- Electric Power Steering ("EPS") Sales
Increased by 24.6% in 2023 -
WUHAN,
China, March 28, 2024 /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, 2023.
Fourth Quarter 2023 Highlights
- Net sales increased by 23.6% year-over-year to $159.2 million
- Gross profit increased by 38.8% to $34.7
million from $25.0
million. Gross margin increased to 21.8% from 19.4% in
the fourth quarter of 2022
- Operating income was $13.6
million, compared with an operating loss of $2.6 million in the fourth quarter of 2022
- Net income attributable to parent company's common shareholders
increased by 153.5% to $10.9 million,
or diluted net income per share of $0.36, compared to net income of $4.3 million, or diluted net income per share of
$0.14 in the fourth quarter of
2022.
Fiscal Year 2023 Highlights
- Net sales increased by 8.8% to an annual record of $576.4 million compared to $529.6 million in 2022
- Gross profit increased by 24.5% to $103.8 million compared to $83.4 million in 2022. Gross margin increased to
18.0% from 15.7% in 2022
- Operating income increased by 390.0% to $39.2 million compared to $8.0 million in 2022
- Diluted net income per share increased by 81.2% to $1.25 in 2023 compared to $0.69 in 2022
- Total cash and cash equivalents, pledged cash and short-term
investments were $166.3 million at
year end
- Net cash flow provided by operating activities was $19.9 million in 2023.
Mr. Qizhou Wu, Chief Executive
Officer of CAAS, commented, "Despite weak GDP data from China,
we are very proud of finishing 2023 on a high note. Our revenue and
profit growth accelerated in the fourth quarter. We posted a 24.6%
increase in our electric power steering ("EPS") products which now
accounts for 33.8% of total net sales in 2023. Our sales in
Brazil rose by 22.9% in 2023. This
strong growth in Brazil offsets
weakness in North America in 2023.
On our product side, we are encouraged by the growing sales of our
EPS products and better economy-of-scale that boosted our bottom
line."
"In the first two months of 2024, automobile sales in
China increased 11.1% according to
statistics from CAAM. We expect our North
America business to recover in 2024 and domestic China
market to stabilize. We remain optimistic about our market
positions as many of our Chinese OEM customers are preparing for
aggressive global expansion," Mr. Wu concluded.
Mr. Jie Li, Chief Financial
Officer of CAAS, commented, "We entered 2023 with a modest goal but
we overachieved it, by not only improving our product mix and
controlling costs, but also regaining revenue growth. Our balance
sheet remains strong with total cash and cash equivalents, pledged
cash and short-term investments reaching $166.3 million at year end, or approximately
$5.50 per share. Our current ratio is
almost 1.5 on December 31,
2023. Net cash provided by operating activities was
$19.9 million while capital
expenditures were $21.7 million in
2023."
Fourth Quarter of 2023
In the fourth quarter of 2023, net sales increased by 23.6% to
$159.2 million compared to
$128.8 million in the same quarter of
2022. The net sales increase was mainly due to a change in
the product mix and higher demand for passenger automobiles and
commercial vehicles in the fourth quarter of 2023 compared to the
fourth quarter of 2022.
Gross profit increased by 38.8% to $34.7
million in the fourth quarter of 2023, compared to
$25.0 million in the fourth quarter
of 2022. Gross margin in the fourth quarter of 2023 was 21.8%
compared to 19.4% in the fourth quarter of 2022, primarily due to a
change in product mix.
Selling expenses were $4.6 million in the fourth quarter of
2023, which is stable compared with $4.6
million in the fourth quarter of 2022. Selling expenses
represented 2.9% of net sales in the fourth quarter of 2023,
compared to 3.6% in the fourth quarter of 2022.
General and administrative expenses ("G&A expenses") were
$9.4 million in the fourth quarter of
2023, compared to $10.8 million in
the same period in 2022. G&A expenses represented 5.9% of
net sales in the fourth quarter of 2023, compared to 8.4% of net
sales in the fourth quarter of 2022.
Research and development expenses ("R&D expenses")
were $9.3 million in the fourth quarter of 2023, compared to
$10.6 million in the fourth quarter
of 2022. R&D expenses represented 5.8% of net sales in the
fourth quarter of 2023, compared to 8.2% in the fourth quarter of
2022, mainly due to a decrease in new product development
expenses for the traditional products.
Operating income was $13.6
million in the fourth quarter of 2023, compared to a loss
from operations of $2.6 million in
the fourth quarter of 2022. Higher operating income was
primarily due to increased gross profit and lower operating
expenses in the 2023 fourth quarter compared with the same period
last year.
