China Automotive Systems (CAAS) 10-Q13 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 13, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Entity File Number	000-33123
Entity Registrant Name	China Automotive Systems, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0885775
Entity Address, Address Line One	No. 1 Henglong Road, Yu Qiao Development Zone
Entity Address, Address Line Two	Shashi District
Entity Address, Address Line Three	Jing Zhou City
Entity Address, City or Town	Hubei Province
Entity Address, Country	CN
City Area Code	86
Local Phone Number	716- 412- 7901
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	CAAS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,185,702
Entity Central Index Key	0001157762
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Unaudited Consolidate

Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income
Net product sales	$ 164,215	$ 137,541	$ 462,217	$ 417,194
Cost of products sold	137,859	112,784	382,490	348,101
Gross profit	26,356	24,757	79,727	69,093
Gain on other sales	553	2,177	2,787	3,572
Less: Operating expenses
Selling expenses	4,357	3,803	13,044	10,981
General and administrative expenses	5,070	6,108	18,035	16,132
Research and development expenses	6,383	6,870	19,879	19,866
Total operating expenses	15,810	16,781	50,958	46,979
Income from operations	11,099	10,153	31,556	25,686
Other income, net	1,251	1,155	5,389	4,620
Interest expense	(271)	(245)	(712)	(770)
Financial (expense)/income, net	(167)	163	(869)	3,704
Income before income tax expenses and equity in earnings of affiliated companies	11,912	11,226	35,364	33,240
Less: Income taxes	4,042	688	7,893	3,004
Add: Equity in (losses)/earnings of affiliated companies	203	706	(1,379)	359
Net income	8,073	11,244	26,092	30,595
Less: Net income attributable to non-controlling interests	2,562	1,749	5,159	3,799
Accretion to redemption value of redeemable non-controlling interests	(7)	(7)	(22)	(22)
Net income attributable to parent company's common shareholders	5,504	9,488	20,911	26,774
Comprehensive income:
Net income	8,073	11,244	26,092	30,595
Other comprehensive income:
Foreign currency translation gain/(loss), net of tax	6,584	3,580	3,390	(8,752)
Comprehensive income	14,657	14,824	29,482	21,843
Less: Comprehensive income attributable to non-controlling interests	3,287	3,590	5,659	4,831
Accretion to redemption value of redeemable non-controlling interests	(7)	(7)	(22)	(22)
Comprehensive income attributable to parent company	$ 11,363	$ 11,227	$ 23,801	$ 16,990
Net income attributable to parent company's common shareholders per share -
Basic (in dollars per share)	$ 0.18	$ 0.31	$ 0.69	$ 0.89
Diluted (in dollars per share)	$ 0.18	$ 0.31	$ 0.69	$ 0.89
Weighted average number of common shares outstanding -
Basic (in shares)	30,185,702	30,185,702	30,185,702	30,185,702
Diluted (in shares)	30,185,702	30,189,363	30,185,702	30,190,660

Condensed Unaudited Consolida_2

Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue	$ 164,215	$ 137,541	$ 462,217	$ 417,194
Cost of products sold	137,859	112,784	382,490	348,101
Related parties
Revenue	13,703	8,407	38,613	35,177
Cost of products sold	$ 7,217	$ 6,266	$ 21,874	$ 20,592

Condensed Unaudited Consolida_3

Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 98,310	$ 114,660
Pledged cash	40,514	40,534
Inventories	108,880	112,392
Other current assets	28,245	27,083
Total current assets	590,122	564,075
Non-current assets:
Property, plant and equipment, net	100,703	101,359
Land use rights, net	9,130	9,233
Long-term investments	60,236	60,173
Other non-current assets	68,841	31,600
Total assets	829,032	766,440
Current liabilities:
Short-term loans	59,744	48,005
Accounts and notes payable	271,792	253,578
Accrued expenses and other payables	65,253	44,771
Other current liabilities	36,718	37,385
Total current liabilities	433,507	383,739
Long-term liabilities:
Long-term tax payable		8,781
Other non-current liabilities	6,266	5,498
Total liabilities	439,773	398,018
Commitments and Contingencies (See Note 22)
Mezzanine equity:
Redeemable non-controlling interests	635	613
Stockholders' equity:
Common stock, $0.0001 par value - Authorized - 80,000,000 shares; Issued - 32,338,302 and 32,338,302 shares as of September 30, 2024 and December 31, 2023, respectively, including treasury stock	3	3
Additional paid-in capital	69,722	63,731
Retained earnings-
Appropriated	12,174	11,851
Unappropriated	281,271	284,832
Accumulated other comprehensive income	(5,368)	(8,258)
Treasury stock - 2,152,600 and 2,152,600 shares as of September 30, 2024 and December 31, 2023, respectively	(7,695)	(7,695)
Total parent company stockholders' equity	350,107	344,464
Non-controlling interests	38,517	23,345
Total stockholders' equity	388,624	367,809
Total liabilities, mezzanine equity and stockholders' equity	829,032	766,440
Unrelated parties
Current assets:
Accounts and notes receivable, net	295,515	261,237
Current liabilities:
Accounts and notes payable	259,134	240,739
Related parties
Current assets:
Accounts and notes receivable, net	18,658	8,169
Current liabilities:
Accounts and notes payable	$ 12,658	$ 12,839

Condensed Unaudited Consolida_4

Condensed Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Condensed Unaudited Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	32,338,302	32,338,302
Treasury stock, shares	2,152,600	2,152,600

Condensed Unaudited Consolida_5

Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 26,092	$ 30,595
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation and amortization	14,574	13,666
Reversal of credit losses	(903)	(450)
Deferred income taxes		(1,017)
Equity in earnings/ (losses) of affiliated companies	1,379	(359)
Loss on property, plant and equipment disposals	1,133	79
(Increase)/decrease in:
Accounts and notes receivable	(40,350)	(24,315)
Inventories	4,653	6,070
Other current assets	874	(1,391)
Other non-current assets	(874)	(517)
Increase/(decrease) in:
Accounts and notes payable	12,996	(6,198)
Accrued expenses and other payables	4,945	849
Long-term taxes payable	(7,025)	(5,268)
Other current liabilities	(952)	(1,004)
Net cash provided by operating activities	16,542	10,740
Cash flows from investing activities:
Cash received from property, plant and equipment sales	1,359	664
Payments to acquire property, plant and equipment (including $4,597 and $6,414 paid to related parties for the nine months ended September 30, 2024 and 2023, respectively)	(18,268)	(12,184)
Payments to acquire intangible assets	(383)	(2,437)
Investments under the equity method	(2,283)	(7,729)
Purchase of short-term investments	(58,472)	(55,290)
Proceeds from maturities of short-term investments	25,373	48,281
Cash received from long-term investments	1,396	3,115
Net cash used in investing activities	(51,278)	(25,580)
Cash flows from financing activities:
Proceeds from bank loans	64,461	42,828
Repayments of bank loans	(54,394)	(48,147)
Dividends paid to the common shareholders	(9,318)
Cash received from capital contributions of a non-controlling interest	15,504
Net cash provided by/(used in) financing activities	16,253	(5,319)
Effects of exchange rate on cash, cash equivalents and pledged cash	2,113	(3,671)
Net decrease in cash, cash equivalents and pledged cash	(16,370)	(23,830)
Cash, cash equivalents and pledged cash at beginning of the period	155,194	158,951
Cash, cash equivalents and pledged cash at end of the period	$ 138,824	$ 135,121

Condensed Unaudited Consolida_6

Condensed Unaudited Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Payments to acquire property, plant and equipment	$ 18,268	$ 12,184
Related parties
Payments to acquire property, plant and equipment	$ 4,597	$ 6,414

