China Automotive Systems Reports Record Annual Revenue, and a 81.2% Increase in Diluted Net Income Per Share to $1.25 in Fiscal Year 2023

Core Viewpoint - China Automotive Systems, Inc. (CAAS) reported significant growth in net sales and profits for both the fourth quarter and the fiscal year 2023, driven by increased demand for electric power steering (EPS) products and a favorable product mix [1][4]. Fourth Quarter 2023 Highlights - Net sales increased by 23.6% year-over-year to $159.2 million [2][6]. - Gross profit rose by 38.8% to $34.7 million, with gross margin improving to 21.8% from 19.4% [2][6]. - Operating income was $13.6 million, a turnaround from an operating loss of $2.6 million in the same quarter of 2022 [2][8]. - Net income attributable to common shareholders surged by 153.5% to $10.9 million, translating to diluted net income per share of $0.36 [2][9]. Fiscal Year 2023 Highlights - Annual net sales reached a record $576.4 million, an increase of 8.8% compared to $529.6 million in 2022 [3][10]. - Gross profit for the year increased by 24.5% to $103.8 million, with gross margin rising to 18.0% from 15.7% [3][10]. - Operating income skyrocketed by 390.0% to $39.2 million, compared to $8.0 million in 2022 [3][12]. - Diluted net income per share increased by 81.2% to $1.25 [3][14]. Product Performance - EPS sales grew by 24.6% in 2023, accounting for 33.8% of total net sales [4][10]. - Sales in Brazil increased by 22.9%, which helped offset a decline in North American sales [4][10]. Financial Position - Total cash and cash equivalents, pledged cash, and short-term investments were $166.3 million at year-end [5][15]. - The company maintained a strong balance sheet with a current ratio of nearly 1.5 [5][15]. Business Outlook - Management anticipates revenue guidance for fiscal year 2024 to be $605.0 million, reflecting optimism about market conditions and recovery in North America [16].