China Automotive Systems Reports Record Earnings Per Share and Net Sales in 2025
Rhea-AI Summary
China Automotive Systems (NASDAQ: CAAS) reported record 2025 results with net sales of $765.7M (up 17.6%) and diluted EPS of $1.42 (up 43.4%). Gross profit rose 33.2% to $145.5M and operating cash flow reached $111.3M. Management issued 2026 revenue guidance of $810.0M.
Fourth-quarter sales were $229.2M (+21.4%), gross margin improved to 23.1%, and EPS product sales grew 25.5% in 2025. The company completed redomiciliation to the Cayman Islands and highlighted product wins, new production lines and regional partnerships supporting global expansion.
Positive
- Net sales increased 17.6% to $765.7M in 2025
- Diluted EPS rose 43.4% to $1.42 in 2025
- Gross profit grew 33.2% to $145.5M with margin at 19.0%
- Operating cash flow improved to $111.3M from $9.8M in 2024
- EPS product sales grew 25.5% and represented 41.5% of revenue
Negative
- R&D expenses rose 63.0% to $45.1M in 2025
- Accounts receivable totaled $361.8M at year-end
- Income tax expense increased to $11.6M in 2025
Key Figures
Market Reality Check
Peers on Argus
CAAS gained 0.47% while key peers were mixed: LAZR rose 3.57%, CVGI rose 0.97%, but SRI, STRT, and HYLN fell between 3–6%. With no peers in the momentum scanner, the setup looks stock-specific rather than a coordinated auto-parts move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 13 | Earnings date notice | Neutral | -0.9% | Announced date and time for Q4 and full-year 2025 earnings release. |
| Jan 06 | Strategic plan update | Positive | +2.5% | Unveiled 2026–2030 plan targeting technology leadership and global expansion. |
| Dec 17 | South America EPS deal | Positive | -1.4% | Henglong won first South American C‑EPS contract for 300,000+ unit platform. |
| Dec 05 | Steering motor ramp | Positive | -0.5% | High‑torque 115‑platform steering motor line moved into mass production phase. |
| Nov 12 | Q3 2025 earnings | Positive | +6.7% | Reported 77.8% EPS growth and raised full‑year 2025 revenue guidance. |
Recent fundamentally positive releases often saw mixed to negative next-day moves, with strong alignment only on the Q3 2025 earnings beat.
Over the last six months, CAAS has reported a series of positive operational updates. Q3 2025 results on Nov 12, 2025 showed strong EPS growth and higher guidance, with the stock up 6.71%. Subsequent news on intelligent steering motors and a South American EPS contract saw modest negative reactions. A strategic plan on Jan 6, 2026 was followed by a 2.52% gain. Today’s full-year 2025 earnings build directly on that growth and technology roadmap.
Market Pulse Summary
This announcement highlights record 2025 net sales of $765.7M, a strong EPS increase to $1.42, and significantly higher operating cash flow of $111.6M. Management also issued 2026 revenue guidance of $810.0M and detailed momentum in higher-technology steering products and ADAS capabilities. Investors may monitor how product mix supports margins, the impact of elevated R&D, and progress toward international growth and redomiciliation-related changes.
