Business
China Automotive Systems' Unaudited Diluted Income Per Share Climbs to $0.23 in the First Quarter of 2023
WUHAN, China, May 12, 2023 /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, May 12, 2023 /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, 2023.\nFirst Quarter 2023 Highlights\nNet sales increased by 4.3% to $142.2 million from $136.4 million in the first quarter of 2022Gross profit increased by 46.9% to $21.6 million with a gross margin of 15.2%, compared with $14.7 million of gross profit and a 10.8% gross margin in the first quarter of 2022Income from operations was $7.7 million compared with a loss from operations of $1.5 million in the first quarter of 2022Net income attributable to parent company's common shareholders was $6.8 million, or diluted income per share of $0.23, compared to net loss attributable to parent company's common shareholders of $0.1 million, or diluted loss per share of nil in the first quarter of 2022Cash and cash equivalents, pledged cash and short-term investments were $164.3 million as of March 31, 2023Net cash used in operating activities was $1.4 million in the first quarter of 2023 compared to $4.3 million used in the first quarter of 2022.Mr. Qizhou Wu, chief executive officer of CAAS, commented, \"Passenger vehicle unit sales declined by 7.3% year-over-year and commercial vehicle unit sales decreased by 2.9% in China according to statistics from the China Association of Automobile Manufacturers. However, we are pleased to report a 4.3% year-over-year growth in sales in the first quarter of 2023 with much stronger margins and profits in this unsettled automotive environment. Our electric power steering (\"EPS\") products continue to gain market share and our traditional hydraulic steering products' market share grew as well. In addition to a better product mix, our margins benefitted from stricter cost controls in the first quarter of 2023.\"\n\"We anticipate de-regulation of strict COVID restrictions aided by more governmental growth policies, will help the Chinese economy recover over the next several quarters. We look forward to the Chinese economy and automotive markets resuming normal activities in the future.\"\nMr. Jie Li, chief financial officer of CAAS, commented, \"We had cash and cash equivalents, pledged cash and short-term investments of $164.3 milli...