China Automotive Systems Inc. (Nasdaq: CAAS) posted mixed financial results for the fourth quarter.
The power steering components and systems supplier, based in Hubei, said in a statement today that its net sales reached $146.5 million in the fourth quarter, up 26% year-over-year. Net loss was $3.2 million in contrast to net income of $1.7 million in the same period last year.
China Automotive said the net loss was mainly due to a one-time, non-recurring $4.5 million expected credit loss provision for Brilliance Auto, net of minority interests.
For the full year 2020, the company reported net sales decreased by 3% to $417.6 million compared. The company blamed the impact of the Covid-19 pandemic on automobile sales in China and North America.
“The automobile industry in China suffered in the first half of 2020 due to the COVID-19 pandemic,” Qizhou Wu, the chief executive officer of CAAS, said in the statement.
However, Wu was optimistic, expecting a strong rebound beginning in the late second quarter.
Wu said, “Our growth in the Chinese commercial vehicle market remains strong in early 2021. We continued to maintain strong relationships with our large North American OEMs and in South America and believe 2021 will be an even better year."
In 2020, new energy vehicle sales in China grew by approximately 11% to nearly 1.4 million units and the government's target is to have NEVs account for 20% of auto sales by 2025. China Automotive said it shipped over 120,000 units of our electric power steering for Chinese new energy vehicles in 2020.
Looking forward, China Automotive expects its revenues reach $470 million for the full year of 2021.
On Tuesday, CAAS shares ended 1% lower, at $4.78 apiece.