CAAS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record first-half net sales and gross profits by prioritizing high-margin Electric Power Steering (EPS) products, which now represent 46.8% of total revenue. Outperformed the broader Chinese automotive market, where vehicle production and sales fell by 4% and 4.1% respectively in the first half of 2024, by capturing growth in the New Energy Vehicle (NEV) segment. Attributed significant margin expansion to product volume gains and a strategic shift toward relatively higher-margin steering solutions. Mitigated a 5.1% decline in the Brazilian subsidiary through robust 42.9% growth in the Chinese commercial vehicle market via the Julong subsidiary. Leveraged strong export demand for NEVs to counter sluggish domestic GDP growth and weak household consumption in China. Advanced the 2026-2030 strategic plan focused on 'zero defect' quality and platform-based lean automated manufacturing to deepen global Tier 1 supplier status. Increased full-year 2026 revenue guidance to $850 million, up from $810 million, based on current views of operating and market conditions. Anticipates annual sales volume for the new European EPS shipment to reach 300,000 units as more vehicle models adopt the advanced steering system. Projects approximately 1 million units of incremental capacity coming online following recent capital investments in product development. Assumes continued volatility in foreign exchange markets, which significantly impacted net financial expense in the first half of 2026. Focuses future R&D on autonomous driving technologies, including automotive intelligence, software, and high-polymer materials. Invested $15.8 million specifically for land and facilities to establish a manufacturing presence in Mexico. Identified increasing uncertainty in foreign markets as a potential headwind for future export growth despite recent strength. Noted that while government EV subsidies in China have been reduced, NEV sales still reached nearly 50% of all new vehicle sales in the period. Reported a shift from net financial income to a $2.9 million net financial expense, primarily driven by foreign exchange volatility. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects batch production for the South American EPS line to begin in 2028 with a target of 300,000 units. The initiative is projected to generate a $40 million revenue impact, representing a roughly 50% increase over the current regional run rate. The Board is considering options to enhance shareholder value, but management emphasized that cash is currently prioritized for high CapEx requirements. Increased CapEx in 2026 and 2027 is intended to fund global footprint expansion and generate higher long-term returns. M&A strategy is focused on acquiring complementary chassis-related products, such as suspension or braking systems. The goal of potential acquisitions is to enhance the company's competitive offering specifically for autonomous driving platforms. Roughly half of the H1 CapEx was dedicated to the Mexico project, while the remainder supported product development for EPS, ECUs, and ERCB. Full-year CapEx is projected at $50 million; excluding the Mexico project, spending remains on par with 2025 levels.

Interested in China Automotive Systems, Inc.? Here are five stocks we like better. China Automotive Systems reported record first-half 2026 results, with sales up 20.1% to $412.5 million, net income nearly doubling to $29.3 million, and gross margin improving to 21.5%. Management raised full-year revenue guidance to $850 million from $810 million. Electric power steering sales rose 32.2% to $192.3 million, increasing their share of revenue to 46.8%. Growth was led by Henglong, Yulong and the Wuhu subsidiary, despite softer overall vehicle demand in China. The company is expanding internationally and investing for future growth, including a Mexico facility, additional EPS capacity, European vehicle programs and planned South American EPS production beginning in 2028. Full-year capital expenditures are expected to total about $50 million. China Automotive Systems (NASDAQ:CAAS) reported record first-half sales, gross profit and operating income for 2026, driven by growth in electric power steering products and gains across most of its operating units. Management also raised its full-year revenue guidance to $850 million from $810 million. Net sales for the six months ended June 30 increased 20.1% year over year to $412.5 million, compared with $343.3 million in the prior-year period. The company said the increase reflected higher electric power steering, or EPS, sales and appreciation of the Chinese yuan against the U.S. dollar. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Net income attributable to the company’s common shareholders rose 98.8% to $29.3 million, from $14.7 million a year earlier. Diluted earnings per share increased to $0.97 from $0.49. Income from operations doubled to $43.3 million, while gross profit climbed 49.7% to $88.5 million. EPS product sales rose 32.2% to $192.3 million in the first half, compared with $145.9 million in the same period of 2025. EPS represented 46.8% of total net sales, up from 42.5% a year earlier. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Sales of traditional steering products and parts increased 11.2% to $219.6 million. The company said higher sales volumes and a greater mix of relatively higher-margin products helped lift gross margin to 21.5%, from 17.2% in the prior-year period. Among the company’s operating units, Henglong, its largest sales contributor, posted a 25.3% increase in sales to $205.7 million. Yulong’s sales to China’s commercial-vehicle market increased 42.9% to $61.7 million, while Wuhu subsidiary sales to Chery Automobile rose 40.3% to $22.7 million. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Sales to North American customers rose 3.5% to $59.2 million, which management attributed primarily to higher passenger-vehicle product demand from one customer. Brazilian sales declined 5.1% to $32.6 million. Kevin Theiss, manager of investor relations, said the company’s sales growth contrasted with softer conditions in China’s auto market. He cited China Association of Automobile Manufacturers data showing overall vehicle production and sales declined 4% and 4.1%, respectively, year over year during the period discussed on the call. Theiss also said passenger-vehicle sales declined by about 6%, while new-energy vehicle sales increased 7.3% and accounted for 49.6% of new vehicle sales. The company highlighted several product and international-market initiatives. It said the first batch of its EPS steering systems was shipped to a global automaker’s European division for use in two new European vehicle models. Management expects annual volume for that program to reach 300,000 units. During the question-and-answer session, Chief Financial Officer Jie Li said the company is preparing for EPS production in South America, with batch production expected to begin in 2028. The company is targeting approximately 300,000 units for that market. Li said the initiative could generate about $40 million in revenue and represent roughly a 50% increase from the company’s current South American revenue run rate. China Automotive Systems also said it continues to develop a regional manufacturing and supply system in Malaysia through its strategic cooperation agreement with KYB-UMW Malaysia Sdn. Bhd. The company spent $20.8 million on research and development during the first half, up 23.6% from a year earlier. R&D programs include work on EPS and hydraulic steering systems, automotive intelligence and software technologies, electronics, materials and manufacturing technologies. Capital expenditures totaled $30.4 million in the first half. Li said approximately $15.8 million was directed toward land and a facility for the company’s Mexico project, while roughly $15 million supported capacity and product-related investments involving EPS, electronic control units, eRCB products and electric motors. Management expects full-year capital expenditures of about $50 million. Excluding the Mexico project, Li said planned spending would be roughly in line with 2025 levels and is expected to add approximately 1 million units of EPS capacity. Net cash provided by operating activities was $47.8 million, and free cash flow was $14.3 million for the first six months. As of June 30, cash, cash equivalents and pledged cash totaled $155.6 million, while working capital was approximately $249.8 million. Asked about dividends and share repurchases, Li said the board is discussing potential shareholder-return options. However, he emphasized that the company is also increasing capital expenditures as it expands globally and invests in growth initiatives. Li said the company is evaluating merger-and-acquisition opportunities that could broaden its product offering, particularly in chassis-related areas such as suspension and braking systems. He said such additions could complement the company’s steering products and support offerings related to autonomous-driving applications. China Automotive Systems, Inc (NASDAQ: CAAS) is a leading designer, manufacturer and marketer of power steering systems and related components primarily for the automotive industry in China. The company's core business centers on hydraulic and electric power steering products, steering columns, steering gearboxes and electronic control units. By integrating research and development, manufacturing and sales, China Automotive Systems aims to deliver high-quality steering solutions that meet the performance and safety requirements of global automakers. The company's product portfolio includes traditional hydraulic power steering systems, which have long been favored for their reliability, as well as advanced electric power steering units that offer improved fuel efficiency and enhanced vehicle control. