China Automotive Systems, Inc. (NASDAQ:CAAS) Q3 2023 Earnings Call Transcript
China Automotive Systems, Inc. (NASDAQ:CAAS) Q3 2023 Earnings Call Transcript November 10, 2023
Operator: Good morning, everyone, and welcome to the China Automotive Systems' Third Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode and the floor will be open for questions after the presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Kevin Theiss, Investor Relations. Kevin, over to you.
Kevin Theiss: Thank you, everyone, for joining us today. Welcome to China Automotive Systems' 2023 third quarter conference call. Joining us today are Mr. Jie Li, Chief Financial Officer of China Automotive Systems. He will be available to answer questions later in the conference call with the assistance of translation. Before we begin, I will remind all listeners that throughout this call, we may make statements that may contain forward-looking statements. Forward-looking statements represent the company's estimates and assumptions only as of the date of this call. As a result, the company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading Risk Factors in the company's Form 10-K annual report for the year ended December 31, 2022, as filed with the Securities and Exchange Commission and in other documents filed by the company from time to time with the Securities and Exchange Commission.
Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the region where we conduct business cause our business to suffer in ways that we cannot predict and materially impact our business, financial condition and results of operations. A prolonged disruption or any unforeseen delay in our operations of the manufacturing, delivery and assembly process within our production facilities could continue to result in delays in the treatment of products to our customers, increased cost and reduced revenue. The company expressly disclaims any duty to provide updates to any forward-looking statements made in this call, whether as a result of new information, fee events or otherwise.
On this call, I will provide a brief overview and summary of the third quarter and first 9 months results for the period ended December 30, 2023. The Management will then conduct a question-and-answer session. The 2023 third quarter and first 9 months results are unaudited and reported using U.S. GAAP accounting. For the purposes of our call today, I'll review the financial results in U.S. dollars. We will first begin with a review of the recent dynamics of the Chinese economy, the on mobile industry and our market position. The Chinese economy continues to grow but at a more subdued pace as the GDP growth rate was 4.9% year-over-year in the third quarter of 2023, according to China's National Bureau of Statistics. Industrial production increased and retail sales stabilized in to 2023 third quarter.
However, a 2-year housing slump has continued and resulted in consumer spending more cautiously, affecting consumer price levels. Reduced demand for real estate has affected prices and erode the financial condition of real estate developers and decreased building construction. We all see development investment declined by 9.1% in the first 9 months of 2023 year-over-year. According to the Chinese Association of our Reveal Manufacturers, CAAM, passenger automobile statistics in China for the third quarter of 2023 included a decline of 3.4% in July, an increase of 8.2% in August and growth of 6.6% in September on a year-over-year basis. Passenger vehicle sales increased each month over the prior year during the 2023 third quarter. Commercial vehicle sales year-over-year during the third quarter of 2023 reflected an increase of 16.8% in July, followed by a 20% rise in August and a 33.2% increase in September.
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