235 |
|
|
23,036 |
Less: Income taxes |
|
|
5,137 |
|
|
3,082 |
Add: Equity in (loss)/earnings of affiliated companies |
|
|
(360) |
|
|
2,389 |
Net income |
|
|
42,738 |
|
|
22,343 |
Net income attributable to non-controlling interest |
|
|
5,050 |
|
|
1,132 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(30) |
|
|
(30) |
Net income attributable to parent company's common shareholders |
|
|
37,658 |
|
|
21,181 |
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
Basic |
|
$ |
1.25 |
|
$ |
0.69 |
|
|
|
|
|
|
|
Diluted |
|
$ |
1.25 |
|
$ |
0.69 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - |
|
|
|
|
|
|
Basic |
|
|
30,185,702 |
|
|
30,639,102 |
Diluted |
|
|
30,189,421 |
|
|
30,641,274 |
|
||||||
Consolidated Statements of Comprehensive Income or Loss |
||||||
(In thousands of USD unless otherwise indicated) |
||||||
|
|
|
|
|
|
|
|
|
Year Ended |
||||
|
|
2023 |
|
2022 |
||
Net income |
|
$ |
42,738 |
|
$ |
22,343 |
Other comprehensive income: |
|
|
|
|
|
|
Foreign currency translation loss |
|
|
(5,191) |
|
|
(29,934) |
Comprehensive income/(loss) |
|
|
37,547 |
|
|
(7,591) |
Comprehensive income/(loss) attributable to non-controlling interest |
|
|
4,704 |
|
|
(672) |
Accretion to redemption value of redeemable non-controlling interest |
|
|
(30) |
|
|
(30) |
Comprehensive income/(loss) attributable to parent company |
|
$ |
32,813 |
|
$ |
(6,949) |
|
||||||
Consolidated Statements of Changes in Stockholders' Equity |
||||||
(In thousands of USD, except share and per share amounts) |
||||||
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
||
Common Stock |
|
|
|
|
|
|
Balance at |
|
$ |
3 |
|
$ |
3 |
Balance at |
|
$ |
3 |
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
$ |
63,731 |
|
$ |
63,731 |
Balance at |
|
$ |
63,731 |
|
$ |
63,731 |
|
|
|
|
|
|
|
Retained Earnings - Appropriated |
|
|
|
|
|
|
Balance at |
|
$ |
11,851 |
|
$ |
11,481 |
Appropriation of retained earnings |
|
|
— |
|
|
370 |
Balance at |
|
$ |
11,851 |
|
$ |
11,851 |
|
|
|
|
|
|
|
Unappropriated |
|
|
|
|
|
|
Balance at |
|
$ |
247,174 |
|
$ |
226,363 |
Net income attributable to parent company |
|
|
37,688 |
|
|
21,211 |
Accretion of redeemable non-controlling interests |
|
|
(30) |
|
|
(30) |
Appropriation of retained earnings |
|
|
— |
|
|
(370) |
Balance at |
|
$ |
284,832 |
|
$ |
247,174 |
|
|
|
|
|
|
|
Accumulated Other Comprehensive (Loss)/Income |
|
|
|
|
|
|
Balance at |
|
$ |
(3,413) |
|
$ |
24,717 |
Net foreign currency translation adjustment attributable to parent company |
|
|
(4,845) |
|
|
(28,130) |
Balance at |
|
$ |
(8,258) |
|
$ |
(3,413) |
|
|
|
|
|
|
|
Treasury Stock |
|
|
|
|
|
|
Balance at |
|
$ |
(7,695) |
|
$ |
(5,261) |
Repurchase of common stock in 2023 and 2022 –nil and 666,074 shares, respectively |
|
|
— |
|
|
(2,434) |
Balance at |
|
$ |
(7,695) |
|
$ |
(7,695) |
|
|
|
|
|
|
|
Total parent company stockholders' equity |
|
$ |
344,464 |
|
$ |
311,651 |
|
|
|
|
|
|
|
Non-controlling Interest |
|
|
|
|
|
|
Balance at |
|
$ |
15,182 |
|
$ |
15,854 |
Net foreign currency translation adjustment attributable to non-controlling interest |
|
|
(346) |
|
|
(1,804) |
Net income attributable to non-controlling interest |
|
|
5,050 |
|
|
1,132 |
Contribution by non-controlling shareholder of Wuhan Hyoseong |
|
|
3,459 |
|
|
— |
Balance at |
|
$ |
23,345 |
|
$ |
15,182 |
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
367,809 |
|
$ |
326,833 |
|
||||||
Consolidated Statements of Cash Flows |
||||||
(In thousands of USD unless otherwise indicated) |
||||||
|
|
|
|
|
|
|
|
|
Year Ended |
||||
|
|
2023 |
|
2022 |
||
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
42,738 |
|
$ |
22,343 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
