China Automotive Systems Reports Sales Increased by 19.4% in the Third Quarter of 2024
Rhea-AI Summary
China Automotive Systems (CAAS) reported strong Q3 2024 financial results with net sales increasing 19.4% year-over-year to $164.2 million. The growth was primarily driven by a 43.5% increase in Electric Power Steering (EPS) products sales, which now represent almost 40% of total sales. Net income attributable to shareholders was $5.5 million, or $0.18 per diluted share. For the first nine months of 2024, net sales grew 10.8% to $462.2 million, with net income of $20.9 million. The company maintains a strong balance sheet with $138.8 million in cash and equivalents, and has raised its full-year 2024 revenue guidance to $630.0 million.
Positive
- Net sales increased 19.4% YoY to $164.2 million in Q3 2024
- EPS product sales grew 43.5% YoY, now representing 39.9% of total sales
- Income from operations increased 10.0% to $11.1 million in Q3
- Strong cash position of $138.8 million as of September 30, 2024
- Special cash dividend of $0.80 per share paid in August 2024
- Management raised full-year revenue guidance to $630.0 million
Negative
- Gross margin declined to 16.0% in Q3 2024 from 18.0% in Q3 2023
- North American sales decreased to $18.7M from $27.6M YoY
- Net income decreased to $5.5M from $9.5M YoY in Q3
- Higher income tax expense of $4.0M compared to $0.7M in Q3 2023
News Market Reaction – CAAS
On the day this news was published, CAAS declined 4.55%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Third Quarter 2024 Highlights
- Net sales rose
19.4% year-over-year to$164.2 million $137.5 million - Gross profit increased by
6.5% year-over-year to$26.4 million $24.8 million 16.0% in the third quarter of 2024 compared to18.0% in the third quarter of 2023. - Income from operations was
$11.1 million 10.0% increase compared to$10.2 million - Net income attributable to parent company's common shareholders was
$5.5 million $0.18
First Nine Months of 2024 Highlights
- Net sales grew by
10.8% year-over-year to$462.2 million $417.2 million - Gross profit increased by
15.4% year-over-year to$79.7 million $69.1 million 17.2% in the first nine months of 2024 from16.6% in the same period last year. - Income from operations rose by
22.9% year-over-year to$31.6 million $25.7 million - Net income attributable to parent company's common shareholders was
$20.9 million - Diluted earnings per share attributable to parent company's common shareholders was
$0.69 - Cash and cash equivalents, and pledged cash were
$138.8 million $4.60 - A special cash dividend of
$0.80
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We are pleased to report sales growth for both the third quarter and the nine-month periods. Our third quarter's solid performance was driven by a noteworthy
"According to statistics from the China Association of Automobile Manufacturers, overall automobile sales in
"Given our recent financial performance and positive outlook, our shareholders were rewarded with a special cash dividend of
Mr. Jie Li, Chief Financial Officer of CAAS, commented, "We continued to maintain a strong balance sheet with cash and cash equivalents plus pledged cash of
Third Quarter of 2024
Net sales increased by
Gross profit grew by
Gain on other sales was
Selling expenses increased by
General and administrative expenses ("G&A expenses") decreased by
Research and development expenses ("R&D expenses") decreased by
Other income was
Income from operations was
Interest expense was
Net financial expense 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 30,185,702 in the third quarter of 2024, compared to 30,189,363 in the third quarter of 2023.
First Nine Months of 2024
Net sales increased by
Net income attributable to parent company's common shareholders was
Balance Sheet
As of September 30, 2024, total cash and cash equivalents, and pledged cash were
Business Outlook
Management has raised its revenue guidance for the full year 2024 to
Conference Call
Management will conduct a conference call on Wednesday, November 13, 2024 at 8:00 A.M. EST/9:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management's presentation. To participate, please see the dial-in information below, enter the call 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference call:
Phone Number: +1-888-506-0062 (
Phone Number: +1-973-528-0011 (International)
Mainland China Toll Free: +86-400-120-3199
Code: 546311
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 Hubei Province,
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, 2024, 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.
