China Automotive Systems' Unaudited Diluted Income Per Share Climbs to $0.23 in the First Quarter of 2023
First Quarter 2023 Highlights
- Net sales increased by 4.3% to
$142.2 million from$136.4 million in the first quarter of 2022 - Gross 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 2022 - Income from operations was
$7.7 million compared with a loss from operations of$1.5 million in the first quarter of 2022 - Net 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 2022 - Cash and cash equivalents, pledged cash and short-term investments were
$164.3 million as ofMarch 31, 2023 - Net 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.
"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."
Mr.
First Quarter of 2023
Net sales increased by 4.3% to
Gross profit climbed by 46.9% to
Gain on other sales was
Selling expenses declined 20.9% to
General and administrative expenses ("G&A expenses") were $4.8 million, which is consistent with
Research and development expenses ("R&D expenses") decreased by 21.0% to
Net other income was
Income from operations was
Interest expense was
Net financial loss was
Income before income tax expenses and equity in earnings of affiliated companies was
Equity in income of affiliated companies was
Net income attributable to parent company's common shareholders was
The weighted average number of diluted common shares outstanding was 30,193,082 in the first quarter of 2023 compared to 30,851,776 in the first quarter of 2022.
Balance Sheet
As of
Business Outlook
Management has reiterated revenue guidance for the full fiscal year 2023 of
Conference Call
Management will conduct a conference call on
Phone Number: +1-877-545-0523 (
Phone Number: +1-973-528-0016 (International)
Mainland
A replay of the call will be available on the Company's website under the investor relations section.
About China Automotive Systems, Inc.
Based in
Forward-Looking Statements
This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on
For further information, please contact:
Chief Financial Officer
China Automotive Systems, Inc.
[email protected]
Awaken Advisors
+1-212-510-8922
[email protected]
-Tables Follow -
China Automotive Systems, Inc. and Subsidiaries | ||||||
Condensed Unaudited Consolidated Balance Sheets | ||||||
(In thousands of USD unless otherwise indicated) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 99,244 | $ | 121,216 | ||
Pledged cash | 43,639 | 37,735 | ||||
Accounts and notes receivable, net - unrelated parties | 232,593 | 214,308 | ||||
Accounts and notes receivable, net - related parties | 12,302 | 10,016 | ||||
Inventories | 105,498 | 112,236 | ||||
Other current assets | 35,334 | 25,207 | ||||
Total current assets | 528,610 | 520,718 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 104,931 | 106,606 | ||||
Land use rights, net | 9,616 | 9,555 | ||||
Long-term investments | 64,634 | 59,810 | ||||
Other non-current assets | 19,282 | 17,663 | ||||
Total assets | $ | 727,073 | $ | 714,352 | ||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | $ | 45,684 | $ | 45,671 | ||
Accounts and notes payable-unrelated parties | 224,111 | 218,412 | ||||
Accounts and notes payable-related parties | 15,530 | 16,695 | ||||
Accrued expenses and other payables | 46,153 | 48,311 | ||||
Other current liabilities | 32,799 | 35,106 | ||||
Total current liabilities | 364,277 | 364,195 | ||||
Long-term liabilities: | ||||||
Long-term tax payable | 15,805 | 15,805 | ||||
Other non-current liabilities | 7,168 | 6,937 | ||||
Total liabilities | $ | 387,250 | $ | 386,937 | ||
Commitments and Contingencies | ||||||
Mezzanine equity: | ||||||
Redeemable non-controlling interests | 561 | 582 | ||||
Stockholders' equity: | ||||||
Common stock, | $ |
3 | $ | 3 | ||
Additional paid-in capital | 63,731 | 63,731 | ||||
Retained earnings- | ||||||
Appropriated | 11,851 | 11,851 | ||||
Unappropriated | 253,994 | 247,174 | ||||
Accumulated other comprehensive income | 875 | (3,413) | ||||
Treasury stock – 2,152,600 and 2,152,600 shares as of | (7,695) | (7,695) | ||||
Total parent company stockholders' equity | 322,759 | 311,651 | ||||
Non-controlling interests | 16,503 | 15,182 | ||||
Total stockholders' equity | 339,262 | 326,833 | ||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 727,073 | $ | 714,352 | ||
China Automotive Systems, Inc. and Subsidiaries | ||||||
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income | ||||||
(In thousands of USD, except share and per share amounts) | ||||||
