Financial Performance - Net product sales for the three months ended September 30, 2024, were $164.2 million, an increase of $26.7 million or 19.4% compared to $137.5 million in the same period of 2023, driven by increased sales of electric power steering systems [108]. - Net income for the three months ended September 30, 2024, was $8.1 million, a decrease of $3.2 million or 28.2% compared to $11.2 million in the same period of 2023 [106]. - Net product sales for the nine months ended September 30, 2024, were $462.2 million, an increase of $45.0 million, or 10.8% compared to the same period in 2023 [130]. - Net income attributable to parent company's common shareholders was $5.5 million for the three months ended September 30, 2024, a decrease of $4.0 million compared to $9.5 million for the same period in 2023 [127]. - Net income attributable to parent company's common shareholders decreased by $5.9 million to $20.9 million for the nine months ended September 30, 2024, compared to $26.8 million for the same period in 2023 [150]. Sales and Revenue - Net sales of traditional steering products and parts were $98.6 million for the three months ended September 30, 2024, an increase of $6.8 million, or 7.4% compared to the same period in 2023 [109]. - Net sales of EPS systems and parts were $65.6 million for the three months ended September 30, 2024, representing an increase of $19.9 million, or 43.5% compared to the same period in 2023 [109]. - Net product sales for Henglong were $82.4 million for the three months ended September 30, 2024, an increase of $18.8 million, or 29.6% compared to the same period in 2023 [110]. - Net product sales for Jiulong were $17.2 million for the three months ended September 30, 2024, an increase of $1.6 million, or 10.5% compared to the same period in 2023 [111]. - Net product sales for Wuhu were $13.3 million for the three months ended September 30, 2024, an increase of $1.5 million, or 12.4% compared to the same period in 2023 [112]. - Net product sales for Henglong increased by $28.6 million, or 14.9%, to $221.1 million for the nine months ended September 30, 2024, compared to $192.5 million for the same period in 2023 [132]. - Wuhu's net product sales rose by $4.5 million, or 16.6%, to $31.2 million for the nine months ended September 30, 2024, compared to $26.7 million for the same period in 2023 [134]. - Hubei Henglong's net product sales decreased by $15.3 million, or 16.8%, to $75.9 million for the nine months ended September 30, 2024, compared to $91.2 million for the same period in 2023 [135]. Costs and Expenses - The cost of products sold for the same period was $137.9 million, reflecting an increase of $25.1 million or 22.2% from $112.8 million in 2023 [106]. - Selling expenses increased by 14.6% to $4.4 million for the three months ended September 30, 2024, compared to $3.8 million in 2023 [106]. - General and administrative expenses decreased by 17.0% to $5.1 million for the three months ended September 30, 2024, down from $6.1 million in 2023 [106]. - Research and development expenses for the three months ended September 30, 2024, were $6.4 million, down from $6.9 million in 2023, representing a decrease of 7.1% [106]. - Gross margin was 16.0% for the three months ended September 30, 2024, a decrease of 2.0% compared to 18.0% for the same period in 2023 [122]. - Gross margin improved to 17.2% for the nine months ended September 30, 2024, up from 16.6% for the same period in 2023, reflecting a 0.6% increase [144]. - Selling expenses increased by $2.1 million, or 18.8%, to $13.0 million for the nine months ended September 30, 2024, compared to $11.0 million for the same period in 2023 [145]. - General and administrative expenses rose by $1.9 million, or 11.8%, to $18.0 million for the nine months ended September 30, 2024, compared to $16.1 million for the same period in 2023 [145]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024 was $16.5 million, an increase of $5.8 million compared to $10.7 million for the same period in 2023 [172]. - Net cash used in investing activities for the nine months ended September 30, 2024 was $51.3 million, representing an increase in net cash outflows by $25.7 million compared to $25.6 million for the same period in 2023 [173]. - Net cash provided by financing activities for the nine months ended September 30, 2024 was $16.3 million, an increase of $21.6 million compared to net cash used in financing activities of $5.3 million for the same period in 2023 [174]. - Cash and cash equivalents and short-term investments decreased by $13.9 million, or 11.1%, to $111.8 million as of September 30, 2024, compared to $125.7 million as of December 31, 2023 [151]. - Cash inflows from movements of accounts and notes payable increased by $19.2 million, contributing to the overall increase in operating cash flows [172]. - Cash outflows from payments to acquire property, plant, and equipment increased by $6.1 million, impacting investing activities [173]. - The Company reported a decrease in cash inflows from proceeds from maturities of short-term investments by $22.9 million, affecting net cash used in investing activities [173]. Debt and Credit Facilities - As of September 30, 2024, the total amount available under the company's credit facilities was $185.5 million, with $90.6 million used [158]. - The company has pledged assets with an aggregate assessed value of $118.5 million to secure its lines of credit [162]. - The amount used includes bank loans of $48.8 million and notes payable of $41.8 million [160]. - The comprehensive credit facilities with China CITIC Bank are guaranteed by Henglong and Hubei Henglong, along with pledged assets [158]. - The company has a comprehensive credit facility with Hubei Bank secured by land use rights and buildings valued at approximately $73.9 million [165]. - The company's bank loan terms range from 2 months to 36 months, providing flexibility in financing [163]. - The assessed mortgage value for the credit facilities with China CITIC Bank is $23.4 million [158]. - The company has a total of 11 comprehensive credit facilities with various banks, indicating a diversified funding strategy [158]. - The amount available for drawdown includes provisions for additional collateral if bank notes are issued [159]. - The company has secured its credit facilities with various assets, including land use rights and buildings, to enhance borrowing capacity [164]. - Bank of China secured a working capital loan of 4,281 million with an annual interest rate of 2.58% due on March 30, 2025 [167]. - Industrial and Commercial Bank of China obtained a working capital loan of 3,996 million at an interest rate of 2.60%, maturing on February 21, 2025 [167]. - China CITIC Bank has multiple working capital loans totaling 6,850 million with varying interest rates, the lowest being 1.55% due on August 7, 2025 [167]. - Chongqing Bank issued several working capital loans, with the largest being 161 million at an interest rate of 3.60%, due on April 13, 2025 [167]. - China Merchants Bank provided a working capital loan of 427 million at an interest rate of 1.48%, maturing on November 24, 2024 [167]. - The average interest rate for loans from China CITIC Bank is approximately 1.55% across various loan amounts and terms [167]. - The shortest loan term recorded is 2 months, with a principal amount of 285 million from China Merchants Bank [167]. - Several loans from Chongqing Bank have a consistent interest rate of 3.60%, indicating stable borrowing costs for the company [167]. - The company has diversified its borrowing sources, utilizing multiple banks for working capital needs [167]. - The total principal amount of loans from China CITIC Bank alone exceeds 20,000 million across various agreements [167]. Risk Management - The Company has implemented stringent processes to oversee and manage risks associated with third-party service providers [177]. - There were no material changes to the market risk disclosures made in the Company's Annual Report for the year ended December 31, 2023 [179]. Employee and Operational Strategy - The company has approximately 4,313 employees as of September 30, 2024, dedicated to the design, development, manufacture, and sales of its products [100]. - The company aims to improve overall margins and long-term operating profitability through operational improvements and business structure enhancements [100]. - The company continues to expand its market presence and strengthen relationships with key customers, including major automotive manufacturers in China and overseas [99].

