China Automotive Systems Reports Income From Operations Increased by 38.7% in the Second Quarter of 2024
China Automotive Systems (NASDAQ: CAAS) reported strong financial results for Q2 2024. Net sales rose 15.4% year-over-year to $158.6 million, driven by a 33.7% increase in Electric Power Steering (EPS) product sales. Gross profit increased by 29.0% to $29.3 million, with gross margin improving to 18.5%. Income from operations grew 38.7% to $10.8 million. The company declared a special cash dividend of $0.80 per share.
For the first six months of 2024, net sales grew 6.6% to $298.0 million, with gross profit up 20.4% to $53.4 million. CAAS maintained a strong balance sheet with $148.4 million in cash and cash equivalents. The company reiterated its full-year 2024 revenue guidance of $605.0 million.
China Automotive Systems (NASDAQ: CAAS) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. Le vendite nette sono aumentate del 15,4% su base annua, raggiungendo i 158,6 milioni di dollari, grazie a un incremento del 33,7% nelle vendite di prodotti di Servosterzo Elettrico (EPS). Il profitto lordo è aumentato del 29,0% fino a 29,3 milioni di dollari, con un margine lordo che migliora al 18,5%. Il reddito operativo è cresciuto del 38,7% a 10,8 milioni di dollari. L'azienda ha dichiarato un dividendo in contante speciale di 0,80 dollari per azione.
Per i primi sei mesi del 2024, le vendite nette sono aumentate del 6,6% a 298,0 milioni di dollari, con un profitto lordo in crescita del 20,4% a 53,4 milioni di dollari. CAAS ha mantenuto un bilancio solido con 148,4 milioni di dollari in contante e equivalenti. L'azienda ha ribadito la sua guida per le entrate dell'intero anno 2024 di 605,0 milioni di dollari.
China Automotive Systems (NASDAQ: CAAS) reportó resultados financieros sólidos para el segundo trimestre de 2024. Las ventas netas aumentaron un 15,4% interanual, alcanzando los 158,6 millones de dólares, impulsadas por un crecimiento del 33,7% en las ventas de productos de Dirección Asistida Eléctrica (EPS). El beneficio bruto aumentó un 29,0% a 29,3 millones de dólares, con un margen bruto que mejoró al 18,5%. Los ingresos de operaciones crecieron un 38,7% a 10,8 millones de dólares. La empresa declaró un dividendo en efectivo especial de 0,80 dólares por acción.
Para los primeros seis meses de 2024, las ventas netas crecieron un 6,6% a 298,0 millones de dólares, con el beneficio bruto en aumento del 20,4% a 53,4 millones de dólares. CAAS mantuvo un balance sólido con 148,4 millones de dólares en efectivo y equivalentes. La empresa reiteró su guía de ingresos para todo el año 2024 de 605,0 millones de dólares.
중국 자동차 시스템(나스닥: CAAS)이 2024년 2분기 강력한 재무 결과를 보고했습니다. 순매출은 전년 대비 15.4% 증가하여 1억 5860만 달러에 달했습니다, 이는 전기 파워 스티어링(EPS) 제품 매출이 33.7% 증가한 데 힘입은 것입니다. 총 이익은 29.0% 증가하여 2930만 달러에 도달했습니다, 총 이익률도 18.5%로 개선되었습니다. 운영 수익은 38.7% 증가하여 1080만 달러에 달했습니다. 회사는 주당 0.80달러의 특별 현금 배당금을 선언했습니다.
2024년 첫 6개월 동안, 순매출은 6.6% 증가하여 2억 9800만 달러에 도달했습니다, 총 이익은 20.4% 증가하여 5340만 달러에 달했습니다. CAAS는 1억 4840만 달러의 현금 및 현금성 자산으로 견고한 재무 상태를 유지하고 있습니다. 회사는 2024년 전체 연도 수익 가이던스를 6억 500만 달러로 반복했습니다.