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "China Automotive Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. 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WUHAN, China, Aug. 13, 2026 /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 six months ended June 30, 2026. First Six Months of 2026 Highlights Net sales grew by 20.1% year-over-year to a record $412.5 million, compared to $343.3 million in the first six months of 2025. Gross profit increased by 49.7% year-over-year to $88.5 million, compared to $59.1 million in the first six months of 2025; gross profit margin increased to 21.5% in the first six months of 2026. Income from operations rose by 100.4% year-over-year to $43.3 million compared to income from operations of $21.6 million in the first six months of 2025. Net income attributable to parent company's common shareholders increased by 98.8% to $29.3 million from $14.7 million in the first six months of 2025. Diluted earnings per share attributable to parent company's common shareholders increased by 98.0% to $0.97 compared with $0.49 in the first six months of 2025. Cash, cash equivalents and pledged cash were $155.6 million, or approximately $5.16 per share, as of June 30, 2026. Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "Our profit growth accelerated in the first half of 2026 with strong net sales in an overall sluggish economy in China. We had growth across the board in our major operating units, except for our Brazilian subsidiary, with three operations achieving net sales growth exceeding 40% in the first six months of 2026. Net sales of our electric power steering ("EPS") products grew by 32.2% year-over-year and now represent 46.8% of total net sales in the first half of 2026. Our Henglong KYB subsidiary, which is mainly engaged in providing passenger EPS products, has grown into the second largest contributor to net sales. In addition to the growth in our passenger vehicle steering systems, our net sales of commercial vehicle steering systems continued to improve with an even stronger sales growth of over 40% year-over-year in the first half of 2026." "Our growth contrasts with Chinese automotive vehicle performance as data from the China Association of Automotive Manufacturers ("CAAM") disclosed that vehicle production and sales fell 4.0% and 4.1% year-on-year, respectively, in the first half of 2026. Passenger vehicle sales fell by approximately 6.0% in the first half of 2026. Retail sales of ICE vehicles fell while NEV sales reached 49.6% of all new-vehicle sales and battery EVs represented approximately 67% of total NEV sales. Higher fuel costs and a reduction in EV subsidies in China impacted vehicle demand." "Our investment into research and development increased by 23.6% as we accelerate our transition into higher technology products. A growing number of our steering products are capable of autonomous driving functions such as automatic parking, lane keep assist ("LKA") and lane follow assist ("LFA") as well as rear-wheel active steering. These features are driving higher demand, presenting stronger growth opportunities for the future." "International sales continue to grow as our customer base has expanded and more vehicle models are now powered by our products. After over 30 years' relentless pursuit for high quality, advanced technologies and superior value, we have become a tier-1 supplier to large global OEM customers in North America, Europe, Asia and South America. In late 2025, we won a contract for our C-EPS (column-assist electric power steering) for a new vehicle platform from a leading South American-based automotive manufacturer. This contract highlights the first large-scale entry of our EPS systems into the South American automotive supply chain. Planned annual sales volume is over 300,000 units with mass production expected in early 2028. This contract partially resulted from the successful launch of similar C-EPS products for the European markets." "Subsequently, in 2026, the first batch of EPS steering was shipped to a global automaker's European division. This particular EPS steering model is featured in two new European vehicle models with more vehicles targeted. Annual sales volume is expected to reach approximately 300,000 units.""This project achieved a number of strict technical and quality innovations, including new testing methods, software upgrades, a state-of-the-art production line powered by eight modern manufacturing technologies including seamless integration of manufacturing execution system ("MES") with automated guided vehicles ("AGV"), computer vision Poka-Yoke, and 100% autonomous robotic inspection." "In 2026, we announced a new 2026-2030 'Strategic Plan' committing to a new growth trajectory. The main pillars are focused on deepening local presence in global markets, and developing additional cutting-edge steering technologies, new product markets, and "zero-defect" quality with platform-based, lean, automated manufacturing systems. We believe this strategy will lead to increased volume among large vehicle OEMs and capture greater market share in the global automotive marketplace." Mr. Jie Li, Chief Financial Officer of CAAS, commented, "We continue to focus on maintaining our financial strength buoyed by net cash provided by operating activities of $47.8 million in the first half of 2026. Cash, cash equivalents and pledged cash were $155.6 million, and working capital was nearly $249.8 million. We grew our free cashflow to $14.3 million. Our capital investments in property, plant and equipment were $30.4 million in the first half of 2026 as we continue to invest in our future." First Six Months of 2026 Net sales increased by 20.1% year-over-year to $412.5 million, compared to $343.3 million in the first half of 2025. The net sales increase was mainly due to higher sales of electric power steering and the appreciation of the RMB against the USD. Net sales of traditional steering products and parts increased 11.2% year-over-year to $219.6 million in the first half of 2026. Net sales of EPS products rose 32.2% year-over-year to $192.9 million from $145.9 million for the same period in 2025. EPS product sales grew to 46.8% of the total net sales for the first half of 2026, compared to 42.5% for the same period in 2025. Net sales in our Henglong subsidiary, the largest contributor to sales, rose by 25.3% to $205.7 million, compared with $164.2 million for the first half of 2025. Sales to North American customers increased by 3.5% to $59.2 million, compared to $57.2 million in the first half of 2025, primarily due to higher demand for passenger vehicle products by one customer. Sales in Brazil declined by 5.1% in the first half of 2026 to $32.6 million from $34.4 million in the first half of 2025. Jiulong's net sales to the Chinese commercial vehicle market increased 42.9% year-over-year to $61.7 million and our Wuhu subsidiary's net sales to Chery Automotive Co., Ltd. rose by 40.3% year-over-year to $22.7 million in the first half of 2026. Gross profit grew by 49.7% year-over-year to $88.5 million from $59.1 million in the first half of 2025. Gross profit margin increased to 21.5% in the first half of 2026 from 17.2% in the first half of 2025. The increase in gross profit was mainly due to product volume gains and greater sales of relatively higher-margin products. Net gain on other sales increased to $2.1 million in the first half of 2026, compared to $1.6 million in the first half of 2025. Selling expenses grew by 28.0% to $11.9 million in the first six months of 2026 compared with $9.3 million in the same period last year. Higher selling expenses were a result of the sales and volume gains achieved in the first half of 2026. Selling expenses represented 2.9% of net sales in the first half of 2026 compared with 2.7% in the first half of 2025. General and administrative expenses ("G&A expenses") increased by 12.6% to $14.6 million, compared to $13.0 million in the first half of 2025 primarily due to higher office expenses. G&A expenses represented 3.5% of net sales in the first six months of 2026, compared to 3.8% of net sales