Core Viewpoint - China Automotive Systems, Inc. reported strong financial results for the third quarter and the first nine months of 2024, highlighting significant sales growth driven by Electric Power Steering (EPS) products and traditional steering products in the domestic market [2][3][4]. Financial Performance - **Third Quarter 2024 Highlights** - Net sales increased by 19.4% year-over-year to $164.2 million from $137.5 million [2] - Gross profit rose by 6.5% year-over-year to $26.4 million, with a gross margin of 16.0% compared to 18.0% in Q3 2023 [2][7] - Income from operations was $11.1 million, a nearly 10.0% increase from $10.2 million in Q3 2023 [2][12] - Net income attributable to common shareholders was $5.5 million, with diluted earnings per share of $0.18 [2][16] - **First Nine Months of 2024 Highlights** - Net sales grew by 10.8% year-over-year to $462.2 million from $417.2 million [3][18] - Gross profit increased by 15.4% year-over-year to $79.7 million, with a gross margin of 17.2% [3][18] - Income from operations rose by 22.9% year-over-year to $31.6 million [3][18] - Net income attributable to common shareholders was $20.9 million, with diluted earnings per share of $0.69 [3][19] Sales Performance - **Product Sales Growth** - EPS product sales surged by 43.5% year-over-year, accounting for nearly 40.0% of total sales [4][6] - Traditional steering products saw a 7.4% increase in sales, reaching $98.6 million [6] - Sales to the commercial vehicle market increased by 10.5% [4] - Domestic sales were supported by vehicle replacement cycles and subsidy policies [4] Market Context - **Industry Trends** - Overall automobile sales in China increased by 2.1% year-over-year in the first nine months of 2024, with passenger car sales up by 3.0% [4] - Sales of new energy vehicles rose by 32.5%, and Chinese vehicle exports increased by 27.3% [4] Financial Position - **Balance Sheet Strength** - As of September 30, 2024, cash and cash equivalents, along with pledged cash, totaled $138.8 million [5][20] - Working capital was reported at $156.6 million, with positive cash flow from operations increasing by almost 54.0% year-over-year [5] Future Outlook - **Revenue Guidance** - Management has raised its revenue guidance for the full year 2024 to $630.0 million based on current operating and market conditions [21]

