Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
On August 13, 2026, China Automotive Systems, Inc.
(the “Company”) issued a press release announcing its financial results for the six
months ended June 30, 2026. A copy of the press release is furnished as Exhibits 99.1 to this report on Form 6-K. As
previously announced, the Company will host a conference call to discuss its first half fiscal year 2026 results on August 13, 2026,
at 8:00 a.m. EST.
The unaudited condensed consolidated statements
of operations and comprehensive income, unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements
of cash flows attached as Exhibit 99.1 to this report on Form 6-K are hereby incorporated by reference into the Company’s
registration statement on Form S-8 (Registration No. 333- 126959) (including any prospectuses forming a part of such
registration statement), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents
or reports subsequently filed or furnished.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
China
Automotive Systems Record Earnings Per Share Rose 98%
in the First Half of 2026
WUHAN,
China, August 13, 2026 -- China Automotive Systems, Inc. (NASDAQ: CAAS) (“CAAS” or the “Company”), a
leading power steering components and systems supplier in China, today announced its unaudited financial results for the first six months
ended June 30, 2026.
First
Six Months of 2026 Highlights
| · | Net sales grew by 20.1% year-over-year to a record $412.5 million, compared
to $343.3 million in the first six months of 2025. |
| · | Gross profit increased by 49.7% year-over-year
to $88.5 million, compared to $59.1 million in the first six months of 2025; gross profit margin increased to 21.5% in the first six months
of 2026. |
| · | Income from operations rose by 100.4% year-over-year
to $43.3 million compared to income from operations of $21.6 million in the first six months of 2025. |
| · | Net income attributable to parent company’s
common shareholders increased by 98.8% to $29.3 million from $14.7 million in the first six months of 2025. |
| · | Diluted earnings per share attributable to parent
company’s common shareholders increased by 98.0% to $0.97 compared with $0.49 in the first six months of 2025. |
| · | Cash, cash equivalents and pledged cash were
$155.6 million, or approximately $5.16 per share, as of June 30, 2026. |
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, “Our profit growth accelerated in the first half of 2026 with strong
net sales in an overall sluggish economy in China. We had growth across the board in our major operating units, except for our Brazilian
subsidiary, with three operations achieving net sales growth exceeding 40% in the first six months of 2026. Net sales of our electric
power steering (“EPS”) products grew by 32.2% year-over-year and now represent 46.8% of total net sales in the first half
of 2026. Our Henglong KYB subsidiary, which is mainly engaged in providing passenger EPS products, has grown into the second largest contributor
to net sales. In addition to the growth in our passenger vehicle steering systems, our net sales of commercial vehicle steering systems
continued to improve with an even stronger sales growth of over 40% year-over-year in the first half of 2026.”
“Our growth contrasts with
Chinese automotive vehicle performance as data from the China Association of Automotive Manufacturers (“CAAM”) disclosed that
vehicle production and sales fell 4.0% and 4.1% year-on-year, respectively, in the first half of 2026. Passenger vehicle sales fell by
approximately 6.0% in the first half of 2026. Retail sales of ICE vehicles fell while NEV sales reached 49.6% of all new-vehicle sales
and battery EVs represented approximately 67% of total NEV sales. Higher fuel costs and a reduction in EV subsidies in China impacted
vehicle demand.”
“Our investment into research
and development increased by 23.6% as we accelerate our transition into higher technology products. A growing number of our steering products
are capable of autonomous driving functions such as automatic parking, lane keep assist (“LKA”) and lane follow assist (“LFA”)
as well as rear-wheel active steering. These features are driving higher demand, presenting stronger growth opportunities for the future.”
“International sales continue
to grow as our customer base has expanded and more vehicle models are now powered by our products. After over 30 years’ relentless
pursuit for high quality, advanced technologies and superior value, we have become a tier-1 supplier to large global OEM customers in
North America, Europe, Asia and South America. In late 2025, we won a contract for our C-EPS (column-assist electric power steering) for
a new vehicle platform from a leading South American-based automotive manufacturer. This contract highlights the first large-scale entry
of our EPS systems into the South American automotive supply chain. Planned annual sales volume is over 300,000 units with mass production
expected in early 2028. This contract partially resulted from the successful launch of similar C-EPS products for the European markets.”
