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CAAS (NASDAQ:CAAS.US) reported a 15.4% YoY revenue growth in Q2, reiterating the full-year revenue guidance.

AInvestTuesday, Aug 13, 2024 8:40 am ET
1min read

Revenue of CAAS.US in Q2 grew YoY by 15.4%, reaching $158.6 million, compared with $137.4 million in the same period of 2023, showing a steady growth of the Company's business. However, despite the revenue growth, net income attributable to the Company's parent stockholders decreased slightly from $10.5 million in Q2 2023 to $7.1 million. And diluted earnings per share also decreased from $0.35 to $0.24.

Gross profit of CAAS.US in Q2 increased YoY by 29.0%, reaching $29.3 million, and the gross margin also increased from 16.5% to 18.5%. This growth benefited from the optimization of product mix and the improvement of cost management, reflecting the Company's efforts in improving operational efficiency.

Selling expenses increased YoY by 21.6%, reaching $4.6 million, slightly higher than the 2.8% in the same period of 2023. General and administrative expenses increased YoY by 40.7%, reaching $7.4 million, mainly due to the increase of consulting fees, sales taxes and surcharges, higher than the 3.9% in the same period of 2023.

R&D expenses of CAAS.US also increased YoY by 23.9%, reaching $8.2 million, reflecting the Company's continuous investment and commitment to innovation and product development. The R&D projects covered power and hydraulic steering systems, automotive intelligence and software technology, automotive electronics, steering columns, high molecular materials, automotive parts, manufacturing technology and automotive parts, etc.

Mr. Wu Qizhou, CEO of CAAS, expressed satisfaction with the Company's performance and noted that, "We are pleased to report strong revenue growth and accelerated profit expansion. In particular, the sales of electric power steering (EPS) products grew YoY by 33.7%, which now accounts for one-third of our total sales."

Mr. Wu Qizhou also announced that, based on the Company's solid financial performance and good cash position, the Company decided to declare a special cash dividend of $0.80 per share to shareholders, reflecting the Company's commitment to long-term shareholder value and confidence in future development.

Looking ahead, management reiterated the revenue target of $605 million for the full year of 2024, which is based on a deep analysis of the Company's current operating conditions and market environment. Meanwhile, management also reminded that due to the constant changes in the market and operating environment, the revenue target may be adjusted accordingly.

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