China Automotive Systems Reports 90.0% Increase in Net Income Per Share to $0.57 in the First Six Months of 2023
Second Quarter 2023 Highlights
- Net sales rose
8.1% year-over-year to from$137.4 million in the second quarter of 2022.$127.2 million - Gross profit was
, which is consistent with the$22.7 million in the second quarter of 2022.$22.7 million - Income from operations was
, compared to income from operations of$7.8 million in the second quarter of 2022.$7.2 million - Net income attributable to parent company's common shareholders was
, or diluted earnings per share of$10.5 million , compared to net income attributable to parent company's common shareholders of$0.35 , or diluted earnings per share of$9.4 million in the second quarter of 2022$0.31
First Six Months of 2023 Highlights
- Net sales grew by
6.1% year-over-year to , compared to$279.7 million in the first six months of 2022.$263.6 million - Gross profit increased by
18.4% year-over-year to , compared to$44.3 million in the first six months of 2022.$37.4 million - Income from operations rose by
171.9% year-over-year to compared to income from operations of$15.5 million in the first six months of 2022.$5.7 million - Net income attributable to parent company's common shareholders was
, compared to net income attributable to parent company's common shareholders of$17.3 million in the first six months of 2022;$9.4 million - Diluted earnings per share attributable to parent company's common shareholders increased by
90.0% year-over-year to , compared to diluted earnings per share attributable to parent company's common shareholders of$0.57 in the first six months of 2022.$0.30 - Cash and cash equivalents, and pledged cash were
, or approximately$125.5 million per share, as of June 30, 2023.$4.16
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "Our revenue growth accelerated in the second quarter. Most of our divisions reported higher sales and most encouragingly, net sales of our advanced electric power steering ("EPS") grew by
"According to statistics from the China Association of Automobile Manufacturers, overall automobile sales in
"Chinese GDP growth rate for the first half of 2023 was
Mr. Jie Li, Chief Financial Officer of CAAS, commented, "We maintained a strong balance sheet with cash and cash equivalents plus pledged cash of
Second Quarter of 2023
Net sales increased by
Gross profit was
Gain on other sales was
Selling expenses decreased by
General and administrative expenses ("G&A expenses") decreased by
Research and development expenses ("R&D expenses") decreased by
Other income, net was
Income from operations was
Interest expense was
Net financial income was
Income before income tax expenses and equity in earnings of affiliated companies was
Net income attributable to parent company's common shareholders was
The weighted average number of diluted common shares outstanding was 30,189,537 in the second quarter of 2023, compared to 30,849,009 in the second quarter of 2022.
First Six Months of 2023
Net sales increased by
Net income attributable to parent company's common shareholders was
Balance Sheet
As of June 30, 2023, total cash and cash equivalents, and pledged cash were
Business Outlook
Management has reiterated its revenue guidance for the full year 2023 of
Conference Call
Management will conduct a conference call on August 11, 2023 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 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: 235847
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 30, 2023, 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 June 30, | ||||||
2023 | 2022 | |||||
Net product sales ( | $ | 137,410 | $ | 127,161 | ||
Cost of products sold ( | 114,692 | 104,450 | ||||
Gross profit | 22,718 | 22,711 | ||||
Gain on other sales | 742 | 2,105 | ||||
Less: Operating expenses | ||||||
Selling expenses | 3,794 | 4,068 | ||||
General and administrative expenses | 5,271 | 5,662 | ||||
Research and development expenses | 6,606 | 7,886 | ||||
