China Automotive Systems Reports Quarterly Sales Increase of 19.4%

China Automotive Systems, Inc. has recently unveiled its financial results for the quarter ended September 30, 2024, showcasing a notable growth in sales. The company, a major supplier of power steering components in China, disclosed that its net sales surged by 19.4% year-over-year to $164.2 million from $137.5 million in the third quarter of 2023.

The third quarter of 2024 highlighted various achievements for China Automotive Systems. Gross profit saw an increase of 6.5% year-over-year to $26.4 million from $24.8 million in the same period the previous year. Despite this growth, the gross margin slightly declined to 16.0% in the third quarter of 2024 from 18.0% in the third quarter of 2023. Income from operations rose by nearly 10.0% to $11.1 million compared to $10.2 million for the same period in 2023. The net income attributable to the parent company’s common shareholders was $5.5 million, resulting in diluted earnings per share of $0.18.

Looking at the performance for the first nine months of 2024, China Automotive Systems reported a 10.8% year-over-year increase in net sales, totaling $462.2 million compared to $417.2 million in the first nine months of 2023. The gross profit for the same period rose by 15.4% to $79.7 million. Income from operations showed a similar positive trend, increasing by 22.9% to $31.6 million compared to $25.7 million in the first nine months of 2023. Net income attributable to parent company’s common shareholders was $20.9 million, with diluted earnings per share of $0.69.

China Automotive Systems highlighted having a strong balance sheet, boasting total cash and cash equivalents, and pledged cash of $138.8 million as of September 30, 2024, representing approximately $4.60 per share. The company paid a special cash dividend of $0.80 per common share to shareholders in August 2024.

CEO of China Automotive Systems, Mr. Qizhou Wu, expressed contentment with the sales growth in the recent quarters. He credited the solid performance to significant increases, particularly in sales of Electric Power Steering products and traditional steering products in the domestic Chinese passenger vehicle market. Despite a challenging industry growth environment, the company managed to secure growth in various business units.

In conclusion, China Automotive Systems is looking positively towards its future endeavors, as indicated by the raised revenue guidance for the full year 2024 to reach $630.0 million. Management presented these results during a conference call on November 13, 2024, to further discuss the quarterly achievements and future prospects.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read China Automotive Systems’s 8K filing here.

China Automotive Systems Company Profile

China Automotive Systems, Inc, through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts.