Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
On April 22, 2026, China Automotive Systems, Inc.
(the “Company”) issued a press release titled “China Automotive Systems Reports Record Earnings Per Share and Net Sales
in 2025”. A copy of the press release is furnished as Exhibits 99.1 to this report on Form 6-K.
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 Reports Record Earnings Per Share and Net Sales in 2025
WUHAN,
China, April 22, 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 fourth quarter and the audited results for the fiscal year ended December 31, 2025.
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 from $29.5 million. Gross margin of 23.1% compared to 15.6% in the fourth quarter of 2024 |
| | | |
| · | Operating
income grew 108.0% to $18.1 million, compared with $8.7 million in the fourth quarter of 2024 |
| | | |
| · | Net
income attributable to parent company’s common shareholders was $18.4 million, or diluted net income per share of $0.61, compared
to net income of $9.1 million, or diluted net income per share of $0.30 in the fourth quarter of 2024. |
Fiscal
Year 2025 Highlights
| · | Net
sales increased by 17.6% to an annual record of $765.7 million compared to $650.9 million in 2024; Net sales of EPS product grew by 25.5% |
| | | |
| · | Gross
profit increased by 33.2% to $145.5 million compared to $109.2 million in 2024. Gross margin increased to 19.0%, compared with 16.8%
in 2024 |
| | | |
| · | Operating
income increased by 33.2% to $53.6 million from $40.3 million in 2024 |
| | | |
| · | Diluted
net income per share increased by 43.4% to a record $1.42 in 2025 compared to $0.99 in 2024 |
| | | |
| · | Total
cash and cash equivalents, pledged cash, short-term investments and long-term time deposit were $256.7 million at year end |
| | | |
| · | Net
cash flow provided by operating activities was $111.6 million in 2025, compared with $9.8 million
in 2024 |
| | | |
| · | Capex
was $37.2 million, compared with $43.7 million in 2024. |
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 12.6% in 2025
as our more advanced electric power steering (“EPS”) grew by 25.5%. Domestically, our steering product sales benefitted as
Chinese branded vehicles continued to experience higher sales and capture more market share.”
“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
Brazil reported stronger sales growth and demand in North America improved. The high quality and performance enhancements of our steering
products provide the impetus to be a tier-1 supplier to large global OEM customers in North America, Europe, Asia and South America.”
“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 (Wuhan) Motion Mechatronics System Co. Ltd., finalized its new 115–platform steering
motor production line, to support the CAAS eRCB commercial vehicle program. Our Hubei Henglong subsidiary entered into a strategic cooperation
with KYB-UMW Sdn Bhd in Malaysia to develop a regional manufacturing and supply system for ASEAN markets. In 2025, our subsidiary, Shashi
Jiulong Power Steering Gears Co., Ltd (“Shashi Jiulong”), won customer awards and accolades from two major vehicle OEM customers,
Beiqi Foton Motor, and Shaanxi Automobile Heavy Truck.”
“In September
2025, we announced the completion of our merger to redomicile the Company as a Cayman Islands company. We believe this action will pave
the way for CAAS to better position itself as a global company as this move enables us to shift resources and focus more on operations,
product development and global sales. Part of our changes will include reporting sales and operational results on a six-month reporting
cycle.”
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 $256.7
million at year end with net cash approaching $169.7 million. We look forward to reaping the savings, greater flexibility and benefits
of our redomiciliation.”
Fourth Quarter
of 2025
In the fourth quarter of 2025, net sales increased by 21.4% to $229.2 million compared to $188.7 million in the same quarter of 2024.
The net sales increase was mainly due to a change in the product mix and higher demand for passenger automobiles and commercial vehicles
in the fourth quarter of 2025 compared to the fourth quarter of 2024. Additionally, export sales increased during the fourth quarter
of 2025.
Gross
profit increased by 79.8% to $53.0 million from $29.5 million in the fourth quarter of 2024. Gross
margin in the fourth quarter of 2025 rose to 23.1% compared to 15.6% in the fourth quarter of 2024, primarily due to changes in product
mix.
Selling
expenses were $5.0 million in the fourth quarter of 2025, compared with $4.8 million in the fourth
quarter of 2024. Selling expenses represented 2.2% of net sales in the fourth quarter of 2025, compared to 2.5% in the fourth quarter
of 2024.
General
and administrative expenses (“G&A expenses”) were $12.2 million in the fourth quarter of 2025, compared to $9.7 million
in the same period in 2024. G&A expenses represented 5.3% of net sales in the fourth quarter of 2025, compared to 5.1% of net sales
in the fourth quarter of 2024.
Research
and development expenses (“R&D expenses”) were $17.8 million compared with $7.8 million in the fourth quarter of 2024.
R&D expenses represented 7.8% of net sales in the fourth quarter of 2025, compared to 4.1% in
the fourth quarter of 2024.
Operating
income was $18.1 million in the fourth quarter of 2025 compared to $8.7 million in the fourth quarter
of 2024. Higher gross profit compared with the same period last year was the main driver.
Interest
expense was $0.5 million in the fourth quarter of 2025 compared with $1.1 million in the fourth quarter
of 2024.
Financial
expense was $1.1 million in the fourth quarter of 2025 compared with financial income of $0.8 million in the fourth quarter of 2024.
Income
before income tax expenses and equity in earnings of affiliated companies increased by 121.0% to
$19.4 million in the fourth quarter of 2025 compared to $8.8 million in the fourth quarter of 2024.
Income
tax expense was $1.4 million in the fourth quarter of 2025, compared to income tax benefit of $2.0 million in the fourth quarter of 2024.
