Thank you, everyone, for joining us today.
Welcome to China Automotive Systems 2020 Third Quarter Conference Call.
Mr. are today us Joining
Qizhou Wu, and Executive Officer; Mr. Chief
of Systems. Li, Chief Automotive Officer Financial Jie China
be to will with They available the conference in assistance call the of translation. answer questions later
that I remind make begin, that forward-looking contain may call, we Before statements all listeners we throughout will may statements. this
as statements only and represent of date estimates company's the Forward-looking this the assumptions of call.
year XX, filed Securities described actual statements Commission. XXXX, ended under and from those factors, for these forward-looking due As to the filed in a the Form XX, Exchange materially and Exchange including documents heading other time the a contained December the by XX-K with and the the differ with those Securities result, in Risk May Factors annual results could company as the on Commission of to company's from XXXX, number company's in time report
and factors beyond to suffer adverse in Any of these environment, and business, our operations. and business control adversely and growth, of certain automobile impact conduct materially customers cause results predict business factors adversely in financial that If and may be the controlled, and condition timely and sales, outbreak on our and regions could ways have as of condition other of financial we and liquidity in foresee. or COVID-XX financial we economic an the uncertainties our factors outlook national other for our conditions effect effectively regional deteriorating market not cause affected a of business overall where operations weakened slowdown business, is cannot our materially cannot we the result that
shipment our the assembly any operations delay process increased revenue. in disruption the continue in of prolonged further of or could delivery products to and customers, A cost reduced facilities result our in of and to manufacturing, delays with our other production unforeseen
new information, any statements call otherwise. as future forward-looking of disclaims made provide events updates duty whether expressly a company this in result or The to to any
call, third I session. provide XXXX under and GAAP. brief first will are quarter are conduct of overview and for of The a and the and X quarter will this months reported months summary results results unaudited U.S. financial question-and-answer third Management On first a following the financial X XXXX.
I'll the in financial purposes For of the dollars. results today, review U.S.
with of second We China but will quarter of and the a much Chinese X% the automotive industry the XXXX GDP begin lower X.X%, was recent the over market third as In quarter position. review XXXX, XXXX. of a in of of the dynamics significant automobile quarter economy increase the than in the the rebounded growth X.X% third Chinese economy, growth
X growth the X.X% Chinese same periods compared year For was GDP a first ago. the with months,
is COVID-XX widespread continuing the closures second to in the the was disruptions economy travel of After Chinese restrictions, first among countries to the bans first the from caused and recover of pandemic. economy ease Chinese quarter reopen by the lockdown and began The the and the of transportation in impact travel severe quarter XXXX. business China to XXXX,
physical higher growth projects more promote activities. spending, lower stimulate incentives to rates help infrastructure economic included lending Government continued economic and to approved renewed
compared of X However, months sales X.X% sorry, XXXX period retail by in the in of total with in grew -- that a data the by same China third paltry the the first show from I'm for the Bureau Statistics in the quarter X.X% and XXXX. National of XXXX year declined
Fixed for X.X% the in up September increased Industrial the first X-month X only increased in by as period. investments production asset well. months of the was but month of X.X% XXXX X.X%
XXXX July XXXX. showed according month by Association Car X.X%, from passenger by breakout Association. cars the more the MPVs the by by the month XXXX, Manufacturers, XX.X% sales sales X.X%. China in by the passenger third of in quarter was year-over-year, year-over-year China passenger of X.X% car XX%, detailed A by the CAAM, sale July rose the sale of Passenger For XX, of up to retail Export grew ended in X.X% China September sales of declined of with reduced X.X% sales sales SUV July increased The cars sedan and rose by crossover vehicle year-over-year. Automobile
and August X.X% In up the market sales smaller passenger sales with increased of for crossover higher. increase by sedan year-over-year vehicles reported SUV year-over-year. MPV decreased by August in sales car XX.X%. sales by XX.X% a sales XXXX, were cars passenger sales year-over-year. CAAM in X% X.X% car rose passenger X.X%, Export of into
passenger of year-over-year XX%, the sedan by basis. and SUV sales sales improved by on sales X% car decreased XX.X% X%. vehicle MPV up in increased September car year-over-year sales XX.X%, passenger by sales rose crossover sales For by a September XXXX, Export of year-over-year. increased XX.X% cars month with passenger by
and car X the of For year-over-year, period SUV sales lower same last down the passenger that X.X%, car months first sales sedan XX.X% XX% sales reports were XXXX, XX.X% sales with passenger declined X the than were for sales by year. XX.X%, CAAM X of months first months compared passenger first by MPV with reduced cars XXXX of vehicles of XXXX. Export X.X%. decreased by the crossover declined by
$XXX.X net sales our to sales Given products, of with quarter sales million million XX.X% by in $XXX.X quarter products the industry million third in of third XXXX, $XX export EPS sales combined domestic our background, steering the increased $XX.X this with last revenues steering power in were of hydraulic quarter third million of the from North year. America, in Higher to compared advanced XXXX. compared China, EPS. lower electric Net increased offset our
average in our sales profit. which, And lower with in XXXX. price combined quarter of third selling EPS in sales North markets declined our lower generated of some decreased, gross America the Our products, volume
positive cash quarter However, of of million we XXXX. first the the generated in X $XX.X third and million in flow XXXX operating $XX.X in months
