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China Automotive Systems Reports 77.0 % Net Sales Increase and Return to Profitability in the First Quarter of 2021 Exhibit 99.1 WUHAN , China , May 12 , 2021 -- China Automotive Systems , Inc. ( NASDAQ : CAAS ) ( " CAAS " or the " Company " ) , a leading power steering components and systems supplier in China , today announced its unaudited financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Highlights • Net sales rose 77.0 % to $ 130.3 million from $ 73.6 million in the first quarter of 2020 • Gross profit increased 75.9 % to $ 19.7 million from $ 11.2 million in the first quarter of 2020 ; gross margin was 15.1 % compared with 15.2 % in the first quarter of 2020 Income from operations increased 320.0 % to $ 4.2 million from $ 1.0 million in the first quarter of 2020 Net income attributable to parent company's common shareholders was $ 3.2 million , or diluted income of per share of $ 0.10 , compared to net loss attributable to parent company's common shareholders of $ 0.03 million , in the first quarter of 2020 Cash and cash equivalents , and pledged cash were $ 122.0 million as of March 31 , 2021 Mr. Qizhou Wu , chief executive officer of CAAS , commented , " We are excited to report accelerated top line growth in the first quarter driven by increased demand in each of our key markets - Chinese OEM passenger vehicles , Chinese OEM commercial vehicles and exports to North and South America . " " According to statistics from the China Association of Automobile Manufacturers ( “ CAAM " ) , automobile sales in China rose by 75.6 % year - over - year in the first quarter of 2021 as passenger vehicle sales grew 75.1 % year - over - year and commercial vehicle sales increased by 77.3 % year - over - year . " " Each of our operational units achieved sales growth and was profitable in the first quarter of 2021 as all our manufacturing lines were operating at a high utilization rate . Our sales to the Chinese commercial vehicle OEMs rose by approximately 169 % year - over - year and sales of our electric power steering products ( “ EPS ” ) by our Henglong KYB joint venture rose by 200 % year - over - year in the first quarter of 2021. North American sales rose by 26.3 % year- over - year in the first quarter of 2021 , and our Brazil Henglong joint venture has already announced an expected 200 % increase in unit sales in South America for the 2021 year . " " We have increased our investment in research and development by 28.6 % as automobile technology continues to evolve . Our new EPS system integrates and communicates with the vehicles ' main data architecture to provide key Advanced Driver Assistance Systems ( ADAS ) functions including lane keeping assist ( LKA ) , automatic parking assist ( APA ) , lane centering ( LCK ) and traffic jam assist ( TJA ) . Other new products are under development as well as ongoing efforts to improve the performance and quality of current steering products . Our new products will continue to provide new growth opportunities and solidify our leadership role in the global steering market . ” Mr. Jie Li , chief financial officer of CAAS , commented , " We continued to maintain our financial strength even as we increased investment and expenditures in the first quarter of 2021 to support our growth as we maintained our cash levels , accounts receivable and payable amounts , and our inventories . "