China Automotive Systems (NASDAQ: CAAS) a rapporté des résultats financiers solides pour le deuxième trimestre 2024. Les ventes nettes ont augmenté de 15,4% par rapport à l'année précédente, atteignant 158,6 millions de dollars, grâce à une augmentation de 33,7% des ventes de produits de Direction Assistée Électrique (EPS). Le bénéfice brut a augmenté de 29,0% pour atteindre 29,3 millions de dollars, avec une marge brute s'améliorant à 18,5%. Le revenu d'exploitation a crû de 38,7% à 10,8 millions de dollars. L'entreprise a déclaré un dividende en espèces spécial de 0,80 dollar par action.
Pour les six premiers mois de 2024, les ventes nettes ont augmenté de 6,6% pour atteindre 298,0 millions de dollars, le bénéfice brut ayant augmenté de 20,4% pour atteindre 53,4 millions de dollars. CAAS a maintenu un bilan solide avec 148,4 millions de dollars en espèces et équivalents. L'entreprise a réitéré sa prévision de revenus pour l'ensemble de l'année 2024 s'élevant à 605,0 millions de dollars.
China Automotive Systems (NASDAQ: CAAS) meldete starke finanzielle Ergebnisse für das zweite Quartal 2024. Der Nettoumsatz stieg im Vergleich zum Vorjahr um 15,4% auf 158,6 Millionen Dollar, angetrieben von einem Anstieg der Verkaufszahlen bei Elektrischer Servolenkung (EPS) um 33,7%. Der Bruttogewinn erhöhte sich um 29,0% auf 29,3 Millionen Dollar, wobei die Bruttomarge auf 18,5% verbesserte. Der Betriebsertrag wuchs um 38,7% auf 10,8 Millionen Dollar. Das Unternehmen erklärte eine spezielle Bardividende von 0,80 Dollar pro Aktie.
Für die ersten sechs Monate von 2024 wuchsen die Nettoumsätze um 6,6% auf 298,0 Millionen Dollar, bei einem Anstieg des Bruttogewinns um 20,4% auf 53,4 Millionen Dollar. CAAS hielt eine starke Bilanz mit 148,4 Millionen Dollar in Bargeld und liquiden Mitteln. Das Unternehmen bestätigte seine Umsatzprognose für das Gesamtjahr 2024 in Höhe von 605,0 Millionen Dollar.
- Net sales increased by 15.4% year-over-year to $158.6 million in Q2 2024
- EPS product sales rose 33.7% year-over-year, now accounting for 35.1% of total net sales
- Gross profit grew by 29.0% year-over-year to $29.3 million, with gross margin increasing to 18.5%
- Income from operations rose 38.7% to $10.8 million in Q2 2024
- Special cash dividend of $0.80 per common share declared
- Strong balance sheet with $148.4 million in cash and cash equivalents
- Company reiterated full-year 2024 revenue guidance of $605.0 million
- Net income attributable to parent company's common shareholders decreased to $7.1 million in Q2 2024 from $10.5 million in Q2 2023
- Diluted earnings per share decreased to $0.24 in Q2 2024 from $0.35 in Q2 2023
- Export sales to North American customers decreased due to lower demand from one customer
- G&A expenses increased by 40.7% year-over-year, representing a higher percentage of net sales
Insights
China Automotive Systems' Q2 2024 results show strong growth and improved profitability. Net sales increased by 15.4% year-over-year to
The declaration of a special cash dividend of
However, investors should note the decline in net income attributable to shareholders from
CAAS's performance reflects the broader trends in China's automotive market. The 6.1% increase in overall automobile sales in China during H1 2024 aligns with CAAS's growth. Notably, the 30.5% increase in Chinese vehicle exports presents a significant opportunity for CAAS to expand its international presence.
The company's focus on EPS products is particularly promising. With EPS sales now accounting for 35.1% of total net sales, up from 30.3% in Q2 2023, CAAS is well-positioned to capitalize on the global shift towards electric and hybrid vehicles, which typically use EPS systems.
However, the decline in North American sales due to decreased demand from one customer highlights the risks of customer concentration. CAAS should continue to diversify its customer base to mitigate such risks. The consistent performance in Brazil, despite challenging economic conditions, demonstrates the company's resilience in international markets.