in the same period in 2025. Research and development expenses ("R&D expenses") increased by 23.6% to $20.8 million in the first six months of 2026, compared with $16.8 million in the first half of 2025. R&D expenses represented 5.0% of net sales, compared to 4.9% in the first six months of 2025. Research and development programs include upgrades to enhance the performance and quality of current products, customizing products for specific customers, as well as further developing EPS and hydraulic steering systems, automotive intelligence and software technologies, automobile electronics, high-polymer materials, and manufacturing technologies. Other income, net was $6.9 million in the first half of 2026, compared to $3.0 million in the same period last year. The increase was mainly due to the decrease in the loss on disposal of property, plant and equipment. Income from operations climbed 100.4% to $43.3 million in the first six months of 2026 from $21.6 million in the first six months of 2025. This gain reflected greater sales, higher gross profit and margins, and effective cost controls. Interest expense was stable at $0.8 million in the first half of 2026 and 2025. Net financial expense was $2.9 million in the first half of 2026, compared to net financial income of $3.3 million in the first half in 2025. This change in net financial income was primarily due to foreign exchange volatility. Income before income tax expenses and equity in earnings of affiliated companies increased by 71.3% to $46.5 million in the first half of 2026, compared to $27.2 million in the same period in 2025. The change in income before income tax expenses and equity in earnings of affiliated companies was mainly due to higher income from operations and higher other income, net in the first half of 2026. Income tax expense was $9.9 million in the first half of 2026, compared to $7.0 million in the first half of 2025. The increase in income tax expense was primarily due to a higher income before income tax expenses in the first half of 2026. The effective tax rate was 21.3% in the first six months of 2026, compared with 25.7% in the same period last year. Net income attributable to parent company's common shareholders increased by 98.8% to $29.3 million in the first six months of 2026, compared to net income attributable to parent company's common shareholders of $14.7 million in the first half of 2025. Diluted earnings per share were $0.97 in the first half of 2026, compared to $0.49 per share in the same period in 2025. The weighted average number of diluted common shares outstanding was 30,170,702 in each of the 2026 and 2025 six-month periods. Balance Sheet Cash and cash equivalents and pledged cash were $155.6 million, or approximately $5.16 per share, as of June 30, 2026. Net working capital was $249.8 million. Total accounts receivable including notes receivable were $362.4 million, accounts payable including notes payable were $361.5 million and short-term loans were $75.0 million. Total parent company stockholders' equity was $443.8 million as of June 30, 2026, compared to $401.3 million as of December 31, 2025. Net cash provided by operating activities was $47.8 million with payments to acquire property, plant and equipment of $30.4 million. Business Outlook Management has raised revenue guidance for the fiscal year 2026 to $850.0 million. This target is based on the Company's current views on operating and market conditions, which are subject to change. Conference CallManagement will conduct a conference call on August 13th, 2026 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 763912: Toll Free: 888-506-0062International: 973-528-0011China Toll Free: 86 400 120 3199 A replay of the call will be available on the Company's website in 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 its sixteen Sino-foreign joint ventures and wholly-owned subsidiaries. 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: https://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 20-F as filed with the Securities and Exchange Commission on April 22, 2026, 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 LiChief Financial OfficerChina Automotive Systems, [email protected] Kevin TheissAwaken [email protected] -Tables Follow – View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-record-earnings-per-share-rose-98-in-the-first-half-of-2026-302850301.html

WUHAN, China, Aug. 5, 2026 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that it will issue unaudited financial results for the first half of 2026 ended June 30, 2026, on Thursday, August 13, 2026, before the market opens. Management will conduct a conference call on August 13th 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 763912: Toll Free: 888-506-0062International: 973-528-0011China Toll Free: 86 400 120 3199 A replay of the call will be available on the Company's website in 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 its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. 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: https://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 20-F as filed with the Securities and Exchange Commission on April 22, 2026, 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 LiChief Financial OfficerChina Automotive Systems, [email protected] Kevin TheissAwaken [email protected] View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-to-announce-unaudited-2026-first-half-financial-results-on-august-13-2026-302843290.html

Image source: The Motley Fool. Wednesday, April 22, 2026 at 10 a.m. ET Chief Financial Officer — Jie Li Investor Relations Representative — Kevin Theiss Need a quote from a Motley Fool analyst? Email [email protected] Kevin Theiss: Thank you, everyone, for joining us today. Welcome to China Automotive Systems 2025 Fourth Quarter and 2025 Annual Results Conference Call. Joining us today are Mr. Jie Li, Chief Financial Officer of China Automotive Systems. He will be available to answer questions later in the conference call with the assistance of translation. Before we begin, I will remind all listeners that throughout this call, we may make statements that may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the company's estimates and assumptions only as of the date of this call. 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 of Risk Factors and Results of Operations in the company's Form 20-F annual report for the year ended December 31, 2025, as filed with the Securities and Exchange Commission and in other documents 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 and cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially adversely impact our business, financial condition and results of operations. A prolonged disruption or any unforeseen delay in our operations of the manufacturing, delivery and assembly processes with any of our production facilities could result in delay in the shipment of products to our customers, increased costs and reduce revenue. The company expressly disclaims any duty to provide updates to any forward-looking statements made in this call with a result of new information, future events or otherwise. On this call, I will provide a brief overview and summary of the fourth quarter 2025 unaudited results and the 2025 annual audited results for the period ended December 31, 2025. The 2025 fourth quarter results and the 2025 annual results are reported using U.S. GAAP accounting. Management will conduct a question-and-answer session. For the purposes of the call today, I'll review the financial results in U.S. dollars. We will begin with a review of some of the quarterly business highlights, recent dynamics of the Chinese economy, automobile industry and our market position. China's automotive industry in 2025 set another new record with vehicle production reaching 34.5 million units and sales totaling 34.4 million units. These numbers reflect growth of 10.4% and 9.4% year-over-year according to data from the China Association of Automobile Manufacturers, CAAM. Commercial vehicle production and sales reached 4.3 million units and 4.3 vehicles sales, respectively. China's domestic auto market rose by approximately 6.7% with total vehicle sales reaching 27.3 million vehicles. Among the industry trends were greater sales of new energy vehicles and Chinese branded vehicle capturing a larger portion of the total vehicle sales. Auto-related exports were another strong sales growth avenue for Chinese vehicle manufacturers. In 2025, government incentives for the automobile industry included tax incentives, subsidies for scrapping older vehicles and lower interest financing. Additionally, local government and private incentives may also have aided buyers. Chinese branded vehicle OEMs introduced a significant number of new models to attract consumers. Our sales increased by 21.4% year-over-year to $229.2 million in the fourth quarter of 2025 compared to $188.7 million in the fourth quarter of 2024 and $193.2 million in the third quarter of 2025. Net sales