“Subsequently, in 2026,
the first batch of EPS steering was shipped to a global automaker's European division. This particular EPS steering model is featured
in two new European vehicle models with more vehicles targeted. Annual sales volume is expected to reach approximately 300,000 units.”
“This project achieved a
number of strict technical and quality innovations, including new testing methods, software upgrades, a state-of-the-art production line
powered by eight modern manufacturing technologies including seamless integration of manufacturing execution system (“MES”)
with automated guided vehicles (“AGV”), computer vision Poka-Yoke, and 100% autonomous robotic inspection.”
“In
2026, we announced a new 2026-2030 ‘Strategic Plan’ committing to a new growth trajectory. The main pillars are focused on
deepening local presence in global markets, and developing additional cutting-edge steering technologies, new product markets, and “zero-defect”
quality with platform-based, lean, automated manufacturing systems. We believe this strategy will lead to increased volume among large
vehicle OEMs and capture greater market share in the global automotive marketplace.”
Mr. Jie
Li, Chief Financial Officer of CAAS, commented, “We continue to focus on maintaining our financial strength buoyed by net cash provided
by operating activities of $47.8 million in the first half of 2026. Cash, cash equivalents and pledged cash were $155.6 million, and working
capital was nearly $249.8 million. We grew our free cashflow to $14.3 million. Our capital investments in property, plant and equipment
were $30.4 million in the first half of 2026 as we continue to invest in our future.”
First Six Months of 2026
Net
sales increased by 20.1% year-over-year to $412.5 million, compared to $343.3 million in the first half of 2025. The net sales
increase was mainly due to higher sales of electric power steering and the appreciation of the RMB against the USD. Net
sales of traditional steering products and parts increased 11.2% year-over-year to $219.6 million in the first half of 2026. Net sales
of EPS products rose 32.2% year-over-year to $192.9 million from $145.9 million for the same period in 2025. EPS product sales grew to
46.8% of the total net sales for the first half of 2026, compared to 42.5% for the same period in 2025. Net sales in our Henglong subsidiary,
the largest contributor to sales, rose by 25.3% to $205.7 million, compared with $164.2 million for the first half of 2025. Sales to North
American customers increased by 3.5% to $59.2 million, compared to $57.2 million in the first half of 2025, primarily due to higher demand
for passenger vehicle products by one customer. Sales in Brazil declined by 5.1% in the first half of 2026 to $32.6 million from $34.4
million in the first half of 2025. Jiulong’s net sales to the Chinese commercial vehicle market increased 42.9% year-over-year
to $61.7 million and our Wuhu subsidiary’s net sales to Chery Automotive Co., Ltd. rose by 40.3% year-over-year to $22.7 million
in the first half of 2026.
Gross
profit grew by 49.7% year-over-year to $88.5 million from $59.1 million in the first half of 2025. Gross profit margin increased
to 21.5% in the first half of 2026 from 17.2% in the first half of 2025. The increase in gross profit was mainly due to product volume
gains and greater sales of relatively higher-margin products.
Net gain
on other sales increased to $2.1 million in the first half of 2026, compared to $1.6 million in the first half of 2025.
Selling
expenses grew by 28.0% to $11.9 million in the first six months of 2026 compared with $9.3 million in the same period last year. Higher
selling expenses were a result of the sales and volume gains achieved in the first half of 2026. Selling expenses represented 2.9% of
net sales in the first half of 2026 compared with 2.7% in the first half of 2025.
General
and administrative expenses (“G&A expenses”) increased by 12.6% to $14.6 million, compared to $13.0 million in
the first half of 2025 primarily due to higher office expenses. G&A expenses represented 3.5% of net sales in the first six months
of 2026, compared to 3.8% of net sales in the same period in 2025.
Research
and development expenses (“R&D expenses”) increased by 23.6% to $20.8 million in the first six months of 2026, compared
with $16.8 million in the first half of 2025. R&D expenses represented 5.0% of net sales, compared to 4.9% in the first six
months of 2025. Research and development programs include upgrades to enhance the performance and quality of current products, customizing
products for specific customers, as well as further developing EPS and hydraulic steering systems, automotive intelligence and software
technologies, automobile electronics, high-polymer materials, and manufacturing technologies.