Organization and business

Organization and business	9 Months Ended
Organization and business	Sep. 30, 2024
Organization and business
Organization and business	1. Organization and business China Automotive Systems, Inc., “China Automotive,” was incorporated in the State of Delaware on June 29, 1999 under the name Visions-In-Glass, Inc. China Automotive, including, when the context so requires, its subsidiaries, is referred to herein as the “Company.” The Company is primarily engaged in the manufacture and sale of automotive systems and components, as described below. Great Genesis Holdings Limited, a company incorporated in Hong Kong on January 3, 2003 under the Companies Ordinance in Hong Kong as a limited liability company, “Genesis,” is a wholly-owned subsidiary of the Company. Henglong USA Corporation, “HLUSA,” which was incorporated on January 8, 2007 in Troy, Michigan, is a wholly-owned subsidiary of the Company, and mainly engages in marketing of automotive parts in North America, and provides after-sales service and research and development, “R&D”, support. The Company owns interests in the following subsidiaries incorporated in the People’s Republic of China, the “PRC,” and Brazil as of September 30, 2024 and December 31, 2023. Percentage Interest September 30, December 31, Name of Entity 2024 2023 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 100.00 % 100.00 % Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 70.00 % 70.00 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 4 85.00 % 85.00 % Wuhu Henglong Automotive Steering System Co., Ltd., “Wuhu” 5 100.00 % 100.00 % Hubei Henglong Automotive System Group Co., Ltd., “Hubei Henglong” 6 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 7 100.00 % 100.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 8 70.00 % 70.00 % CAAS Brazil’s Imports and Trade In Automotive Parts Ltd., “Brazil Henglong” 9 95.84 % 95.84 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 10 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong” 11 100.00 % 100.00 % Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., “Henglong KYB” 12 60.00 % 66.60 % Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., “Wuhan Hyoseong” 13 51.00 % 51.00 % Wuhu Hongrun New Material Co., Ltd., “Wuhu Hongrun” 14 62.00 % 62.00 % Changchun Hualong Automotive Technology Co., Ltd., “Changchun Hualong” 15 100.00 % 100.00 % Hubei Zhirong Automobile Technology Co., Ltd., “Zhirong” 16 100.00 % 100.00 % 1. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears for heavy-duty vehicles. 2. Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light duty vehicles. 3. Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. 4. Jielong was established in 2006 and mainly engages in the production and sales of automotive steering columns. 5. Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. 6. On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. 7. In December 2009, Henglong, a subsidiary of Genesis, formed Testing Center, which mainly engages in the research and development of new products. 8. On February 21, 2012, Hubei Henglong and SAIC-IVECO Hongyan Company, “SAIC-IVECO,” established a Sino-foreign joint venture company, Chongqing Henglong, to design, develop and manufacture both hydraulic and electric power steering systems and parts. 9. On August 21, 2012, Brazil Henglong was established as a Sino-foreign joint venture company by Hubei Henglong and two Brazilian citizens, Ozias Gaia Da Silva and Ademir Dal’ Evedove. Brazil Henglong engages mainly in the import and sales of automotive parts in Brazil. In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. 10. In May 2014, together with Hubei Wanlong, Jielong formed a subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in research and development, manufacture and sales of automobile electronic systems and parts. Wuhan Chuguanjie is located in Wuhan, China. 11. In January 2015, Hubei Henglong formed Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong”, which mainly engages in the design and sales of automotive electronics. 12. In August 2018, Hubei Henglong and KYB (China) Investment Co., Ltd. (“KYB”) established Hubei Henglong KYB Automobile Electric Steering System Co., Ltd., “Henglong KYB”, which mainly engages in design, manufacture, sales and after-sales service of automobile electronic systems. Hubei Henglong owns 66.6% of the shares of this entity and has consolidated it since its establishment. In March 2024, KYB obtained an additional 6.6% equity interest in Henglong KYB for total consideration of RMB 110.0 million, equivalent to approximately $15.5 million. The Company retained its controlling interest in Henglong KYB. 13. In March 2019, Hubei Henglong and Hyoseong Electric Co., Ltd. established Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., “Wuhan Hyoseong”, which mainly engages in the design, manufacture and sales of automotive motors and electromechanical integrated systems. Hubei Henglong owns 51.0% of the shares of Wuhan Hyoseong and has consolidated it since its establishment. 14. In December 2019, Hubei Henglong formed Wuhu Hongrun New Material Co., Ltd., “Wuhu Hongrun”, which mainly engages in the development, manufacturing and sale of high polymer materials. Hubei Henglong owns 62.0% of the shares of Wuhu Hongrun and has consolidated it since its establishment. 15. In April 2020, Hubei Henglong acquired 100.0% of the equity interests of Changchun Hualong Automotive Technology Co., Ltd., “Changchun Hualong”, for total consideration of RMB 1.2 million, equivalent to approximately $0.2 million from an entity controlled by Hanlin Chen. Before the acquisition, 52.1% of the shares of Changchun Hualong were ultimately owned by Hanlin Chen and 47.9% of the shares were owned by third parties. Changchun Hualong mainly engages in design and R&D of automotive parts. 16. In June 2023, Hubei Henglong contributed certain equipment and intangible assets to Hubei Zhirong Automobile Technology Co., Ltd., “Zhirong”, representing 100% of Zhirong’s paid-up capital. Zhirong mainly engages in inspection and testing of automotive products. The Company has business relationships with more than sixty vehicle manufacturers, including BYD Auto Co., Ltd., Zhejiang Geely Automobile Co., Ltd., and Chery Automobile Co., Ltd., three of the largest privately owned car manufacturers in China, Chongqing Changan Automobile Co., Ltd., the largest state-owned car manufacturers in China, SAIC Motor Co., Ltd., FAW Group and others. All of them are our key customers. For overseas customers, the Company has supplied power steering gear to Stellantis N.V. since 2009 and to Ford Motor Company since 2016.

Basis of presentation and signi

Basis of presentation and significant accounting policies	9 Months Ended
Basis of presentation and significant accounting policies	Sep. 30, 2024
Basis of presentation and significant accounting policies
Basis of presentation and significant accounting policies	2. Basis of presentation and significant accounting policies (a) Basis of Presentation Basis of Presentation – The accompanying condensed unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. The details of subsidiaries are disclosed in Note 1. Significant inter-company balances and transactions have been eliminated upon consolidation. The condensed unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions in Regulation S-X. Accordingly they do not include all of the information and footnotes required by such accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The accompanying interim condensed consolidated financial statements are unaudited, but in the opinion of the Company’s management, contain all necessary adjustments, which include normal recurring adjustments, for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2023 is derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results of operations for the three months and nine months ended September 30, 2024 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2024. Estimation - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Foreign Currencies - China Automotive and HLUSA maintain their books and records in United States Dollars, “USD,” their functional currency. The Company’s subsidiaries based in the PRC and Genesis maintain their books and records in Renminbi, “RMB,” their functional currency. The Company’s subsidiary based in Brazil maintains its books and records in Brazilian real, “BRL,” its functional currency. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 830, foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the rate of exchange prevailing at the balance sheet date for monetary items. Nonmonetary items are remeasured at historical rates. Income and expenses are remeasured at the rate in effect on the transaction dates. Transaction gains and losses, if any, are included in the determination of net income for the period. (b) Recent Accounting Pronouncements No accounting standards newly issued during the three months ended September 30, 2024 had a material impact on the Company’s financial statements or disclosures. In November 2023, the FASB issued Accounting Standards Update 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 improves segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and application should be applied retrospectively, unless it is impracticable to do so. We are currently assessing the potential impact of adopting ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures. ASU 2023- 09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and application may be applied prospectively or retrospectively. We are currently assessing the potential impact of adopting ASU 2023-09 on our consolidated financial statements. (c) There have been no updates to the significant accounting policies set forth in the notes to the consolidated financial statements for the year ended December 31, 2023.