increased due to higher demand for passenger and commercial vehicles in China as well as increased export sales in the quarter. Gross margin in the fourth quarter of 2025 rose to 23.1% compared to 15.6% in the fourth quarter of 2024. Research and development expenses, R&D expenses rose to $17.8 million compared with $7.8 million in the fourth quarter of 2024. Technology is playing an increasing role with steering performance and quality and customers are buying more advanced products. Operating income grew to $18.1 million in the fourth quarter of 2025, primarily due to higher gross profit. Net income attributable to parent company's common shareholders increased by 103.2% to $18.4 million with diluted income per share of $0.61 in the fourth quarter of 2025 compared to $0.30 in the fourth quarter of 2024. For the 2025 year, record net sales increased by 17.6% to $765.7 million. Total sales of the company's EPS systems increased by 25.5% year-over-year to sales of the traditional steering products increased by 12.6% year-over-year. EPS sales represented 41.5% of total revenue in 2025 compared to 38.9% in 2024. Our Henglong subsidiary sales of passenger vehicle steering systems rose by 12.1% year-over-year to $65.3 million in 2025. Jiulong sales of commercial vehicle steering systems increased by 28.9% year-over-year to $92.3 million. Brazil Henglong net sales grew by 34.7% year-over-year to $68.7 million, and net sales to North American customers rose by 15.3% year-over-year to $121.6 million in 2025. Sales to Stellantis worldwide network helped propel our steering product sales growth in North and South American markets as well as Europe. Gross profit in 2025 increased by 33.2% year-over-year to $145.5 million with the gross margin increasing to 19%. The gross margin increased mainly due to a change in the product mix and lower material costs compared with last year. Operating income increased by 33.2% year-over-year to $53.6 million in 2025. Net income attributable to parent company's common shareholders was a record $42.8 million in 2025 with diluted net income per share 43.4% higher to a record $1.42 per share. R&D expenses increased by 63% year-over-year to $45.1 million in 2025. We had a number of product and technology innovations in 2025. Our second-generation iRCB intelligent electro-hydraulic circulating ball power steering began production for use in heavy-duty vehicles that use both hydraulic power and electric controls. As China's first iRCB compatible with L2+ assisted driving, this system utilizes cutting-edge electro-hydraulic control technology to achieve remarkable steering accuracy and response. And through higher efficiency, operating costs will be significantly reduced. Our Jingzhou Henglong subsidiary launched its Active Rear-Wheel Steering in 2025. Once reserved only for luxury cars, CAAS' Active Rear-Wheel Steering provides superior steering characteristics and is now entering into the upper mass market for new energy vehicles in China. Our R-EPS steering product developed for Nanjing Iveco entered production in 2025, providing advancements in performing autonomous driving functions such as automatic parking, lane keep assist and lane follow assist. Our R-EPS uses our proprietary ball screw assembly, which has become an essential steering configuration for mid- to high-end vehicle models, demanding high reliability and efficiency and quick responsiveness. Another subsidiary, Hyoseong (Wuhan) began production of its new 115 platform steering motor production line at the end of 2025. This high torque 115 platform electric motor supports our ERCB commercial vehicle program. ERCB is advanced electronic recirculating ball steering systems. This new motor is a significant innovation in our advanced intelligence steering strategy. We also made strategic moves to expand our geographic expansion. Our Henglong subsidiary entered into a strategic cooperation agreement with [ KYB/UMW ] in Malaysia. Through this cooperation, a new regional manufacturing and supply system is being entered in Malaysia. This joint venture between KYB, a globally renowned automotive component company and UMW, a Malaysian industrial conglomerate with core businesses covering automobiles and other equipment. UMW holds a 38% stake in Perodua, Malaysia's largest car manufacturer and UMW also has a joint venture with Toyota in Malaysia. For our agreement with KYB/UMW, our products will be initially supplied to Perodua in Malaysia. In the future, additional opportunities in the OEM and aftermarkets will be explored in the broader Asian region. To support this strategic partnership, KYB/UMW's new advanced manufacturing plant became operational in 2026. Our Jingzhou Henglong subsidiary also won its first R-EPS product order from a large well-known European automobile producer. This order with annual sales expectations exceeding $100 million covers multiple vehicle models and mass production is expected to begin by 2027. Also, our affiliated company in Sweden, Sentient AB, achieved considerable sales to a major European OEM 2025 for its leading steering technology integrating hardware and software. As of December 31, 2025, total cash, cash equivalents, pledged cash and short-term investments and long-term time deposits were $256.7 million. Net cash flow from operating activities increased to $111.3 million in 2025 compared to $9.8 million in 2024. Free cash flow exceeded $74 million in 2025. Our net cash position reached $169.7 million at year-end. With our increasing global presence, the Board of Directors decided to change our corporate registration to the Cayman Islands. This change will save significant administrative costs and pave the way for us to become a true multinational supplier to global OEMs. Management is refocusing some of those resources to improve operations, sales and to increase penetration of our growing international markets. Beginning in 2026, we will report our financial results on a 6-month basis. So our next report will be for the 6 months ended June 30, 2026. Also in 2025, we changed our independent registered public accounting firm to Grant Thornton Zhitong Certified Public Accountants LLP with headquarters in Beijing. With the organizational changes and introduction of more advanced steering products, we are now better positioned to pursue steering sales opportunities on a global basis. We look forward to our R&D providing upgrades to further advance current product portfolio and introduce new technologies and products in the future. Now let me review the financial results in the fourth quarter of 2025. Our net sales increased by 21.4% to $229.2 million compared to $188.7 million in the same quarter of 2024. 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 2025 compared to the fourth quarter of 2024. Additionally, export sales increased during the 2025 quarter. Our gross profit increased by 79.8% to $53 million from $29.5 million in the fourth quarter of 2024. Gross margin in the fourth quarter of 2025 was 23.1% compared to 15.6% in the fourth quarter of 2024, primarily due to a change in product mix. Selling expenses were $5 million in the fourth quarter of 2025 compared with $4.8 million in the fourth quarter of 2024. Selling expenses represented 2.2% of net sales in the fourth quarter of 2025 compared to 2.5% in the fourth quarter of 2024. General and administrative expenses were $12.2 million in the fourth quarter of 2025 compared to $9.7 million in the same period in 2024. G&A expenses represented 5.3% of net sales in the fourth quarter of 2025 compared to 5.1% of net sales in the fourth quarter of 2024. Research and development expenses were $17.8 million compared with $7.8 million in the fourth quarter of 2024. R&D expenses represented 7.8% of net sales in the fourth quarter of 2025 compared to 4.1% in the fourth quarter of 2024. Operating expenses was $18.1 million -- I'm sorry, operating income was $18.1 million in the fourth quarter of 2025 compared to $8.7 million in the fourth quarter of 2024. Higher gross profit compared with the same period last year was the main driver. Interest expense was $0.5 million in the fourth quarter of 2025 compared to $1.1 million in the fourth quarter of 2024. Financial expense was $1.1 million in the fourth quarter of 2025 compared with financial income of $0.8 million in the fourth quarter of 2024. Income before income tax expenses and equity and earnings of affiliated companies increased by 121% to $19.4 million in the fourth quarter of 2025 compared to $8.8 million in the fourth quarter of 2024. Income tax expense was $1.4 million in the fourth quarter of 2025 compared to income tax benefit of $2 million in the fourth quarter of 2024. Net income attributable to parent company's common shareholders increased by 103.2% to $18.4 million in the fourth quarter of 2025 compared to net income attributable to parent company's common shareholders of $9.1 million in the fourth quarter of 2024. Diluted income per share was $0.61 in the fourth quarter of 2025 compared to