Other
income, net was $6.9 million in the first half of 2026, compared to $3.0 million in the same period last year. The increase was mainly
due to the decrease in the loss on disposal of property, plant and equipment.
Income
from operations climbed 100.4% to $43.3 million in the first six months of 2026 from $21.6 million in the first six months of 2025. This
gain reflected greater sales, higher gross profit and margins, and effective cost controls.
Interest
expense was stable at $0.8 million in the first half of 2026 and 2025.
Net financial
expense was $2.9 million in the first half of 2026, compared to net financial income of $3.3 million in the first half in 2025. This change
in net financial income was primarily due to foreign exchange volatility.
Income
before income tax expenses and equity in earnings of affiliated companies increased by 71.3% to $46.5 million in the first half of 2026,
compared to $27.2 million in the same period in 2025. The change in income before income tax expenses and equity in earnings of affiliated
companies was mainly due to higher income from operations and higher other income, net in the first half of 2026.
Income
tax expense was $9.9 million in the first half of 2026, compared to $7.0 million in the first half of 2025. The increase in income tax
expense was primarily due to a higher income before income tax expenses in the first half of 2026. The effective tax rate was 21.3% in
the first six months of 2026, compared with 25.7% in the same period last year.
Net income
attributable to parent company’s common shareholders increased by 98.8% to $29.3 million in the first six months of 2026, compared
to net income attributable to parent company’s common shareholders of $14.7 million in the first half of 2025. Diluted earnings
per share were $0.97 in the first half of 2026, compared to $0.49 per share in the same period in 2025.
The
weighted average number of diluted common shares outstanding was 30,170,702 in each of the 2026 and
2025 six-month periods.
Balance
Sheet
Cash
and cash equivalents and pledged cash were $155.6 million, or approximately $5.16 per share, as of June 30, 2026. Net working capital
was $249.8 million. Total accounts receivable including notes receivable were $362.4 million, accounts payable including notes
payable were $361.5 million and short-term loans were $75.0 million. Total parent company stockholders' equity was $443.8 million as of
June 30, 2026, compared to $401.3 million as of December 31, 2025. Net cash provided by operating activities was $47.8 million
with payments to acquire property, plant and equipment of $30.4 million.
Business
Outlook
Management has raised revenue
guidance for the fiscal year 2026 to $850.0 million. This target is based on the Company’s current views on operating and market
conditions, which are subject to change.
Conference Call
Management
will conduct a conference call on August 13th, 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 763912:
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 Hubei Province, the People's Republic
of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive
industry, operating through its sixteen Sino-foreign joint ventures and wholly-owned subsidiaries. The Company offers a full range of
steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering
with an annual production capacity of over 8 million sets of steering gears, columns and steering hoses. Its customer base is comprised
of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi
Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Stellantis N.V. and Ford Motor Company in North America.
For more information, please visit: https://www.caasauto.com.
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.