CAAS's commitment to innovation is evident in its increased R&D expenses, which rose 23.9% year-over-year to
The company's R&D focus on electric power systems, automotive intelligence and software technologies aligns well with industry trends towards electrification and autonomous driving. This proactive approach to product development could give CAAS a competitive edge and help secure future contracts with major automakers.
However, the increasing R&D expenses as a percentage of sales (5.2% in Q2 2024 vs 4.8% in Q2 2023) may pressure margins in the short term. It's essential for CAAS to effectively commercialize these R&D efforts to ensure a strong return on investment and maintain its technological edge in the highly competitive automotive components market.
Second Quarter 2024 Highlights
- Net sales rose
15.4% year-over-year to$158.6 million $137.4 million - Gross profit increased by
29.0% year-over-year to$29.3 million $22.7 million 18.5% in the second quarter of 2024 from16.5% in the second quarter of 2023 - Income from operations increased by
38.7% year-over-year to$10.8 million $7.8 million - Net income attributable to parent company's common shareholders was
$7.1 million $0.24
First Six Months of 2024 Highlights
- Net sales grew by
6.6% year-over-year to$298.0 million $279.7 million - Gross profit increased by
20.4% year-over-year to$53.4 million $44.3 million 17.9% in the first six months of 2024 from15.9% in the same period last year - Income from operations rose by
31.7% year-over-year to$20.5 million $15.5 million - Net income attributable to parent company's common shareholders was
$15.4 million - Diluted earnings per share attributable to parent company's common shareholders was
$0.51 - Cash and cash equivalents, and pledged cash were
$148.4 million $4.92 - A special cash dividend of
$0.80
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We are pleased to report strong top line growth and accelerating margin expansion. Sales growth was led by an increase of
"According to statistics from the China Association of Automobile Manufacturers, overall automobile sales in
"Based on our recent financial performance, current financial condition, expected cash requirements and future free cash-flow generation, we rewarded our shareholders with a special cash dividend of
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 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") increased by
Research and development expenses ("R&D expenses") increased by
Other income was
Income from operations rose
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 second quarter of 2024, compared to 30,189,537 in the second quarter of 2023.
First Six Months of 2024
Net sales increased by
Net income attributable to parent company's common shareholders was
Balance Sheet
As of June 30, 2024, total cash and cash equivalents, and pledged cash were
Business Outlook
Management has reiterated its revenue guidance for the full year 2024 of
Conference Call
Management will conduct a conference call on August 13, 2024 at 7:00 A.M. EDT/7:00 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: 748049
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 June 30, | ||||||
2024 | 2023 | |||||
Net product sales ( | $ | 158,608 | $ | 137,410 | ||
Cost of products sold ( | 129,306 | 114,692 | ||||
Gross profit | 29,302 | 22,718 | ||||
Gain on other sales | 1,720 | 742 | ||||
Less: Operating expenses | ||||||
Selling expenses | 4,614 | 3,794 | ||||
General and administrative expenses | 7,418 | 5,271 | ||||
Research and development expenses | 8,184 | 6,606 | ||||
Total operating expenses | 20,216 | 15,671 | ||||
Income from operations | 10,806 | 7,789 | ||||
Other income, net | 1,735 | 1,963 | ||||
Interest expense | (183) | (276) | ||||
Financial (expense)/income, net | (690) | 3,963 | ||||
Income before income tax expenses and equity in earnings of affiliated companies | 11,668 | 13,439 | ||||
Less: Income taxes | 2,108 | 1,487 | ||||