diluted income per share of $0.30 in the fourth quarter of 2024. The weighted average number of diluted shares outstanding was 30,170,702 compared to 30,180,947 in the fourth quarter of 2024. For the 2025 year, net sales increased by 17.6% to an annual record $765.7 million in 2025 compared to $650.9 million in 2024. This increase was mainly due to higher sales and production of passenger vehicles in China, increased vehicle export sales and commercial vehicle sales in China increasing by approximately 10.9% year-over-year in 2025. Total sales of the company's EPS systems increased by 25.5% year-over-year and sales of the traditional products increased by 12.6% year-over-year. Henglong sales of passenger vehicle systems steering systems rose by 12.1% year-over-year to $365.3 million in 2025. Jiulong sales of commercial vehicle steering systems increased by 28.9% year-over-year to $92.3 million. Brazil Henglong's net sales grew by 34.7% year-over-year to $68.7 million in 2025. Net sales of North American customers rose by 15.3% year-over-year in 2025 to $121.6 million. EPS sales represented 41.5% of total revenue in 2025 compared to 38.9% in 2024. Gross profit in 2025 increased by 33.2% year-over-year to $145.5 million compared to $109.2 million in 2024. The gross margin was 19% compared with 16.8% in 2024, mainly due to a change in product mix. Net sales on other sales in 2025 was $3.6 million compared to $4.3 million in 2024. Selling expenses rose by 15.9% year-over-year to $20.7 million in 2025 from $17.9 million in 2024, mainly due to an increase in marketing and office expenses, offsetting lower other expenses. Selling expenses continue to represent 2.7% of net sales in 2025 as well as 2024. G&A expenses increased by 7% year-over-year to $29.7 million in 2025 compared to $27.7 million in 2024. G&A expenses represented 3.9% of net sales in 2025 compared to 4.3% of net sales in 2024. This expense was mainly due to higher personnel and other expenses. R&D expenses increased by 63% year-over-year to $45.1 million in 2025 compared to $27.6 million in 2024. Higher R&D expenses reflected increased personnel expenses due to acceleration in R&D activities, including more investment in traditional product upgrades, advancing EPS technologies and miscellaneous research expenses. R&D expenses were 5.9% of net sales in 2025 compared to 4.2% of net sales in 2024. Operating income increased by 33.2% year-over-year to $53.6 million in 2025 compared to $40.3 million in 2024. The increase in operating income was mainly due to higher sales and gross profit. Interest expense was $1.7 million in 2025 compared to $1.8 million in 2024. Financial income was $2.4 million in 2025 compared to net financial expense of $0.09 million in 2024. This increase in financial income of $2.4 million was primarily due to an increase in foreign exchange gains due to the foreign exchange volatility. Income before income tax expenses and equity and earnings of affiliated companies increased by 39.1% year-over-year to $61.4 million in 2025 compared with $44.1 million in 2024. The change is primarily due to higher operating income in 2025. Income tax expense was $11.6 million in 2025 compared to $5.9 million in '24. This increase was primarily due to higher income before income tax expenses and equity and earnings of affiliated companies and the effective tax rate in 2025. Net income attributable to parent company common shareholders was a record $42.8 million in 2025 compared to $30 million in 2024. Diluted net income per share increased by 43.4% to $1.42 in 2025 compared to $0.99 in 2024. The weighted average number of diluted common shares outstanding was 30,170,702 in 2025 compared with $30,184,513 in 2024. Now we'll provide some balance sheet and other financial highlights. As of December 31, 2025, total cash, cash equivalents, pledged cash, short-term investments and long-term time deposits were $256.7 million. Total accounts receivable, including notes receivable, were $361.8 million. Accounts payable, including notes payable, were $350.3 million. Short-term bank loans were $81.3 million and long-term loans were $5.7 million. Total parent company stockholders' equity was $401.3 million as of December 31, 2025, compared to $349.6 million as of December 31, 2024. Net cash flow from operating activities was $111.3 million in 2025 compared to $9.8 million in 2024. Cash paid to acquire property, plant and equipment and land use rights was $37.2 million in 2025 compared to $43.7 million in 2024. The business outlook. Management expects revenue for the full fiscal year 2026 to be $108 -- I'm sorry, $810 million. This target is based on the company's current view on operating and market conditions, which are subject to change. With that, operator, we are about to begin the Q&A session. Operator: [Operator Instructions] Your first question for today is from [ Jim Fallon with Esousa Holdings. ] Unknown Analyst: [ Jim Fallon from Esousa ]. I was just wondering how will the U.S. Supreme Court tariff decision affect the company's exports into the United States? Jie Li: [Foreign Language] [Interpreted] Thank you for the question. So the short answer is the Supreme Court ruling does have a positive impact to our export-related business to the U.S. market. Specifically, the tariff the Section 301, Section 232 and Section 122, those 3 areas, the ruling by the Supreme Court enabled the total tariff reduced from 70% to now 60%. Operator: Your next question for today is from [ Gary Nash ] a private investor. Unknown Attendee: Mr. LI, why did Q4 gross margin spike? And is Q4 gross margin sustainable for 2026? Jie Li: [Foreign Language] [Interpreted] Yes, you are right. We did experience a significant improvement in the gross margin category in the Q4 2025. The gross margin reached 23% in Q4, mainly attributable to a couple of factors. One is our product mix has dramatically improved. We have -- we have increased our higher-margin products such as our EPS product and brushless powered electric power steering, we would call EPS product. And we also had some onetime event also took place in Q4. They are the tariff-related refunds as well as depreciation policy change. And so combining these 2 factors -- those 3 factors, we believe the gross margin in 2025 -- 2026 is we're going to be continued -- going to be at a very healthy level, but it's not going to be as high as Q4 2025. Operator: Your next question is from [ Jonathan Nieves, ] a private investor. Unknown Attendee: My question is on a dollar basis, how much does China Automotive expect to save on an annual basis by changing the company registration to the Cayman Islands? Jie Li: [Foreign Language] [Interpreted] So immediate impact [indiscernible] to Cayman Island. We immediately save about USD 500,000. That's the listing-related expenses. Then we are -- in terms of international business expansion, we will see more benefit coming even it's still a little bit early to give the detailed number. And also in terms of taxes, we're also seeing -- it will be a very notable saving as well. So combining all these, we believe it's going to be a very meaningful saving for our shareholders. Kevin Theiss: Okay. I have a question that's been e-mailed to me by one of the shareholders who could not be on. And the question is, with the current cash position, what's the outlook for either a stock buyback or cash dividends in 2026? Jie Li: [Foreign Language] [Interpreted] In terms of share buyback, we definitely are considering, previously, we do have a buyback plan in place due to the redomicile to the Cayman Island process, we have to meet a lot of compliance. So we put that buyback plan on hold. Now with that procedure completed, me and the CFO definitely will recommend to the Board and to reinitiate share buyback program. We'll make a -- do announcement when that's in progress. [Foreign Language] [Interpreted] As far as dividend, we don't have a plan at the moment, but we're going to make -- also make a suggestion to the Board of Directors. Operator: [Operator Instructions] we have reached the end of the question-and-answer session, and I will now turn the call over to Kevin Theiss for closing remarks. Kevin Theiss: We thank you all for joining us today in the conference call. We wish you to be safe, and we look forward to speaking with you in the future after we report the 6-month results. Thank you. Operator: This concludes today's conference. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. 