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)
| | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | |
| Net product sales ($19,170 and $20,015 sold to related parties for the six months ended June 30, 2026 and 2025) | |
$ | 412,465 | | |
$ | 343,339 | |
| Cost of products sold ($14,724 and $15,546 purchased from related parties for the six months ended June 30, 2026 and 2025) | |
| 323,956 | | |
| 284,207 | |
| Gross profit | |
| 88,509 | | |
| 59,132 | |
| Net gain on other sales | |
| 2,149 | | |
| 1,606 | |
| Less: Operating expenses | |
| | | |
| | |
| Selling expenses | |
| 11,946 | | |
| 9,332 | |
| General and administrative expenses | |
| 14,612 | | |
| 12,977 | |
| Research and development expenses | |
| 20,772 | | |
| 16,805 | |
| Total operating expenses | |
| 47,330 | | |
| 39,114 | |
| Income from operations | |
| 43,328 | | |
| 21,624 | |
| Other income, net | |
| 6,938 | | |
| 3,001 | |
| Interest expense | |
| (821 | ) | |
| (775 | ) |
| Financial (expense)/income, net | |
| (2,917 | ) | |
| 3,305 | |
| Income before income tax expenses and equity in earnings of affiliated companies | |
| 46,528 | | |
| 27,155 | |
| Less: Income taxes | |
| 9,911 | | |
| 6,986 | |
| Add: Equity in losses of affiliated companies | |
| (2,885 | ) | |
| (1,342 | ) |
| Net income | |
| 33,732 | | |
| 18,827 | |
| Less: Net income attributable to non-controlling interests | |
| 4,408 | | |
| 4,080 | |
| Net income attributable to parent company’s common shareholders | |
$ | 29,324 | | |
$ | 14,747 | |
| Comprehensive income: | |
| | | |
| | |
| Net income | |
$ | 33,732 | | |
$ | 18,827 | |
| Other comprehensive income: | |
| | | |
| | |
| Foreign currency translation gain, net of tax | |
| 14,891 | | |
| 2,262 | |
| Comprehensive income | |
| 48,623 | | |
| 21,089 | |
| Less: Comprehensive income attributable to non-controlling interests | |
| 6,171 | | |
| 4,283 | |
| Comprehensive income attributable to parent company | |
$ | 42,452 | | |
$ | 16,806 | |
| | |
| | | |
| | |
| Net income attributable to parent company’s common shareholders per share - | |
| | | |
| | |
| Basic | |
$ | 0.97 | | |
$ | 0.49 | |
| Diluted | |
$ | 0.97 | | |
$ | 0.49 | |
| | |
| | | |
| | |
| Weighted average number of common shares outstanding - | |
| | | |
| | |
| Basic | |
| 30,170,702 | | |
| 30,170,702 | |
| Diluted | |
| 30,170,702 | | |
| 30,170,702 | |
China Automotive Systems, Inc. and Subsidiaries
Condensed Unaudited
Consolidated Balance Sheets
(In thousands of USD unless otherwise indicated)
| | |
June 30, 2026 | | |
December 31, 2025 | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 98,411 | | |
$ | 142,001 | |
| Pledged cash | |
| 57,158 | | |
| 52,280 | |
| Accounts and notes receivable, net - unrelated parties | |
| 337,587 | | |
| 346,038 | |
| Accounts and notes receivable, net - related parties | |
| 24,818 | | |
| 15,741 | |
| Inventories | |
| 139,710 | | |
| 124,418 | |
| Other current assets | |
| 148,902 | | |
| 57,707 | |
| Total current assets | |
| 806,586 | | |
| 738,185 | |
| Non-current assets: | |
| | | |
| | |
| Property, plant and equipment, net | |
| 157,802 | | |
| 133,548 | |
| Land use rights, net | |
| 14,475 | | |
| 11,656 | |
| Long-term investments | |
| 61,520 | | |
| 65,515 | |
| Other non-current assets | |
| 36,723 | | |
| 52,794 | |
| Total assets | |
$ | 1,077,106 | | |
$ | 1,001,698 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Short-term loans | |
$ | 74,994 | | |
$ | 81,341 | |
| Accounts and notes payable-unrelated parties | |
| 347,452 | | |
| 334,304 | |
| Accounts and notes payable-related parties | |
| 14,079 | | |
| 16,033 | |
| Accrued expenses and other payables | |
| 86,977 | | |
| 76,138 | |
| Other current liabilities | |
| 33,314 | | |
| 33,625 | |
| Total current liabilities | |
| 556,816 | | |
| 541,441 | |
| Long-term liabilities: | |
| | | |
| | |
| Other non-current liabilities | |
| 23,197 | | |
| 9,555 | |
| Total liabilities | |