Interest expense was $0.3
million in both the fourth quarter of 2023 and 2022.
Financial income was $1.0 million
in the fourth quarter of 2023, compared to $1.4 million in the fourth quarter of 2022, due
to lower foreign exchange gains.
Income before income tax expenses and equity in earnings of
affiliated companies was $15.0
million in the fourth quarter of 2023, compared to a
loss of $2.7 million in
the fourth quarter of 2022.
Income tax expense was $2.1
million in the fourth quarter of 2023, compared to an income
benefit of $1.9 million in the fourth
quarter of 2022.
Net income attributable to parent company's common shareholders
rose by 153.5% to $10.9 million in
the fourth quarter of 2023 compared to net income attributable to
parent company's common shareholders of $4.3
million in the fourth quarter of 2022. Diluted income
per share was $0.36 in the fourth
quarter of 2023, compared to diluted income per share of
$0.14 in the fourth quarter of
2022.
The weighted average number of diluted common shares outstanding
was 30,189,421 in the fourth quarter of 2023, compared with
30,229,987 in the fourth quarter of 2022.
Fiscal Year 2023
Net sales increased by 8.8% to $576.4
million in 2023, compared to $529.6
million in 2022. This increase was mainly due to higher
sales of passenger vehicles in China, as total sales of the Company's EPS
systems increased by 24.6% year-over-year and sales of the Henglong
subsidiary's vehicle steering systems to the Chinese passenger
vehicle market increased by 10.1% year-over-year. Brazil
Henglong's net sales grew by 22.9% year-over-year to $48.3 million in 2023. This growth
partially offset an 8.5% year-over-year sales reduction by North
American customers in 2023. EPS sales represented 33.8% of total
revenue in 2023 compared to 29.5% in 2022.
Gross profit in 2023 increased by 24.5% year-over-year to
$103.8 million, compared to
$83.4 million in 2022. The gross
margin increased to 18.0% from 15.7% in 2022 mainly due to a change
in our product mix for the year ended December 31, 2023.
Net gain on other sales in 2023 increased to $5.8 million, compared to $3.7 million in 2022 mainly due to an increased
R&D revenue.
Selling expenses declined by 7.7% year-over-year to $15.6 million in 2023, compared to
$16.9 million in 20221, mainly due to
a decrease in transportation expense. Selling expenses represented
2.7% of net sales in 2023, compared to 3.2% in 2022.
G&A expenses decreased by 2.3% year-over-year to
$25.5 million in 2023, compared to
$26.1 million in 2022. G&A
expenses represented 4.4% of net sales in 2023, compared to 4.9% of
net sales in 2022. This decrease was mainly due to mainly due
to the decrease of allowances for credit losses.
R&D expenses declined by 19.1% to $29.2 million in 2023, compared to $36.1 million in 2022. The decrease was primarily
due to the decreased R&D activities for new projects of the
traditional products. R&D expenses were 5.1% of net sales in
2023, compared to 6.8% of net sales in 2022.
Operating income increased by 390.0% to $39.2 million in 2023, compared to $8.0 million in 2022. The increase in operating
income was mainly due to a 24.5% increase in gross profits combined
with an 11.1% decrease in operating expenses.
Interest expense was $1.0 million
in 2023, compared to $1.5 million in
2022, primarily due to the decrease in borrowing rates.
Net financial income was $4.7
million in 2023, compared to net financial income of
$10.8 million in 2022, primarily due
to a decrease in the foreign exchange gains contributed by the
foreign exchange volatility in 2023.
Income before income tax expenses and equity in earnings of
affiliated companies rose by 109.6% to $48.2
million, compared to $23.0
million in 2022. The change was primarily due to higher
operating income in 2023.
Income tax expense was $5.1
million in 2023, as compared to $3.1
million for the year ended December
31, 2022, representing an increase of $2.0 million, which is mainly due to the increase
in GILTI tax expenses.
Net income attributable to parent company's common shareholders
was $37.7 million in
2023, compared to net income attributable to parent company's
common shareholders of $21.2 million
in 2022. Diluted net income per share increased by 81.2% to
$1.25 in 2023 compared to
$0.69 in 2022.
The weighted average number of diluted common shares outstanding
was 30,189,421 in 2023 compared with 30,641,274 in 2022.
