China Automotive Systems (CAAS) investor relations material

Executive summary

• Net sales reached $412.5 million in H1 2026, up 20.1% year-over-year, driven by strong EPS product growth and RMB appreciation, offsetting a 5.1% decline in Brazil.

• Gross profit rose 49.7% to $88.5 million, with gross margin improving to 21.5% from 17.2% year-over-year.

• Net income attributable to shareholders nearly doubled to $29.3 million, with diluted EPS up 98% to $0.97.

• Outperformed the Chinese automotive industry, which saw a 4% decline in vehicle production and sales.

• Cash, cash equivalents, and pledged cash totaled $155.6 million as of June 30, 2026.

Financial highlights

• Net sales: $412.5 million (+20.1% YoY); gross profit: $88.5 million (+49.7% YoY); gross margin: 21.5% (up from 17.2%).

• Income from operations: $43.3 million (+100.4% YoY); net income attributable to shareholders: $29.3 million (+98.8% YoY).

• Diluted EPS: $0.97 (vs. $0.49 YoY); net cash from operations: $47.8 million; free cash flow: $14.3 million.

• Working capital: $249.8 million; stockholders' equity: $443.8 million (up from $401.3 million at year-end 2025).

• R&D expenses: $20.8 million (+23.6% YoY), 5% of net sales.

Outlook and guidance

• Revenue guidance for FY2026 raised to $850 million, reflecting confidence in continued growth.

• Strategic plan (2026-2030) focuses on global market expansion, advanced steering technologies, and lean manufacturing.

• EPS product launch in South America expected to drive $40 million in revenue and 50% market growth by 2028.