China Automotive Systems Achieves Record Revenue Growth

China Automotive ( (CAAS) ) has released its Q4 earnings. Here is a breakdown of the information China Automotive presented to its investors.

China Automotive Systems, Inc. is a prominent supplier of power steering components and systems to the Chinese automotive industry, operating through multiple joint ventures and subsidiaries. The company serves a diverse customer base, including major auto manufacturers in China and North America.

In its latest earnings report, China Automotive Systems announced a 13% increase in annual revenue, setting a new record for the company. The growth was driven by a significant rise in sales of electric power steering systems, which saw a 29.9% increase. Despite challenges in certain markets, the company maintained profitable operations and positive cash flow.

Key financial highlights for the fiscal year 2024 include a 12.9% increase in net sales to $650.9 million and a 5.2% rise in gross profit to $109.2 million. However, the gross margin decreased slightly to 16.8% due to changes in the product mix. Operating income saw a modest increase of 2.6%, reaching $40.3 million. The company also reported a strong cash position with $129.4 million in cash and equivalents at year-end.

Looking ahead, China Automotive Systems remains optimistic about its growth prospects, with management providing revenue guidance of $700 million for 2025. The company aims to leverage economic incentives in China to bolster its performance and continue expanding its market presence.