China Automotive Systems(US:CAAS) Prnewswireยท2025-05-14 10:00Core Viewpoint - China Automotive Systems, Inc. reported strong financial results for the first quarter of 2025, with significant growth in electric power steering products and overall sales, despite challenges in certain markets [1][3][4]. Financial Performance - Net sales increased by 19.9% year-over-year to $167.1 million, up from $139.4 million in Q1 2024 [4][8]. - Sales of electric power steering (EPS) products grew by 54.0% to $73.0 million, representing 43.7% of total sales compared to 34.0% in Q1 2024 [4][8]. - Gross profit rose by 18.8% to $28.6 million, with a gross margin of 17.1%, slightly down from 17.3% in Q1 2024 [5][8]. - Income from operations decreased by 10.5% to $8.6 million, attributed to a 41.3% increase in operating expenses [10][8]. - Net income attributable to common shareholders was $7.1 million, down from $8.3 million in Q1 2024, with diluted income per share at $0.24 compared to $0.27 [14][8]. Operational Highlights - EPS product sales accounted for 43.7% of total sales, indicating a strategic shift towards advanced steering technologies [3][4]. - Hubei Henglong experienced a revenue decline of 10.3% due to lower vehicle sales by Stellantis, while Brazilian operations saw a 30.2% growth [3][4]. - Research and development expenses increased by 64.0% to $8.7 million, reflecting higher investment in new projects [9][8]. Balance Sheet and Cash Flow - As of March 31, 2025, total cash, cash equivalents, and short-term investments were $89.9 million, with a current ratio of 1.4 to 1 [15][8]. - Cash inflow from operating activities was $18.1 million, a 73.1% increase year-over-year [8][10]. - Working capital rose to $154.7 million from $146.2 million as of December 31, 2024 [15][8]. Business Outlook - The company reiterated its revenue guidance for the full fiscal year 2025 at $700.0 million, based on current operating and market conditions [16][8].