Key Terms
electric power steering technical
eps technical
adas technical
rear-wheel steering technical
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Highlights
- Net sales increased by
21.4% year-over-year to$229.2 million - Gross profit increased by
79.8% to$53.0 million $29.5 million 23.1% compared to15.6% in the fourth quarter of 2024 - Operating income grew
108.0% to$18.1 million $8.7 million - Net income attributable to parent company's common shareholders was
$18.4 million $0.61 $9.1 million $0.30
Fiscal Year 2025 Highlights
- Net sales increased by
17.6% to an annual record of$765.7 million $650.9 million 25.5% - Gross profit increased by
33.2% to$145.5 million $109.2 million 19.0% , compared with16.8% in 2024 - Operating income increased by
33.2% to$53.6 million $40.3 million - Diluted net income per share increased by
43.4% to a record$1.42 $0.99 - Total cash and cash equivalents, pledged cash, short-term investments and long-term time deposit were
$256.7 million - Net cash flow provided by operating activities was
$111.6 million $9.8 million - Capex was
$37.2 million $43.7 million
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "The 2025 year was marked by higher sales growth, improved profitability, strengthened finances, higher cash flow from operations and organizational changes. Our traditional hydraulic steering products grew by
"Our strategy of selling a broad portfolio of steering products into multiple markets resulted in a range of sales growth both domestically and internationally. In our major market segments, we achieved higher sales in all except for sales to Chery Auto. Our operations in
"Improved profitability reflected the ongoing success of our transition to higher technology-focused steering products and improved manufacturing activities. In 2025, our Jingzhou Henglong subsidiary won its first R-EPS product order from a large, well-known European automobile producer. Also, Shashi Jiulong's L2+ standard electro-hydraulic steering system entered mass production in 2025. This system utilizes cutting-edge electro-hydraulic control technology; a power steering system used in heavy-duty vehicles that utilizes both hydraulic power and electronic controls to assist with steering. The Company also launched its active rear-wheel steering using its ball screw and nut mechanisms to provide the ability to adapt steering strategies to different vehicle speeds, boosting our ADAS capabilities. Another subsidiary, Hyoseong (
"In September 2025, we announced the completion of our merger to redomicile the Company as a
Mr. Jie Li, Chief Financial Officer of CAAS, commented, "Our record sales and net profits generated much higher cash flow from operations and free cash flow in 2025. Cash and cash equivalents, pledged cash and short-term investments and long-term time deposit rose to
Fourth Quarter of 2025
In the fourth quarter of 2025, net sales increased by
Gross profit increased by
Selling expenses were
General and administrative expenses ("G&A expenses") were
Research and development expenses ("R&D expenses") were
Operating income was
Interest expense was
Financial expense was
Income before income tax expenses and equity in earnings of affiliated companies increased by
Income tax expense was
Net income attributable to parent company's common shareholders increased by
The weighted average number of diluted common shares outstanding was 30,170,702 compared to 30,180,947 in the fourth quarter of 2024.
Fiscal Year 2025
Net sales increased by
Gross profit in 2025 increased by
Net gain on other sales in 2025 was
Selling expenses rose by
G&A expenses increased by
R&D expenses increased by
Operating income increased by
Interest expense was
Net financial income was
Income before income tax expenses and equity in earnings of affiliated companies increased by
Income tax expense was
Net income attributable to parent company's common shareholders was a record
The weighted average number of diluted common shares outstanding was 30,170,702 in 2025 compared with 30,184,513 in 2024.
Balance Sheet
As of December 31, 2025, total cash and cash equivalents, pledged cash, short-term investments and long-term time deposit were
Business Outlook
Management provides revenue guidance for the fiscal year 2026 of
Conference Call
Management will conduct a conference call on April 22, 2026 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 861648:
Phone Number: +1-888-506-0062 (