Add: Equity in losses of affiliated companies | (805) | (484) | ||||
Net income | 8,755 | 11,468 | ||||
Less: Net income attributable to non-controlling interests | 1,608 | 995 | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Net income attributable to parent company's common shareholders | $ | 7,140 | $ | 10,466 | ||
Comprehensive income: | ||||||
Net income | $ | 8,755 | $ | 11,468 | ||
Other comprehensive income: | ||||||
Foreign currency translation loss, net of tax | (2,846) | (16,886) | ||||
Comprehensive income/(loss) | 5,909 | (5,418) | ||||
Less: Comprehensive income/(loss) attributable to non-controlling interests | 1,431 | (80) | ||||
Accretion to redemption value of redeemable non-controlling interests | (7) | (7) | ||||
Comprehensive income/(loss) attributable to parent company | $ | 4,471 | $ | (5,345) | ||
Net income attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.24 | $ | 0.35 | ||
Diluted | $ | 0.24 | $ | 0.35 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,185,702 | ||||
Diluted | 30,185,702 | 30,189,537 | ||||
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, | ||||||
2024 | 2023 | |||||
Net product sales ( | $ | 298,002 | $ | 279,653 | ||
Cost of products sold ( | 244,631 | 235,317 | ||||
Gross profit | 53,371 | 44,336 | ||||
Gain on other sales | 2,234 | 1,395 | ||||
Less: Operating expenses | ||||||
Selling expenses | 8,687 | 7,178 | ||||
General and administrative expenses | 12,965 | 10,024 | ||||
Research and development expenses | 13,496 | 12,996 | ||||
Total operating expenses | 35,148 | 30,198 | ||||
Income from operations | 20,457 | 15,533 | ||||
Other income, net | 4,138 | 3,465 | ||||
Interest expense | (441) | (525) | ||||
Financial (expense)/income, net | (702) | 3,541 | ||||
Income before income tax expenses and equity in earnings of affiliated companies | 23,452 | 22,014 | ||||
Less: Income taxes | 3,851 | 2,316 | ||||
Add: Equity in losses of affiliated companies | (1,582) | (347) | ||||
Net income | 18,019 | 19,351 | ||||
Less: Net income attributable to non-controlling interests | 2,597 | 2,050 | ||||
Accretion to redemption value of redeemable non-controlling interests | (15) | (15) | ||||
Net income attributable to parent company's common shareholders | $ | 15,407 | $ | 17,286 | ||
Comprehensive income: | ||||||
Net income | $ | 18,019 | $ | 19,351 | ||
Other comprehensive income: | ||||||
Foreign currency translation loss, net of tax | (3,194) | (12,332) | ||||
Comprehensive income | 14,825 | 7,019 | ||||
Less: Comprehensive income attributable to non-controlling interests | 2,372 | 1,241 | ||||
Accretion to redemption value of redeemable non-controlling interests | (15) | (15) | ||||
Comprehensive income attributable to parent company | $ | 12,438 | $ | 5,763 | ||
Net income attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.51 | $ | 0.57 | ||
Diluted | $ | 0.51 | $ | 0.57 | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,185,702 | ||||
Diluted | 30,185,702 | 30,191,309 | ||||
China Automotive Systems, Inc. and Subsidiaries | ||||||
Condensed Unaudited Consolidated Balance Sheets | ||||||
(In thousands of USD unless otherwise indicated) | ||||||
June 30, 2024 | December 31, 2023 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 107,094 | $ | 114,660 | ||
Pledged cash | 41,291 | 40,534 | ||||
Accounts and notes receivable, net - unrelated parties | 271,391 | 261,237 | ||||
Accounts and notes receivable, net - related parties | 16,738 | 8,169 | ||||
Inventories | 107,438 | 112,392 | ||||
Other current assets | 26,112 | 27,083 | ||||
Total current assets | 570,064 | 564,075 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 100,098 | 101,359 | ||||
Land use rights, net | 9,044 | 9,233 | ||||
Long-term investments | 57,360 | 60,173 | ||||
Other non-current assets | 48,427 | 31,600 | ||||
Total assets | $ | 784,993 | $ | 766,440 | ||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' | ||||||
Current liabilities: | ||||||
