Business
China Automotive Systems Reports 19.9% Increase in Net Sales in First Quarter of 2025
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 quarter ended March 31, 2025.
About this update from China Automotive Systems, Inc.
[{"type":"text","content":"WUHAN, China, May 14, 2025 /PRNewswire/ -- 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 quarter ended March 31, 2025.","length":304,"tagName":"p"},{"type":"text","content":"First Quarter 2025 Highlights","length":29,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Net sales grew by 19.9% year-over-year to $167.1 million; sales of EPS products rose by 54.0%","length":93,"tagName":"p"}]},{"val":[{"type":"text","content":"Gross profit increased by 18.8% year-over-year to $28.6 million with a gross margin of 17.1% compared with $24.1 million of gross profit and a 17.3% gross margin in the first quarter of 2024","length":190,"tagName":"p"}]},{"val":[{"type":"text","content":"Income from operations decreased to $8.6 million compared with $9.7 million in the first quarter of 2024","length":104,"tagName":"p"}]},{"val":[{"type":"text","content":"Diluted income per share was $0.24, compared to diluted income per share of $0.27 in the first quarter of 2024","length":110,"tagName":"p"}]},{"val":[{"type":"text","content":"Cash, cash equivalents, and short-term investments were $89.9 million as of March 31, 2025","length":90,"tagName":"p"}]},{"val":[{"type":"text","content":"Net cash provided by operating activities was $18.1 million in the first quarter of 2025 compared to $10.5 million in the first quarter of 2024.","length":144,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":731,"olType":false},{"type":"text","content":"Mr. Qizhou Wu, chief executive officer of CAAS, commented, "The shift to our more advanced electric power steering ("EPS") products reached a pivotal stage in the first quarter of 2025 with sales growth of 54.0% year-over-year, and an increase of 2.3% year-over-year for our traditional hydraulic steering products. EPS product sales comprised 43.7% of total sales for the three months ended March 31, 2025. Hubei Henglong's sales registered a revenue decline of 10.3% year-over-year in the first quarter of 2025 mainly due to lower vehicles sales by Stellantis. This decline was possibly related to greater uncertainty in this market due to changing U.S. government policies. We are plea...