Balance Sheet
As of December 31, 2023, total
cash and cash equivalents, pledged cash and short-term investments
were $166.3 million. Total
accounts receivable including notes receivable were $269.4 million. Accounts payable including notes
payable were $253.6 million and
short-term bank loans were $48.0
million. Total parent company stockholders' equity was
$344.5 million as of December 31, 2023, compared to $311.7 million as of December 31, 2022. Net cash flow from
operating activities was $19.9
million in 2023, compared to $48.0
million in 2022. Cash paid to acquire property, plant
and equipment and land use rights was $18.2
million in 2023, compared to $20.3
million in 2022.
Business Outlook
Management provides revenue guidance for the fiscal year 2024 of
$605.0 million. This target is
based on the Company's current views on operating and market
conditions, which are subject to change.
Conference Call
Management will conduct a conference call on March 28, 2024 at 8:00
A.M. EDT/8:00 P.M. Beijing
Time to discuss these results. A question and answer session will
follow management's presentation. To participate, please call
the following numbers 10 minutes before the call start time and ask
to be connected to the "China Automotive Systems" conference call
with pin 493763:
Phone Number: +1-888-506-0062 (North America)
Phone Number: +1-973-528-0011 (International)
Mainland China Toll Free:
+86-400-120-3199
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 Hubei Province,
the People's Republic of China,
China Automotive Systems, Inc. is a leading supplier of power
steering components and systems to the Chinese automotive industry,
operating through eight Sino-foreign joint ventures. The Company
offers a full range of steering system parts for passenger
automobiles and commercial vehicles. The Company currently offers
four separate series of power steering with an annual production
capacity of over 8 million sets of steering gears, columns and
steering hoses. Its customer base is comprised of leading auto
manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group
Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd.
and Chery Automobile Co., Ltd. in China, and Stellantis N.V. and Ford Motor
Company in North America. For more
information, please visit: http://www.caasauto.com.
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 March 28,
2024, and in documents subsequently filed by the Company
from time to time with the Securities and Exchange Commission. Any
of these factors and other factors beyond our control, could have
an adverse effect on the overall business environment, cause
uncertainties in the regions where we conduct business, cause our
business to suffer in ways that we cannot predict and materially
and adversely impact our business, financial condition and results
of operations. A prolonged disruption or any further unforeseen
delay in our operations of the manufacturing, delivery and assembly
process within any of our production facilities could continue to
result in delays in the shipment of products to our customers,
increased costs and reduced revenue. We expressly disclaim any duty
to provide updates to any forward-looking statements made in this
press release, whether as a result of new information, future
events or otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
+1-212-510-8922
Email: Kevin@awakenlab.com
-Tables Follow –
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated Balance
Sheets
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
114,660
|
|
$
|
121,216
|
|
Pledged cash
|
|
|
40,534
|
|
|
37,735
|
|
Short-term
investments
|
|
|
11,084
|
|
|
12,861
|
|
Accounts and notes
receivable, net - unrelated parties (Allowance for credit losses of
$15,599 and
$14,359,
respectively)
|
|
|
261,237
|
|
|
214,308
|
|
Accounts and notes
receivable, net - related parties (Allowance for credit losses of
$1,404 and
$1,763, respectively)
|
|
|
8,169
|
|
|
10,016
|
|
Advance payments and
