China Automotive Systems Reports Income From Operations Increased by 20.2% in the Second Quarter of 2025
Second Quarter 2025 Highlights
- Net sales rose 11.1% year-over-year to
$176.2 million from$158.6 million in the second quarter of 2024. - Sales in
Brazil grew 49.4% year-over-year, representing 10.1% of total net sales. - Gross profit increased by 4.2% year-over-year to
$30.5 million from$29.3 million in the second quarter of 2024; gross profit margin was 17.3% in the second quarter of 2025. - Income from operations increased by 20.2% year-over-year to
$13.0 million , from income from operations of$10.8 million in the second quarter of 2024. - Net income attributable to parent company's common shareholders increased 6.8% to
$7.6 million from$7.1 million , in the second quarter of 2024. - Diluted earnings per share attributable to parent company's common shareholders was
$0.25 compared with$0.24 in the second quarter of 2024.
First Six Months of 2025 Highlights
- Net sales grew by 15.2% year-over-year to
$343.3 million , compared to$298.0 million in the first six months of 2024. - Gross profit increased by 10.8% year-over-year to
$59.1 million , compared to$53.4 million in the first six months of 2024; gross profit margin was 17.2% in the first six months of 2025. - Income from operations rose by 5.7% year-over-year to
$21.6 million compared to income from operations of$20.5 million in the first six months of 2024. - Net income attributable to parent company's common shareholders decreased to
$14.7 million from$15.4 million in the first six months of 2024. - Diluted earnings per share attributable to parent company's common shareholders was
$0.49 compared with$0.51 in the first six months of 2024. - Cash, cash equivalents and short-term investments were
$135.3 million , or approximately$4.48 per share, as ofJune 30, 2025 .
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We continued to grow our sales, gross profit, net profit and cashflow in the second quarter of 2025. Sales of our traditional steering products remained steady while sales of our Electric Power Steering ("EPS") products grew by 31.1% year over year in the second quarter of 2025. EPS sales have continuously increased and now represent 41.4% percent of our product sales in the second quarter of 2025."
"We continue to transition to more technology-focused advanced steering products. In the second quarter of 2025, based on our iRCB's (intelligent electro-hydraulic circulating ball power steering) performance and cost-efficiency, new orders in July were at a record setting pace in the power steering industry for the ramp up to mass production. Our second-generation iRCB is compatible with L2+assisted driving. By optimizing energy consumption, iRCB products are projected to reduce vehicle operational costs creating substantial economic value."
"The high quality and high performance of our steering products have allowed us to become the tier-1 supplier to large global OEM customers in
Mr.
Second Quarter of 2025
Net sales increased by 11.1% year-over-year to
Gross profit grew by 4.2% year-over-year to
Gain on other sales was
Selling expenses at
General and administrative expenses ("G&A expenses") decreased to
Research and development expenses ("R&D expenses") were stable at
Other income was
Income from operations rose 20.2% to
Interest expense was
Net 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 was
The weighted average number of diluted common shares outstanding was 30,170,702 in the second quarter of 2025, compared to 30,185,702 in the second quarter of 2024.
First Six Months of 2025
Net sales increased by 15.2% year-over-year to
Net income attributable to parent company's common shareholders was
Balance Sheet
Cash, cash equivalents and short-term investments were
Business Outlook
Management has raised revenue guidance for the full fiscal year 2025 to
Conference Call
Management will conduct a conference call on
Toll Free: 888-506-0062
International: 973-528-0011
A replay of the call will be available on the Company's website in 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 –
|
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 |
||||
|
|
|
2025 |
|
2024 |
||
|
Net product sales ( |
|
$ |
176,245 |
|
$ |
158,608 |
|
Cost of products sold ( |
|
|
145,698 |
|
|
129,306 |
|
