China Automotive Systems Reports 12.9% Sales Increase but 20.4% Decline in Net Income for Fiscal Year 2024

China Automotive Systems, Inc. reported a net product sales increase of 12.9% for the fiscal year ending December 31, 2024, reaching $650.9 million compared to $576.4 million in 2023. The company's profitability, however, saw a decline, with net income attributable to common shareholders decreasing by 20.4% to $30.0 million from $37.7 million in the previous year. This decline in net income was attributed to increased costs of products sold, which rose by 14.6% to $541.8 million, primarily due to higher sales volumes and unit costs.

The company experienced significant operational changes, including a notable increase in sales of electric power steering (EPS) products, which accounted for $253.0 million in sales, a 29.9% increase from the previous year. Traditional steering products remained stable, generating $397.9 million in sales. The overall sales growth was influenced by a 21.0% increase in sales of steering gears for passenger vehicles, while sales for commercial vehicles decreased by 12.9%. The company maintained strong relationships with major customers, including Stellantis N.V. and BYD Auto Co., Ltd., which together accounted for 38.5% of total sales.

In terms of strategic developments, China Automotive Systems continued to focus on geographic expansion and product innovation. The company has established a presence in Brazil and has been exploring opportunities for acquisitions to enhance its market position. As of December 31, 2024, the company employed approximately 4,370 individuals, reflecting its commitment to maintaining a robust workforce to support its operations. The company also reported a total of 30,170,702 shares of common stock outstanding, with a market value of approximately $37.7 million as of June 28, 2024.

Looking ahead, China Automotive Systems expressed optimism about its growth trajectory, emphasizing its focus on brand recognition, quality control, and cost efficiency. The company plans to reinvest future earnings to finance operations and expansion, with no immediate plans for additional cash dividends. The management remains cautious about potential risks, including fluctuating market conditions and regulatory changes in China, which could impact its operations and financial performance. The company is also closely monitoring the evolving landscape of U.S.-China relations, which may affect its ability to access capital markets and conduct business internationally.