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China Automotive Systems Reports Sales Increased by 19.4% in the Third Quarter of 2024
CAASChina Automotive Systems(CAAS) Prnewswire·2024-11-13 11:00

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 164.2millionfrom164.2 million from 137.5 million [2] - Gross profit rose by 6.5% year-over-year to 26.4million,withagrossmarginof16.026.4 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 10.2millioninQ32023[2][12]−Netincomeattributabletocommonshareholderswas10.2 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]−∗∗FirstNineMonthsof2024Highlights∗∗−Netsalesgrewby10.80.18 [2][16] - **First Nine Months of 2024 Highlights** - Net sales grew by 10.8% year-over-year to 462.2 million from 417.2million[3][18]−Grossprofitincreasedby15.4417.2 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 31.6million[3][18]−Netincomeattributabletocommonshareholderswas31.6 million [3][18] - Net income attributable to common shareholders was 20.9 million, with diluted earnings per share of 0.69[3][19]SalesPerformance−∗∗ProductSalesGrowth∗∗−EPSproductsalessurgedby43.50.69 [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 138.8million[5][20]−Workingcapitalwasreportedat138.8 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]