China Automotive Systems Reports Income From Operations Increased by 38.7% in the Second Quarter of 2024
Second Quarter 2024 Highlights
- Net sales rose 15.4% year-over-year to
$158.6 million from$137.4 million in the second quarter of 2023. - Gross profit increased by 29.0% year-over-year to
$29.3 million from$22.7 million in the second quarter of 2023; gross margin increased to 18.5% in the second quarter of 2024 from 16.5% in the second quarter of 2023 - Income from operations increased by 38.7% year-over-year to
$10.8 million , from income from operations of$7.8 million in the second quarter of 2023. - Net income attributable to parent company's common shareholders was
$7.1 million , or diluted earnings per share of$0.24 .
First Six Months of 2024 Highlights
- Net sales grew by 6.6% year-over-year to
$298.0 million , compared to$279.7 million in the first six months of 2023. - Gross profit increased by 20.4% year-over-year to
$53.4 million , compared to$44.3 million in the first six months of 2023; gross margin increased to 17.9% in the first six months of 2024 from 15.9% in the same period last year - Income from operations rose by 31.7% year-over-year to
$20.5 million compared to income from operations of$15.5 million in the first six months of 2023. - Net income attributable to parent company's common shareholders was
$15.4 million . - Diluted earnings per share attributable to parent company's common shareholders was
$0.51 . - Cash and cash equivalents, and pledged cash were
$148.4 million , or approximately$4.92 per share, as ofJune 30, 2024 . - A special cash dividend of
$0.80 per common share has been declared for shareholders of record onJuly 30, 2024 .
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We are pleased to report strong top line growth and accelerating margin expansion. Sales growth was led by an increase of 33.7% in sales of Electric Power Steering ("EPS") products in the second quarter of 2024, which now accounts for one-third of our total sales."
"According to statistics from the
"Based on our recent financial performance, current financial condition, expected cash requirements and future free cash-flow generation, we rewarded our shareholders with a special cash dividend of
Mr.
Second Quarter of 2024
Net sales increased by 15.4% year-over-year to
Gross profit grew by 29.0% year-over-year to
Gain on other sales was
Selling expenses increased by 21.6% year-over-year to
General and administrative expenses ("G&A expenses") increased by 40.7% year-over-year to
Research and development expenses ("R&D expenses") increased by 23.9% year-over-year to
Other income was
Income from operations rose 38.7% to
Interest expense was
Net financial expense 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 was
The weighted average number of diluted common shares outstanding was 30,185,702 in the second quarter of 2024, compared to 30,189,537 in the second quarter of 2023.
First Six Months of 2024
Net sales increased by 6.6% year-over-year to
Net income attributable to parent company's common shareholders was
Balance Sheet
As of
Business Outlook
Management has reiterated its revenue guidance for the full 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
Code: 748049
A replay of the call will be available on the Company's website under the investor relations section.
About
Based in Hubei Province,
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
+1-212-521-4050
Kevin@awakenlab.com
-Tables Follow –
China Automotive Systems, Inc. and Subsidiaries |
||||||
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income |
||||||
(In thousands of USD, except share and per share amounts) |
||||||
|
||||||
|
|
Three Months Ended |
||||
|
|
2024 |
|
2023 |
||
Net product sales ( |
|
$ |
158,608 |
|
$ |
137,410 |
Cost of products sold ( |
|
|
129,306 |
|
|
114,692 |
Gross profit |
|
|
29,302 |
|
|
22,718 |
Gain on other sales |
|
|
1,720 |
|
|
742 |
Less: Operating expenses |
|
|
|
|
|
|
Selling expenses |
|
|
4,614 |
|
|
3,794 |
General and administrative expenses |
|
|
7,418 |
|
|
5,271 |
Research and development expenses |
|
|
8,184 |
|
|
6,606 |
Total operating expenses |