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Strong financial performance: Q4 net sales rose to $229.2 million (+21.4% y/y) and full-year net sales reached a record $765.7 million, with gross margin and net income both improving sharply (FY net income $42.8 million; diluted EPS $1.42). Revenue mix shifted toward higher‑margin electric power steering—EPS sales were up 25.5% and represented 41.5% of 2025 revenue—while R&D spending jumped ~63% to support new products like 2nd‑gen iRCB, active rear‑wheel steering and R‑EPS systems. Balance-sheet and corporate moves: year‑end net cash position was $169.7 million with operating cash flow of $111.3 million, the company redomiciled to the Cayman Islands to cut costs, is considering restarting a share buyback, and provided FY2026 revenue guidance of $810 million. Interested in China Automotive Systems, Inc.? Here are five stocks we like better. China Automotive Systems (NASDAQ:CAAS) reported higher sales and profitability in its fourth quarter and full fiscal year 2025 results, citing stronger demand in China, expanding exports, and a shift toward higher-margin steering products. Investor Relations representative Kevin Theiss said China’s automotive industry set new records in 2025, with vehicle production of 34.5 million units and sales of 34.4 million units, up 10.4% and 9.4% year-over-year, respectively, based on China Association of Automobile Manufacturers (CAAM) data. Theiss also pointed to rising new energy vehicle sales, a higher share for Chinese-branded vehicles, and continued strength in exports supported by incentives such as tax benefits, subsidies for scrapping older vehicles, and lower-interest financing. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting For the fourth quarter, Theiss reported net sales of $229.2 million, up 21.4% from $188.7 million a year earlier and above $193.2 million in the third quarter of 2025. He attributed the increase to higher demand for passenger and commercial vehicles in China, along with increased export sales. Gross margin rose to 23.1% in the quarter from 15.6% in the prior-year period, while operating income increased to $18.1 million from $8.7 million. Net income attributable to common shareholders more than doubled to $18.4 million, and diluted earnings per share increased to $0.61 from $0.30. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand For fiscal 2025, Theiss said the company delivered record net sales of $765.7 million, up 17.6% from $650.9 million in 2024. He highlighted growth in electric power steering (EPS) systems, with EPS sales up 25.5% year-over-year and traditional steering products up 12.6%. EPS represented 41.5% of total revenue in 2025 compared to 38.9% in 2024. Theiss provided additional detail on performance across subsidiaries and regions: Henglong subsidiary passenger vehicle steering system sales rose 12.1% to $365.3 million. Jiulong commercial vehicle steering system sales increased 28.9% to $92.3 million. Brazil Henglong net sales grew 34.7% to $68.7 million. Net sales to North American customers increased 15.3% to $120.6 million (Theiss earlier cited $121.6 million). → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? Theiss said sales to Stellantis’ worldwide network supported steering product growth in North and South America, as well as Europe. Gross profit for 2025 increased 33.2% to $145.5 million, and gross margin improved to 19% from 16.8%, which management attributed primarily to product mix changes and lower material costs versus the prior year. Operating income rose to $53.6 million, also up 33.2% year-over-year. Net income attributable to common shareholders reached a record $42.8 million, and diluted EPS increased to a record $1.42 from $0.99. Theiss said research and development expenses rose significantly as the company invested in more advanced steering products. In the fourth quarter, R&D expense was $17.8 million versus $7.8 million a year earlier. For the full year, he said R&D increased 63% to about $45 million (management also referenced $45.1 million during the call), reflecting higher personnel costs and accelerated development efforts, including upgrades to traditional products and advances in EPS technologies. Management also outlined several product and technology initiatives in 2025, including: Second-generation iRCB (intelligent electro-hydraulic circulating ball power steering) entering production for heavy-duty vehicles; Theiss said it is compatible with L2+ assisted driving and aims to improve accuracy and response while reducing operating costs. Launch of active rear-wheel steering by Jingzhou Henglong, aimed at bringing a feature “once reserved only for luxury cars” into upper mass-market segments in China. Production start of an R-EPS steering product developed for Nanjing Iveco, designed to support functions such as automatic parking, lane keep assist, and lane follow assist. Hyoseong (Wuhan) beginning shipments from a new 115-platform steering motor production line late in 2025 to support the company’s eRCB commercial vehicle program (an electric recirculating ball steering system). Theiss said the company ended 2025 with $256.7 million in cash equivalents, pledged cash, short-term investments, and long-term time deposits. He added that net cash flow from operating activities increased to $111.3 million in 2025 from $9.8 million in 2024, and free cash flow exceeded $74 million. The company’s net cash position was $169.7 million at year-end. Additional balance sheet figures shared on the call included $361.8 million in accounts receivable (including notes receivable), $350.3 million in accounts payable (including notes payable), $81.3 million in short-term bank loans, and $5.7 million in long-term loans. Parent company stockholders’ equity was $401.3 million as of Dec. 31, 2025, up from $349.6 million a year earlier. Theiss said the board decided to change the company’s corporate registration to the Cayman Islands, describing the move as a way to “save significant administrative costs” and support its goal of becoming a multinational supplier to global OEMs. The company also said it changed its independent registered public accounting firm in 2025 to Grant Thornton Jian Tong Certified Public Accountants LLP, headquartered in Beijing. Theiss noted that beginning in 2026, the company plans to report financial results on a six-month basis, with the next report covering the six months ended June 30, 2026. During the Q&A session, CFO Jie Li addressed questions about U.S. tariffs, gross margin sustainability, redomiciling savings, and potential shareholder returns. Asked by investor Jim Fallon of Esousa Holdings about the impact of a U.S. Supreme Court tariff decision, Li said the ruling had a positive effect on the company’s U.S.-related export business. He stated that the decision reduced the combined tariff in the referenced categories—“Section 301, Section 232 and Section 122”—from 70% to 60%. In response to a question from private investor Gary Nash about the fourth-quarter gross margin spike and whether it is sustainable, Li said the 23% fourth-quarter gross margin was driven by improved product mix—particularly higher-margin EPS and brushless EPS products—along with one-time items including “tariff-related refunds” and a “depreciation policy change.” Li said management expects gross margin to remain “at the very healthy level” in 2026, but “not…as high as Q4 2025.” Shareholder Jonathan Neaves asked about annual savings from changing the corporate registration to the Cayman Islands. Li said the company would “immediately save about $500,000” in listing-related expenses, and added that management expects additional benefits over time related to international expansion and taxes, though he said it was “still a little bit early to give the detailed number.” Li also answered an emailed shareholder question relayed by Theiss regarding a possible stock buyback or dividends in 2026. Li said management is considering a share repurchase program, noting the company previously had a buyback plan but put it on hold during the redomiciling process due to compliance requirements. With that process completed, Li said he would recommend to the board that the company “reinitiate a share buyback program,” with an announcement to follow if progress is made. On dividends, Li said the company did not have a plan “at the moment,” but management intends to make a suggestion to the board. For its outlook, Theiss said management expects full fiscal year 2026 revenue of $810 million, describing the target as based on the company’s current view of operating and market conditions and subject to change. China Automotive Systems, Inc (NASDAQ: CAAS) is a leading designer, manufacturer and marketer of power steering systems and related components primarily for the automotive industry in China. The company's core business centers on hydraulic and electric power steering products, steering columns, steering gearboxes and electronic control units. By integrating research and development, manufacturing and sales, China Automotive Systems aims to deliver high-quality steering solutions that meet the performance and safety requirements of global automakers. The company's product portfolio includes traditional hydraulic power steering systems, which have long been favored for their reliability, as well as advanced electric power steering units that offer improved fuel efficiency and enhanced vehicle control. The article "China Automotive Systems Q4 Earnings Call Highlights" was originally published by MarketBeat.