Accounts and notes receivable,

Accounts and notes receivable, net	9 Months Ended
Accounts and notes receivable, net	Sep. 30, 2024
Accounts and notes receivable, net
Accounts and notes receivable, net	3. Accounts and notes receivable, net The Company’s accounts and notes receivable, net as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accounts receivable - unrelated parties $ 177,145 $ 164,231 Notes receivable - unrelated parties 131,138 112,605 Total accounts and notes receivable - unrelated parties 308,283 276,836 Less: allowance for credit losses - unrelated parties (12,768) (15,599) Accounts and notes receivable, net - unrelated parties 295,515 261,237 Accounts and notes receivable - related parties 20,191 9,573 Less: allowance for credit losses - related parties (1,533) (1,404) Accounts and notes receivable, net - related parties 18,658 8,169 Accounts and notes receivable, net $ 314,173 $ 269,406 Notes receivable represent accounts receivable in the form of bills of exchange for which acceptances are guaranteed and settlements are handled by banks. As of September 30, 2024 and December 31, 2023, the Company pledged its notes receivable with amounts of $2.5 million and $11.5 million, respectively, as collateral for banks to endorse the payment of the Company’s notes payable to the noteholders upon maturity (See Note 8). As of September 30, 2024 and December 31, 2023, the Company pledged its accounts receivable with amounts of $0.4 million and $0.5 million, respectively, as collateral for banks to obtain the long-term loans. Provision for doubtful accounts and notes receivable, as reversed in the unaudited consolidated statements of operations, amounted to $0.9 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. Provision for doubtful accounts and notes receivable, as provided in the unaudited consolidated statements of operations, amounted to $0.01 million for the three months ended September 30, 2023. Provision for doubtful accounts and notes receivable, as reversed in the unaudited consolidated statements of operations, amounted to $0.5 million for the nine months ended September 30, 2023. During the three months ended September 30, 2024, the Company’s five largest customers accounted for 50.3% of its consolidated net product sales, with one customer individually accounting for more than 10% of consolidated net product sales, i.e., 17.8%. During the nine months ended September 30, 2024, the Company’s five largest customers accounted for 49.2% of its consolidated net product sales, with two customers accounting for more than 10% of consolidated net product sales, i.e., 14.8% and 13.6%. As of September 30, 2024, approximately 10.3% and 3.3% of accounts receivable were from trade transactions with the aforementioned customers. During the three months ended September 30, 2023, the Company’s five largest customers accounted for 42.2% of its consolidated net product sales, with one customer individually accounting for more than 10% of consolidated net product sales, i.e., 18.3%. During the nine months ended September 30, 2023, the Company’s five largest customers accounted for 40.9% of its consolidated net product sales, with one customer accounting for more than 10% of consolidated net product sales, i.e., 19.4%. As of September 30, 2023, approximately 5.3% of accounts receivable were from trade transactions with the aforementioned customer.

Inventories

Inventories	9 Months Ended
Inventories	Sep. 30, 2024
Inventories
Inventories	4. Inventories The Company’s inventories as of September 30, 2024 and December 31, 2023 consisted of the following (figures are in thousands of USD): September 30, 2024 December 31, 2023 Raw materials $ 23,243 $ 28,505 Work in process 18,523 17,123 Finished goods 57,310 62,760 Fulfillment costs for development service 9,804 4,004 Total $ 108,880 $ 112,392 The Company recorded $1.4 million and $2.1 million of inventory write-down to cost of products sold for the three months ended September 30, 2024 and 2023, respectively, and $7.3 million and $7.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Long-term investments

Long-term investments	9 Months Ended
Long-term investments	Sep. 30, 2024
Long-term investments
Long-term Investments	5. Long-term investments The Company’s long-term investments as of September 30, 2024 and December 31, 2023, are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Sentient AB $ 19,952 $ 20,417 Chongqing Venture Fund 12,530 13,158 Hubei Venture Fund 12,197 12,217 Suzhou Qingshan 8,453 8,409 Suzhou Venture Fund 2,267 3,387 Suzhou Mingzhi (1) 2,132 1,261 Shanghai IAT (2) 1,422 — Henglong Tianyu 732 793 Jiangsu Intelligent 551 531 Total $ 60,236 $ 60,173 (1) In June 2023, Hubei Henglong entered into an agreement with other parties to establish a limited partnership, Suzhou Mingzhi Intelligent Manufacturing Industry Investment Fund L.P., “Suzhou Mingzhi”. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 30.0 million, equivalent to approximately $4.3 million. As of September 30, 2024, Hubei Henglong has paid RMB 15.0 million, equivalent to approximately $2.1 million, representing 19.74% of Suzhou Mingzhi’s equity. As a limited partner, Hubei Henglong has more than virtually no influence over Suzhou Mingzhi’s operating and financial policies. The investment is accounted for using the equity method. (2) In July 2024, Hubei Henglong entered into an agreement with other parties to establish a company, Shanghai IAT International Automotive Technology Co.,Ltd, “Shanghai IAT”. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 20.0 million, equivalent to approximately $2.8 million. As of September 30, 2024, Hubei Henglong has paid RMB 10.0 million, equivalent to approximately $1.4 million, representing 25.0% of Shanghai IAT’s equity. The Company can exercise significant influence over Shanghai IAT’s operating and financial policies. The investment is accounted for using the equity method. The condensed financial information of the Company’s significant equity investee for the three and nine months ended September 30, 2024 and 2023, Chongqing Venture Fund, is summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ — $ — $ — $ — Gross profit — — — — Loss from continuing operations (438) (3,729) (3,425) (2,342) Net loss $ (438) (3,729) $ (3,425) (2,342)

Property, plant and equipment,

Property, plant and equipment, net	9 Months Ended
Property, plant and equipment, net	Sep. 30, 2024
Property, plant and equipment, net
Property, plant and equipment, net	6. Property, plant and equipment, net The Company’s property, plant and equipment, net as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Costs: Machinery and equipment $ 248,571 $ 241,761 Buildings 63,786 64,390 Electronic equipment 5,191 5,804 Motor vehicles 4,682 4,587 Construction in progress 13,002 11,821 Gross balance of property, plant and equipment 335,232 328,363 Less: Accumulated depreciation (1) (233,625) (226,436) Less: Impairment (904) (568) Balance of property, plant and equipment, net (2) $ 100,703 $ 101,359 (1) Depreciation charges were $4.7 million and $3.9 million for the three months ended September 30, 2024 and 2023, respectively, and $13.7 million and $12.7 million for the nine months ended September 30, 2024 and 2023, respectively. (2) As of September 30, 2024 and December 31, 2023, the Company pledged property, plant and equipment and land use rights with net book value of approximately $35.9 million and $43.3 million, respectively, as security for its comprehensive credit facilities with the banks in China.

