China Automotive Systems (CAAS.US) announced today that the board of directors has decided to distribute ordinary stock cash dividends of $0.80 per share. The special cash dividend is expected to be paid to shareholders registered as of the close of business on July 30, 2024 (Tuesday), with payment on or around August 22, 2024. The total amount of the special dividend is expected to be approximately $25 million.
After reviewing the company's recent financial performance, current financial position, expected cash requirements for future business expansion, and future free cash flow generation, the board of directors of China Automotive Systems (CAAS.US) has decided to distribute a special dividend.
China Automotive Systems (CAAS.US) has been listed on NASDAQ since August 24, 2004. Over the past 20 years, the company has grown from a small player in the domestic Chinese market to a tier-one global supplier, with businesses and customers throughout North America, South America, Europe, and Asia. Its revenue grew from $58.2 million in 2004 to $5.764 billion in 2023, an increase of approximately 875%. Its net income also grew from $6.9 million in 2004 to $37.7 million in 2023, an increase of approximately 446%. The company has become the leading supplier of steering products in China, the world's largest automotive market, with large customers including BYD Company Limited, Zhejiang Geely Holding Group Co., Ltd., Chery Automobile Co., Ltd., Chongqing Changan Automobile Co., Ltd., SAIC Motor Corporation Ltd., and FAW Group Corporation. BYD is one of the world's largest automakers and a market-leading producer of electric vehicles, with an increasing global presence. In the international market, CAAS supplies steering products to Stellantis N.V. in North America, South America, and Europe. Stellantis, with its global business, has become the company's largest customer and has made significant contributions to our business in Brazil and other markets. Ford Motor Company is also a customer in North America, and Mahindra & Mahindra Ltd. has become an important customer in India. Through the company's equity investment in Sentient AB, a Swedish automotive technology company, the company has strengthened its business in Europe. Sentient AB specializes in software development and hardware design, focusing on advanced driver assistance systems (ADAS) technology.
CAAS Chairman Hanlin Chen said: "This special dividend not only rewards our shareholders for their long-standing support but also fully expresses our confidence in the company's sustainable development in the future. We are very proud that our large customer base and extensive technological products have positioned us strategically in the transition from internal combustion engines to electric vehicles and from manual driving to autonomous driving in the global automotive industry."