Record net sales growth of 17.6% was driven by a 25.5% surge in Electric Power Steering (EPS) demand and a 10.9% increase in Chinese commercial vehicle sales. Gross margin expansion to 19% for the full year resulted from a favorable shift in product mix toward higher-margin advanced steering systems and lower material costs. International growth was propelled by the Stellantis worldwide network, leading to a 34.7% sales increase in Brazil and a 15.3% rise in North American revenue. R&D investment increased 63% to $45.1 million to accelerate the transition from traditional hydraulic systems to intelligent L2+ assisted driving technologies. The company successfully introduced Active Rear-Wheel Steering for the upper mass market of new energy vehicles, previously a luxury-only feature. Strategic positioning was strengthened through a Malaysian joint venture with KYB/UMW to establish a regional manufacturing hub for the broader Asian market. Management issued a 2026 revenue target of $810 million based on current operating and market conditions. A major European OEM contract for R-EPS products is expected to generate over $100 million in annual sales starting in 2027. The company is transitioning to a 6-month financial reporting cycle beginning in 2026 to align with its new corporate structure. Redomiciling to the Cayman Islands is expected to reduce administrative costs and facilitate further penetration into global OEM markets. Future growth assumes continued adoption of the proprietary 115 platform high-torque electric motors for advanced commercial vehicle steering. The corporate registration was moved to the Cayman Islands to save approximately $500,000 in listing expenses and optimize international tax positioning. A change in depreciation policy and one-time tariff-related refunds contributed to a temporary spike in Q4 2025 gross margins to 23.1%. The company appointed Grant Thornton Zhitong as its new independent registered public accounting firm for the 2025 fiscal year. Operating cash flow saw a massive increase to $111.3 million from $9.8 million in the prior year, resulting in a net cash position of $169.7 million. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted a positive impact from recent rulings, which enabled a reduction in total tariffs from 70% to 60% across Sections 301, 232, and 122. The Q4 spike to 23% was aided by one-time events including tariff refunds and depreciation changes. While 2026 margins are expected to remain healthy due to better product mix, they likely will not sustain the specific Q4 2025 peak. The share buyback program was paused during the Cayman redomicile process but management intends to recommend its re-initiation to the Board. There is currently no plan for a cash dividend, though management will bring the suggestion to the Board of Directors. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

WUHAN, China, April 22, 2026 /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, 2025. Fourth Quarter 2025 Highlights Net sales increased by 21.4% year-over-year to $229.2 million Gross profit increased by 79.8% to $53.0 million from $29.5 million. Gross margin of 23.1% compared to 15.6% in the fourth quarter of 2024 Operating income grew 108.0% to $18.1 million, compared with $8.7 million in the fourth quarter of 2024 Net income attributable to parent company's common shareholders was $18.4 million, or diluted net income per share of $0.61, compared to net income of $9.1 million, or diluted net income per share of $0.30 in the fourth quarter of 2024. Fiscal Year 2025 Highlights Net sales increased by 17.6% to an annual record of $765.7 million compared to $650.9 million in 2024; Net sales of EPS product grew by 25.5% Gross profit increased by 33.2% to $145.5 million compared to $109.2 million in 2024. Gross margin increased to 19.0%, compared with 16.8% in 2024 Operating income increased by 33.2% to $53.6 million from $40.3 million in 2024 Diluted net income per share increased by 43.4% to a record $1.42 in 2025 compared to $0.99 in 2024 Total cash and cash equivalents, pledged cash, short-term investments and long-term time deposit were $256.7 million at year end Net cash flow provided by operating activities was $111.6 million in 2025, compared with $9.8 million in 2024 Capex was $37.2 million, compared with $43.7 million in 2024. Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "The 2025 year was marked by higher sales growth, improved profitability, strengthened finances, higher cash flow from operations and organizational changes. Our traditional hydraulic steering products grew by 12.6% in 2025 as our more advanced electric power steering ("EPS") grew by 25.5%. Domestically, our steering product sales benefitted as Chinese branded vehicles continued to experience higher sales and capture more market share." "Our strategy of selling a broad portfolio of steering products into multiple markets resulted in a range of sales growth both domestically and internationally. In our major market segments, we achieved higher sales in all except for sales to Chery Auto. Our operations in Brazil reported stronger sales growth and demand in North America improved. The high quality and performance enhancements of our steering products provide the impetus to be a tier-1 supplier to large global OEM customers in North America, Europe, Asia and South America." "Improved profitability reflected the ongoing success of our transition to higher technology-focused steering products and improved manufacturing activities. In 2025, our Jingzhou Henglong subsidiary won its first R-EPS product order from a large, well-known European automobile producer. Also, Shashi Jiulong's L2+ standard electro-hydraulic steering system entered mass production in 2025. This system utilizes cutting-edge electro-hydraulic control technology; a power steering system used in heavy-duty vehicles that utilizes both hydraulic power and electronic controls to assist with steering. The Company also launched its active rear-wheel steering using its ball screw and nut mechanisms to provide the ability to adapt steering strategies to different vehicle speeds, boosting our ADAS capabilities. Another subsidiary, Hyoseong (Wuhan) Motion Mechatronics System Co. Ltd., finalized its new 115–platform steering motor production line, to support the CAAS eRCB commercial vehicle program. Our Hubei Henglong subsidiary entered into a strategic cooperation with KYB-UMW Sdn Bhd in Malaysia to develop a regional manufacturing and supply system for ASEAN markets. In 2025, our subsidiary, Shashi Jiulong Power Steering Gears Co., Ltd ("Shashi Jiulong"), won customer awards and accolades from two major vehicle OEM customers, Beiqi Foton Motor, and Shaanxi Automobile Heavy Truck." "In September 2025, we announced the completion of our merger to redomicile the Company as a Cayman Islands company. We believe this action will pave the way for CAAS to better position itself as a global company as this move enables us to shift resources and focus more on operations, product development and global sales. Part of our changes will include reporting sales and operational results on a six-month reporting cycle." Mr. Jie Li, Chief Financial Officer of CAAS, commented, "Our record sales and net profits generated much higher cash flow from operations and free cash flow in 2025. Cash and cash equivalents, pledged cash and short-term investments and long-term time deposit rose to $256.7 million at year end with net cash approaching $169.7 million. We look forward to reaping the savings, greater flexibility and benefits of our redomiciliation." Fourth Quarter of 2025 In the fourth quarter of 2025, net sales increased by 21.4% to $229.2 million compared to $188.7 million in the same quarter of 2024. 