Short-term loans | $ | 46,576 | $ | 48,005 | ||
Accounts and notes payable-unrelated parties | 241,183 | 240,739 | ||||
Accounts and notes payable-related parties | 12,821 | 12,839 | ||||
Accrued expenses and other payables | 46,237 | 44,771 | ||||
Other current liabilities | 33,221 | 37,385 | ||||
Total current liabilities | 380,038 | 383,739 | ||||
Long-term liabilities: | ||||||
Long-term tax payable | — | 8,781 | ||||
Other non-current liabilities | 6,204 | 5,498 | ||||
Total liabilities | $ | 386,242 | $ | 398,018 | ||
Commitments and Contingencies | ||||||
Mezzanine equity: | ||||||
Redeemable non-controlling interests | 628 | 613 | ||||
Stockholders' equity: | ||||||
Common stock, | $ | 3 | $ | 3 | ||
Additional paid-in capital | 69,722 | 63,731 | ||||
Retained earnings- | ||||||
Appropriated | 12,174 | 11,851 | ||||
Unappropriated | 299,916 | 284,832 | ||||
Accumulated other comprehensive income | (11,227) | (8,258) | ||||
Treasury stock – 2,152,600 and 2,152,600 shares as of June 30, 2024 and | (7,695) | (7,695) | ||||
Total parent company stockholders' equity | 362,893 | 344,464 | ||||
Non-controlling interests | 35,230 | 23,345 | ||||
Total stockholders' equity | 398,123 | 367,809 | ||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 784,993 | $ | 766,440 | ||
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, | ||||||
2024 | 2023 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 18,019 | $ | 19,351 | ||
Adjustments to reconcile net income from operations to net cash provided | ||||||
Depreciation and amortization | 9,868 | 9,528 | ||||
Reversal of credit losses | 9 | (459) | ||||
Deferred income taxes | — | 237 | ||||
Equity in losses of affiliated companies | 1,582 | 347 | ||||
Loss on disposal of property, plant and equipment | 773 | 15 | ||||
(Increase)/decrease in: | ||||||
Accounts and notes receivable | (20,451) | (18,323) | ||||
Inventories | 4,271 | 8,355 | ||||
Other current assets | 3,654 | (904) | ||||
Increase/(decrease) in: | ||||||
Accounts and notes payable | 1,994 | (10,323) | ||||
Accrued expenses and other payables | 1,134 | (604) | ||||
Long-term taxes payable | (7,025) | (5,268) | ||||
Other current liabilities | (4,697) | (2,004) | ||||
Net cash provided by/(used in) operating activities | 9,131 | (52) | ||||
Cash flows from investing activities: | ||||||
Increase in demand loans included in other non-current assets | — | (14) | ||||
Cash received from disposal of property, plant and equipment sales | 607 | 582 | ||||
Payments to acquire property, plant and equipment (including | (10,016) | (5,438) | ||||
Payments to acquire intangible assets | (332) | (2,361) | ||||
Investments under the equity method | — | (7,729) | ||||
Purchase of short-term investments | (40,054) | (40,491) | ||||
Proceeds from maturities of short-term investments | 20,626 | 30,822 | ||||
Cash received from long-term investments | 937 | 583 | ||||
Net cash used in investing activities | (28,232) | (24,046) | ||||
Cash flows from financing activities: | ||||||
Proceeds from bank loans | 47,054 | 34,280 | ||||
Repayments of bank loans | (48,384) | (39,836) | ||||
Cash received from capital contributions of a non-controlling interest | 15,504 | — | ||||
Net cash provided by/(used in) financing activities | 14,174 | (5,556) | ||||
Effects of exchange rate on cash, cash equivalents and pledged cash | (1,882) | (3,756) | ||||
Net decrease in cash, cash equivalents and pledged cash | (6,809) | (33,410) | ||||
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 | $ | 148,385 | $ | 125,541 | ||
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SOURCE China Automotive Systems, Inc.
FAQ
What was China Automotive Systems' (CAAS) net sales growth in Q2 2024?
How much did CAAS's Electric Power Steering (EPS) product sales grow in Q2 2024?
What was the income from operations for CAAS in Q2 2024?
Did CAAS declare a dividend for shareholders in 2024?
What is CAAS's revenue guidance for the full year 2024?