Loans

Loans	9 Months Ended
Loans	Sep. 30, 2024
Loans
Loans	7 . Loans Loans consist of the following as of September 30, 2024 and December 31, 2023 (figures are in thousands of USD): September 30, 2024 December 31, 2023 Short-term bank loans $ 59,029 $ 48,005 Current portion of long-term bank loans 715 — Subtotal 59,744 48,005 Long-term bank loans $ 958 $ 1,221 Less: Current portion of long-term bank loans (715) — Subtotal 243 1,221 Total $ 59,987 $ 49,226 The Company entered into credit facility agreements with various banks, which were secured by property, plant and equipment and land use rights of the Company. The total credit facility amount was $185.5 million and $195.8 million, respectively, as of September 30, 2024 and December 31, 2023. As of September 30, 2024 and December 31, 2023, the Company has drawn down loans under these facilities with an aggregate amount of $53.7 million and $49.2 million, respectively. The weighted average interest rate was 2.5% and 2.6% per annum, for the three months ending September 30, 2024 and the year ended December 31, 2023, respectively. The Company must use the loans for the purpose as prescribed in the loan contracts. If the Company fails to do so, it will be charged penalty interest and/or trigger early repayment. The Company complied with such financial covenants during the three months ended September 30, 2024.

Accounts and notes payable

Accounts and notes payable	9 Months Ended
Accounts and notes payable	Sep. 30, 2024
Accounts and notes payable
Accounts and notes payable	8. Accounts and notes payable The Company’s accounts and notes payable as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accounts payable - unrelated parties $ 165,893 $ 147,712 Notes payable - unrelated parties (1) 93,241 93,027 Accounts and notes payable - unrelated parties 259,134 240,739 Accounts and notes payable - related parties 12,658 12,839 Total $ 271,792 $ 253,578 (1) Notes payable represent payables in the form of notes issued by the bank. As of September 30, 2024 and December 31, 2023, the Company has pledged cash of $40.0 million and $39.3 million, respectively. As of September 30, 2024 and December 31, 2023, the Company has pledged notes receivable of $2.5 million and $11.5 million, respectively, as collateral for banks to endorse the payment of the Company’s notes payable to the noteholders upon maturity. The Company entered into credit facility agreements with various banks, which were secured by property, plant and equipment and land use rights of the Company. As of September 30, 2024 and December 31, 2023, the Company has used credit facilities for issue of bank notes with amount of $41.8 million and $47.4 million .

Accrued expenses and other paya

Accrued expenses and other payables	9 Months Ended
Accrued expenses and other payables	Sep. 30, 2024
Accrued expenses and other payables
Accrued expenses and other payables	9. Accrued expenses and other payables The Company’s accrued expenses and other payables as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accrued expenses $ 12,614 $ 10,464 Warranty reserves (1) 36,108 30,440 Payables for overseas transportation and custom clearance — 400 Dividends payable to common shareholders (See Note 13) 14,830 — Dividends payable to holders of non-controlling interests 428 424 Other payables 1,273 3,043 Total $ 65,253 $ 44,771 (1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances. For the three and nine months ended September 30, 2024 and 2023, the warranties activities were as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 32,910 $ 33,948 $ 30,440 $ 32,435 Additions during the period 5,388 4,164 14,247 13,592 Settlement within the period (2,790) (3,340) (8,983) (9,973) Foreign currency translation gain/(loss) 600 217 404 (1,065) Balance at end of the period $ 36,108 $ 34,989 $ 36,108 $ 34,989

Fair value measurement

Fair value measurement	9 Months Ended
Fair value measurement	Sep. 30, 2024
Fair value measurement
Fair value measurement	10. Fair value measurement The Company has entered into foreign exchange forward contracts with a local bank to reduce the exposure of significant changes in exchange rates between RMB and USD. Authoritative guidance requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets based upon quoted market prices for comparable instruments. The Company’s forward contracts have not met the criteria for hedge accounting within authoritative guidance. Therefore, the foreign exchange forward contracts have been recorded at fair value, with the gain or loss on these transactions recorded in the consolidated statements of operations within “other income, net” in the period in which they occur. These foreign exchange forward contracts will mature within 12 months. The Company used a discounted cash-flow methodology to measure fair value, which requires inputs such as interest yield curves and foreign exchange rates. The significant inputs used in the aforementioned model can be corroborated with market observable data and therefore the fair value measurements are classified as level 2. Typically, any losses or gains on the forward exchange contracts are offset by re-measurement losses or gains on the underlying balances denominated in non-functional currencies. The Company’s foreign currency exchange contracts are an over-the-counter instrument. These foreign exchange forward contracts have terminated as of December 31, 2023. The Company recorded loss from change in fair value of foreign exchange forward contracts of nil and $0.04 million during the nine months ended September 30, 2024 and 2023.

Redeemable non-controlling inte

Redeemable non-controlling interests	9 Months Ended
Redeemable non-controlling interests	Sep. 30, 2024
Redeemable non-controlling interests
Redeemable non-controlling interests	11. Redeemable non-controlling interests In September 2020, one of the Company’s subsidiaries issued shares to Hubei Venture Fund amounting to RMB 5.0 million, equivalent to approximately $0.7 million translated at spot rate of transaction date. The shares will be transferred to the Company and the other shareholder of the subsidiary on a pro rata basis at the holder’s option if the subsidiary fails to complete a qualified IPO in a pre-agreed period of time after their issuance with a transfer price of par plus 6.0% per year. As of September 30, 2024, $0.6 million of the shares are subject to purchase by the Company and are therefore accounted for as redeemable non-controlling interests in mezzanine equity. For the three and nine months ended September 30, 2024, the Company recognized accretion of $0.007 million and $0.022 million, respectively, to the redemption value of the shares over the period starting from the issuance date with a corresponding reduction to retained earnings. For the three and nine months ended September 30, 2023, the Company recognized accretion of $0.007 million and $0.022 million, respectively, to the redemption value of the shares over the period starting from the issuance date with a corresponding reduction to retained earnings.

Additional paid-in capital

Additional paid-in capital	9 Months Ended
Additional paid-in capital	Sep. 30, 2024
Additional paid-in capital
Additional paid-in capital	12. Additional paid-in capital The Company’s positions in respect of the amounts of additional paid-in capital for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 69,722 $ 63,731 $ 63,731 $ 63,731 Contribution by the non-controlling interest of Henglong KYB — — 5,991 — Balance at end of the period $ 69,722 $ 63,731 $ 69,722 $ 63,731

Retained earnings

Retained earnings	9 Months Ended
Retained earnings	Sep. 30, 2024
Retained earnings
Retained earnings	13. Retained earnings Appropriated Pursuant to the relevant PRC laws, the profits distribution of the Company’s subsidiaries, which are based on their PRC statutory financial statements, are available for distribution in the form of cash dividends after these subsidiaries have paid all relevant PRC tax liabilities, provided for losses in previous years, and made appropriations to statutory surplus at 10% of their respective after-tax profits each year. When the statutory surplus reserve reaches 50% of the registered capital of a company, no additional reserve is required. For the three months ended September 30, 2024 and 2023, no statutory reserve was appropriated by the subsidiaries in China.For the nine months ended September 30, 2024 and 2023, a subsidiary in China appropriated statutory reserve $0.3 million and nil, respectively. The Company’s activities in respect of the amounts of appropriated retained earnings for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 12,174 $ 11,851 $ 11,851 $ 11,851 Appropriation of retained earnings — — 323 — Balance at end of the period $ 12,174 $ 11,851 $ 12,174 $ 11,851 Unappropriated The Company’s activities in respect of the amounts of the unappropriated retained earnings for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 299,916 $ 264,460 $ 284,832 $ 247,174 Net income attributable to parent company 5,511 9,495 20,933 26,796 Accretion of redeemable non-controlling interests (7) (7) (22) (22) Appropriation of retained earnings — — (323) — Dividend payables to common shareholders (1) (24,149) — (24,149) — Balance at end of the period $ 281,271 $ 273,948 $ 281,271 $ 273,948 (1) To celebrate 20 th anniversary of Nasdaq listing, the Company announced that the Board of Directors has declared a special cash dividend of $0.8 per common share on July 19, 2024 . The aggregate amount of the special dividend payment was $24.1 million. As of September 30, 2024, $9.3 million of the dividend has been paid in August 2024 and the remaining $14.8 million will be paid before December 31, 2024. The Company does not anticipate paying any cash dividends in the foreseeable future. The Company currently intends to retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay cash dividends will be at the discretion of the Company’s board of directors and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion, restrictions imposed by any financing arrangements and any other factors that the Company’s board of directors deems relevant.

