Business
China Automotive Systems Reports Fourth Quarter and Fiscal Year 2020 Results
WUHAN, China, March 30, 2021 /PRNewswire/ -- China Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a leading power steering components and
About this update from China Automotive Systems, Inc.
[{"type":"text","content":"WUHAN, China, March 30, 2021 /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 fourth quarter and the audited results for the fiscal year ended December 31, 2020.\nFourth Quarter 2020 Highlights\nNet sales rose 26.4% to $146.5 million from $115.9 million in the fourth quarter of 2019 Gross profit increased 35.7% to $22.8 million from $16.8 million in the fourth quarter of 2019; gross margin increased to 15.6% compared with 14.5% in the fourth quarter of 2019 An increase in general and administrative expenses was primarily due to a one-time, non-recurring $6.4 million expected credit loss provision related to the bankruptcy and reorganization proceedings of the Company's customer, Brilliance Auto Net loss attributable to parent company's common shareholders was $3.2 million, or diluted loss per share of $0.10, compared to net income of $1.7 million, or diluted income per share of $0.06, in the fourth quarter of 2019. Included in the net loss for the fourth quarter of 2020 was a non-recurring $4.5 million expected credit loss provision, net of minority interests.Fiscal Year 2020 Highlights\nNet sales were $417.6 million compared to $431.4 million in 2019 Net loss attributable to parent company's common shareholders was $5.0 million in 2020 compared to net income attributable to parent company's common shareholders of $10.0 million in 2019. Included in the net loss for the 2020 year was a $6.4 million one-time, non-recurring expected credit loss provision for all outstanding account and notes receivables related to the bankruptcy and reorganization of its customer, Brilliance Auto Cash and cash equivalents, pledged cash and short-term investments were $138.2 million as of December 31, 2020 Net cash flow provided by operating activities was $57.4 million in 2020 compared to $30.3 million for 2019 Approximately 322,269 shares of common stock were repurchased during 2020.Mr. Qizhou Wu, chief executive officer of CAAS, commented, \"The automobile industry in China suffered in the first half of 2020 due to the COVID-19 pandemic. Nevertheless, with a strong rebound beginning in the late second quarter, the world's largest auto market staged a remarkable comeback with total a...