China Automotive Systems Reports Income From Operations Increased by 20.2% in the Second Quarter of 2025
China Automotive Systems (NASDAQ: CAAS) reported strong Q2 2025 financial results with significant growth across key metrics. Net sales increased 11.1% year-over-year to $176.2 million, driven by a 31.1% growth in Electric Power Steering (EPS) sales which now represent 41.4% of total product sales.
The company achieved notable international expansion, including a 49.4% sales growth in Brazil and an 11.8% increase in North American sales. A significant milestone was winning their first R-EPS product order from a major European automaker, expected to generate over $100 million in annual sales starting 2027.
Income from operations rose 20.2% to $13.0 million, with net income attributable to shareholders increasing 6.8% to $7.6 million. Management has raised full-year 2025 revenue guidance to $720.0 million.
China Automotive Systems (NASDAQ: CAAS) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con una crescita significativa sui principali indicatori. Le vendite nette sono aumentate del 11,1% su base annua, raggiungendo i $176,2 milioni, sostenute da un incremento del 31,1% delle vendite di Electric Power Steering (EPS), che ora rappresentano il 41,4% delle vendite totali di prodotto.
L'azienda ha registrato una notevole espansione internazionale, con un aumento delle vendite del 49,4% in Brasile e di 11,8% nel Nord America. Un traguardo importante è stata la prima commessa per il prodotto R-EPS da parte di un importante costruttore europeo, che dovrebbe generare oltre $100 milioni di vendite annue a partire dal 2027.
Il risultato operativo è salito del 20,2% a $13,0 milioni, mentre l'utile netto attribuibile agli azionisti è aumentato del 6,8% a $7,6 milioni. Il management ha rivisto al rialzo la guidance delle entrate per il 2025, portandola a $720.0 million.
China Automotive Systems (NASDAQ: CAAS) presentó sólidos resultados financieros en el segundo trimestre de 2025, con un crecimiento notable en métricas clave. Las ventas netas aumentaron un 11.1% interanual hasta los $176.2 millones, impulsadas por un crecimiento del 31.1% en las ventas de Electric Power Steering (EPS), que ahora representan el 41.4% de las ventas totales de productos.
La compañía consiguió una expansión internacional significativa, con un 49.4% de crecimiento de ventas en Brasil y un 11.8% de aumento en Norteamérica. Un hito importante fue obtener su primer pedido de producto R-EPS de un gran fabricante europeo, que se espera genere más de $100 millones en ventas anuales a partir de 2027.
El resultado operativo subió un 20.2% hasta $13.0 millones, y el beneficio neto atribuible a los accionistas aumentó un 6.8% hasta $7.6 millones. La dirección elevó la previsión de ingresos para todo 2025 a $720.0 million.
China Automotive Systems (NASDAQ: CAAS)는 2025년 2분기에 주요 지표 전반에서 두드러진 성장을 보이며 견조한 실적을 발표했습니다. 순매출은 전년 대비 11.1% 증가한 $176.2 million을 기록했으며, 이는 Electric Power Steering(EPS) 매출이 31.1% 성장
회사는 해외 시장에서도 의미 있는 확장을 달성했으며, 브라질 매출은 49.4% 증가, 북미 매출은 11.8% 증가했습니다. 또한 주요 유럽 완성차업체로부터 R-EPS 제품의 첫 수주를 따내는 성과를 거두었고, 이는 2027년부터 연간 $100 million 이상의 매출을 창출할 것으로 예상됩니다.
영업이익은 20.2% 증가한 $13.0 million을 기록했고, 주주귀속 순이익은 6.8% 증가한 $7.6 million으로 집계되었습니다. 경영진은 2025년 연간 매출 전망을 $720.0 million으로 상향 조정했습니다.