Total operating expenses | 15,671 | 17,616 | ||||
Income from operations | 7,789 | 7,200 | ||||
Other income, net | 1,963 | 2,804 | ||||
Interest expense | (276) | (370) | ||||
Financial income, net | 3,963 | 2,543 | ||||
Income before income tax expenses and equity in earnings of affiliated | 13,439 | 12,177 | ||||
Less: Income taxes expense | 1,487 | 3,156 | ||||
Add: Equity in (loss)/earnings of affiliated companies | (484) | 914 | ||||
Net income | 11,468 | 9,935 | ||||
Less: Net income attributable to non-controlling interests | 995 | 500 | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Net income attributable to parent company's common shareholders | $ | 10,466 | $ | 9,428 | ||
Comprehensive income: | ||||||
Net income | $ | 11,468 | $ | 9,935 | ||
Other comprehensive income: | ||||||
Foreign currency translation loss, net of tax | (16,886) | (19,055) | ||||
Comprehensive loss | (5,418) | (9,120) | ||||
Comprehensive loss attributable to non-controlling interests | (80) | (642) | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Comprehensive loss attributable to parent company | $ | (5,345) | $ | (8,485) | ||
Net income attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.35 | $ | 0.31 | ||
Diluted | $ | 0.35 | $ | 0.31 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,847,706 | ||||
Diluted | 30,189,537 | 30,849,009 |
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, | ||||||
2023 | 2022 | |||||
Net product sales ( | $ | 279,653 | $ | 263,557 | ||
Cost of products sold ( | 235,317 | 226,112 | ||||
Gross profit | 44,336 | 37,445 | ||||
Gain on other sales | 1,395 | 3,036 | ||||
Less: Operating expenses | ||||||
Selling expenses | 7,178 | 8,380 | ||||
General and administrative expenses | 10,024 | 10,416 | ||||
Research and development expenses | 12,996 | 16,023 | ||||
Total operating expenses | 30,198 | 34,819 | ||||
Income from operations | 15,533 | 5,662 | ||||
Other income, net | 3,465 | 6,323 | ||||
Interest expense | (525) | (772) | ||||
Financial income, net | 3,541 | 4,558 | ||||
Income before income tax expenses and equity in earnings of affiliated | 22,014 | 15,771 | ||||
Less: Income taxes expense | 2,316 | 4,114 | ||||
Add: Equity in loss of affiliated companies | (347) | (1,573) | ||||
Net income | 19,351 | 10,084 | ||||
Less: Net income attributable to non-controlling interests | 2,050 | 700 | ||||
Accretion to redemption value of redeemable non-controlling interests | (15) | (15) | ||||
Net income attributable to parent company's common shareholders | $ | 17,286 | $ | 9,369 | ||
Comprehensive income: | ||||||
Net income | $ | 19,351 | $ | 10,084 | ||
Other comprehensive income: | ||||||
Foreign currency translation loss, net of tax | (12,332) | (17,618) | ||||
Comprehensive income/(loss) | 7,019 | (7,534) | ||||
Comprehensive income/(loss) attributable to non-controlling interests | 1,241 | (353) | ||||
Accretion to redemption value of redeemable non-controlling interests | (15) | (15) | ||||
Comprehensive income/(loss) attributable to parent company | $ | 5,763 | $ | (7,196) | ||
Net income attributable to parent company's common shareholders per | ||||||
Basic | $ | 0.57 | $ | 0.30 | ||
Diluted | $ | 0.57 | $ | 0.30 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,849,730 | ||||
Diluted | 30,191,309 | 30,850,859 |
China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Balance Sheets (In thousands of USD unless otherwise indicated) | ||||||
June 30, 2023 | December 31, 2022 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 95,620 | $ | 121,216 | ||
Pledged cash | 29,921 | 37,735 | ||||
Accounts and notes receivable, net - unrelated parties | 217,493 | 214,308 | ||||
Accounts and notes receivable, net - related parties | 16,547 | 10,016 | ||||
Inventories | 100,262 | 112,236 | ||||
Other current assets | 28,063 | 25,207 | ||||
Total current assets | 487,906 | 520,718 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 99,347 | 106,606 | ||||
