China Automotive Systems, Inc. (NASDAQ:CAAS) recently held its Q3 2023 Earnings Call on November 10, 2023. The conference call began with a welcome from the host, Mr. Kevin Theiss, Investor Relations. He reminded all participants that the call was being recorded and introduced Mr. Jie Li, the Chief Financial Officer of China Automotive Systems, who would be available to answer questions later in the call with translation assistance.
Before diving into the discussion, Mr. Theiss emphasized that the statements made during the call may contain forward-looking statements. These statements are based on the company's estimates and assumptions as of the date of the call. It was noted that the company's actual results could differ from these statements due to various factors, including those described in the company's Form 10-K annual report for the year ended December 31, 2022, and other documents filed with the Securities and Exchange Commission.
The company acknowledged that factors beyond its control could have an adverse effect on the overall business environment and impact its operations. Any disruptions or delays in the manufacturing, delivery, and assembly process could lead to increased costs and reduced revenue. The company made it clear that it does not have a duty to provide updates to any forward-looking statements made during the call.
Mr. Theiss then proceeded to provide an overview of the third quarter and first 9 months results for the period ended December 30, 2023. These results were unaudited and reported using U.S. GAAP accounting. He highlighted the dynamics of the Chinese economy, the impact on the automotive industry, and the company's market position.
The Chinese economy showed slower growth in the third quarter of 2023, with a GDP growth rate of 4.9% year-over-year, according to China's National Bureau of Statistics. While industrial production increased and retail sales stabilized, a 2-year housing slump led to cautious consumer spending and affected consumer price levels. The reduced demand for real estate also impacted the financial condition of real estate developers and decreased building construction.
In terms of passenger automobile statistics, the Chinese Association of Automobile Manufacturers reported a decline of 3.4% in July, followed by an increase of 8.2% in August and 6.6% in September, on a year-over-year basis. Passenger vehicle sales showed growth each month during the third quarter of 2023. Commercial vehicle sales also saw a significant increase, with a rise of 16.8% in July, 20% in August, and 33.2% in September compared to the previous year.
To read the full Q&A session from the conference call, please click here.