Company Announcements

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 March 31, 

2025

2024

Net product sales ($11,493 and $11,360 sold to related parties for the three
months ended March 31, 2025 and 2024)

$

167,094

$

139,394

Cost of products sold ($7,775 and $6,968 purchased from related parties for
the three months ended March 31, 2025 and 2024)

138,509

115,325

Gross profit

28,585

24,069

Gain on other sales

1,151

514

Less: Operating expenses

Selling expenses

4,818

4,073

General and administrative expenses 

7,565

5,547

Research and development expenses

8,713

5,312

Total operating expenses

21,096

14,932

Income from operations

8,640

9,651

Other income, net

1,941

2,403

Interest expense

(483)

(258)

Financial income/(expense), net

1,978

(12)

Income before income tax expenses and equity in losses of affiliated
companies

12,076

11,784

Less: Income taxes

2,937

1,743

Add: Equity in losses of affiliated companies

(684)

(777)

Net income

8,455

9,264

Less: Net income attributable to non-controlling interests

1,333

989

Accretion to redemption value of redeemable non-controlling interests

—

(8)

Net income attributable to parent company's common shareholders

$

7,122

$

8,267

Comprehensive income:

Net income

$

8,455

$

9,264

Other comprehensive income:

Foreign currency translation gain/(loss), net of tax

920

(348)

Comprehensive income

9,375

8,916

Less: Comprehensive income attributable to non-controlling interests

1,396

941

Accretion to redemption value of redeemable non-controlling interests

—

(8)

Comprehensive income attributable to parent company

$

7,979

$

7,967

Net income attributable to parent company's common shareholders per share -

Basic

$

0.24

$

0.27

Diluted

$

0.24

$

0.27

Weighted average number of common shares outstanding -

Basic

30,170,702

30,185,702

Diluted

30,170,702

30,185,702

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Balance Sheets

(In thousands of USD unless otherwise indicated)

March 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$

65,237

$

56,961

Pledged cash

46,030

44,863

Accounts and notes receivable, net - unrelated parties

305,968

329,275

Accounts and notes receivable, net - related parties

17,586

14,224

Inventories

122,440

112,558

Other current assets

39,527

44,757

Total current assets

596,788

602,638

Non-current assets:

Property, plant and equipment, net

108,079

103,820

Land use rights, net

9,276

8,835

Long-term investments

63,492

64,332

Other non-current assets

67,717

70,954

Total assets

$

845,352

$

850,579

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS'
EQUITY

Current liabilities:

Short-term loans 

$

66,724

$

72,566

Accounts and notes payable-unrelated parties

269,741

281,065

Accounts and notes payable-related parties

12,858

11,743

Accrued expenses and other payables

60,326

59,238

Other current liabilities

32,392

31,870

Total current liabilities

442,041

456,482

Long-term liabilities:

Other non-current liabilities

4,147

4,308

Total liabilities

$

446,188

$

460,790

Stockholders' equity:

Common stock, $0.0001 par value – Authorized – 80,000,000 shares;
Issued – 32,338,302 and 32,338,302 shares as of March 31, 2025 and
December 31, 2024, respectively, including treasury stock

$

3

$

3

Additional paid-in capital

69,656

69,656

Retained earnings-

Appropriated

13,668

12,180

Unappropriated

295,907

290,273

Accumulated other comprehensive income

(13,923)

(14,780)

Treasury stock – 2,167,600 and 2,167,600 shares as of March 31,
2025 and December 31, 2024, respectively

(7,763)

(7,763)

Total parent company stockholders' equity

357,548

349,569

Non-controlling interests

41,616

40,220

Total stockholders' equity

399,164

389,789

Total liabilities and stockholders' equity

$

845,352

$

850,579

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands of USD unless otherwise indicated)

Three months Ended March 31,

2025

2024

Cash flows from operating activities:

Net income

$

8,455

$

9,264

Adjustments to reconcile net income from operations to net cash
provided by operating activities:

Depreciation and amortization

4,644

5,114

Addition/(reversal) of credit losses

222

(114)

Deferred income taxes

—

136

Equity in losses of affiliated companies

684

777

Impairment loss on property, plant and equipment

657

—

Loss on property, plant and equipment disposals

484

670

(Increase)/decrease in:

Accounts and notes receivable

20,412

2,335

Inventories

(9,729)

3,109

Other current assets and other non-current assets

1,406

1,091

Increase/(decrease) in:

Accounts and notes payable

(10,628)

(10,157)

Accrued expenses and other payables

954

96

Other current liabilities

529

(1,870)

Net cash provided by operating activities

18,090

10,451

Cash flows from investing activities:

Cash received from property, plant and equipment sales

393

108

Payments to acquire property, plant and equipment (including
$2,572 and $1,615 paid to related parties for the three months ended
March 31, 2025 and 2024, respectively)

(10,302)

(4,493)

Payments to acquire intangible assets

—

(18)

Purchase of short-term investments and long-term time deposits

(8,733)

(14,534)

Proceeds from maturities of short-term investments

15,244

2,370

Cash received from long-term investments

176

84

Net cash used in investing activities

(3,222)

(16,483)

Cash flows from financing activities:

Proceeds from bank loans

35,464

34,347

Repayments of bank loans

(41,471)

(41,866)

Cash received from capital contributions of a non-controlling
interest

—

15,504

Net cash (used in)/provided by financing activities

(6,007)

7,985

Effects of exchange rate on cash, cash equivalents and pledged cash

582

(562)

Net increase in cash, cash equivalents and pledged cash

9,443

1,391

Cash, cash equivalents and pledged cash at beginning of the period

101,824

155,194

Cash, cash equivalents and pledged cash at end of the period

$

111,267

$

156,585