others, net - unrelated parties (Allowance for credit losses of $22
and $115,
respectively)
|
|
|
14,008
|
|
|
10,907
|
|
Advance payments and
others - related parties
|
|
|
1,991
|
|
|
1,439
|
|
Inventories
|
|
|
112,392
|
|
|
112,236
|
|
Total current
assets
|
|
|
564,075
|
|
|
520,718
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
101,359
|
|
|
106,606
|
|
Land use rights,
net
|
|
|
9,233
|
|
|
9,555
|
|
Intangible assets,
net
|
|
|
3,865
|
|
|
1,273
|
|
Operating lease
assets
|
|
|
278
|
|
|
477
|
|
Long-term time
deposits
|
|
|
8,647
|
|
|
—
|
|
Other receivables, net
(Allowance for credit losses of $49 and $50,
respectively)
|
|
|
598
|
|
|
46
|
|
Advance payment for
property, plant and equipment - unrelated parties
|
|
|
3,554
|
|
|
6,331
|
|
Advance payment for
property, plant and equipment - related parties
|
|
|
5,759
|
|
|
1,884
|
|
Long-term
investments
|
|
|
60,173
|
|
|
59,810
|
|
Deferred tax
assets
|
|
|
8,899
|
|
|
7,652
|
|
Total assets
|
|
$
|
766,440
|
|
$
|
714,352
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
48,005
|
|
$
|
45,671
|
|
Accounts and notes
payable - unrelated parties
|
|
|
240,739
|
|
|
218,412
|
|
Accounts and notes
payable - related parties
|
|
|
12,839
|
|
|
16,695
|
|
Customer
deposits
|
|
|
8,633
|
|
|
5,654
|
|
Accrued payroll and
related costs
|
|
|
11,282
|
|
|
11,628
|
|
Accrued expenses and
other payables
|
|
|
44,771
|
|
|
48,311
|
|
Taxes
payable
|
|
|
17,267
|
|
|
17,598
|
|
Operating lease
liabilities - current portion
|
|
|
203
|
|
|
226
|
|
Total current
liabilities
|
|
|
383,739
|
|
|
364,195
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Advances
payable
|
|
|
282
|
|
|
2,144
|
|
Operating lease
liabilities - non-current portion
|
|
|
52
|
|
|
255
|
|
Long-term
loans
|
|
|
1,221
|
|
|
528
|
|
Deferred tax
liabilities
|
|
|
3,943
|
|
|
4,010
|
|
Long-term taxes
payable
|
|
|
8,781
|
|
|
15,805
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
398,018
|
|
|
386,937
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
|
613
|
|
|
582
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value - Authorized - 80,000,000 shares Issued – 32,338,302
and
32,338,302 shares at December 31, 2023 and 2022,
respectively
|
|
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
63,731
|
|
|
63,731
|
|
Retained
earnings-
|
|
|
|
|
|
|
|
Appropriated
|
|
|
11,851
|
|
|
11,851
|
|
Unappropriated
|
|
|
284,832
|
|
|
247,174
|
|
Accumulated other
comprehensive income
|
|
|
(8,258)
|
|
|
(3,413)
|
|
Treasury stock –
2,152,600 and 2,152,600 shares at December 31, 2023 and 2022,
respectively
|
|
|
(7,695)
|
|
|
(7,695)
|
|
Total parent company
stockholders' equity
|
|
|
344,464
|
|
|
311,651
|
|
Non-controlling
interests
|
|
|
23,345
|
|
|
15,182
|
|
Total stockholders'
equity
|
|
|
367,809
|
|
|
326,833
|
|
Total liabilities,
mezzanine equity and stockholders' equity
|
|
$
|
766,440
|
|
$
|
714,352
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income or Loss
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2023
|
|
2022
|
|
Net product sales
($47,514 and $44,282 sold to related parties for the years
ended December 31, 2023 and 2022)
|
|
$
|
576,354
|
|
$
|
529,551
|
|
Cost of products sold
($27,288 and $28,810 purchased from related parties for
the years ended December 31, 2023 and 2022)
|
|
|
472,603
|
|
|
446,157
|
|
Gross profit
|
|
|
103,751
|
|
|
83,394
|
|
Net gain on other
sales
|
|
|
5,788
|
|
|
3,696
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
15,610
|
|
|
16,910
|
|
General and
administrative expenses
|
|
|
25,503
|
|
|
26,120
|
|
Research and
development expenses
|
|
|
29,181
|
|
|
36,109
|
|
Total operating
expenses
|
|
|
70,294
|
|
|
79,139
|
|
Operating
income
|
|
|
39,245
|
|
|
7,951
|
|
Other income,
net
|
|
|
5,345
|
|
|
5,782
|
|
Interest
expense
|
|
|
(1,021)
|
|
|
(1,450)
|
|
Financial income,
net
|
|
|
4,666
|
|
|
10,753
|
|
Income before income
tax expenses and equity in earnings of affiliated
companies
|
|
|
48,235
|
|
|
23,036
|
|
Less: Income
taxes
|
|
|
5,137
|
|
|