$ | 580,013 | | |
$ | 550,996 | |
| | |
| | | |
| | |
| Stockholders’ equity: | |
| | | |
| | |
| Ordinary share, $0.001 par value – Authorized – 50,000,000 shares; Issued – 32,338,302 and 32,338,302 shares as of June 30, 2026 and December 31, 2025, respectively | |
$ | 32 | | |
$ | 32 | |
| Additional paid-in capital | |
| 70,505 | | |
| 70,505 | |
| Retained earnings- | |
| | | |
| | |
| Appropriated | |
| 15,809 | | |
| 13,827 | |
| Unappropriated | |
| 358,806 | | |
| 331,464 | |
| Accumulated other comprehensive income | |
| 6,402 | | |
| (6,726 | ) |
| Treasury stock –2,167,600 and 2,167,600 shares as of June 30, 2026 and December 31, 2025, respectively | |
| (7,763 | ) | |
| (7,763 | ) |
| Total parent company stockholders’ equity | |
| 443,791 | | |
| 401,339 | |
| Non-controlling interests | |
| 53,302 | | |
| 49,363 | |
| Total stockholders’ equity | |
| 497,093 | | |
| 450,702 | |
| Total liabilities and stockholders’ equity | |
$ | 1,077,106 | | |
$ | 1,001,698 | |
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, | |
| | |
2026 | | |
2025 | |
| Cash flows from operating activities: | |
| | | |
| | |
| Net income | |
$ | 33,732 | | |
$ | 18,827 | |
| Adjustments to reconcile net income from operations to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation and amortization | |
| 7,845 | | |
| 8,267 | |
| (Reversal) of credit losses | |
| (65 | ) | |
| (159 | ) |
| Deferred income taxes | |
| 911 | | |
| — | |
| Equity in losses of affiliated companies | |
| 2,885 | | |
| 1,342 | |
| Impairment loss on disposal of property, plant and equipment | |
| — | | |
| 657 | |
| (Gain)/loss on disposal of property, plant and equipment | |
| (987 | ) | |
| 580 | |
| (Increase)/decrease in: | |
| | | |
| | |
| Accounts and notes receivable | |
| 10,896 | | |
| 50,982 | |
| Inventories | |
| (11,178 | ) | |
| (3,491 | ) |
| Other current assets | |
| (3,153 | ) | |
| (1,077 | ) |
| Increase/(decrease) in: | |
| | | |
| | |
| Accounts and notes payable | |
| (14 | ) | |
| (24,349 | ) |
| Accrued expenses and other payables | |
| 8,305 | | |
| 2,238 | |
| Other current liabilities | |
| (1,370 | ) | |
| (4,735 | ) |
| Net cash provided by operating activities | |
| 47,807 | | |
| 49,082 | |
| Cash flows from investing activities: | |
| | | |
| | |
| Cash received from disposal of property, plant and equipment sales | |
| 1,055 | | |
| 522 | |
| Cash paid to acquire property, plant and equipment and land use right (including $6,659 and $2,193 paid to related parties for the years ended June 30, 2026 and 2025, respectively) | |
| (30,425 | ) | |
| (18,484 | ) |
| Government subsidy received for purchase of Property, plant and equipment | |
| 5,851 | | |
| — | |
| Payments to acquire intangible assets | |
| (3,126 | ) | |
| (67 | ) |
| Investments under the equity method | |
| — | | |
| (1,112 | ) |
| Purchase of short-term investments | |
| (88,024 | ) | |
| (23,096 | ) |
| Proceeds from maturities of short-term investments | |
| 22,069 | | |
| 29,570 | |
| Cash received from long-term investments | |
| 3,101 | | |
| 2,368 | |
| Net cash used in investing activities | |
| (89,499 | ) | |
| (10,299 | ) |
| Cash flows from financing activities: | |
| | | |
| | |
| Proceeds from bank loans | |
| 28,727 | | |
| 52,829 | |
| Repayments of bank loans | |
| (28,632 | ) | |
| (53,890 | ) |
| Dividends paid to the non-controlling interests | |
| (93 | ) | |
| — | |
| Dividends paid to the common shareholders | |
| — | | |
| (1,773 | ) |
| Net cash provided by/(used in) financing activities | |
| 2 | | |
| (2,834 | ) |
| Effects of exchange rate on cash, cash equivalents and pledged cash | |
| 2,978 | | |
| 1,195 | |
| Net decrease/increase in cash, cash equivalents and pledged cash | |
| (38,712 | ) | |
| 37,144 | |
| Cash, cash equivalents and pledged cash at beginning of the period | |
| 194,281 | | |
| 101,824 | |
| Cash, cash equivalents and pledged cash at end of the period | |
$ | 155,569 | | |
$ | 138,968 | |