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 2025 compared to the fourth quarter of 2024. Additionally, export sales increased during the fourth quarter of 2025. Gross profit increased by 79.8% to $53.0 million from $29.5 million in the fourth quarter of 2024. Gross margin in the fourth quarter of 2025 rose to 23.1% compared to 15.6% in the fourth quarter of 2024, primarily due to changes in product mix. Selling expenses were $5.0 million in the fourth quarter of 2025, compared with $4.8 million in the fourth quarter of 2024. Selling expenses represented 2.2% of net sales in the fourth quarter of 2025, compared to 2.5% in the fourth quarter of 2024. General and administrative expenses ("G&A expenses") were $12.2 million in the fourth quarter of 2025, compared to $9.7 million in the same period in 2024. G&A expenses represented 5.3% of net sales in the fourth quarter of 2025, compared to 5.1% of net sales in the fourth quarter of 2024. Research and development expenses ("R&D expenses") were $17.8 million compared with $7.8 million in the fourth quarter of 2024. R&D expenses represented 7.8% of net sales in the fourth quarter of 2025, compared to 4.1% in the fourth quarter of 2024. Operating income was $18.1 million in the fourth quarter of 2025 compared to $8.7 million in the fourth quarter of 2024. Higher gross profit compared with the same period last year was the main driver. Interest expense was $0.5 million in the fourth quarter of 2025 compared with $1.1 million in the fourth quarter of 2024. Financial expense was $1.1 million in the fourth quarter of 2025 compared with financial income of $0.8 million in the fourth quarter of 2024. Income before income tax expenses and equity in earnings of affiliated companies increased by 121.0% to $19.4 million in the fourth quarter of 2025 compared to $8.8 million in the fourth quarter of 2024. Income tax expense was $1.4 million in the fourth quarter of 2025, compared to income tax benefit of $2.0 million in the fourth quarter of 2024. Net income attributable to parent company's common shareholders increased by 103.2% to $18.4 million in the fourth quarter of 2025 compared to net income attributable to parent company's common shareholders of $9.1 million in the fourth quarter of 2024. Diluted income per share was $0.61 in the fourth quarter of 2025, compared to diluted income per share of $0.30 in the fourth quarter of 2024. The weighted average number of diluted common shares outstanding was 30,170,702 compared to 30,180,947 in the fourth quarter of 2024. Fiscal Year 2025 Net sales increased by 17.6% to an annual record of $765.7 million in 2025, compared to $650.9 million in 2024. This increase was mainly due to higher sales and production of passenger vehicles in China, increased vehicle export sales, and commercial vehicle sales in China increasing by approximately 10.9% year-over-year in 2025. Total sales of the Company's EPS systems increased by 25.5% year-over-year and sales of the traditional steering products increased by 12.6% year-over-year. Henglong's sales of passenger vehicle steering systems rose by 12.1% year-over-year to $365.3 million in 2025. Jiulong's sales of commercial vehicle steering systems increased by 28.9% year-over-year to $92.3 million. Brazil Henglong's net sales grew by 34.7% year-over-year to $68.7 million in 2025. Net sales to North American customers rose by 15.3% year-over-year in 2025 to $121.6 million. EPS sales represented 41.5% of total revenue in 2025 compared to 38.9% in 2024. Gross profit in 2025 increased by 33.2% year-over-year to $145.5 million compared to $109.2 million in 2024. The gross margin was 19.0% compared with 16.8% in 2024 mainly due to a change in product mix. Net gain on other sales in 2025 was $3.6 million compared to $4.3 million in 2024. Selling expenses rose by 15.9% year-over-year to $20.7 million in 2025 from $17.9 million in 2024, mainly due to an increase in marketing and office expenses offsetting lower other expenses. Selling expenses continued to represent 2.7% of net sales in 2025 and 2024. G&A expenses increased by 7.0% year-over-year to $29.7 million in 2025, compared to $27.7 million in 2024. G&A expenses represented 3.9% of net sales in 2025, compared to 4.3% of net sales in 2024. This expense increase was mainly due to higher personnel and other expenses. R&D expenses increased by 63.0% year-over-year to $45.1 million in 2025, compared to $27.6 million in 2024. Higher R&D expenses reflected increased personnel expenses due to an acceleration in R&D activities including more investment in traditional product upgrades, advancing EPS technologies and miscellaneous research expenses. R&D expenses were 5.9% of net sales in 2025, compared to 4.2% of net sales in 2024. Operating income increased by 33.2% year-over-year to $53.6 million in 2025, compared to $40.3 million in 2024. The increase in operating income was mainly due to higher sales and gross profit. Interest expense was $1.7 million in 2025, compared to $1.8 million in 2024. Net financial income was $2.4 million in 2025, compared to net financial expense of $0.09 million in 2024. This increase in financial income of $2.4 million was primarily due to an increase in foreign exchange gains due to foreign exchange volatility. Income before income tax expenses and equity in earnings of affiliated companies increased by 39.1% year-over-year to $61.4 million in 2025 compared with $44.1 million in 2024. The change was primarily due to higher operating income in 2025. Income tax expense was $11.6 million in 2025 compared to $5.9 million in 2024. This increase was mainly due to higher income before income tax expenses and equity in earnings of affiliated companies, and the effective tax rate in 2025. Net income attributable to parent company's common shareholders was a record $42.8 million in 2025 compared to $30.0 million in 2024. Diluted net income per share increased by 43.4% to $1.42 in 2025 compared to $0.99 in 2024. The weighted average number of diluted common shares outstanding was 30,170,702 in 2025 compared with 30,184,513 in 2024. Balance Sheet As of December 31, 2025, total cash and cash equivalents, pledged cash, short-term investments and long-term time deposit were $256.7 million. Total accounts receivable including notes receivable were $361.8 million. Accounts payable including notes payable were $350.3 million. Short-term bank loans were $81.3 million and long-term loans were $5.7 million. Total parent company stockholders' equity was $401.3 million as of December 31, 2025 compared to $349.6 million as of December 31, 2024. Net cash flow from operating activities was $111.3 million in 2025 compared to $9.8 million in 2024. Cash paid to acquire property, plant and equipment and land use rights was $37.2 million in 2025 compared to $43.7 million in 2024. Business Outlook Management provides revenue guidance for the fiscal year 2026 of $810.0 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 April 22, 2026 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 861648: 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 its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. 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 20-F as filed with the Securities and Exchange Commission on April 22, 2026, 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: [email protected] Kevin Theiss Investor Relations +1-212-510-8922 Email: [email protected] -Tables Follow – CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except for share and per share data or otherwise noted) CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED STATEMENTS OF INCOME OR LOSS (In thousands of U.S. dollars, except for share and per share data or otherwise noted) CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (In thousands of U.S. dollars, except for share and per share data or otherwise noted) CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In thousands of U.S. dollars, except for share and per share data or otherwise noted) CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars, except for share and per share data or otherwise noted) CHINA AUTOMOTIVE SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In thousands of U.S. dollars, except for share and per share data or otherwise noted) SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: Non-cash investing activities: View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-reports-record-earnings-per-share-and-net-sales-in-2025-302749833.html

WUHAN, China, April 13, 2026 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that it will issue unaudited financial results for the fourth quarter and audited financial results for the 2025 year ended December 31, 2025, on Wednesday, April 22, 2026, before the market opens. Management will conduct a conference call on April 22nd 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 861648: Toll Free: 888-506-0062 International: 973-528-0011 China Toll Free: 86 400 120 3199 A replay of the call will be available on the Company's website in 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 its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. 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 protected] Kevin Theiss Awaken Advisors +1-212-521-4050 [email protected] View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-to-announce-unaudited-2025-fourth-quarter-and-audited-2025-year-financial-results-on-april-22-2026-302740100.html