Land use rights, net | 9,080 | 9,555 | ||||
Long-term investments | 62,179 | 59,810 | ||||
Other non-current assets | 26,065 | 17,663 | ||||
Total assets | $ | 684,577 | $ | 714,352 | ||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | $ | 38,457 | $ | 45,671 | ||
Accounts and notes payable-unrelated parties | 205,951 | 218,412 | ||||
Accounts and notes payable-related parties | 10,762 | 16,695 | ||||
Accrued expenses and other payables | 45,972 | 48,311 | ||||
Other current liabilities | 33,458 | 35,106 | ||||
Total current liabilities | 334,600 | 364,195 | ||||
Long-term liabilities: | ||||||
Long-term tax payable | 8,781 | 15,805 | ||||
Other non-current liabilities | 6,761 | 6,937 | ||||
Total liabilities | $ | 350,142 | $ | 386,937 | ||
Commitments and Contingencies | ||||||
Mezzanine equity: | ||||||
Redeemable non-controlling interests | 598 | 582 | ||||
Stockholders' equity: | ||||||
Common stock, | $ | 3 | $ | 3 | ||
Additional paid-in capital | 63,731 | 63,731 | ||||
Retained earnings- | ||||||
Appropriated | 11,851 | 11,851 | ||||
Unappropriated | 264,460 | 247,174 | ||||
Accumulated other comprehensive income | (14,936) | (3,413) | ||||
Treasury stock – 2,152,600 and 2,152,600 shares as of June 30, 2023 and December 31, 2022, | (7,695) | (7,695) | ||||
Total parent company stockholders' equity | 317,414 | 311,651 | ||||
Non-controlling interests | 16,423 | 15,182 | ||||
Total stockholders' equity | 333,837 | 326,833 | ||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 684,577 | $ | 714,352 |
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, | ||||||
2023 | 2022 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 19,351 | $ | 10,084 | ||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||
Depreciation and amortization | 9,528 | 12,012 | ||||
(Reversal)/provision of credit losses | (459) | 527 | ||||
Deferred income taxes | 237 | 2,945 | ||||
Equity in loss of affiliated companies | 347 | 1,573 | ||||
Loss on fixed assets disposals | 15 | 46 | ||||
(Increase)/decrease in: | ||||||
Accounts and notes receivable | (18,323) | (4,333) | ||||
Inventories | 8,355 | 896 | ||||
Other current assets | (904) | (1,218) | ||||
Increase/(decrease) in: | ||||||
Accounts and notes payable | (10,323) | (6,156) | ||||
Accrued expenses and other payables | (604) | (2,643) | ||||
Long-term taxes payable | (5,268) | (2,809) | ||||
Other current liabilities | (2,004) | 3,560 | ||||
Net cash (used in)/provided by operating activities | (52) | 14,484 | ||||
Cash flows from investing activities: | ||||||
(Increase)/decrease in demand loans included in other non-current assets | (14) | 291 | ||||
Cash received from property, plant and equipment sales | 582 | 572 | ||||
Payments to acquire property, plant and equipment (including | (5,438) | (7,881) | ||||
Payments to acquire intangible assets | (2,361) | (41) | ||||
Investment under the equity method | (7,729) | (5,480) | ||||
Purchase of short-term investments | (40,491) | (59,758) | ||||
Proceeds from maturities of short-term investments | 30,822 | 45,150 | ||||
Cash received from long-term investment | 583 | 2,704 | ||||
Net cash used in investing activities | (24,046) | (24,443) | ||||
Cash flows from financing activities: | ||||||
Proceeds from bank loans | 34,280 | 35,852 | ||||
Repayments of bank loans | (39,836) | (32,916) | ||||
Repayments of the borrowing for sale and leaseback transaction | — | (1,130) | ||||
Repurchase of common shares | — | (196) | ||||
Net cash (used in)/ provided by financing activities | (5,556) | 1,610 | ||||
Effects of exchange rate on cash, cash equivalents and pledged cash | (3,756) | (7,327) | ||||
Net decrease in cash, cash equivalents and pledged cash | (33,410) | (15,676) | ||||
Cash, cash equivalents and pledged cash at beginning of the period | 158,951 | 159,498 | ||||
Cash, cash equivalents and pledged cash at end of the period | $ | 125,541 | $ | 143,822 |
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SOURCE China Automotive Systems, Inc.