China Automotive Systems (NASDAQ: CAAS) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec une croissance marquée sur les indicateurs clés. Les ventes nettes ont augmenté de 11,1% en glissement annuel pour atteindre $176,2 millions, portées par une hausse de 31,1% des ventes d'Electric Power Steering (EPS), qui représentent désormais 41,4% des ventes totales de produits.
La société a réalisé une expansion internationale notable, avec une croissance des ventes de 49,4% au Brésil et une hausse de 11,8% en Amérique du Nord. Un jalon important a été l'obtention de sa première commande de produit R-EPS auprès d'un grand constructeur européen, qui devrait générer plus de $100 millions de ventes annuelles à partir de 2027.
Le résultat d'exploitation a augmenté de 20,2% à $13,0 millions, tandis que le bénéfice net attribuable aux actionnaires a progressé de 6,8% à $7,6 millions. La direction a relevé ses prévisions de chiffre d'affaires pour 2025 à $720.0 million.
China Automotive Systems (NASDAQ: CAAS) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit deutlichem Wachstum bei wichtigen Kennzahlen. Die Nettoumsätze stiegen im Jahresvergleich um 11,1 % auf $176,2 Millionen, getragen von einem 31,1%igen Zuwachs bei den Verkäufen von Electric Power Steering (EPS), die nun 41,4% der Gesamtproduktverkäufe ausmachen.
Das Unternehmen verzeichnete eine bemerkenswerte internationale Expansion, darunter ein 49,4%iges Umsatzwachstum in Brasilien und ein 11,8%iger Anstieg der Nordamerika-Verkäufe. Ein wichtiger Meilenstein war der erste Auftrag für das R-EPS-Produkt von einem großen europäischen Automobilhersteller, der ab 2027 voraussichtlich über $100 Millionen Jahresumsatz bringen wird.
Das Betriebsergebnis stieg um 20,2% auf $13,0 Millionen, während der den Aktionären zurechenbare Nettogewinn um 6,8% auf $7,6 Millionen zunahm. Das Management hat seine Prognose für den Gesamtumsatz 2025 auf $720.0 million angehoben.
- EPS product sales surged 31.1% YoY, now representing 41.4% of total sales
- Secured first R-EPS order from European automaker worth over $100M annually
- Brazil sales grew 49.4% YoY, North American sales up 11.8%
- Strong cash position of $135.3M with $49.1M operating cash flow in H1
- Income from operations increased 20.2% YoY
- Management raised full-year revenue guidance to $720.0M
- Gross profit margin decreased to 17.3% from 18.5% YoY due to higher tariffs
- H1 2025 net income declined to $14.7M from $15.4M in H1 2024
- Higher income tax expense due to increased effective tax rate
- Short-term loans increased to $71.9M
Insights
CAAS reports solid Q2 growth with 11.1% higher sales and 20.2% increased operating income, driven by EPS product expansion and international growth.
China Automotive Systems delivered solid growth in Q2 2025 with net sales increasing
Income from operations showed impressive growth, rising
International expansion appears to be a key growth driver, with Brazilian sales jumping
The company maintains a strong financial position with
The reduced G&A expenses (down to
Second Quarter 2025 Highlights
- Net sales rose
11.1% year-over-year to$176.2 million $158.6 million - Sales in
Brazil grew49.4% year-over-year, representing10.1% of total net sales. - Gross profit increased by
4.2% year-over-year to$30.5 million $29.3 million 17.3% in the second quarter of 2025. - Income from operations increased by
20.2% year-over-year to$13.0 million $10.8 million - Net income attributable to parent company's common shareholders increased
6.8% to$7.6 million $7.1 million - Diluted earnings per share attributable to parent company's common shareholders was
$0.25 $0.24
First Six Months of 2025 Highlights
- Net sales grew by
15.2% year-over-year to$343.3 million $298.0 million - Gross profit increased by
10.8% year-over-year to$59.1 million $53.4 million 17.2% in the first six months of 2025. - Income from operations rose by
5.7% year-over-year to$21.6 million $20.5 million - Net income attributable to parent company's common shareholders decreased to
$14.7 million $15.4 million - Diluted earnings per share attributable to parent company's common shareholders was
$0.49 $0.51 - Cash, cash equivalents and short-term investments were
$135.3 million $4.48
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We continued to grow our sales, gross profit, net profit and cashflow in the second quarter of 2025. Sales of our traditional steering products remained steady while sales of our Electric Power Steering ("EPS") products grew by
"We continue to transition to more technology-focused advanced steering products. In the second quarter of 2025, based on our iRCB's (intelligent electro-hydraulic circulating ball power steering) performance and cost-efficiency, new orders in July were at a record setting pace in the power steering industry for the ramp up to mass production. Our second-generation iRCB is compatible with L2+assisted driving. By optimizing energy consumption, iRCB products are projected to reduce vehicle operational costs creating substantial economic value."