Phone Number: +1-973-528-0011 (International)
Mainland China Toll Free: +86-400-120-3199
A replay of the call will be available on the Company's website under 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 20-F as filed with the Securities and Exchange Commission on April 22, 2026, 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 continue to result in delays in the shipment of products to our customers, increased costs and reduced 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.
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
+1-212-510-8922
Email: Kevin@awakenlab.com
-Tables Follow –
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of
December 31, | ||||||
2025 | 2024 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 142,001 | $ | 56,961 | ||
Pledged cash | 52,280 | 44,863 | ||||
Short-term investments | 35,930 | 27,563 | ||||
Accounts and notes receivable, net - unrelated parties (Allowance for credit losses of | 346,038 | 329,275 | ||||
Accounts and notes receivable, net - related parties (Allowance for credit losses of | 15,741 | 14,224 | ||||
Advance payments and others, net - unrelated parties (Allowance for credit losses of | 12,621 | 10,838 | ||||
Advance payments and others - related parties | 2,118 | 2,202 | ||||
Inventories | 124,418 | 112,558 | ||||
Other assets | 7,038 | 4,154 | ||||
Total current assets | 738,185 | 602,638 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 133,548 | 103,820 | ||||
Land use rights, net | 11,656 | 8,835 | ||||
Intangible assets, net | 3,599 | 3,417 | ||||
Operating lease assets | — | 94 | ||||
Long-term time deposits | 26,505 | 40,057 | ||||
Other receivables, net (Allowance for credit losses of nil and | 987 | 452 | ||||
Advance payment for property, plant and equipment - unrelated parties | 3,830 | 2,414 | ||||
Advance payment for property, plant and equipment - related parties | 1,359 | 6,570 | ||||
Other non-current assets | 4 | 3,202 | ||||
Long-term investments | 65,515 | 64,332 | ||||
Deferred tax assets | 16,510 | 14,748 | ||||
Total assets | $ | 1,001,698 | $ | 850,579 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term bank loans | $ | 81,341 | $ | 72,566 | ||
Accounts and notes payable - unrelated parties | 334,304 | 281,065 | ||||
Accounts and notes payable - related parties | 16,033 | 11,743 | ||||
Customer deposits | 5,504 | 4,447 | ||||
Accrued payroll and related costs | 15,141 | 12,063 | ||||
Accrued expenses and other payables | 76,138 | 59,238 | ||||
Taxes payable | 12,980 | 15,308 | ||||
Operating lease liabilities - current portion | — | 52 | ||||
Total current liabilities | 541,441 | 456,482 | ||||
Long-term liabilities: | ||||||
Advances payable | — | 278 | ||||
Operating lease liabilities - non-current portion | — | — | ||||
Long-term loans | 5,691 | 145 | ||||
Deferred tax liabilities | 3,864 | 3,885 | ||||
Long-term taxes payable | — | — | ||||
Total liabilities | 550,996 | 460,790 | ||||
Commitments and Contingencies | ||||||
Equity | ||||||
Ordinary share, Common stock, | 32 | 3 | ||||
Additional paid-in capital | 70,505 | 69,656 | ||||
Retained earnings- | ||||||
Appropriated | 13,827 | 12,180 | ||||
Unappropriated | 331,464 | 290,273 | ||||
Accumulated other comprehensive income | (6,726) | (14,780) | ||||
Treasury stock – 2,167,600 and 2,167,600 shares at December 31, 2025 and 2024, respectively | (7,763) | (7,763) | ||||
Total parent company equity | 401,339 | 349,569 | ||||
Non-controlling interests | 49,363 | 40,220 | ||||
Total equity | 450,702 | 389,789 | ||||
Total liabilities and equity | $ | 1,001,698 | $ | 850,579 | ||
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME OR LOSS
(In thousands of
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Net product sales ( | $ | 765,736 | $ | 650,935 | $ | 576,354 | |||
Cost of products sold ( | 620,273 | 541,751 | 472,603 | ||||||
Gross profit | 145,463 | 109,184 | 103,751 | ||||||
Net gain on other sales | 3,581 | 4,303 | 5,788 | ||||||
Operating expenses: | |||||||||
Selling expenses | 20,692 | 17,855 | 15,610 | ||||||
General and administrative expenses | 29,660 | 27,728 | 25,503 | ||||||
Research and development expenses | 45,061 | 27,649 | 29,181 | ||||||
Total operating expenses | 95,413 | 73,232 | 70,294 | ||||||
Operating income | 53,631 | 40,255 | 39,245 | ||||||
Other income, net | 7,109 | 5,776 | 5,345 | ||||||
Interest expense | (1,702) | (1,813) | (1,021) | ||||||