jieli@chl.com.cn
Kevin Theiss
Awaken Advisors
+1-212-521-4050
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 September 30, | ||||||
2024 | 2023 | |||||
Net product sales ( | $ | 164,215 | $ | 137,541 | ||
Cost of products sold ( | 137,859 | 112,784 | ||||
Gross profit | 26,356 | 24,757 | ||||
Gain on other sales | 553 | 2,177 | ||||
Less: Operating expenses | ||||||
Selling expenses | 4,357 | 3,803 | ||||
General and administrative expenses | 5,070 | 6,108 | ||||
Research and development expenses | 6,383 | 6,870 | ||||
Total operating expenses | 15,810 | 16,781 | ||||
Income from operations | 11,099 | 10,153 | ||||
Other income, net | 1,251 | 1,155 | ||||
Interest expense | (271) | (245) | ||||
Financial (expense)/income, net | (167) | 163 | ||||
Income before income tax expenses and equity in earnings of affiliated | 11,912 | 11,226 | ||||
Less: Income taxes | 4,042 | 688 | ||||
Add: Equity in earnings of affiliated companies | 203 | 706 | ||||
Net income | 8,073 | 11,244 | ||||
Less: Net income attributable to non-controlling interests | 2,562 | 1,749 | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Net income attributable to parent company's common shareholders | $ | 5,504 | $ | 9,488 | ||
Comprehensive income: | ||||||
Net income | $ | 8,073 | $ | 11,244 | ||
Other comprehensive income: | ||||||
Foreign currency translation gain, net of tax | 6,584 | 3,580 | ||||
Comprehensive income | 14,657 | 14,824 | ||||
Less: Comprehensive income attributable to non-controlling interests | 3,287 | 3,590 | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Comprehensive income attributable to parent company | $ | 11,363 | $ | 11,227 | ||
Net income attributable to parent company's common shareholders per | ||||||
Basic | $ | 0.18 | $ | 0.31 | ||
Diluted | $ | 0.18 | $ | 0.31 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,185,702 | ||||
Diluted | 30,185,702 | 30,189,363 | ||||
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) | ||||||
Nine Months Ended September 30, | ||||||
2024 | 2023 | |||||
Net product sales ( | $ | 462,217 | $ | 417,194 | ||
Cost of products sold ( | 382,490 | 348,101 | ||||
Gross profit | 79,727 | 69,093 | ||||
Gain on other sales | 2,787 | 3,572 | ||||
Less: Operating expenses | ||||||
Selling expenses | 13,044 | 10,981 | ||||
General and administrative expenses | 18,035 | 16,132 | ||||
Research and development expenses | 19,879 | 19,866 | ||||
Total operating expenses | 50,958 | 46,979 | ||||
Income from operations | 31,556 | 25,686 | ||||
Other income, net | 5,389 | 4,620 | ||||
Interest expense | (712) | (770) | ||||
Financial (expense)/income, net | (869) | 3,704 | ||||
Income before income tax expenses and equity in earnings of affiliated | 35,364 | 33,240 | ||||
Less: Income taxes | 7,893 | 3,004 | ||||
Add: Equity in (losses)/earnings of affiliated companies | (1,379) | 359 | ||||
Net income | 26,092 | 30,595 | ||||
Less: Net income attributable to non-controlling interests | 5,159 | 3,799 | ||||
Accretion to redemption value of redeemable non-controlling interests | (22) | (22) | ||||
Net income attributable to parent company's common shareholders | $ | 20,911 | $ | 26,774 | ||
Comprehensive income: | ||||||
Net income | $ | 26,092 | $ | 30,595 | ||
Other comprehensive income: | ||||||
Foreign currency translation gain/(loss), net of tax | 3,390 | (8,752) | ||||
Comprehensive income | 29,482 | 21,843 | ||||
Less: Comprehensive income attributable to non-controlling interests | 5,659 | 4,831 | ||||
Accretion to redemption value of redeemable non-controlling interests | (22) | (22) | ||||
Comprehensive income attributable to parent company | $ | 23,801 | $ | 16,990 | ||
Net income attributable to parent company's common shareholders per | ||||||
Basic | $ | 0.69 | $ | 0.89 | ||
Diluted | $ | 0.69 | $ | 0.89 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,185,702 | ||||
Diluted | 30,185,702 | 30,190,660 | ||||
China Automotive Systems, Inc. and Subsidiaries | ||||||
Condensed Unaudited Consolidated Balance Sheets | ||||||
(In thousands of USD unless otherwise indicated) | ||||||
September 30, 2024 | December 31, 2023 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 98,310 | $ | 114,660 | ||
Pledged cash | 40,514 | 40,534 | ||||
Accounts and notes receivable, net - unrelated parties | 295,515 | 261,237 | ||||
Accounts and notes receivable, net - related parties | 18,658 | 8,169 | ||||
Inventories | 108,880 | 112,392 | ||||
Other current assets | 28,245 | 27,083 | ||||