3,082
|
|
Add: Equity in
(loss)/earnings of affiliated companies
|
|
|
(360)
|
|
|
2,389
|
|
Net income
|
|
|
42,738
|
|
|
22,343
|
|
Net income attributable
to non-controlling interest
|
|
|
5,050
|
|
|
1,132
|
|
Accretion to redemption
value of redeemable non-controlling interests
|
|
|
(30)
|
|
|
(30)
|
|
Net income attributable
to parent company's common shareholders
|
|
|
37,658
|
|
|
21,181
|
|
|
|
|
|
|
|
|
Net income attributable
to parent company's common shareholders per share -
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.25
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
1.25
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding -
|
|
|
|
|
|
|
|
Basic
|
|
|
30,185,702
|
|
|
30,639,102
|
|
Diluted
|
|
|
30,189,421
|
|
|
30,641,274
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Comprehensive Income or Loss
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2023
|
|
2022
|
|
Net income
|
|
$
|
42,738
|
|
$
|
22,343
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation loss
|
|
|
(5,191)
|
|
|
(29,934)
|
|
Comprehensive
income/(loss)
|
|
|
37,547
|
|
|
(7,591)
|
|
Comprehensive
income/(loss) attributable to non-controlling interest
|
|
|
4,704
|
|
|
(672)
|
|
Accretion to redemption
value of redeemable non-controlling interest
|
|
|
(30)
|
|
|
(30)
|
|
Comprehensive
income/(loss) attributable to parent company
|
|
$
|
32,813
|
|
$
|
(6,949)
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Changes in Stockholders' Equity
|
|
(In thousands of
USD, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Common Stock
|
|
|
|
|
|
|
|
Balance at
January 1, 2023 and 2022 - 32,338,302 and 32,338,302
shares, respectively
|
|
$
|
3
|
|
$
|
3
|
|
Balance at
December 31, 2023 and 2022 - 32,338,302 and
32,338,302 shares, respectively
|
|
$
|
3
|
|
$
|
3
|
|
|
|
|
|
|
|
|
Additional Paid-in
Capital
|
|
|
|
|
|
|
|
Balance at
January 1
|
|
$
|
63,731
|
|
$
|
63,731
|
|
Balance at
December 31
|
|
$
|
63,731
|
|
$
|
63,731
|
|
|
|
|
|
|
|
|
Retained
Earnings - Appropriated
|
|
|
|
|
|
|
|
Balance at
January 1
|
|
$
|
11,851
|
|
$
|
11,481
|
|
Appropriation of
retained earnings
|
|
|
—
|
|
|
370
|
|
Balance at
December 31
|
|
$
|
11,851
|
|
$
|
11,851
|
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
|
|
|
|
|
Balance at
January 1
|
|
$
|
247,174
|
|
$
|
226,363
|
|
Net income attributable
to parent company
|
|
|
37,688
|
|
|
21,211
|
|
Accretion of redeemable
non-controlling interests
|
|
|
(30)
|
|
|
(30)
|
|
Appropriation of
retained earnings
|
|
|
—
|
|
|
(370)
|
|
Balance at
December 31
|
|
$
|
284,832
|
|
$
|
247,174
|
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive (Loss)/Income
|
|
|
|
|
|
|
|
Balance at
January 1
|
|
$
|
(3,413)
|
|
$
|
24,717
|
|
Net foreign currency
translation adjustment attributable to parent company
|
|
|
(4,845)
|
|
|
(28,130)
|
|
Balance at
December 31
|
|
$
|
(8,258)
|
|
$
|
(3,413)
|
|
|
|
|
|
|
|
|
Treasury
Stock
|
|
|
|
|
|
|
|
Balance at January 1,
2023 and 2022 –2,152,600 and 1,486,526 shares,
respectively
|
|
$
|
(7,695)
|
|
$
|
(5,261)
|
|
Repurchase of common
stock in 2023 and 2022 –nil and 666,074 shares,
respectively
|
|
|
—
|
|
|
(2,434)
|
|
Balance at December 31,
2023 and 2022 – 2,152,600 and 2,152,600 shares,
respectively
|
|
$
|
(7,695)
|
|
$
|
(7,695)
|
|
|
|
|
|
|
|
|
Total parent company
stockholders' equity
|
|
$
|
344,464
|
|
$
|
311,651
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
|
|
|
|
|
Balance at
January 1
|
|
$
|
15,182
|
|
$
|
15,854
|
|
Net foreign currency
translation adjustment attributable to non-controlling
interest
|
|
|
(346)
|
|
|
(1,804)
|
|
Net income attributable
to non-controlling interest
|
|
|
5,050
|
|
|
1,132
|
|
Contribution by
non-controlling shareholder of Wuhan Hyoseong
|
|
|
3,459
|
|
|
—
|
|
Balance at
December 31
|
|
$
|
23,345
|
|
$
|
15,182
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
367,809
|
|
$
|
326,833
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
42,738
|
|
$
|
22,343