18,708 |
|
|
25,173 |
Deferred income taxes |
|
|
(1,319) |
|
|
1,243 |
Allowance for credit losses |
|
|
1,564 |
|
|
4,404 |
Impairment loss on prepayment for investment in |
|
|
— |
|
|
2,676 |
Equity in (loss)/earnings of affiliates |
|
|
360 |
|
|
(2,389) |
Impairment loss on property, plant and equipment |
|
|
794 |
|
|
— |
(Gain)/loss on disposal of fixed assets |
|
|
(3) |
|
|
58 |
(Increase)/decrease in: |
|
|
|
|
|
|
Accounts and notes receivable |
|
|
(50,699) |
|
|
(36,935) |
Advance payments and others |
|
|
(3,881) |
|
|
(41) |
Inventories |
|
|
(1,654) |
|
|
(5,368) |
Other receivables |
|
|
(556) |
|
|
— |
Increase/(decrease) in: |
|
|
|
|
|
|
Accounts and notes payable |
|
|
22,024 |
|
|
27,271 |
Customer deposits |
|
|
3,091 |
|
|
3,580 |
Accrued payroll and related costs |
|
|
77 |
|
|
1,628 |
Accrued expenses and other payables |
|
|
(2,667) |
|
|
1,158 |
Taxes payable |
|
|
(6,835) |
|
|
2,925 |
Advances payable |
|
|
(1,836) |
|
|
297 |
Net cash provided by operating activities |
|
|
19,906 |
|
|
48,023 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of short-term investments and long-term time deposits |
|
|
(68,550) |
|
|
(80,244) |
Proceeds from maturities of short-term investments |
|
|
63,240 |
|
|
75,144 |
Decrease/(increase) in demand loans and employee housing loans included in other receivables |
|
|
— |
|
|
292 |
Loan to a related party |
|
|
— |
|
|
(146) |
Cash received from property, plant and equipment sales |
|
|
2,790 |
|
|
1,514 |
Cash paid to acquire property, plant and equipment and land use right (including |
|
|
(18,235) |
|
|
(20,296) |
Cash paid to acquire intangible assets |
|
|
(3,445) |
|
|
(188) |
Cash received from long-term investment |
|
|
3,292 |
|
|
3,986 |
Investment under equity method |
|
|
(7,729) |
|
|
(12,802) |
Net cash used in investing activities |
|
|
(28,637) |
|
|
(32,740) |
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from bank loans |
|
|
64,776 |
|
|
51,898 |
Repayment of bank loans and government loans |
|
|
(61,437) |
|
|
(49,917) |
Repurchase of common shares |
|
|
— |
|
|
(2,434) |
Repayments of the borrowing under sale and leaseback transaction |
|
|
— |
|
|
(1,130) |
Cash received from capital contributions by a non-controlling interest holder |
|
|
3,459 |
|
|
— |
Net cash provided by/(used in) financing activities |
|
|
6,798 |
|
|
(1,583) |
|
|
|
|
|
|
|
Cash and cash equivalents affected by foreign currency |
|
|
(1,824) |
|
|
(14,248) |
Net decrease in cash and cash equivalents |
|
|
(3,757) |
|
|
(548) |
Cash, cash equivalents and pledged cash at beginning of year |
|
|
158,951 |
|
|
159,499 |
Cash, cash equivalents and pledged cash at end of year |
|
$ |
155,194 |
|
$ |
158,951 |
|
|
|||||||
Consolidated Statements of Cash Flows (continued) |
|
|||||||
(In thousands of USD unless otherwise indicated) |
|
|||||||
|
|
|||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|||||||
|
|
|||||||
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash paid for interest |
|
$ |
1,145 |
|
|
$ |
1,492 |
|
Cash paid for income taxes |
|
$ |
7,965 |
|
|
$ |
4,044 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: |
||||||||
|
|
|
|
|
|
|
|
|
Non-cash investing activities: |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Property, plant and equipment recorded during the year which previously were advance payments |
|
$ |
2,699 |
|
|
$ |
2,473 |
|
Change in accounts payable for acquiring property, plant and equipment |
|
$ |
960 |
|
|
$ |
985 |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Supplemental disclosure of a cquisition of operating lease assets |
|
$ |
278 |
|
|
$ |
477 |
|
|
|
|
|
|
|
|
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