|
|
20,216 |
|
|
15,671 |
Income from operations |
|
|
10,806 |
|
|
7,789 |
Other income, net |
|
|
1,735 |
|
|
1,963 |
Interest expense |
|
|
(183) |
|
|
(276) |
Financial (expense)/income, net |
|
|
(690) |
|
|
3,963 |
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
11,668 |
|
|
13,439 |
Less: Income taxes |
|
|
2,108 |
|
|
1,487 |
Add: Equity in losses of affiliated companies |
|
|
(805) |
|
|
(484) |
Net income |
|
|
8,755 |
|
|
11,468 |
Less: Net income attributable to non-controlling interests |
|
|
1,608 |
|
|
995 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(7) |
|
|
(7) |
Net income attributable to parent company's common shareholders |
|
$ |
7,140 |
|
$ |
10,466 |
Comprehensive income: |
|
|
|
|
|
|
Net income |
|
$ |
8,755 |
|
$ |
11,468 |
Other comprehensive income: |
|
|
|
|
|
|
Foreign currency translation loss, net of tax |
|
|
(2,846) |
|
|
(16,886) |
Comprehensive income/(loss) |
|
|
5,909 |
|
|
(5,418) |
Less: Comprehensive income/(loss) attributable to non-controlling interests |
|
|
1,431 |
|
|
(80) |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(7) |
|
|
(7) |
Comprehensive income/(loss) attributable to parent company |
|
$ |
4,471 |
|
$ |
(5,345) |
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
Basic |
|
$ |
0.24 |
|
$ |
0.35 |
Diluted |
|
$ |
0.24 |
|
$ |
0.35 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - |
|
|
|
|
|
|
Basic |
|
|
30,185,702 |
|
|
30,185,702 |
Diluted |
|
|
30,185,702 |
|
|
30,189,537 |
|
||||||
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income |
||||||
(In thousands of USD, except share and per share amounts) |
||||||
|
||||||
|
|
Six Months Ended |
||||
|
|
2024 |
|
2023 |
||
Net product sales ( |
|
$ |
298,002 |
|
$ |
279,653 |
Cost of products sold ( |
|
|
244,631 |
|
|
235,317 |
Gross profit |
|
|
53,371 |
|
|
44,336 |
Gain on other sales |
|
|
2,234 |
|
|
1,395 |
Less: Operating expenses |
|
|
|
|
|
|
Selling expenses |
|
|
8,687 |
|
|
7,178 |
General and administrative expenses |
|
|
12,965 |
|
|
10,024 |
Research and development expenses |
|
|
13,496 |
|
|
12,996 |
Total operating expenses |
|
|
35,148 |
|
|
30,198 |
Income from operations |
|
|
20,457 |
|
|
15,533 |
Other income, net |
|
|
4,138 |
|
|
3,465 |
Interest expense |
|
|
(441) |
|
|
(525) |
Financial (expense)/income, net |
|
|
(702) |
|
|
3,541 |
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
23,452 |
|
|
22,014 |
Less: Income taxes |
|
|
3,851 |
|
|
2,316 |
Add: Equity in losses of affiliated companies |
|
|
(1,582) |
|
|
(347) |
Net income |
|
|
18,019 |
|
|
19,351 |
Less: Net income attributable to non-controlling interests |
|
|
2,597 |
|
|
2,050 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(15) |
|
|
(15) |
Net income attributable to parent company's common shareholders |
|
$ |
15,407 |
|
$ |
17,286 |
Comprehensive income: |
|
|
|
|
|
|
Net income |
|
$ |
18,019 |
|
$ |
19,351 |
Other comprehensive income: |
|
|
|
|
|
|
Foreign currency translation loss, net of tax |
|
|
(3,194) |
|
|
(12,332) |
Comprehensive income |
|
|
14,825 |
|
|
7,019 |
Less: Comprehensive income attributable to non-controlling interests |
|
|
2,372 |
|
|
1,241 |
Accretion to redemption value of redeemable non-controlling interests |
|
|
(15) |
|
|
(15) |
Comprehensive income attributable to parent company |
|
$ |
12,438 |
|
$ |
5,763 |
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
Basic |
|
$ |
0.51 |
|
$ |
0.57 |
Diluted |
|
$ |
0.51 |
|
$ |
0.57 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - |
|
|
|
|
|
|
Basic |
|
|
30,185,702 |
|
|
30,185,702 |
Diluted |
|
|
30,185,702 |
|
|
30,191,309 |
China Automotive Systems, Inc. and Subsidiaries |
||||||
Condensed Unaudited Consolidated Balance Sheets |
||||||
(In thousands of USD unless otherwise indicated) |
||||||
|
||||||
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
107,094 |
|
$ |
114,660 |
Pledged cash |
|
|
41,291 |
|
|
40,534 |
Accounts and notes receivable, net - unrelated parties |
|
|
271,391 |
|
|
261,237 |
Accounts and notes receivable, net - related parties |
|
|
16,738 |
|
|
8,169 |
Inventories |
|
|
107,438 |
|
|
112,392 |
Other current assets |
|
|
