WUHAN, China, Nov. 18, 2024 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that its board of directors approved a share repurchase program of up to $5 million of its outstanding common shares periodically over the next 12 months. Repurchases will be made in open market transactions, at prevailing market prices not to exceed $5.50 per share through November 15, 2025, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions. Members of the management team may make additional share purchases in addition to the Company repurchase.
Mr. Hanlin Chen, chairman of CAAS, commented, "Our current stock valuation does not reflect our consistent profitable sales growth, cash flow generation, advances in technology and global market position. In the past 20 years, our products have been trusted by many leading Chinese and global automakers. Looking into the future, whether a vehicle is powered by internal combustion engines, electric powertrains or fuel cells, or whether there is a human driver or autonomous driving, steering remains critical to the performance and safety for all vehicles. CAAS has some of the best products in the marketplace."
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We continue to add technology to enhance our steering products to improve our hydraulic steering systems, broaden our Electric Power Steering (EPS) portfolio of products and further develop our advanced driver-assistance systems. These advancements enable us to attract new customers and better serve our existing ones. We have increased sales to global Tier-1 vehicle OEMs in North and South America and European-branded vehicles and broadened product offerings to new energy vehicles. Our EPS sales grew by 43.5% and accounted for almost 40% of total sales in the first nine months of 2024."
Mr. Jie Li, chief financial officer of CAAS, commented, "Our stock's market capitalization is well below our combined cash, cash equivalents and pledged cash, our working capital, and our book value. Our $0.80 cash dividend per share paid in August and this share repurchase clearly demonstrates our commitment to support shareholder value."
For the first nine months of 2024, CAAS recorded net sales of $462.2 million with net income attributable to parent company's common shareholders of $20.9 million. Total cash and cash equivalents, and cash were $138.8 million, or approximately $4.60 per share, at September 30, 2024. Total parent company stockholders' equity was $388.6 million. Net cash flow from operating activities was $16.5 million for the first nine months of 2024.
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
