Business
China Automotive Systems Reports 2019 Second Quarter Unaudited Financial Results
WUHAN, China, Aug. 8, 2019 /PRNewswire/ -- China Automotive Systems, Inc. ("CAAS" or the "Company") (NASDAQ: CAAS), a leading power steering components and
About this update from China Automotive Systems, Inc.
[{"type":"text","content":"WUHAN, China, Aug. 8, 2019 /PRNewswire/ -- China Automotive Systems, Inc. (\"CAAS\" or the \"Company\") (NASDAQ: CAAS), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the second quarter and six months ended June 30, 2019.\n Second Quarter 2019 Highlights\nNet sales decreased 15.9% to $105.7 million from $125.8 million in the second quarter of 2018; Gross profit declined 10.8% to $15.2 million and the gross margin increased to 14.4% from 13.5% in the second quarter of 2018; Income from operations increased 369.2% to $2.7 million with an operating margin of 2.6% compared with $0.6 million and an operating margin of 0.5% in the second quarter of 2018; Net income attributable to parent company's common shareholders increased to $2.5 million or diluted earnings per share of $0.08, compared to net income attributable to parent company's common shareholders of $0.8 million, or diluted earnings per share of $0.03, in the second quarter of 2018.First Six Months of 2019 Highlights\nNet sales decreased 17.3% to $214.9 million, compared to $259.8 million in the first six months of 2018; Gross profit decreased to $29.2 million, compared to $38.7 million in the first six months of 2018; gross margin decreased to 13.6% in the first six months of 2019, compared to 14.9% in the first six months of 2018; Income from operations decreased to $3.8 million from $5.2 million with an operating margin of 1.8% compared with 2.0% in the second quarter of 2018; Net income attributable to parent company's common shareholders was $4.0 million compared to $5.2 million in the first six months of 2018; diluted earnings per share attributable to parent company's common shareholders was $0.13, compared to diluted earnings per share attributable to parent company's common shareholders of $0.16 in the first six months of 2018.Mr. Qizhou Wu, chief executive officer of CAAS, commented, \"Our sales in the second quarter of 2019 reflected the slowing economy in China and softer consumer spending. As a leading supplier of steering products to the Chinese automobile market, our sales are affected by the performance of the OEM market. Automobile production has been disrupted by a pre-buy of less expensive National V-compliant vehicles before the stricter National VI emission standards are nationally i...