Net
income attributable to parent company’s common shareholders increased by 103.2% to $18.4 million in the fourth quarter of 2025
compared to net income attributable to parent company’s common shareholders of $9.1 million in the fourth quarter of 2024. Diluted
income per share was $0.61 in the fourth quarter of 2025, compared to diluted income per share of $0.30
in the fourth quarter of 2024.
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 17.6% to an annual record of $765.7 million in 2025, compared to $650.9 million in 2024. This increase was mainly
due to higher sales and production of passenger vehicles in China, increased vehicle export sales, and commercial vehicle sales in China
increasing by approximately 10.9% year-over-year in 2025. Total sales of the Company’s EPS systems increased by 25.5% year-over-year
and sales of the traditional steering products increased by 12.6% year-over-year. Henglong’s sales of passenger vehicle steering
systems rose by 12.1% year-over-year to $365.3 million in 2025. Jiulong’s sales of commercial vehicle steering systems increased
by 28.9% year-over-year to $92.3 million. Brazil Henglong’s net sales grew by 34.7% year-over-year to $68.7 million in 2025. Net
sales to North American customers rose by 15.3% year-over-year in 2025 to $121.6 million. EPS sales represented 41.5% of total revenue
in 2025 compared to 38.9% in 2024.
Gross
profit in 2025 increased by 33.2% year-over-year to $145.5 million compared to $109.2 million in 2024. The gross margin was 19.0% compared
with 16.8% in 2024 mainly due to a change in product mix.
Net
gain on other sales in 2025 was $3.6 million compared to $4.3 million in 2024.
Selling
expenses rose by 15.9% year-over-year to $20.7 million in 2025 from $17.9 million in 2024, mainly
due to an increase in marketing and office expenses offsetting lower other expenses. Selling expenses continued to represent 2.7% of
net sales in 2025 and 2024.
G&A
expenses increased by 7.0% year-over-year to $29.7 million in 2025, compared to $27.7 million in
2024. G&A expenses represented 3.9% of net sales in 2025, compared to 4.3% of net sales in 2024. This expense increase was mainly
due to higher personnel and other expenses.
R&D
expenses increased by 63.0% year-over-year to $45.1 million in 2025, compared to $27.6 million in 2024. Higher R&D expenses reflected
increased personnel expenses due to an acceleration in R&D activities including more investment in traditional product upgrades,
advancing EPS technologies and miscellaneous research expenses. R&D expenses were 5.9% of net sales in 2025, compared to 4.2% of
net sales in 2024.
Operating
income increased by 33.2% year-over-year to $53.6 million in 2025, compared to $40.3 million in
2024. The increase in operating income was mainly due to higher sales and gross profit.
Interest
expense was $1.7 million in 2025, compared to $1.8 million in 2024.
Net
financial income was $2.4 million in 2025, compared to net financial expense of $0.09 million in 2024. This increase in financial income
of $2.4 million was primarily due to an increase in foreign exchange gains due to foreign exchange
volatility.
Income
before income tax expenses and equity in earnings of affiliated companies increased by 39.1% year-over-year
to $61.4 million in 2025 compared with $44.1 million in 2024. The change was primarily due to higher operating income in 2025.
Income
tax expense was $11.6 million in 2025 compared to $5.9 million in 2024. This increase was mainly
due to higher income before income tax expenses and equity in earnings of affiliated companies, and the effective tax rate in 2025.
Net
income attributable to parent company’s common shareholders was a record $42.8 million in 2025 compared to $30.0 million in
2024. Diluted net income per share increased by 43.4% to $1.42 in 2025 compared to $0.99 in 2024.
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 $256.7 million.
Total accounts receivable including notes receivable were $361.8 million. Accounts payable including
notes payable were $350.3 million. Short-term bank loans were $81.3 million and long-term loans were $5.7 million. Total parent company
stockholders’ equity was $401.3 million as of December 31, 2025 compared to $349.6 million as of December 31, 2024. Net cash flow
from operating activities was $111.3 million in 2025 compared to $9.8 million in 2024. Cash paid to acquire property, plant and equipment
and land use rights was $37.2 million in 2025 compared to $43.7 million in 2024.
Business
Outlook
Management
provides revenue guidance for the fiscal year 2026 of $810.0 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 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 (North America)
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 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: http://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.
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 U.S. dollars, except for share and per share data or otherwise noted)
| | |
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 $7,203 and $11,783, respectively) | |
| 346,038 | | |
| 329,275 | |
| Accounts and notes receivable, net - related parties (Allowance for credit losses of $973 and $1,463, respectively) | |
| 15,741 | | |
| 14,224 | |
| Advance payments and others, net - unrelated parties (Allowance for credit losses of $79 and $34, respectively) | |
| 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 $56, respectively) | |
| 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 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, $0.001 par value - Authorized – 50,000,000 shares, Issued – 32,338,302 shares at December 31, 2025, and Common stock, $0.0001 par value – Authorized –80,000,000 shares, Issued – 32,338,302 shares at December 31, 2024, respectively | |
| 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 U.S. dollars, except for share and per share data or otherwise noted)
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Net product sales ($33,528, $48,860 and $47,515 sold to related parties for the years ended December 31, 2025, 2024 and 2023) | |
$ | 765,736 | | |
$ | 650,935 | | |
$ | 576,354 | |
| Cost of products sold ($34,038, $30,088 and $27,288 purchased from related parties for the years ended December 31, 2025, 2024 and 2023) | |
| 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 U.S. dollars, except for share and per share data or otherwise noted)
| | |
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 U.S. dollars, except for share and per share data or otherwise noted)
| | |
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 U.S. dollars, except for share and per share data or otherwise noted)
| | |
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 $23,158, $6,343 and $5,336 paid to related parties for the years ended December 31, 2025, 2024 and 2023, respectively) | |
| (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 U.S. dollars, except for share and per share data or otherwise noted)
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 | |