Three Months Ended | ||||||
2023 | 2022 | |||||
Net product sales ( | $ | 142,243 | $ | 136,396 | ||
Cost of products sold ( | 120,625 | 121,662 | ||||
Gross profit | 21,618 | 14,734 | ||||
Gain on other sales | 653 | 931 | ||||
Less: Operating expenses | ||||||
Selling expenses | 3,384 | 4,312 | ||||
General and administrative expenses | 4,753 | 4,754 | ||||
Research and development expenses | 6,390 | 8,137 | ||||
Total operating expenses | 14,527 | 17,203 | ||||
Income/(loss) from operations | 7,744 | (1,538) | ||||
Other income, net | 1,502 | 3,519 | ||||
Interest expense | (249) | (402) | ||||
Financial (expense)/income, net | (422) | 2,015 | ||||
Income before income tax expenses and equity in earnings of affiliated companies | 8,575 | 3,594 | ||||
Less: Income taxes | 829 | 958 | ||||
Add: Equity in earnings/(loss) of affiliated companies | 137 | (2,487) | ||||
Net income | 7,883 | 149 | ||||
Less: Net income attributable to non-controlling interests | 1,055 | 200 | ||||
Accretion to redemption value of redeemable non-controlling interests | (8) | (8) | ||||
Net income/(loss) attributable to parent company's common shareholders | $ | 6,820 | $ | (59) | ||
Comprehensive income: | ||||||
Net income | $ | 7,883 | $ | 149 | ||
Other comprehensive income: | ||||||
Foreign currency translation income, net of tax | 4,554 | 1,437 | ||||
Comprehensive income | 12,437 | 1,586 | ||||
Comprehensive income attributable to non-controlling interests | 1,321 | 289 | ||||
Accretion to redemption value of redeemable non-controlling interests | (8) | (8) | ||||
Comprehensive income attributable to parent company | $ | 11,108 | $ | 1,289 | ||
Net income/(loss) attributable to parent company's common shareholders per share - | ||||||
Basic | $ | 0.23 | $ | (0.00) | ||
Diluted | $ | 0.23 | $ | (0.00) | ||
Weighted average number of common shares outstanding - | ||||||
Basic | 30,185,702 | 30,851,776 | ||||
Diluted | 30,193,082 | 30,851,776 | ||||
China Automotive Systems, Inc. and Subsidiaries | ||||||||
Condensed Unaudited Consolidated Statements of Cash Flows | ||||||||
(In thousands of USD unless otherwise indicated) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 7,883 | $ | 149 | ||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,856 | 6,207 | ||||||
(Reversal)/provision of credit losses | (217) | 100 | ||||||
Deferred income taxes | 1,019 | 286 | ||||||
Equity in (earnings)/loss of affiliated companies | (137) | 2,487 | ||||||
Loss on fixed assets disposals | 15 | 37 | ||||||
(Increase)/decrease in: | ||||||||
Accounts and notes receivable | (17,383) | (11,184) | ||||||
Inventories | 8,285 | 2,532 | ||||||
Other current assets | (1,206) | (1,281) | ||||||
Increase/(decrease) in: | ||||||||
Accounts and notes payable | 1,360 | (1,407) | ||||||
Accrued expenses and other payables | (2,868) | (2,041) | ||||||
Other current liabilities | (3,023) | (135) | ||||||
Net cash used in operating activities | (1,416) | (4,250) | ||||||
Cash flows from investing activities: | ||||||||
(Increase)/decrease in demand loans included in other non-current assets | (14) | 242 | ||||||
Cash received from property, plant and equipment sales | 31 | 95 | ||||||
Payments to acquire property, plant and equipment (including $2,376 and $794 paid to related | (3,160) | (1,024) | ||||||
Payments to acquire intangible assets | - | (40) | ||||||
Investment under the equity method | (5,841) | (4,724) | ||||||
Purchase of short-term investments | (34,795) | (44,693) | ||||||
Proceeds from maturities of short-term investments | 26,541 | 1,801 | ||||||
Cash received from long-term investment | 557 | 2,704 | ||||||
Net cash used in investing activities | (16,681) | (45,639) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from bank loans | 20,135 | 16,088 | ||||||
Repayments of bank loans | (20,534) | (15,701) | ||||||
Repayments of the borrowing for sale and leaseback transaction | - | (1,130) | ||||||
Net cash used in financing activities | (399) | (743) | ||||||
Effects of exchange rate on cash, cash equivalents and pledged cash | 2,428 | 583 | ||||||
Net decrease in cash, cash equivalents and pledged cash | (16,068) | (50,049) | ||||||
Cash, cash equivalents and pledged cash at beginning of the period | 158,951 | 159,498 | ||||||
Cash, cash equivalents and pledged cash at end of the period | $ | 142,883 | $ | 109,449 | ||||
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SOURCE China Automotive Systems, Inc.