Accumulated other comprehensive

Accumulated other comprehensive income	9 Months Ended
Accumulated other comprehensive income	Sep. 30, 2024
Accumulated other comprehensive income
Accumulated other comprehensive income	14. Accumulated other comprehensive income The Company’s activities in respect of the amounts of accumulated other comprehensive income for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ (11,227) $ (14,936) $ (8,258) $ (3,413) Foreign currency translation adjustment attributable to parent company 5,859 1,739 2,890 (9,784) Balance at end of the period $ (5,368) $ (13,197) $ (5,368) $ (13,197)

Treasury stock

Treasury stock	9 Months Ended
Treasury stock	Sep. 30, 2024
Treasury stock
Treasury stock	15. Treasury stock Treasury stock represents shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method. On March 29, 2022, the Board of Directors of the Company approved a share repurchase program under which the Company was permitted to repurchase up to $5.0 million of its common stock from time to time in the open market at prevailing market prices not to exceed $4.00 per share through March 30, 2023. As of September 30, 2024 and December 31, 2023, the Company had repurchased 666,074 shares of the Company’s common stock under the program and the total number of shares held in treasury was 2,152,600. The repurchased shares are presented as “treasury stock” on the balance sheet.

Non-controlling interests

Non-controlling interests	9 Months Ended
Non-controlling interests	Sep. 30, 2024
Non-controlling interests
Non-controlling interests	16. Non-controlling interests The Company’s activities in respect of the amounts of the non-controlling interests’ equity for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 35,230 $ 16,423 $ 23,345 $ 15,182 Net income attributable to non-controlling interests 2,562 1,749 5,159 3,799 Foreign currency translation adjustment attributable to non-controlling interests 725 1,841 500 1,032 Contribution by the non-controlling interest of Henglong KYB — — 9,513 — Balance at end of the period $ 38,517 $ 20,013 $ 38,517 $ 20,013

Net product sales

Net product sales	9 Months Ended
Net product sales	Sep. 30, 2024
Net product sales
Net product sales	17. Net product sales Revenue Disaggregation Management has concluded that the disaggregation level is the same under both the revenue standard and the segment reporting standard. Please refer to Note 24. Payment to Customer The Company accounts for consideration payable to a customer as a reduction of revenue at the later of revenue recognition and the Company’s promise to pay the consideration. Contract Assets and Liabilities Contract liabilities are mainly customer deposits. As of September 30, 2024 and December 31, 2023, the Company has customer deposits of $11.5 million and $8.6 million, respectively, which were included in other current liabilities on the consolidated balance sheets. During the nine months ended September 30, 2024, $5.6 million was received and $2.7 million (including $2.5 million from the beginning balance of customer deposits) was recognized as net product sales revenue. During the nine months ended September 30, 2023, $6.9 million was received and $4.1 million (including $2.6 million from the beginning balance of customer deposits) was recognized as net product sales revenue. Customer deposits represent non-refundable cash deposits for customers to secure rights to an amount of products produced by the Company under supply agreements. When the products are shipped to customers, the Company will recognize revenue and bill the customers to reduce the amount of the customer deposit liability.

Financial (expense)_income, net

Financial (expense)/income, net	9 Months Ended
Financial (expense)/income, net	Sep. 30, 2024
Financial (expense)/income, net
Financial (expense)/income, net	18. Financial (expense)/income, net During the three and nine months ended September 30, 2024 and 2023, the Company recorded financial income, net which is summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest income $ 508 $ 322 $ 1,345 $ 886 Foreign exchange (loss)/gain, net (579) (130) (1,967) 2,978 Bank charges (96) (29) (247) (160) Total financial (expense)/income, net $ (167) $ 163 $ (869) $ 3,704

Income per share

Income per share	9 Months Ended
Income per share	Sep. 30, 2024
Income per share
Income per share	19. Income per share Basic income per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted income per share is computed using the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. The dilutive effect of outstanding stock options is determined based on the treasury stock method. The calculations of basic and diluted income per share attributable to the parent company for the three months ended September 30, 2024 and 2023, were as follows (figures are in thousands of USD, except share and per share amounts): Three Months Ended September 30, 2024 2023 Numerator: Net income attributable to the parent company’s common shareholders - Basic and Diluted $ 5,504 $ 9,488 Denominator: Weighted average shares outstanding 30,185,702 30,185,702 Dilutive effects of stock options — 3,661 Denominator for dilutive income per share - Diluted 30,185,702 30,189,363 Net income per share attributable to parent company’s common shareholders - Basic $ 0.18 $ 0.31 Net income per share attributable to parent company’s common shareholders - Diluted $ 0.18 $ 0.31 The calculations of basic and diluted income per share attributable to the parent company for the nine months ended September 30, 2024 and 2023, were as follows (figures are in thousands of USD, except share and per share amounts): Nine Months Ended September 30, 2024 2023 Numerator: Net income attributable to the parent company’s common shareholders - Basic and Diluted $ 20,911 $ 26,774 Denominator: Weighted average shares outstanding 30,185,702 30,185,702 Dilutive effects of stock options — 4,958 Denominator for dilutive income per share - Diluted 30,185,702 30,190,660 Net income per share attributable to parent company’s common shareholders – Basic $ 0.69 $ 0.89 Net income per share attributable to parent company’s common shareholders - Diluted $ 0.69 $ 0.89 As of September 30, 2024, the exercise prices for 22,500 and 22,500 outstanding stock options exceeded the weighted average market price of the Company’s common stock during the three and nine months ended September 30, 2024. Therefore, these stock options were excluded from the calculation of the diluted income per share for the corresponding periods presented. As of September 30, 2023, the exercise prices for 22,500 and 22,500 outstanding stock options exceeded the weighted average market price of the Company’s common stock during the three and nine months ended September 30, 2023. Therefore, these stock options were excluded from the calculation of the diluted income per share for the corresponding periods presented.

