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China Automotive Systems Reports 45.0 % Net Sales Increase in the Second Quarter of 2021 Exhibit 99.1 _ WUHAN , China , August 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 second quarter and six months ended June 30 , 2021 . Second Quarter 2021 Highlights Net sales rose 45.0 % to $ 120.6 million from $ 83.2 million in the second quarter of 2020 ; Gross profit increased 102.6 % to $ 15.8 million from $ 7.8 million in the second quarter of 2020 ; gross margin was 13.1 % compared with 9.4 % in the first quarter of 2020 ; Income from operations was $ 0.1 million , compare to a loss of $ 5.2 million in the second quarter of 2020 ; Net income attributable to parent company's common shareholders was $ 3.2 million , or diluted earnings per share of $ 0.10 , compared to a net loss attributable to parent company's common shareholders of $ 4.1 million in the second quarter of 2020 . First Six Months of 2021 Highlights Net sales grew by 60.1 % to $ 250.9 million , compared to $ 156.7 million in the first six months of 2020 ; Gross profit increased by 87.4 % to $ 35.6 million , compared to $ 19.0 million in the first six months of 2020 ; gross margin increased to 14.2 % in the first six months of 2021 , compared to 12.1 % in the first six months of 2020 ; Income from operations was $ 4.3 million compared with a loss from operations of $ 4.2 million in the first six months of 2020 ; Net income attributable to parent company's common shareholders was $ 6.4 million compared with a net loss of $ 4.1 million in the first six months of 2020 ; diluted earnings per share attributable to parent company's common shareholders was $ 0.21 , compared to diluted loss per share of $ 0.13 in the first six months of 2020 ; Net cash provided by operating activities was $ 5.5 million in the first six months of 2021 ; Cash and cash equivalents , and pledged cash were $ 117.3 million as of June 30 , 2021 . Mr. Qizhou Wu , chief executive officer of CAAS , commented , " Our second quarter 2021 sales continued to achieve robust growth of 45.0 % year - over - year with sales of our advanced hydraulic products rising by 43.9 % in the Chinese passenger vehicle market , our electric power steering ( “ EPS ” ) product sales grew by 49.7 % and sales into North America were 179.8 % higher . Our operations in Brazil also experienced sales growth in the second quarter of 2021 , with expected sales growth of approximately 200 % year - over - year for the full year 2021. " " According to statistics from the China Association of Automobile Manufacturers , automobile sales in China rose by 25.6 % in the first six months of 2021 as passenger vehicle sales grew 27.0 % and commercial vehicle sales increased by 20.9 % . For the first six months of 2021 , our sales increased by 60.1 % , far surpassing the growth in the Chinese vehicle market . "