Core Viewpoint - China Automotive Systems, Inc. will release its unaudited financial results for Q3 2024 on November 13, 2024, before market opening, followed by a conference call to discuss the results [1]. Company Overview - China Automotive Systems, Inc. is a leading supplier of power steering components and systems in China, operating through eight Sino-foreign joint ventures [3]. - The company offers a comprehensive range of steering system parts for both passenger automobiles and commercial vehicles, with an annual production capacity exceeding 8 million sets of steering gears, columns, and hoses [3]. - Its customer base includes major automotive manufacturers such as China FAW Group, Dongfeng Auto Group, BYD Auto, Beiqi Foton, Chery Automobile, Stellantis N.V., and Ford Motor Company [3].

Core Points - China Automotive Systems, Inc. (CAAS) will hold its Annual Meeting of Stockholders on September 24, 2024, at 9:00 AM local time in Wuhan, China [1] - A conference room will be available for shareholders in Michigan, U.S., on September 23, 2024, at 9:00 PM EDT for participation via WebEx [1] - Shareholders can access the meeting through a conference call or a live webcast [2] Company Overview - CAAS is a leading supplier of power steering components and systems in China, operating through eight Sino-foreign joint ventures [3] - The company has an annual production capacity of over 8 million sets of steering gears, columns, and steering hoses [3] - CAAS serves major automotive manufacturers in China and North America, including China FAW Group, Dongfeng Auto Group, BYD, Stellantis, and Ford [3]

Exhibit 99.1 China Automotive Systems Reports Income From Operations Increased by 38.7% in the Second Quarter of 2024 WUHAN, China, August 13, 2024 -- China Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the second quarter and six months ended June 30, 2024. Second Quarter 2024 Highlights · Net sales rose 15.4% year-over-year to $158.6 million from $137.4 million in the ...

Financial Performance - Net product sales for the three months ended June 30, 2024, were $158.608 million, an increase of 15.4% compared to $137.410 million in the same period of 2023[115]. - The company reported a net income of $8.755 million for the three months ended June 30, 2024, a decrease of 23.7% from $11.468 million in the same period of 2023[115]. - Total segments reported sales of $224.362 million, an 18.3% increase from $189.650 million in the prior year[116]. - Net product sales for the three months ended June 30, 2024, were $158.6 million, an increase of $21.2 million or 15.4% compared to $137.4 million in the same period of 2023, driven by higher sales of electric power steering (EPS) systems[117]. - Net sales of EPS systems and parts increased to $55.6 million for the three months ended June 30, 2024, from $41.6 million in the same period of 2023, representing a growth of $14.0 million or 33.7%[117]. - Total net product sales for the six months ended June 30, 2024, were $298.0 million, an increase of $18.3 million or 6.6% compared to $279.7 million in the same period of 2023[133]. - Net sales of traditional steering products and parts for the six months ended June 30, 2024, were $195.0 million, up $4.7 million or 2.5% from $190.3 million in the same period of 2023[133]. Expenses - Cost of products sold for the same period was $129.306 million, reflecting a 12.7% increase from $114.692 million in the prior year[115]. - Research and development expenses increased by 23.9% to $8.184 million, up from $6.606 million year-over-year[115]. - Selling expenses rose by 21.6% to $4.614 million, compared to $3.794 million in the previous year[115]. - Selling expenses increased to $4.6 million for the three months ended June 30, 2024, representing a rise of $0.8 million or 21.6% compared to $3.8 million in the same period of 2023, primarily due to higher marketing expenses[126]. - General and administrative expenses increased by $3.0 million, or 29.3%, to $13.0 million for the six months ended June 30, 2024, compared to $10.0 million in 2023[144]. - Research and development expenses increased by $0.5 million, or 3.8%, to $13.5 million for the six months ended June 30, 2024, compared to $13.0 million in 2023[145]. Income and Profitability - Net income attributable to parent company's common shareholders decreased to $7.1 million for the three months ended June 30, 2024, down from $10.5 million in the same period of 2023, a decline of $3.4 million[129]. - Net income attributable to parent company's common shareholders decreased by $1.9 million to $15.4 million for the six months ended June 30, 2024, compared to $17.3 million in 2023[147]. - Gross margin improved to 18.5% for the three months ended June 30, 2024, up from 16.5% in the same period of 2023, reflecting a 2.0% increase due to changes in product mix and reduced sales unit costs[126]. - The company's gross margin improved to 17.9% for the six months ended June 30, 2024, up from 15.9% in the same period of 2023[144]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended June 30, 2024 was $9.1 million, an increase of $9.2 million compared to the same period in 2023[167]. - Net cash used in investing activities for the six months ended June 30, 2024 was $28.2 million, an increase of $4.2 million compared to the same period in 2023[168]. - Net cash provided by financing activities for the six months ended June 30, 2024 was $14.2 million, an increase of $19.8 million compared to the same period in 2023[169]. - The company had cash and cash equivalents of $120.4 million, a decrease of $5.3 million, or 4.2%, from $125.7 million as of December 31, 2023[148]. Credit Facilities and Loans - Total comprehensive credit facilities amount to $200.651 million, with $86.111 million used and an assessed mortgage value of $51.211 million[154]. - The company has pledged assets including land use rights and buildings with an aggregate assessed value of approximately $59.2 million to secure its credit lines[156]. - The credit facilities with China CITIC Bank have an available amount of $104.535 million, with $49.238 million used and an assessed mortgage value of $23.041 million[154]. - The company has secured a total of 4,209 million in working capital loans from the Bank of China with an annual interest rate of 2.58% due on March 30, 2025[161]. - The company has also obtained a working capital loan of 3,929 million from the Industrial and Commercial Bank of China at an interest rate of 2.60%, maturing on February 21, 2025[161]. - The company has multiple loans from Chongqing Bank, with amounts ranging from 10 million to 158 million, all at an interest rate of 3.60%[161]. Risk Management - The company has implemented stringent processes to oversee and manage risks associated with third-party service providers[170]. - The company had complied with financial covenants as of June 30, 2024, avoiding penalties on loans[166].