Significant concentrations

Significant concentrations	9 Months Ended
Significant concentrations	Sep. 30, 2024
Significant concentrations
Significant concentrations	20. Significant concentrations A significant portion of the Company’s business is conducted in the PRC where the currency is the RMB. Regulations in China permit foreign owned entities to freely convert the RMB into foreign currency for transactions that fall under the “current account”, which includes trade related receipts and payments, interest and dividends. Accordingly, the Company’s China subsidiaries may use RMB to purchase foreign currency for settlement of such “current account” transactions without pre-approval. China Automotive, the parent company, may depend on dividend payments from Genesis and HLUSA, which are generated from their subsidiaries in China, “China-based Subsidiaries,” after they receive payments from the China-based Subsidiaries. Regulations in the PRC currently permit payment of dividends of a PRC company only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Under PRC law China-based Subsidiaries are required to set aside at least 10% of their after-tax profit based on PRC accounting standards each year to their general reserves until the cumulative amount reaches 50% of their paid-in capital. These reserves are not distributable as cash dividends, or as loans or advances. These foreign-invested enterprises may also allocate a portion of their after-tax profits, at the discretion of their boards of directors, to their staff welfare and bonus funds. Any amounts so allocated may not be distributed and, accordingly, would not be available for distribution to Genesis and HLUSA. The PRC government also imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currencies out of China. The China-based Subsidiaries may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currencies. If China Automotive is unable to receive dividend payments from its subsidiaries, including the China-based subsidiaries, China Automotive may be unable to effectively finance its operations or pay dividends on its shares. Transactions other than those that fall under the “current account” and that involve conversion of RMB into foreign currency are classified as “capital account” transactions; examples of “capital account” transactions include repatriations of investment by or loans to foreign owners, or direct equity investments in a foreign entity by a China domiciled entity. “Capital account” transactions require prior approval from China’s State Administration of Foreign Exchange, or SAFE, or its provincial branch to convert a remittance into a foreign currency, such as U.S. Dollars, and transmit the foreign currency outside of China. This system could be changed at any time and any such change may affect the ability of the Company or its subsidiaries in China to repatriate capital or profits, if any, outside China. Furthermore, SAFE has a significant degree of administrative discretion in implementing the laws and has used this discretion to limit convertibility of current account payments out of China. Whether as a result of a deterioration in the Chinese balance of payments, a shift in the Chinese macroeconomic prospects or any number of other reasons, China could impose additional restrictions on capital remittances abroad. As a result of these and other restrictions under the laws and regulations of the People’s Republic of China, or the PRC, the Company’s China subsidiaries are restricted in their ability to transfer a portion of their net assets to the parent. The Company has no assurance that the relevant Chinese governmental authorities in the future will not limit further or eliminate the ability of the Company’s China-based subsidiaries to purchase foreign currencies and transfer such funds to the Company to meet its liquidity or other business needs. Any inability to access funds in China, if and when needed for use by the Company outside of China, could have a material and adverse effect on the Company’s liquidity and its business.

Related party transactions and

Related party transactions and balances	9 Months Ended
Related party transactions and balances	Sep. 30, 2024
Related party transactions and balances
Related party transactions and balances	21. Related party transactions and balances Related party transactions are as follows (figures are in thousands of USD): Related party sales Three Months Ended September 30, 2024 2023 Merchandise sold to related parties $ 13,703 $ 8,407 Materials and others sold to related parties 410 233 Rental income obtained from related parties 80 82 Total $ 14,193 $ 8,722 Nine Months Ended September 30, 2024 2023 Merchandise sold to related parties $ 38,613 $ 35,177 Materials and others sold to related parties 1,580 1,560 Rental income obtained from related parties 275 221 Total $ 40,468 $ 36,958 Related party purchases Three Months Ended September 30, 2024 2023 Materials purchased from related parties $ 7,217 $ 6,266 Equipment purchased from related parties 1,427 2,820 Others purchased from related parties 59 20 Total $ 8,703 $ 9,106 Nine Months Ended September 30, 2024 2023 Materials purchased from related parties $ 21,874 $ 20,592 Equipment purchased from related parties 3,515 3,453 Others purchased from related parties 175 44 Total $ 25,564 $ 24,089 Related party receivables September 30, 2024 December 31, 2023 Accounts and notes receivable, net from related parties $ 18,658 $ 8,169 Related party advance payments September 30, 2024 December 31, 2023 Advance payments for property, plant and equipment to related parties $ 6,923 $ 5,759 Advance payments and others to related parties 1,989 1,991 Total $ 8,912 $ 7,750 Related party payables September 30, 2024 December 31, 2023 Accounts and notes payable $ 12,658 $ 12,839 These transactions were consummated under similar terms as those with the Company’s third-party customers and suppliers. As of September 30, 2024, Hanlin Chen, the chairman of the board of directors of the Company, owns 57.22% of the common stock of the Company and has the effective power to control the vote on substantially all significant matters without the approval of other stockholders.

Commitments and contingencies

Commitments and contingencies	9 Months Ended
Commitments and contingencies	Sep. 30, 2024
Commitments and contingencies
Commitments and contingencies	22. Commitments and contingencies Legal proceedings The Company is not a party to any pending or, to the best of the Company’s knowledge, any threatened legal proceedings and no director, officer or affiliate of the Company, or owner of record of more than five percent of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation. Other commitments and contingencies In addition to the bank loans, notes payables and the related interest and other payables, the following table summarizes the Company’s major commitments and contingencies as of September 30, 2024 (figures are in thousands of USD): Payment obligations by period 2024 2025 2026 Thereafter Total Obligations for investment contracts (1) $ — $ 2,854 $ 714 $ — $ 3,568 Obligations for purchasing and service agreements 26,498 3,945 — — 30,443 Total $ 26,498 $ 6,799 $ 714 $ — $ 34,011 (1) In July 2024, Hubei Henglong entered into an agreement with other parties to establish an associate company, Shanghai IAT. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 20.0 million, equivalent to approximately $2.8 million. As of September 30, 2024, Hubei Henglong has paid RMB 10.0 million, equivalent to approximately $1.4 million, representing 25.0% of Shanghai IAT’s equity. The remaining consideration of RMB 10.0 million, equivalent to approximately $1.4 million, will be paid within two years after December 31, 2024. In June 2023, Hubei Henglong entered into an agreement with other parties to establish a limited partnership, Suzhou Mingzhi. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 30.0 million, equivalent to approximately $4.3 million. As of September 30, 2024, Hubei Henglong has paid RMB 15.0 million, equivalent to approximately $2.1 million, representing 19.74% of Suzhou Mingzhi’s equity. The remaining consideration of RMB 15.0 million, equivalent to approximately $2.1 million, will be paid in 2025.

Off-balance sheet arrangements

Off-balance sheet arrangements	9 Months Ended
Off-balance sheet arrangements	Sep. 30, 2024
Off-balance sheet arrangements
Off-balance sheet arrangements	23 . Off-balance sheet arrangements As of September 30, 2024 and December 31, 2023, the Company did not have any significant transactions, obligations or relationships that could be considered off-balance sheet arrangements.

Segment reporting

Segment reporting	9 Months Ended
Segment reporting	Sep. 30, 2024
Segment reporting
Segment reporting	24. Segment reporting The accounting policies of the product sectors, each entity manufactures and sells different products and represents a different product sector, are the same as those described in the summary of significant accounting policies disclosed in the Company’s 2023 Annual Report on Form 10-K except that the disaggregated financial results for the product sectors have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting them in making internal operating decisions. Generally, the Company evaluates performance based on stand-alone product sector operating income and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at current market prices. Each product sector is considered a reporting segment. As of September 30, 2024 and 2023, in addition to the holding company (Genesis), the Company had 15 product sectors, six of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering, Henglong, Jiulong, Wuhu, Henglong KYB, Hubei Henglong and Brazil Henglong. The other nine sectors were engaged in the development, manufacturing and sale of high polymer materials (Wuhu Hongrun), power steering parts (Shenyang), R&D services (Changchun Hualong), automobile steering columns (Jielong), provision of after-sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie), manufacture and sales of automotive motors and electromechanical integrated systems (Wuhan Hyoseong) and inspection and testing of automotive products (Zhirong). The Company’s product sector information for the three and nine months ended September 30, 2024 and 2023, is as follows (figures are in thousands of USD): Net Product Sales Net Income/(Loss) Three Months Ended Three Months Ended September 30, September 30, 2024 2023 2024 2023 Henglong $ 82,381 $ 63,580 $ 3,123 $ 2,715 Jiulong 17,237 15,605 (285) 302 Wuhu 13,305 11,841 125 (175) Hubei Henglong 18,684 27,602 382 2,572 Henglong KYB 51,809 33,491 5,025 4,619 Brazil Henglong 14,256 13,335 429 422 Other Entities 35,159 28,483 2,585 1,464 Total Segments 232,831 193,937 11,384 11,919 Corporate — — (3,411) (633) Eliminations (68,616) (56,396) 100 (42) Total $ 164,215 $ 137,541 $ 8,073 $ 11,244 Net Product Sales Net Income/(Loss) Nine Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Henglong $ 221,097 $ 192,503 $ 10,827 $ 6,755 Jiulong 52,704 52,106 1,861 1,360 Wuhu 31,163 26,726 (2,503) 471 Hubei Henglong 75,871 91,165 3,557 5,106 Henglong KYB 129,576 100,846 11,125 9,243 Brazil Henglong 38,931 36,264 2,269 3,459 Other Entities 99,260 75,057 4,339 4,497 Total Segments 648,602 574,667 31,475 30,891 Corporate — — (4,754) (1,489) Eliminations (186,385) (157,473) (629) 1,193 Total $ 462,217 $ 417,194 $ 26,092 $ 30,595