Gross profit |
|
|
30,547 |
|
|
29,302 |
|
Gain on other sales |
|
|
455 |
|
|
1,720 |
|
Less: Operating expenses |
|
|
|
|
|
|
|
Selling expenses |
|
|
4,514 |
|
|
4,614 |
|
General and administrative expenses |
|
|
5,412 |
|
|
7,418 |
|
Research and development expenses |
|
|
8,092 |
|
|
8,184 |
|
Total operating expenses |
|
|
18,018 |
|
|
20,216 |
|
Income from operations |
|
|
12,984 |
|
|
10,806 |
|
Other income, net |
|
|
1,060 |
|
|
1,735 |
|
Interest expense |
|
|
(292) |
|
|
(183) |
|
Financial income/(expense), net |
|
|
1,327 |
|
|
(690) |
|
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
15,079 |
|
|
11,668 |
|
Less: Income taxes |
|
|
4,049 |
|
|
2,108 |
|
Add: Equity in losses of affiliated companies |
|
|
(658) |
|
|
(805) |
|
Net income |
|
|
10,372 |
|
|
8,755 |
|
Less: Net income attributable to non-controlling interests |
|
|
2,747 |
|
|
1,608 |
|
Accretion to redemption value of redeemable non-controlling interests |
|
|
— |
|
|
(7) |
|
Net income attributable to parent company's common shareholders |
|
$ |
7,625 |
|
$ |
7,140 |
|
Comprehensive income: |
|
|
|
|
|
|
|
Net income |
|
$ |
10,372 |
|
$ |
8,755 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
Foreign currency translation gain/(loss), net of tax |
|
|
1,342 |
|
|
(2,846) |
|
Comprehensive income |
|
|
11,714 |
|
|
5,909 |
|
Less: Comprehensive income attributable to non-controlling interests |
|
|
2,887 |
|
|
1,431 |
|
Accretion to redemption value of redeemable non-controlling interests |
|
|
— |
|
|
(7) |
|
Comprehensive income attributable to parent company |
|
$ |
8,827 |
|
$ |
4,471 |
|
|
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
|
Basic |
|
$ |
0.25 |
|
$ |
0.24 |
|
Diluted |
|
$ |
0.25 |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - |
|
|
|
|
|
|
|
Basic |
|
|
30,170,702 |
|
|
30,185,702 |
|
Diluted |
|
|
30,170,702 |
|
|
30,185,702 |
|
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (In thousands of USD, except share and per share amounts) |
||||||
|
|
||||||
|
|
|
Six Months Ended |
||||
|
|
|
2025 |
|
2024 |
||
|
Net product sales ( |
|
$ |
343,339 |
|
$ |
298,002 |
|
Cost of products sold ( |
|
|
284,207 |
|
|
244,631 |
|
Gross profit |
|
|
59,132 |
|
|
53,371 |
|
Gain on other sales |
|
|
1,606 |
|
|
2,234 |
|
Less: Operating expenses |
|
|
|
|
|
|
|
Selling expenses |
|
|
9,332 |
|
|
8,687 |
|
General and administrative expenses |
|
|
12,977 |
|
|
12,965 |
|
Research and development expenses |
|
|
16,805 |
|
|
13,496 |
|
Total operating expenses |
|
|
39,114 |
|
|
35,148 |
|
Income from operations |
|
|
21,624 |
|
|
20,457 |
|
Other income, net |
|
|
3,001 |
|
|
4,138 |
|
Interest expense |
|
|
(775) |
|
|
(441) |
|
Financial income/(expense), net |
|
|
3,305 |
|
|
(702) |
|
Income before income tax expenses and equity in earnings of affiliated companies |
|
|
27,155 |
|
|
23,452 |
|
Less: Income taxes |
|
|
6,986 |
|
|
3,851 |
|
Add: Equity in losses of affiliated companies |
|
|
(1,342) |
|
|
(1,582) |
|
Net income |
|
|
18,827 |
|
|
18,019 |
|
Less: Net income attributable to non-controlling interests |
|
|
4,080 |
|
|
2,597 |
|
Accretion to redemption value of redeemable non-controlling interests |
|
|
— |
|
|
(15) |
|
Net income attributable to parent company's common shareholders |
|
$ |
14,747 |
|
$ |
15,407 |
|
Comprehensive income: |
|
|
|
|
|
|
|
Net income |
|
$ |
18,827 |
|
$ |
18,019 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
Foreign currency translation gain/(loss), net of tax |
|
|
2,262 |
|
|
(3,194) |
|
Comprehensive income |
|
|
21,089 |
|
|
14,825 |
|
Less: Comprehensive income attributable to non-controlling interests |
|
|
4,283 |
|
|
2,372 |
|
Accretion to redemption value of redeemable non-controlling interests |
|
|
— |
|
|
(15) |
|
Comprehensive income attributable to parent company |
|
$ |
16,806 |
|
$ |
12,438 |
|
|
|
|
|
|
|
|
|
Net income attributable to parent company's common shareholders per share - |
|
|
|
|
|
|
|
Basic |
|
$ |
0.49 |
|
$ |
0.51 |
|
Diluted |
|
$ |
0.49 |
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
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 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
102,194 |
|
$ |
56,961 |
|
Pledged cash |
|
|
36,774 |
|
|
44,863 |
|
Accounts and notes receivable, net - unrelated parties |
|
|
279,144 |
|
|
329,275 |
|
