Power steering specialist China Automotive Systems said first quarter 2022 sales increased 4.7% year on year to US$136.4 million.

Gross profit was $14.7 million with a margin of 10.8%, compared with $19.7 million and 15.1% in Q1 2021.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Operating loss was $1.5 million compared to year ago profit of $4.2 million. The loss was primarily due to lower gross profits and higher operating expenses in 2022, CAS said.

Net loss was $0.06 million compared to a net profit of $3.2 million the previous year.

CEO Qizhou Wu said: “We continued to achieve sales growth in a difficult market as our products target diversified markets in China and abroad. In the first quarter of 2022, Chinese passenger vehicle sales increased by 9%, but commercial vehicle sales declined 31.7%, according to the China Association of Automobile Manufacturers.”

See Also:

“Our sales to Chery Automobile increased by 127.2% as they purchased more steering units. Sales of our electric power steering (EPS) products rose by 66% while our Henglong KYB subsidiary’s EPS sales increased by 63.7%. EPS sales has now increased to 30.1% of our total sales, up from 19.0% in the same quarter last year. While sales to North American customers declined by 7.1%, our South American sales continued to grow in the first quarter of 2022.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The temporary COVID-19 lockdowns in China have created a challenging environment in the near term,” Wu added.

Loss from operations was $1.5 million in the first quarter of 2022, compared to income from operations of $4.2 million in the first quarter of 2021.

Outlook

CAS reduced revenue guidance for the full year 2022 to $490 million from $510 million “due to the economic impact of COVID-19 and foreign exchange volatility”.