"The high quality and high performance of our steering products have allowed us to become the tier-1 supplier to large global OEM customers in
Mr. Jie Li, Chief Financial Officer of CAAS, commented, "Maintaining a strong balance sheet and financial resources are among our highest priorities. Cash, cash equivalents and short-term investments were
Second Quarter of 2025
Net sales increased by
Gross profit grew by
Gain on other sales was
Selling expenses at
General and administrative expenses ("G&A expenses") decreased to
Research and development expenses ("R&D expenses") were stable at
Other income was
Income from operations rose
Interest expense was
Net financial income was
Income before income tax expenses and equity in earnings of affiliated companies was
Income tax expense was
Net income attributable to parent company's common shareholders was
The weighted average number of diluted common shares outstanding was 30,170,702 in the second quarter of 2025, compared to 30,185,702 in the second quarter of 2024.
First Six Months of 2025
Net sales increased by
Net income attributable to parent company's common shareholders was
Balance Sheet
Cash, cash equivalents and short-term investments were
Business Outlook
Management has raised revenue guidance for the full fiscal year 2025 to
Conference Call
Management will conduct a conference call on August 13th, 2025 at 8:00 A.M. EDT/8:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management's presentation. To participate, please call the following numbers 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference call with pin 489385:
Toll Free: 888-506-0062
International: 973-528-0011
China Toll Free: 86 400 120 3199
A replay of the call will be available on the Company's website in the investor relations section.
About China Automotive Systems, Inc.
Based in
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 28, 2025, 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 result in delays in the shipment of products to our customers, increase costs and reduce 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.
jieli@chl.com.cn
Kevin Theiss
Awaken Advisors
+1-212-510-8922
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 June 30, | ||||||
2025 | 2024 | |||||
Net product sales ( | $ | 176,245 | $ | 158,608 | ||
Cost of products sold ( | 145,698 | 129,306 | ||||
Gross profit | 30,547 | 29,302 | ||||
Gain on other sales | 455 | 1,720 | ||||
Less: Operating expenses | ||||||
Selling expenses | 4,514 | 4,614 | ||||
General and administrative expenses | 5,412 | 7,418 | ||||
Research and development expenses | 8,092 | 8,184 | ||||
Total operating expenses | 18,018 | 20,216 | ||||
Income from operations | 12,984 | 10,806 | ||||
Other income, net | 1,060 | 1,735 | ||||
Interest expense | (292) | (183) | ||||
Financial income/(expense), net | 1,327 | (690) | ||||
Income before income tax expenses and equity in earnings of affiliated companies | 15,079 | 11,668 | ||||
Less: Income taxes | 4,049 | 2,108 | ||||
Add: Equity in losses of affiliated companies | (658) | (805) | ||||
Net income | 10,372 | 8,755 | ||||
Less: Net income attributable to non-controlling interests | 2,747 | 1,608 | ||||
Accretion to redemption value of redeemable non-controlling interests | — | (7) | ||||
Net income attributable to parent company's common shareholders | $ | 7,625 | $ | 7,140 | ||
Comprehensive income: | ||||||
Net income | $ | 10,372 | $ | 8,755 | ||
Other comprehensive income: | ||||||
Foreign currency translation gain/(loss), net of tax | 1,342 | (2,846) | ||||