Financial income/(expense), net | 2,362 | (87) | 4,666 | ||||||
Income before income tax expenses and equity in earnings of affiliated companies | 61,400 | 44,131 | 48,235 | ||||||
Less: Income taxes | 11,576 | 5,892 | 5,137 | ||||||
Add: Equity in earnings of affiliated companies | 2,088 | (340) | (360) | ||||||
Net income | 51,912 | 37,899 | 42,738 | ||||||
Net income attributable to non-controlling interest | 9,074 | 7,897 | 5,050 | ||||||
Accretion to redemption value of redeemable non-controlling interests | — | (23) | (30) | ||||||
Net income attributable to parent company's common shareholders | 42,838 | 29,979 | 37,658 | ||||||
Net income attributable to parent company's common shareholders per share - | |||||||||
Basic | $ | 1.42 | $ | 0.99 | $ | 1.25 | |||
Diluted | $ | 1.42 | $ | 0.99 | $ | 1.25 | |||
Weighted average number of common shares outstanding - | |||||||||
Basic | 30,170,702 | 30,184,513 | 30,185,702 | ||||||
Diluted | 30,170,702 | 30,184,513 | 30,189,421 | ||||||
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS
(In thousands of
Year Ended December 31, | |||||||||||
2025 | 2024 | 2023 | |||||||||
Net income | 51,912 | 37,899 | 42,738 | ||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation gain /(loss) | 9,200 | (7,123) | (5,191) | ||||||||
Comprehensive income | 61,112 | 30,776 | 37,547 | ||||||||
Comprehensive income attributable to non-controlling interest | 10,220 | 7,296 | 4,704 | ||||||||
Accretion to redemption value of redeemable non-controlling interest | — | (23) | (30) | ||||||||
Comprehensive income attributable to parent company | $ | 50,892 | $ | 23,457 | $ | 32,813 | |||||
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands of
2025 | 2024 | 2023 | |||||||
Ordinary shares/Common stock (prior to Redomicile Merger) | |||||||||
Balance at January 1, 2025, 2024 and 2023 - 32,338,302, 32,338,302 and 32,338,302 shares, respectively | $ | 3 | $ | 3 | $ | 3 | |||
Recapitalization in connection with Redomicile Merger | 29 | — | — | ||||||
Balance at December 31, 2025, 2024 and 2023 - 32,338,302, 32,338,302 and 32,338,302 shares, respectively | $ | 32 | $ | 3 | $ | 3 | |||
Additional Paid-in Capital | |||||||||
Balance at January 1 | $ | 69,656 | $ | 63,731 | $ | 63,731 | |||
Change in non-controlling shareholder's interest in the Brazil Henglong | — | (66) | — | ||||||
Contribution by the non-controlling interest of Henglong KYB | 878 | 5,991 | — | ||||||
Recapitalization in connection with Redomicile Merger | (29) | — | — | ||||||
Balance at December 31 | $ | 70,505 | $ | 69,656 | $ | 63,731 | |||
Retained Earnings - Appropriated | |||||||||
Balance at January 1 | $ | 12,180 | $ | 11,851 | $ | 11,851 | |||
Appropriation of retained earnings | 1,647 | 329 | — | ||||||
Balance at December 31 | $ | 13,827 | $ | 12,180 | $ | 11,851 | |||
Unappropriated | |||||||||
Balance at January 1 | $ | 290,273 | $ | 284,832 | $ | 247,174 | |||
Net income attributable to parent company | 42,838 | 30,002 | 37,688 | ||||||
Accretion of redeemable non-controlling interests | — | (23) | (30) | ||||||
Appropriation of retained earnings | (1,647) | (329) | — | ||||||
Dividend payables to common shareholders | — | (24,149) | — | ||||||
Dividend payables to non-controlling interests | — | (60) | — | ||||||
Balance at December 31 | $ | 331,464 | $ | 290,273 | $ | 284,832 | |||
Accumulated Other Comprehensive Loss | |||||||||
Balance at January 1 | $ | (14,780) | $ | (8,258) | $ | (3,413) | |||
Net foreign currency translation adjustment attributable to parent company | 8,054 | (6,522) | (4,845) | ||||||
Balance at December 31 | $ | (6,726) | $ | (14,780) | $ | (8,258) | |||
Treasury Stock | |||||||||
Balance at January 1, 2025, 2024 and 2023 –2,167,600, 2,152,600 and 2,152,600 shares, respectively | $ | (7,763) | $ | (7,695) | $ | (7,695) | |||
Repurchase of common stock in 2025, 2024 and 2023 – nil, 15,000 and nil shares, respectively | — | (68) | — | ||||||
Balance at December 31, 2025, 2024 and 2023 – 2,167,600, 2,167,600 and 2,152,600 shares, respectively | $ | (7,763) | $ | (7,763) | $ | (7,695) | |||
Total parent company equity | $ | 401,339 | $ | 349,569 | $ | 344,464 | |||
Non-controlling Interest | |||||||||
Balance at January 1 | $ | 40,220 | $ | 23,345 | $ | 15,182 | |||
Net foreign currency translation adjustment attributable to non-controlling shareholder | 1,146 | (601) | (346) | ||||||
Net income attributable to non-controlling interest | 9,074 | 7,897 | 5,050 | ||||||