26,112 |
|
|
27,083 |
Total current assets |
|
|
570,064 |
|
|
564,075 |
Non-current assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
100,098 |
|
|
101,359 |
Land use rights, net |
|
|
9,044 |
|
|
9,233 |
Long-term investments |
|
|
57,360 |
|
|
60,173 |
Other non-current assets |
|
|
48,427 |
|
|
31,600 |
Total assets |
|
$ |
784,993 |
|
$ |
766,440 |
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term loans |
|
$ |
46,576 |
|
$ |
48,005 |
Accounts and notes payable-unrelated parties |
|
|
241,183 |
|
|
240,739 |
Accounts and notes payable-related parties |
|
|
12,821 |
|
|
12,839 |
Accrued expenses and other payables |
|
|
46,237 |
|
|
44,771 |
Other current liabilities |
|
|
33,221 |
|
|
37,385 |
Total current liabilities |
|
|
380,038 |
|
|
383,739 |
Long-term liabilities: |
|
|
|
|
|
|
Long-term tax payable |
|
|
— |
|
|
8,781 |
Other non-current liabilities |
|
|
6,204 |
|
|
5,498 |
Total liabilities |
|
$ |
386,242 |
|
$ |
398,018 |
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
Redeemable non-controlling interests |
|
|
628 |
|
|
613 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock, |
|
$ |
3 |
|
$ |
3 |
Additional paid-in capital |
|
|
69,722 |
|
|
63,731 |
Retained earnings- |
|
|
|
|
|
|
Appropriated |
|
|
12,174 |
|
|
11,851 |
Unappropriated |
|
|
299,916 |
|
|
284,832 |
Accumulated other comprehensive income |
|
|
(11,227) |
|
|
(8,258) |
|
|
|
(7,695) |
|
|
(7,695) |
Total parent company stockholders' equity |
|
|
362,893 |
|
|
344,464 |
Non-controlling interests |
|
|
35,230 |
|
|
23,345 |
Total stockholders' equity |
|
|
398,123 |
|
|
367,809 |
Total liabilities, mezzanine equity and stockholders' equity |
|
$ |
784,993 |
|
$ |
766,440 |
China Automotive Systems, Inc. and Subsidiaries |
||||||
Condensed Unaudited Consolidated Statements of Cash Flows |
||||||
(In thousands of USD unless otherwise indicated) |
||||||
|
||||||
|
|
Six months Ended |
||||
|
|
2024 |
|
2023 |
||
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
18,019 |
|
$ |
19,351 |
Adjustments to reconcile net income from operations to net cash provided |
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,868 |
|
|
9,528 |
Reversal of credit losses |
|
|
9 |
|
|
(459) |
Deferred income taxes |
|
|
— |
|
|
237 |
Equity in losses of affiliated companies |
|
|
1,582 |
|
|
347 |
Loss on disposal of property, plant and equipment |
|
|
773 |
|
|
15 |
(Increase)/decrease in: |
|
|
|
|
|
|
Accounts and notes receivable |
|
|
(20,451) |
|
|
(18,323) |
Inventories |
|
|
4,271 |
|
|
8,355 |
Other current assets |
|
|
3,654 |
|
|
(904) |
Increase/(decrease) in: |
|
|
|
|
|
|
Accounts and notes payable |
|
|
1,994 |
|
|
(10,323) |
Accrued expenses and other payables |
|
|
1,134 |
|
|
(604) |
Long-term taxes payable |
|
|
(7,025) |
|
|
(5,268) |
Other current liabilities |
|
|
(4,697) |
|
|
(2,004) |
Net cash provided by/(used in) operating activities |
|
|
9,131 |
|
|
(52) |
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 |
|
|
607 |
|
|
582 |
Payments to acquire property, plant and equipment (including |
|
|
(10,016) |
|
|
(5,438) |
Payments to acquire intangible assets |
|
|
(332) |
|
|
(2,361) |
Investments under the equity method |
|
|
— |
|
|
(7,729) |
Purchase of short-term investments |
|
|
(40,054) |
|
|
(40,491) |
Proceeds from maturities of short-term investments |
|
|
20,626 |
|
|
30,822 |
Cash received from long-term investments |
|
|
937 |
|
|
583 |
Net cash used in investing activities |
|
|
(28,232) |
|
|
(24,046) |
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from bank loans |
|
|
47,054 |
|
|
34,280 |
Repayments of bank loans |
|
|
(48,384) |
|
|
(39,836) |
Cash received from capital contributions of a non-controlling interest |
|
|
15,504 |
|
|
— |
Net cash provided by/(used in) financing activities |
|
|
14,174 |
|
|
(5,556) |
Effects of exchange rate on cash, cash equivalents and pledged cash |
|
|
(1,882) |
|
|
(3,756) |
Net decrease in cash, cash equivalents and pledged cash |
|
|
(6,809) |
|
|
(33,410) |
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 |
|
$ |
148,385 |
|
$ |
125,541 |
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