Comprehensive income | 11,714 | 5,909 | ||||
Less: Comprehensive income attributable to non-controlling interests | 2,887 | 1,431 | ||||
Accretion to redemption value of redeemable non-controlling interests | — | (7) | ||||
Comprehensive income attributable to parent company | $ | 8,827 | $ | 4,471 | ||
Net income attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.25 | $ | 0.24 | ||
Diluted | $ | 0.25 | $ | 0.24 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,170,702 | 30,185,702 | ||||
Diluted | 30,170,702 | 30,185,702 | ||||
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) | ||||||
Six Months Ended June 30, | ||||||
2025 | 2024 | |||||
Net product sales ( | $ | 343,339 | $ | 298,002 | ||
Cost of products sold ( | 284,207 | 244,631 | ||||
Gross profit | 59,132 | 53,371 | ||||
Gain on other sales | 1,606 | 2,234 | ||||
Less: Operating expenses | ||||||
Selling expenses | 9,332 | 8,687 | ||||
General and administrative expenses | 12,977 | 12,965 | ||||
Research and development expenses | 16,805 | 13,496 | ||||
Total operating expenses | 39,114 | 35,148 | ||||
Income from operations | 21,624 | 20,457 | ||||
Other income, net | 3,001 | 4,138 | ||||
Interest expense | (775) | (441) | ||||
Financial income/(expense), net | 3,305 | (702) | ||||
Income before income tax expenses and equity in earnings of affiliated companies | 27,155 | 23,452 | ||||
Less: Income taxes | 6,986 | 3,851 | ||||
Add: Equity in losses of affiliated companies | (1,342) | (1,582) | ||||
Net income | 18,827 | 18,019 | ||||
Less: Net income attributable to non-controlling interests | 4,080 | 2,597 | ||||
Accretion to redemption value of redeemable non-controlling interests | — | (15) | ||||
Net income attributable to parent company's common shareholders | $ | 14,747 | $ | 15,407 | ||
Comprehensive income: | ||||||
Net income | $ | 18,827 | $ | 18,019 | ||
Other comprehensive income: | ||||||
Foreign currency translation gain/(loss), net of tax | 2,262 | (3,194) | ||||
Comprehensive income | 21,089 | 14,825 | ||||
Less: Comprehensive income attributable to non-controlling interests | 4,283 | 2,372 | ||||
Accretion to redemption value of redeemable non-controlling interests | — | (15) | ||||
Comprehensive income attributable to parent company | $ | 16,806 | $ | 12,438 | ||
Net income attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.49 | $ | 0.51 | ||
Diluted | $ | 0.49 | $ | 0.51 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,170,702 | 30,185,702 | ||||
Diluted | 30,170,702 | 30,185,702 | ||||
China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Balance Sheets | ||||||
June 30, 2025 | December 31, 2024 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 102,194 | $ | 56,961 | ||
Pledged cash | 36,774 | 44,863 | ||||
Accounts and notes receivable, net - unrelated parties | 279,144 | 329,275 | ||||
Accounts and notes receivable, net - related parties | 15,064 | 14,224 | ||||
Inventories | 116,518 | 112,558 | ||||
Other current assets | 50,271 | 44,757 | ||||
Total current assets | 599,965 | 602,638 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 114,705 | 103,820 | ||||
Land use rights, net | 9,235 | 8,835 | ||||
Long-term investments | 61,876 | 64,332 | ||||
Other non-current assets | 57,935 | 70,954 | ||||
Total assets | $ | 843,716 | $ | 850,579 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | $ | 71,946 | $ | 72,566 | ||
Accounts and notes payable-unrelated parties | 257,418 | 281,065 | ||||
Accounts and notes payable-related parties | 12,186 | 11,743 | ||||
Accrued expenses and other payables | 60,002 | 59,238 | ||||