Change in non-controlling shareholder's interest in the Brazil Henglong | — | 66 | — | ||||||
Contribution by non-controlling shareholder of Henglong KYB | (878) | 9,513 | — | ||||||
Contribution by non-controlling shareholder of Wuhan Hyoseong | — | — | 3,459 | ||||||
Distribution of cash dividends to non-controlling interests | (199) | — | — | ||||||
Balance at December 31 | $ | 49,363 | $ | 40,220 | $ | 23,345 | |||
Total equity | $ | 450,702 | $ | 389,789 | $ | 367,809 | |||
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 51,912 | $ | 37,899 | $ | 42,738 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 14,259 | 20,224 | 18,708 | ||||||
Deferred income taxes | (1,444) | (6,036) | (1,319) | ||||||
(Reversal) of/ allowance for credit losses | (620) | (953) | 1,564 | ||||||
Equity in (gain)/loss of affiliates | (2,088) | 340 | 360 | ||||||
Impairment loss on property, plant and equipment | 628 | 886 | 794 | ||||||
Loss/(gain) on disposal of fixed assets | 997 | 1,300 | (3) | ||||||
(Increase)/decrease in: | |||||||||
Other assets and other non-current assets | 474 | (7,356) | — | ||||||
Accounts and notes receivable | (9,615) | (77,692) | (50,699) | ||||||
Advance payments and others | (1,451) | 2,737 | (3,881) | ||||||
Inventories | (9,159) | (1,791) | (1,654) | ||||||
Other receivables | (516) | 138 | (556) | ||||||
Increase/(decrease) in: | |||||||||
Accounts and notes payable | 50,068 | 40,391 | 22,024 | ||||||
Customer deposits | 940 | (4,097) | 3,091 | ||||||
Accrued payroll and related costs | 2,760 | 956 | 77 | ||||||
Accrued expenses and other payables | 17,458 | 13,275 | (2,667) | ||||||
Taxes payable | (2,693) | (10,457) | (6,835) | ||||||
Advances payable | (278) | 12 | (1,836) | ||||||
Net cash provided by operating activities | 111,632 | 9,776 | 19,906 | ||||||
Cash flows from investing activities: | |||||||||
Purchase of short-term investments and long-term time deposits | (32,205) | (77,859) | (68,550) | ||||||
Proceeds from maturities of short-term investments | 38,557 | 29,442 | 63,240 | ||||||
Cash received from property, plant and equipment sales | 169 | 20,510 | 2,790 | ||||||
Cash paid to acquire property, plant and equipment and land use right (including | (37,189) | (43,656) | (18,235) | ||||||
Cash paid to acquire intangible assets | (3,145) | (804) | (3,445) | ||||||
Cash received from long-term investment | 3,443 | 316 | 3,292 | ||||||
Investment under equity method | (1,120) | (5,880) | (7,729) | ||||||
Net cash used in investing activities | (31,490) | (77,931) | (28,637) | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from bank loans | 35,262 | 83,357 | 64,776 | ||||||
Repayment of bank loans and loans | (21,421) | (58,995) | (61,437) | ||||||
Dividends paid to the common shareholders | (2,190) | (22,433) | — | ||||||
Dividends paid to non-controlling shareholder | (199) | — | — | ||||||
Repurchase of common shares | — | (68) | — | ||||||
Cash received from capital contributions by a non-controlling shareholder | — | 15,504 | 3,459 | ||||||
Net cash provided by financing activities | 11,452 | 17,365 | 6,798 | ||||||
Cash and cash equivalents affected by foreign currency | 863 | (2,580) | (1,824) | ||||||
Net increase/(decrease) in cash, cash equivalents and pledged cash | 92,457 | (53,370) | (3,757) | ||||||
Cash, cash equivalents and pledged cash at beginning of year | 101,824 | 155,194 | 158,951 | ||||||
Cash, cash equivalents and pledged cash at end of year | $ | 194,281 | $ | 101,824 | $ | 155,194 | |||
CHINA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands of
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Cash paid for interest | $ | 1,702 | $ | 1,792 | $ | 1,145 | |||
Cash paid for income taxes | $ | 20,454 | $ | 18,507 | $ | 7,965 | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Non-cash investing activities:
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Property, plant and equipment recorded during the year which previously were advance payments | $ | 8,287 | $ | 3,595 | $ | 2,699 | |||
Change in accounts payable for acquiring property, plant and equipment | $ | 448 | $ | 3,527 | $ | 960 | |||
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Supplemental disclosure of acquisition of operating lease assets | $ | — | $ | — | $ | 278 | |||
View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-reports-record-earnings-per-share-and-net-sales-in-2025-302749833.html
SOURCE China Automotive Systems