Accounts and notes receivable, net - related parties |
|
|
15,064 |
|
|
14,224 |
|
Inventories |
|
|
116,518 |
|
|
112,558 |
|
Other current assets |
|
|
50,271 |
|
|
44,757 |
|
Total current assets |
|
|
599,965 |
|
|
602,638 |
|
Non-current assets: |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
114,705 |
|
|
103,820 |
|
Land use rights, net |
|
|
9,235 |
|
|
8,835 |
|
Long-term investments |
|
|
61,876 |
|
|
64,332 |
|
Other non-current assets |
|
|
57,935 |
|
|
70,954 |
|
Total assets |
|
$ |
843,716 |
|
$ |
850,579 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Short-term loans |
|
$ |
71,946 |
|
$ |
72,566 |
|
Accounts and notes payable-unrelated parties |
|
|
257,418 |
|
|
281,065 |
|
Accounts and notes payable-related parties |
|
|
12,186 |
|
|
11,743 |
|
Accrued expenses and other payables |
|
|
60,002 |
|
|
59,238 |
|
Other current liabilities |
|
|
27,477 |
|
|
31,870 |
|
Total current liabilities |
|
|
429,029 |
|
|
456,482 |
|
Long-term liabilities: |
|
|
|
|
|
|
|
Other non-current liabilities |
|
|
3,809 |
|
|
4,308 |
|
Total liabilities |
|
$ |
432,838 |
|
$ |
460,790 |
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock, |
|
$ |
3 |
|
$ |
3 |
|
Additional paid-in capital |
|
|
69,656 |
|
|
69,656 |
|
Retained earnings- |
|
|
|
|
|
|
|
Appropriated |
|
|
13,668 |
|
|
12,180 |
|
Unappropriated |
|
|
303,532 |
|
|
290,273 |
|
Accumulated other comprehensive income |
|
|
(12,721) |
|
|
(14,780) |
|
|
|
|
(7,763) |
|
|
(7,763) |
|
Total parent company stockholders' equity |
|
|
366,375 |
|
|
349,569 |
|
Non-controlling interests |
|
|
44,503 |
|
|
40,220 |
|
Total stockholders' equity |
|
|
410,878 |
|
|
389,789 |
|
Total liabilities and stockholders' equity |
|
$ |
843,716 |
|
$ |
850,579 |
|
China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Statements of Cash Flows (In thousands of USD unless otherwise indicated) |
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|
|
|
|
||||
|
|
|
Six months Ended |
||||
|
|
|
2025 |
|
2024 |
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
18,827 |
|
$ |
18,019 |
|
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,267 |
|
|
9,868 |
|
(Reversal)/addition of credit losses |
|
|
(159) |
|
|
9 |
|
Equity in losses of affiliated companies |
|
|
1,342 |
|
|
1,582 |
|
Impairment loss on property, plant and equipment |
|
|
657 |
|
|
— |
|
Loss on disposal of property, plant and equipment |
|
|
580 |
|
|
773 |
|
(Increase)/decrease in: |
|
|
|
|
|
|
|
Accounts and notes receivable |
|
|
50,982 |
|
|
(20,451) |
|
Inventories |
|
|
(3,491) |
|
|
4,271 |
|
Other current assets |
|
|
(1,077) |
|
|
3,654 |
|
Increase/(decrease) in: |
|
|
|
|
|
|
|
Accounts and notes payable |
|
|
(24,349) |
|
|
1,994 |
|
Accrued expenses and other payables |
|
|
2,238 |
|
|
1,134 |
|
Long-term taxes payable |
|
|
— |
|
|
(7,025) |
|
Other current liabilities |
|
|
(4,735) |
|
|
(4,697) |
|
Net cash provided by operating activities |
|
|
49,082 |
|
|
9,131 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Cash received from disposal of property, plant and equipment sales |
|
|
522 |
|
|
607 |
|
Payments to acquire property, plant and equipment (including |
|
|
(18,484) |
|
|
(10,016) |
|
Payments to acquire intangible assets |
|
|
(67) |
|
|
(332) |
|
Investment under the equity method |
|
|
(1,112) |
|
|
— |
|
Purchase of short-term investments |
|
|
(23,096) |
|
|
(40,054) |
|
Proceeds from maturities of short-term investments |
|
|
29,570 |
|
|
20,626 |
|
Cash received from long-term investments |
|
|
2,368 |
|
|
937 |
|
Net cash used in investing activities |
|
|
(10,299) |
|
|
(28,232) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from bank loans |
|
|
52,829 |
|
|
47,054 |
|
Repayments of bank loans |
|
|
(53,890) |
|
|
(48,384) |
|
Dividends paid to the common shareholders |
|
|
(1,773) |
|
|
— |
|
Cash received from capital contributions of a non-controlling interest |
|
|
— |
|
|
15,504 |
|
Net cash (used in) / provided by financing activities |
|
|
(2,834) |
|
|
14,174 |
|
Effects of exchange rate on cash, cash equivalents and pledged cash |
|
|
1,195 |
|
|
(1,882) |
|
Net increase/(decrease) in cash, cash equivalents and pledged cash |
|
|
37,144 |
|
|
(6,809) |
|
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 |
|
$ |
138,968 |
|
$ |
148,385 |
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