Other current liabilities | 27,477 | 31,870 | ||||
Total current liabilities | 429,029 | 456,482 | ||||
Long-term liabilities: | ||||||
Other non-current liabilities | 3,809 | 4,308 | ||||
Total liabilities | $ | 432,838 | $ | 460,790 | ||
Commitments and Contingencies | ||||||
Stockholders' equity: | ||||||
Common stock, | $ | 3 | $ | 3 | ||
Additional paid-in capital | 69,656 | 69,656 | ||||
Retained earnings- | ||||||
Appropriated | 13,668 | 12,180 | ||||
Unappropriated | 303,532 | 290,273 | ||||
Accumulated other comprehensive income | (12,721) | (14,780) | ||||
Treasury stock –2,167,600 and 2,167,600 shares as of June 30, 2025 and December 31, 2024, | (7,763) | (7,763) | ||||
Total parent company stockholders' equity | 366,375 | 349,569 | ||||
Non-controlling interests | 44,503 | 40,220 | ||||
Total stockholders' equity | 410,878 | 389,789 | ||||
Total liabilities and stockholders' equity | $ | 843,716 | $ | 850,579 | ||
China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Statements of Cash Flows (In thousands of USD unless otherwise indicated) | ||||||
Six months Ended June 30, | ||||||
2025 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 18,827 | $ | 18,019 | ||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||
Depreciation and amortization | 8,267 | 9,868 | ||||
(Reversal)/addition of credit losses | (159) | 9 | ||||
Equity in losses of affiliated companies | 1,342 | 1,582 | ||||
Impairment loss on property, plant and equipment | 657 | — | ||||
Loss on disposal of property, plant and equipment | 580 | 773 | ||||
(Increase)/decrease in: | ||||||
Accounts and notes receivable | 50,982 | (20,451) | ||||
Inventories | (3,491) | 4,271 | ||||
Other current assets | (1,077) | 3,654 | ||||
Increase/(decrease) in: | ||||||
Accounts and notes payable | (24,349) | 1,994 | ||||
Accrued expenses and other payables | 2,238 | 1,134 | ||||
Long-term taxes payable | — | (7,025) | ||||
Other current liabilities | (4,735) | (4,697) | ||||
Net cash provided by operating activities | 49,082 | 9,131 | ||||
Cash flows from investing activities: | ||||||
Cash received from disposal of property, plant and equipment sales | 522 | 607 | ||||
Payments to acquire property, plant and equipment (including | (18,484) | (10,016) | ||||
Payments to acquire intangible assets | (67) | (332) | ||||
Investment under the equity method | (1,112) | — | ||||
Purchase of short-term investments | (23,096) | (40,054) | ||||
Proceeds from maturities of short-term investments | 29,570 | 20,626 | ||||
Cash received from long-term investments | 2,368 | 937 | ||||
Net cash used in investing activities | (10,299) | (28,232) | ||||
Cash flows from financing activities: | ||||||
Proceeds from bank loans | 52,829 | 47,054 | ||||
Repayments of bank loans | (53,890) | (48,384) | ||||
Dividends paid to the common shareholders | (1,773) | — | ||||
Cash received from capital contributions of a non-controlling interest | — | 15,504 | ||||
Net cash (used in)/provided by financing activities | (2,834) | 14,174 | ||||
Effects of exchange rate on cash, cash equivalents and pledged cash | 1,195 | (1,882) | ||||
Net increase/(decrease) in cash, cash equivalents and pledged cash | 37,144 | (6,809) | ||||
Cash, cash equivalents and pledged cash at beginning of the period | 101,824 | 155,194 | ||||
Cash, cash equivalents and pledged cash at end of the period | $ | 138,968 | $ | 148,385 | ||
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SOURCE China Automotive Systems, Inc.
FAQ
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