repurchased quarter XXXX. and XXX,XXX of cash total in third XXXX, were cash deposits common equivalents cash shares September we Our approximately and of as of stock million XX, pledged and $XXX.X the
maintaining stockholders' balance parent September company strong We of Total sheet. on was continue our prioritize million $XXX.X equity as XX, XXXX. to
the China become growth look government pricing more and COVID-XX We demand as The confidence to have foreign should the pandemic with conditions We even sustainability. domestic its consumers stimulates in domestic improve business that economies in confident environment to forward and the compared as in XXXX. and increase further continue economy XXXX will continues. stabilizing improving
combined and compared third due was sales to the Let me increase the million net for The review same $XXX.X a $XXX.X the of in quarter mix domestic to change volume sales in results the American XXXX, North grew of the product third XX.X% In mainly sales product to of $XX.X Net of hydraulic quarter XX.X% quarter million net product to quarter products XXXX. Net the million increased sales were $XX company's to sales. with EPS, XXXX. power million net in higher or for products XXXX. product sales were by of to to sales for the $XX.X in same compared company's X.X% steering, million customers. America North electric
period to to for $XX.X the million the compared EPS same mainly compared of and products Gross was to compared the the third XX.X% higher XX.X% XXXX in profit quarter quarter in $XX.X third year. to unit for XXXX Gross million costs XXXX. quarter due of last margin third export of was
third million represented X.X% in XXXX in quarter the quarter quarter in Selling third million net third X.X% $X.X $X.X of were of the sales compared expenses to compared of the expenses to of XXXX. the in quarter Selling XXXX third XXXX. of
quarter G&A and expenses. million was quarter the million expenses to compared $X.X office the third in due of higher represented of were XXXX. XXXX expenses, increase of G&A, of and General same sales administrative third $X.X quarter XXXX. XXXX primarily to X.X% net third in the quarter in both The
last Research of expenses, XXXX. of in $X quarter third net percentage R&D controls the was mainly third in quarter year. over The R&D due in third lower quarter the compared development XXXX R&D, in compared with expenditures. expenses million represent strict R&D and to the to sales third were $X.X X% cost XXXX million more of X.X% quarter
the due financial in exchange to with $X.X was XXXX of net last gains of income exchange year's in compared foreign quarter -- XXXX, to third third financial losses which the third compared Net million expense third in mainly was in of quarter million the foreign $X.X quarter.
was in of operations margin $X.X was The and of million quarter lower quarter mainly the XXXX. from third to operation gross due to from gross compared $X.X in same the operations third in quarter million income of from lower income profit XXXX of the Income reduced XXXX.
quarter income Loss third million to in of in before third income earnings affiliated and companies income XXXX expenses equity equity $X.X compared in of profit tax quarter quarter earnings the due companies of taxes of and compared loss before of income in affiliated the million to with from expenses in before third quarter in $X.X expense was of earnings the the tax and of XXXX. companies of mainly was affiliated operations XXXX. gross income and lower The lower third XXXX equity
in parent was the XXXX common of per share quarter third shareholders quarter Diluted company's $X.X $X.XX parent Net third in XXXX. $X.XX earnings the income income $X.X common company's share attributable of million to of third in of compared XXXX. per to earnings million quarter third compared XXXX shareholders of attributable net quarter the were to in the to of diluted
Weighted quarter to third average of the number of shares third quarter in diluted XX,XXX,XXX XXXX. in compared was common the of outstanding XXXX XX,XXX,XXX shares
$XXX.X of on first Net brief the in million pandemic I'll industry X months first impact months months XXXX, a and China Now to results. provide automobile XXXX globally. $XXX.X of summary the the reflecting the COVID-XX compared were the of of sales the in million for X X
million gross corresponding compared XX% XXXX. compared was in X-month gross was last X-month margin corresponding for $XX.X profit million to period to period year. in XX.X% $XX.X the the
other period $X.X XX, the for XXXX. September XXXX, $X.X ended to months For million the sales amounted compared million corresponding to on gain in X
last earnings was in of attributable corresponding XXXX to company's per share Diluted company's first $X.XX income parent from common period months in shareholders year. of to million per operations net million the diluted of the months X X was to $X.X XXXX. from was Net first operations compared with the $X.XX loss to of Loss share $X.X parent loss corresponding in compared $X.X the million common shareholders in period million XXXX. income for attributable $X.X of compared
expects $XX.X of months during property, were by shares with in compared and by conditions. operating the with Net activities X the $X.X acquire provided in company million of X depending months plant XXXX. common of compared market net of upon first the in million quarter Payments activities XXXX. XXXX, equipment operating million the more to cash third first future shares in provided cash Approximately was XXXX the $X.X XXX,XXX repurchase stock the were to repurchased X months and $XX.X million of of first
Now highlights a few of balance sheet. the
million, payable Accounts $XXX.X -- equivalents XXXX. cash were million. XX, and receivable million. of accounts cash cash $XXX.X to loans of XX, September total was million including short-term were including payable XXXX, deposits and and notes compared stockholders' were XXXX, notes parent of receivable Total million. million pledged Total equity $XXX.X As company XX, $XX.X $XXX September as were September as December $XXX
revenue target is $XXX the outlook. its to has market $XXX Business guidance and based on on which current Management million change. This full views million are operating increased for XXXX. conditions, company's subject to year from the
that, we the ready with are Operator, for Q&A.
