China Automotive Systems Reports a 29.2% Increase in Diluted Earnings Per Share Growth in the Third Quarter of 2023

In the third quarter of 2023, net sales increased slightly to $137.5 million, compared to $137.2 million in the same quarter of 2022. The increase in net product sales was due to an increase of EPS net product sales and steering columns compared to the third quarter of 2022. EPS net sales were $45.7 million, or 33.2% of net sales, compared to $44.8 million, or 32.6% of net sales, in the third quarter of 2022. Net product sales to North America were $27.6 million, compared to $29.5 million in the third quarter of 2022, primarily due to lower product sales. Net product sales in Brazil rose by 15.7% to $13.3 million due to higher demand.

Gross profit increased by 18.7% to $24.8 million in the third quarter of 2023, compared to $20.9 million in the third quarter of 2022. Gross margin was 18.0%, compared to 15.2% for the same period of 2022, mainly due to a change in product mix and a decrease in unit cost. 

Selling expenses declined by 5.0% to $3.8 million from $4.0 million in the third quarter of 2022. Selling expenses represented 2.8% of net sales in the third quarter of 2023, compared to 2.9% in the third quarter of 2022.

General and administrative expenses ("G&A expenses") increased by 24.5% to $6.1 million in the third quarter of 2023, compared to $4.9 million in the same quarter of 2022. The increase was primarily due to higher marketing and office expenses, a one-time expense for the Company's 30^th anniversary celebrations and the impact of the appreciation of the USD against the RMB. G&A expenses represented 4.4% of net sales in the third quarter of 2023, compared to 3.6% of net sales in the third quarter of 2022.

Research and development expenses ("R&D expenses") decreased by 27.4% to $6.9 million in the third quarter of 2023, compared to $9.5 million in the third quarter of 2022. R&D expenses represented 5.0% of net sales in the third quarter of 2023, compared to 6.9% of net sales in the third quarter of 2022. Lower R&D expenses were primarily due to higher R&D expenses in the third quarter of 2022 for the development of iRCB, eRCB and REPS new products.

Income from operations increased by 108.2% year-over-year to $10.2 million, compared to $4.9 million in the third quarter of 2022. Higher income from operations was mainly due to increased gross profit and an 8.2% year-over-year reduction in operating expenses in the third quarter of 2023.

Other income was $1.2 million in the third quarter of 2023, compared to $0.7 million in the third quarter of 2022, primarily due to more government subsidies received in the third quarter of 2023.

Net financial income was $0.2 million in the third quarter of 2023, compared to net financial income of $4.8 million in the third quarter of 2022, mainly due to a decrease in the foreign exchange gain due to the foreign exchange volatility. 

Income before income tax expenses and equity in earnings of affiliated companies increased by 12.0% to $11.2 million in the third quarter of 2023, compared to income before income tax expenses and equity in earnings of affiliated companies of $10.0 million in the third quarter of 2022. The higher income before income tax expenses and equity in earnings of affiliated companies was mainly due to increased income from operations compared to the third quarter of 2022.

Income tax expense was $0.7 million in the third quarter of 2023, compared to an income tax expense of $0.9 million for the third quarter of 2022, which was mainly due to a valuation allowance recognized in the third quarter of 2022.

Net income attributable to parent company's common shareholders was $9.5 million in the third quarter of 2023, compared to net income attributable to parent company's common shareholders of $7.5 million in the third quarter of 2022. Diluted income per share increased by 29.2% to $0.31 in the third quarter of 2023, compared to diluted income per share of $0.24 in the third quarter of 2022.

The weighted average number of diluted common shares outstanding was 30,189,363 in the third quarter of 2023, compared to 30,640,260 in the third quarter of 2022.

First Nine Months of 2023

Net sales for the first nine months of 2023 increased by 4.1% to $417.2 million compared to $400.8 million in the first nine months of 2022. Gross profit for the first nine months of 2023 increased by 18.3% to $69.1 million, compared to $58.4 million in the corresponding period last year. Gross margin for the first nine months of 2023 was 16.6%, compared to 14.6% for the corresponding period in 2022. For the nine months ended September 30, 2023, gain on other sales amounted to $3.6 million, compared to $5.3 million for the corresponding period in 2022. Income from operations increased 144.8% to $25.7 million compared to income from operations of $10.5 million in the first nine months of 2022.

Net income attributable to parent company's common shareholders was $26.8 million, compared to net income attributable to parent company's common shareholders of $16.8 million in the corresponding period last year. Diluted income per share was $0.89 in the first nine months of 2023, compared to diluted income per share of $0.55 for the corresponding period in 2022.

As of September 30, 2023, total cash and cash equivalents and pledged cash deposits were $135.1 million. Total accounts receivable, including notes receivable, were $241.5 million. Accounts payable, including notes payable, were $222.1 million. Total parent company stockholders' equity was $328.6 million as of September 30, 2023, compared to $311.7 million as of December 31, 2022. 

Net cash provided by operating activities was $10.7 million in the first nine months of 2023, compared to net cash provided by operating activities of $31.7 million in the first nine months of 2022. Payments to acquire property, plant and equipment were $12.2 million, compared to $11.8 million in the first nine months of 2022.

Business Outlook

Management reiterates its revenue guidance of $560 million for the full year 2023. This target is based on the Company's current views on operating and market conditions, which are subject to change.

Conference Call

Management will conduct a conference call on November 10, 2023 at 8:00 A.M. EST/9:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management's presentation. To participate, please see the dial-in information below, enter the call 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference with pin 235512.

Phone Number: +1-888-506-0062 (North America)
Phone Number: +1-973-528-0011 (International)
Mainland China Toll Free: +86-400-120-3199

A replay of the call will be available on the Company's website under the investor relations section.

About China Automotive Systems, Inc.

Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 6 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Fiat Chrysler Automobiles ("FCA") and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com.

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 Securities and Exchange Commission on March 30, 2023, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

For further information, please contact:

Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn

Kevin Theiss
Investor Relations
+1-212-510-8922
Email: 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 September 30,
		2023			2022
Net product sales ($8,407 and $11,181 sold to related parties for the three months   ended September 30, 2023 and 2022)		$	137,541		$	137,207
Cost of products sold ($6,266 and $7,689 purchased from related parties for the three   months ended September 30, 2023 and 2022)			112,784			116,289
Gross profit			24,757			20,918
Gain on other sales			2,177			2,290
Less: Operating expenses
Selling expenses			3,803			3,978
General and administrative expenses			6,108			4,893
Research and development expenses			6,870			9,450
Total operating expenses			16,781			18,321
Income from operations			10,153			4,887
Other income, net			1,155			744
Interest expense			(245)			(384)
Financial income, net			163			4,760
Income before income tax expenses and equity in earnings of affiliated companies			11,226			10,007
Less: Income taxes			688			899
Add: Equity in earnings/(loss) of affiliated companies			706			(1,101)
Net income			11,244			8,007
Less: Net income attributable to non-controlling interests			1,749			529 Werbung Mehr Nachrichten zur China Automotive Systems Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08.05.24 - PR Newswire Fidelity Emerging Markets Ltd - Transaction in Own Shares 08.05.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Mattioli Woods plc 08.05.24 - Mining Investor Vor Neubewertung: Kupfer-Geheimtipp veröffentlich in dieser Sekunde sensationelle Bohrergebnisse Vor Neubewertung:    Kupfer-Geheimtipp veröffentlich in dieser Sekunde sensationelle Bohrergebnisse weiterlesen» Anzeige wo-site-teaser-box-16881_site-teaser-box_2024-05-08_09%253A00%253A00_2024-05-09_09%253A00%253A59