Total current assets | 590,122 | 564,075 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 100,703 | 101,359 | ||||
Land use rights, net | 9,130 | 9,233 | ||||
Long-term investments | 60,236 | 60,173 | ||||
Other non-current assets | 68,841 | 31,600 | ||||
Total assets | $ | 829,032 | $ | 766,440 | ||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | $ | 59,744 | $ | 48,005 | ||
Accounts and notes payable-unrelated parties | 259,134 | 240,739 | ||||
Accounts and notes payable-related parties | 12,658 | 12,839 | ||||
Accrued expenses and other payables | 65,253 | 44,771 | ||||
Other current liabilities | 36,718 | 37,385 | ||||
Total current liabilities | 433,507 | 383,739 | ||||
Long-term liabilities: | ||||||
Long-term tax payable | — | 8,781 | ||||
Other non-current liabilities | 6,266 | 5,498 | ||||
Total liabilities | $ | 439,773 | $ | 398,018 | ||
Mezzanine equity: | ||||||
Redeemable non-controlling interests | 635 | 613 | ||||
Stockholders' equity: | ||||||
Common stock, | $ | 3 | $ | 3 | ||
Additional paid-in capital | 69,722 | 63,731 | ||||
Retained earnings- | ||||||
Appropriated | 12,174 | 11,851 | ||||
Unappropriated | 281,271 | 284,832 | ||||
Accumulated other comprehensive income | (5,368) | (8,258) | ||||
Treasury stock – 2,152,600 and 2,152,600 shares as of September 30, 2024 and December 31, 2023, | (7,695) | (7,695) | ||||
Total parent company stockholders' equity | 350,107 | 344,464 | ||||
Non-controlling interests | 38,517 | 23,345 | ||||
Total stockholders' equity | 388,624 | 367,809 | ||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 829,032 | $ | 766,440 | ||
China Automotive Systems, Inc. and Subsidiaries | ||||||
Condensed Unaudited Consolidated Statements of Cash Flows | ||||||
(In thousands of USD unless otherwise indicated) | ||||||
Nine Months Ended September 30, | ||||||
2024 | 2023 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 26,092 | $ | 30,595 | ||
Adjustments to reconcile net income from operations to net cash provided by | ||||||
Depreciation and amortization | 14,574 | 13,666 | ||||
Reversal of credit losses | (903) | (450) | ||||
Deferred income taxes | — | (1,017) | ||||
Equity in earnings/(losses) of affiliated companies | 1,379 | (359) | ||||
Loss on property, plant and equipment disposals | 1,133 | 79 | ||||
(Increase)/decrease in: | ||||||
Accounts and notes receivable | (40,350) | (24,315) | ||||
Inventories | 4,653 | 6,070 | ||||
Other current assets | 874 | (1,391) | ||||
Other non-current assets | (874) | (517) | ||||
Increase/(decrease) in: | ||||||
Accounts and notes payable | 12,996 | (6,198) | ||||
Accrued expenses and other payables | 4,945 | 849 | ||||
Long-term taxes payable | (7,025) | (5,268) | ||||
Other current liabilities | (952) | (1,004) | ||||
Net cash provided by operating activities | 16,542 | 10,740 | ||||
Cash flows from investing activities: | ||||||
Cash received from property, plant and equipment sales | 1,359 | 664 | ||||
Payments to acquire property, plant and equipment (including | (18,268) | (12,184) | ||||
Payments to acquire intangible assets | (383) | (2,437) | ||||
Investments under the equity method | (2,283) | (7,729) | ||||
Purchase of short-term investments | (58,472) | (55,290) | ||||
Proceeds from maturities of short-term investments | 25,373 | 48,281 | ||||
Cash received from long-term investments | 1,396 | 3,115 | ||||
Net cash used in investing activities | (51,278) | (25,580) | ||||
Cash flows from financing activities: | ||||||
Proceeds from bank loans | 64,461 | 42,828 | ||||
Repayments of bank loans | (54,394) | (48,147) | ||||
Dividends paid to the common shareholders | (9,318) | — | ||||
Cash received from capital contributions of a non-controlling interest | 15,504 | — | ||||
Net cash provided by/(used in) financing activities | 16,253 | (5,319) | ||||
Effects of exchange rate on cash, cash equivalents and pledged cash | 2,113 | (3,671) | ||||
Net decrease in cash, cash equivalents and pledged cash | (16,370) | (23,830) | ||||
Cash, cash equivalents and pledged cash at beginning of the period | 155,194 | 158,951 | ||||
Cash, cash equivalents and pledged cash at end of the period | $ | 138,824 | $ | 135,121 | ||
View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-reports-sales-increased-by-19-4-in-the-third-quarter-of-2024--302303613.html
SOURCE China Automotive Systems, Inc.
FAQ
What was CAAS's revenue growth in Q3 2024?
How much did CAAS's EPS product sales grow in Q3 2024?
What dividend did CAAS pay in August 2024?
What is CAAS's revenue guidance for full-year 2024?