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 5,504	$ 9,488	$ 20,911	$ 26,774

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of presentation and sig_2

Basis of presentation and significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2024
Basis of presentation and significant accounting policies
Basis of Presentation	(a) Basis of Presentation Basis of Presentation – The accompanying condensed unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. The details of subsidiaries are disclosed in Note 1. Significant inter-company balances and transactions have been eliminated upon consolidation. The condensed unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions in Regulation S-X. Accordingly they do not include all of the information and footnotes required by such accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The accompanying interim condensed consolidated financial statements are unaudited, but in the opinion of the Company’s management, contain all necessary adjustments, which include normal recurring adjustments, for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2023 is derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results of operations for the three months and nine months ended September 30, 2024 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2024. Estimation - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Foreign Currencies - China Automotive and HLUSA maintain their books and records in United States Dollars, “USD,” their functional currency. The Company’s subsidiaries based in the PRC and Genesis maintain their books and records in Renminbi, “RMB,” their functional currency. The Company’s subsidiary based in Brazil maintains its books and records in Brazilian real, “BRL,” its functional currency. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 830, foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the rate of exchange prevailing at the balance sheet date for monetary items. Nonmonetary items are remeasured at historical rates. Income and expenses are remeasured at the rate in effect on the transaction dates. Transaction gains and losses, if any, are included in the determination of net income for the period.
Recent Accounting Pronouncements	(b) Recent Accounting Pronouncements No accounting standards newly issued during the three months ended September 30, 2024 had a material impact on the Company’s financial statements or disclosures. In November 2023, the FASB issued Accounting Standards Update 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 improves segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and application should be applied retrospectively, unless it is impracticable to do so. We are currently assessing the potential impact of adopting ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures. ASU 2023- 09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and application may be applied prospectively or retrospectively. We are currently assessing the potential impact of adopting ASU 2023-09 on our consolidated financial statements.
Significant Accounting Policies	(c) There have been no updates to the significant accounting policies set forth in the notes to the consolidated financial statements for the year ended December 31, 2023.

Organization and business (Tabl

Organization and business (Tables)	9 Months Ended
Organization and business (Tables)	Sep. 30, 2024
Organization and business
Schedule of equity method investments	Percentage Interest September 30, December 31, Name of Entity 2024 2023 Shashi Jiulong Power Steering Gears Co., Ltd., “Jiulong” 1 100.00 % 100.00 % Jingzhou Henglong Automotive Parts Co., Ltd., “Henglong” 2 100.00 % 100.00 % Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., “Shenyang” 3 70.00 % 70.00 % Wuhan Jielong Electric Power Steering Co., Ltd., “Jielong” 4 85.00 % 85.00 % Wuhu Henglong Automotive Steering System Co., Ltd., “Wuhu” 5 100.00 % 100.00 % Hubei Henglong Automotive System Group Co., Ltd., “Hubei Henglong” 6 100.00 % 100.00 % Jingzhou Henglong Automotive Technology (Testing) Center, “Testing Center” 7 100.00 % 100.00 % Chongqing Henglong Hongyan Automotive System Co., Ltd., “Chongqing Henglong” 8 70.00 % 70.00 % CAAS Brazil’s Imports and Trade In Automotive Parts Ltd., “Brazil Henglong” 9 95.84 % 95.84 % Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie” 10 85.00 % 85.00 % Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong” 11 100.00 % 100.00 % Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., “Henglong KYB” 12 60.00 % 66.60 % Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., “Wuhan Hyoseong” 13 51.00 % 51.00 % Wuhu Hongrun New Material Co., Ltd., “Wuhu Hongrun” 14 62.00 % 62.00 % Changchun Hualong Automotive Technology Co., Ltd., “Changchun Hualong” 15 100.00 % 100.00 % Hubei Zhirong Automobile Technology Co., Ltd., “Zhirong” 16 100.00 % 100.00 % 1. Jiulong was established in 1993 and mainly engages in the production of integral power steering gears for heavy-duty vehicles. 2. Henglong was established in 1997 and mainly engages in the production of rack and pinion power steering gears for cars and light duty vehicles. 3. Shenyang was established in 2002 and focuses on power steering parts for light duty vehicles. 4. Jielong was established in 2006 and mainly engages in the production and sales of automotive steering columns. 5. Wuhu was established in 2006 and mainly engages in the production and sales of automobile steering systems. 6. On March 7, 2007, Genesis established Hubei Henglong, formerly known as Jingzhou Hengsheng Automotive System Co., Ltd., its wholly-owned subsidiary, to engage in the production and sales of automotive steering systems. On July 8, 2012, Hubei Henglong changed its name to Hubei Henglong Automotive System Group Co., Ltd. 7. In December 2009, Henglong, a subsidiary of Genesis, formed Testing Center, which mainly engages in the research and development of new products. 8. On February 21, 2012, Hubei Henglong and SAIC-IVECO Hongyan Company, “SAIC-IVECO,” established a Sino-foreign joint venture company, Chongqing Henglong, to design, develop and manufacture both hydraulic and electric power steering systems and parts. 9. On August 21, 2012, Brazil Henglong was established as a Sino-foreign joint venture company by Hubei Henglong and two Brazilian citizens, Ozias Gaia Da Silva and Ademir Dal’ Evedove. Brazil Henglong engages mainly in the import and sales of automotive parts in Brazil. In May 2017, the Company obtained an additional 15.84% equity interest in Brazil Henglong for nil consideration. The Company retained its controlling interest in Brazil Henglong and the acquisition of the non-controlling interest was accounted for as an equity transaction. 10. In May 2014, together with Hubei Wanlong, Jielong formed a subsidiary, Wuhan Chuguanjie Automotive Science and Technology Ltd., “Wuhan Chuguanjie”, which mainly engages in research and development, manufacture and sales of automobile electronic systems and parts. Wuhan Chuguanjie is located in Wuhan, China. 11. In January 2015, Hubei Henglong formed Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., “Shanghai Henglong”, which mainly engages in the design and sales of automotive electronics. 12. In August 2018, Hubei Henglong and KYB (China) Investment Co., Ltd. (“KYB”) established Hubei Henglong KYB Automobile Electric Steering System Co., Ltd., “Henglong KYB”, which mainly engages in design, manufacture, sales and after-sales service of automobile electronic systems. Hubei Henglong owns 66.6% of the shares of this entity and has consolidated it since its establishment. In March 2024, KYB obtained an additional 6.6% equity interest in Henglong KYB for total consideration of RMB 110.0 million, equivalent to approximately $15.5 million. The Company retained its controlling interest in Henglong KYB. 13. In March 2019, Hubei Henglong and Hyoseong Electric Co., Ltd. established Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., “Wuhan Hyoseong”, which mainly engages in the design, manufacture and sales of automotive motors and electromechanical integrated systems. Hubei Henglong owns 51.0% of the shares of Wuhan Hyoseong and has consolidated it since its establishment. 14. In December 2019, Hubei Henglong formed Wuhu Hongrun New Material Co., Ltd., “Wuhu Hongrun”, which mainly engages in the development, manufacturing and sale of high polymer materials. Hubei Henglong owns 62.0% of the shares of Wuhu Hongrun and has consolidated it since its establishment. 15. In April 2020, Hubei Henglong acquired 100.0% of the equity interests of Changchun Hualong Automotive Technology Co., Ltd., “Changchun Hualong”, for total consideration of RMB 1.2 million, equivalent to approximately $0.2 million from an entity controlled by Hanlin Chen. Before the acquisition, 52.1% of the shares of Changchun Hualong were ultimately owned by Hanlin Chen and 47.9% of the shares were owned by third parties. Changchun Hualong mainly engages in design and R&D of automotive parts. 16. In June 2023, Hubei Henglong contributed certain equipment and intangible assets to Hubei Zhirong Automobile Technology Co., Ltd., “Zhirong”, representing 100% of Zhirong’s paid-up capital. Zhirong mainly engages in inspection and testing of automotive products.

