Business
China Automotive Systems Reports Unaudited 2021 Third Quarter Results
WUHAN, China, Nov. 12, 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, Nov. 12, 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 third quarter and nine months ended September 30, 2021.\n Third Quarter 2021 Highlights\nNet sales decreased 5.4% to $108.2 million compared with $114.4 million in the third quarter of 2020; Electric power steering (\"EPS\") product sales increased by 76.0% to $29.4 million; Gross profit increased 23.5% to $16.8 million and gross margin increased to 15.5% from 11.9% in the third quarter of 2020; Income from operations was $0.6 million compared with income from operations of $0.1 million in the third quarter of 2020; Net loss attributable to parent company's common shareholders was $0.3 million, or diluted loss per share of $0.01, compared to net income attributable to parent company's common shareholders of $2.4 million, or diluted earnings per share of $0.08, in the third quarter of 2020.First Nine Months of 2021 Highlights\nNet sales rose by 32.4% to $359.2 million compared to $271.2 million in the first nine months of 2020; Gross profit increased 60.8% to $52.4 million and gross margin increased to 14.6% from 12.0% in the first nine months of 2020; Income from operations was $4.9 million compared with loss from operations of $4.1 million in the first nine months of 2020; Net income attributable to parent company's common shareholders was $6.1 million, or diluted income per share of $0.20, compared to net loss attributable to parent company's common shareholders of $1.8 million, or diluted loss per share of $0.06, in the first nine months of 2020; Cash and cash equivalents and pledged cash were $115.0 million as of September 30, 2021.Mr. Qizhou Wu, the Chief Executive Officer of CAAS, commented, \"Passenger car sales declined by 13% in the third quarter of 2021 while commercial vehicles sales declined by 24.0%, according to statistics from the China Association of Automobile Manufacturers. U.S. auto sales were down approximately 13% for the third quarter of 2021 and September monthly sales decreased by 26% as a chip shortage further reduced production.\"\n\"Our activity in Europe has accelerated. During the third quarter of 2021, we developed a new steering system for one of Europe's lea...