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,708
|
|
|
25,173
|
|
Deferred income
taxes
|
|
|
(1,319)
|
|
|
1,243
|
|
Allowance for credit
losses
|
|
|
1,564
|
|
|
4,404
|
|
Impairment loss on
prepayment for investment in Hefei Senye
|
|
|
—
|
|
|
2,676
|
|
Equity in
(loss)/earnings of affiliates
|
|
|
360
|
|
|
(2,389)
|
|
Impairment loss on
property, plant and equipment
|
|
|
794
|
|
|
—
|
|
(Gain)/loss on disposal
of fixed assets
|
|
|
(3)
|
|
|
58
|
|
(Increase)/decrease
in:
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
|
(50,699)
|
|
|
(36,935)
|
|
Advance payments and
others
|
|
|
(3,881)
|
|
|
(41)
|
|
Inventories
|
|
|
(1,654)
|
|
|
(5,368)
|
|
Other
receivables
|
|
|
(556)
|
|
|
—
|
|
Increase/(decrease)
in:
|
|
|
|
|
|
|
|
Accounts and notes
payable
|
|
|
22,024
|
|
|
27,271
|
|
Customer
deposits
|
|
|
3,091
|
|
|
3,580
|
|
Accrued payroll and
related costs
|
|
|
77
|
|
|
1,628
|
|
Accrued expenses and
other payables
|
|
|
(2,667)
|
|
|
1,158
|
|
Taxes
payable
|
|
|
(6,835)
|
|
|
2,925
|
|
Advances
payable
|
|
|
(1,836)
|
|
|
297
|
|
Net cash provided by
operating activities
|
|
|
19,906
|
|
|
48,023
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of short-term
investments and long-term time deposits
|
|
|
(68,550)
|
|
|
(80,244)
|
|
Proceeds from
maturities of short-term investments
|
|
|
63,240
|
|
|
75,144
|
|
Decrease/(increase) in
demand loans and employee housing loans included in other
receivables
|
|
|
—
|
|
|
292
|
|
Loan to a related
party
|
|
|
—
|
|
|
(146)
|
|
Cash received from
property, plant and equipment sales
|
|
|
2,790
|
|
|
1,514
|
|
Cash paid to acquire
property, plant and equipment and land use right (including $5,336
and
$3,445 paid to related parties for the years ended
December 31, 2023 and 2022, respectively)
|
|
|
(18,235)
|
|
|
(20,296)
|
|
Cash paid to acquire
intangible assets
|
|
|
(3,445)
|
|
|
(188)
|
|
Cash received from
long-term investment
|
|
|
3,292
|
|
|
3,986
|
|
Investment under equity
method
|
|
|
(7,729)
|
|
|
(12,802)
|
|
Net cash used in
investing activities
|
|
|
(28,637)
|
|
|
(32,740)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from bank
loans
|
|
|
64,776
|
|
|
51,898
|
|
Repayment of bank loans
and government loans
|
|
|
(61,437)
|
|
|
(49,917)
|
|
Repurchase of common
shares
|
|
|
—
|
|
|
(2,434)
|
|
Repayments of the
borrowing under sale and leaseback transaction
|
|
|
—
|
|
|
(1,130)
|
|
Cash received from
capital contributions by a non-controlling interest
holder
|
|
|
3,459
|
|
|
—
|
|
Net cash provided
by/(used in) financing activities
|
|
|
6,798
|
|
|
(1,583)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents affected by foreign currency
|
|
|
(1,824)
|
|
|
(14,248)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(3,757)
|
|
|
(548)
|
|
Cash, cash
equivalents and pledged cash at beginning of year
|
|
|
158,951
|
|
|
159,499
|
|
Cash, cash equivalents
and pledged cash at end of year
|
|
$
|
155,194
|
|
$
|
158,951
|
|
China Automotive
Systems, Inc. and Subsidiaries
|
|
|
Consolidated
Statements of Cash Flows (continued)
|
|
|
(In thousands of USD
unless otherwise indicated)
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
Cash paid for
interest
|
|
$
|
1,145
|
|
|
$
|
1,492
|
|
|
Cash paid for income
taxes
|
|
$
|
7,965
|
|
|
$
|
4,044
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF NON-CASH ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
Property, plant and
equipment recorded during the year which previously were advance
payments
|
|
$
|
2,699
|
|
|
$
|
2,473
|
|
|
Change in accounts
payable for acquiring property, plant and equipment
|
|
$
|
960
|
|
|
$
|
985
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
Supplemental
disclosure of acquisition of
operating lease assets
|
|
$
|
278
|
|
|
$
|
477
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/china-automotive-systems-reports-record-annual-revenue-and-a-81-2-increase-in-diluted-net-income-per-share-to-1-25-in-fiscal-year-2023--302102110.html
SOURCE China Automotive Systems, Inc.