Core Viewpoint - China Automotive Systems, Inc. reported strong financial performance for the second quarter and first six months of 2024, with significant increases in net sales, gross profit, and income from operations, driven by a notable rise in Electric Power Steering (EPS) product sales [2][3][4]. Financial Performance - **Second Quarter 2024 Highlights** - Net sales increased by 15.4% year-over-year to $158.6 million from $137.4 million in Q2 2023 [2]. - Gross profit rose by 29.0% year-over-year to $29.3 million, with gross margin improving to 18.5% from 16.5% [2][6]. - Income from operations increased by 38.7% to $10.8 million from $7.8 million in Q2 2023 [2][8]. - Net income attributable to common shareholders was $7.1 million, with diluted earnings per share of $0.24 [2][10]. - **First Six Months of 2024 Highlights** - Net sales grew by 6.6% year-over-year to $298.0 million from $279.7 million [3][11]. - Gross profit increased by 20.4% to $53.4 million, with gross margin at 17.9% compared to 15.9% in the same period last year [3][11]. - Income from operations rose by 31.7% to $20.5 million from $15.5 million [3][11]. - Net income attributable to common shareholders was $15.4 million, with diluted earnings per share of $0.51 [3][12]. Product Performance - Sales of EPS products surged by 33.7% in Q2 2024, now accounting for one-third of total sales [4][5]. - Traditional steering products saw a 7.5% increase in sales year-over-year to $103.0 million [5]. Market Context - Overall automobile sales in China increased by 6.1% year-over-year in the first half of 2024, with passenger car sales up by 6.3% and commercial vehicle sales by 4.9% [4]. - Domestic car sales rose by 1.4%, while Chinese vehicle exports increased by 30.5% [4]. Shareholder Returns - A special cash dividend of $0.80 per common share was declared for shareholders of record on July 30, 2024 [3][4]. Balance Sheet and Cash Flow - As of June 30, 2024, cash and cash equivalents, along with pledged cash, totaled $148.4 million [3][13]. - The company maintained a strong balance sheet with working capital of $190.0 million and positive cash flow from operations in the first half of 2024 [4][13].

WUHAN, China, Aug. 2, 2024 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that it will issue unaudited financial results for the second quarter ended June 30, 2024, on Tuesday, August 13, 2024, before the market opens. Management will conduct a conference call on August 13th at 7:00 A.M. EDT/7:00 P.M. Beijing Time to discuss these results. A question and answer session will follow man ...

Sergii Petruk/iStock via Getty Images Investment Thesis China Automotive Systems (NASDAQ:CAAS) is one of the largest suppliers of power steering systems and components to China's automotive industry. CAAS poses an interesting, deep value play. The stock is currently trading at 5.4x EBIT (2025), and a 74% discount to its fully diluted book value of $392MM. CAAS is set to benefit from strong tailwinds from the rise in electric vehicle demand and its exclusive electric power steering products. I see decent ups ...

- Celebrating 20th Anniversary of NASDAQ Listing -WUHAN, China, July 19, 2024 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that the Board of Directors has declared a special cash dividend of US$0.80 per common share.  The special cash dividend is payable on or about August 22, 2024 to shareholders of record as of the close of business on Tuesday, July 30, 2024. The aggregate amount ...