China Automotive Systems, Inc. reported a notable increase in financial performance for the second quarter of 2025, with net product sales reaching $176.2 million, an 11.1% rise from $158.6 million in the same period of 2024. The company’s gross profit also improved, totaling $30.5 million compared to $29.3 million a year earlier. Net income attributable to the parent company’s common shareholders increased to $7.6 million, up from $7.1 million, reflecting a 6.8% growth. The company attributed this growth primarily to increased sales of electric power steering systems, which saw a 31.1% increase year-over-year.
In the first half of 2025, China Automotive Systems reported net product sales of $343.3 million, a 15.2% increase from $298.0 million in the same period of 2024. The cost of products sold also rose to $284.2 million, up 16.2% from $244.6 million. Despite the increase in costs, net income for the six months was $18.8 million, slightly higher than the $18.0 million reported in the previous year. The company’s gross margin decreased to 17.2% from 17.9%, attributed to increased tariffs and a shift in product mix.
Operationally, the company has maintained a workforce of approximately 4,414 employees as of June 30, 2025. The company continues to strengthen its market position, serving over sixty vehicle manufacturers, including major clients like BYD Auto and Ford. The company’s strategic focus on electric power steering systems has contributed to its growth, with these products now accounting for 42.5% of total net sales for the first half of 2025.
China Automotive Systems has also made significant strides in its financial position, with cash and cash equivalents increasing to $102.2 million from $57.0 million at the end of 2024. The company reported a working capital of $170.9 million, up from $146.2 million, indicating improved liquidity. The company’s management expressed confidence in its ability to meet future cash needs through operational cash flow and financing activities.
Looking ahead, China Automotive Systems plans to continue investing in research and development to enhance its product offerings and maintain its competitive edge in the automotive industry. The company is also preparing for a proposed merger with CAAS Cayman, which is subject to shareholder approval. This strategic move aims to streamline operations and enhance shareholder value as the company navigates the evolving automotive landscape.
About CHINA AUTOMOTIVE SYSTEMS INC
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