Accounts and notes receivable_2

Accounts and notes receivable, net (Tables)	9 Months Ended
Accounts and notes receivable, net (Tables)	Sep. 30, 2024
Accounts and notes receivable, net
Summary of accounts and notes receivable	The Company’s accounts and notes receivable, net as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accounts receivable - unrelated parties $ 177,145 $ 164,231 Notes receivable - unrelated parties 131,138 112,605 Total accounts and notes receivable - unrelated parties 308,283 276,836 Less: allowance for credit losses - unrelated parties (12,768) (15,599) Accounts and notes receivable, net - unrelated parties 295,515 261,237 Accounts and notes receivable - related parties 20,191 9,573 Less: allowance for credit losses - related parties (1,533) (1,404) Accounts and notes receivable, net - related parties 18,658 8,169 Accounts and notes receivable, net $ 314,173 $ 269,406

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Sep. 30, 2024
Inventories
Schedule of inventories	The Company’s inventories as of September 30, 2024 and December 31, 2023 consisted of the following (figures are in thousands of USD): September 30, 2024 December 31, 2023 Raw materials $ 23,243 $ 28,505 Work in process 18,523 17,123 Finished goods 57,310 62,760 Fulfillment costs for development service 9,804 4,004 Total $ 108,880 $ 112,392

Long-term investments (Tables)

Long-term investments (Tables)	9 Months Ended
Long-term investments (Tables)	Sep. 30, 2024
Long-term investments
Summary of long-term investments	The Company’s long-term investments as of September 30, 2024 and December 31, 2023, are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Sentient AB $ 19,952 $ 20,417 Chongqing Venture Fund 12,530 13,158 Hubei Venture Fund 12,197 12,217 Suzhou Qingshan 8,453 8,409 Suzhou Venture Fund 2,267 3,387 Suzhou Mingzhi (1) 2,132 1,261 Shanghai IAT (2) 1,422 — Henglong Tianyu 732 793 Jiangsu Intelligent 551 531 Total $ 60,236 $ 60,173 (1) In June 2023, Hubei Henglong entered into an agreement with other parties to establish a limited partnership, Suzhou Mingzhi Intelligent Manufacturing Industry Investment Fund L.P., “Suzhou Mingzhi”. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 30.0 million, equivalent to approximately $4.3 million. As of September 30, 2024, Hubei Henglong has paid RMB 15.0 million, equivalent to approximately $2.1 million, representing 19.74% of Suzhou Mingzhi’s equity. As a limited partner, Hubei Henglong has more than virtually no influence over Suzhou Mingzhi’s operating and financial policies. The investment is accounted for using the equity method. (2) In July 2024, Hubei Henglong entered into an agreement with other parties to establish a company, Shanghai IAT International Automotive Technology Co.,Ltd, “Shanghai IAT”. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 20.0 million, equivalent to approximately $2.8 million. As of September 30, 2024, Hubei Henglong has paid RMB 10.0 million, equivalent to approximately $1.4 million, representing 25.0% of Shanghai IAT’s equity. The Company can exercise significant influence over Shanghai IAT’s operating and financial policies. The investment is accounted for using the equity method.
Schedule of condensed financial information of company's equity method investments	The condensed financial information of the Company’s significant equity investee for the three and nine months ended September 30, 2024 and 2023, Chongqing Venture Fund, is summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ — $ — $ — $ — Gross profit — — — — Loss from continuing operations (438) (3,729) (3,425) (2,342) Net loss $ (438) (3,729) $ (3,425) (2,342)

Property, plant and equipment_2

Property, plant and equipment, net (Tables)	9 Months Ended
Property, plant and equipment, net (Tables)	Sep. 30, 2024
Property, plant and equipment, net
Summary of property, plant and equipment, net	The Company’s property, plant and equipment, net as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Costs: Machinery and equipment $ 248,571 $ 241,761 Buildings 63,786 64,390 Electronic equipment 5,191 5,804 Motor vehicles 4,682 4,587 Construction in progress 13,002 11,821 Gross balance of property, plant and equipment 335,232 328,363 Less: Accumulated depreciation (1) (233,625) (226,436) Less: Impairment (904) (568) Balance of property, plant and equipment, net (2) $ 100,703 $ 101,359 (1) Depreciation charges were $4.7 million and $3.9 million for the three months ended September 30, 2024 and 2023, respectively, and $13.7 million and $12.7 million for the nine months ended September 30, 2024 and 2023, respectively. (2) As of September 30, 2024 and December 31, 2023, the Company pledged property, plant and equipment and land use rights with net book value of approximately $35.9 million and $43.3 million, respectively, as security for its comprehensive credit facilities with the banks in China.

Loans (Tables)

Loans (Tables)	9 Months Ended
Loans (Tables)	Sep. 30, 2024
Loans
Schedule of loans	Loans consist of the following as of September 30, 2024 and December 31, 2023 (figures are in thousands of USD): September 30, 2024 December 31, 2023 Short-term bank loans $ 59,029 $ 48,005 Current portion of long-term bank loans 715 — Subtotal 59,744 48,005 Long-term bank loans $ 958 $ 1,221 Less: Current portion of long-term bank loans (715) — Subtotal 243 1,221 Total $ 59,987 $ 49,226

Accounts and notes payable (Tab

Accounts and notes payable (Tables)	9 Months Ended
Accounts and notes payable (Tables)	Sep. 30, 2024
Accounts and notes payable
Summary of accounts and notes payable	The Company’s accounts and notes payable as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accounts payable - unrelated parties $ 165,893 $ 147,712 Notes payable - unrelated parties (1) 93,241 93,027 Accounts and notes payable - unrelated parties 259,134 240,739 Accounts and notes payable - related parties 12,658 12,839 Total $ 271,792 $ 253,578 (1) Notes payable represent payables in the form of notes issued by the bank. As of September 30, 2024 and December 31, 2023, the Company has pledged cash of $40.0 million and $39.3 million, respectively. As of September 30, 2024 and December 31, 2023, the Company has pledged notes receivable of $2.5 million and $11.5 million, respectively, as collateral for banks to endorse the payment of the Company’s notes payable to the noteholders upon maturity. The Company entered into credit facility agreements with various banks, which were secured by property, plant and equipment and land use rights of the Company. As of September 30, 2024 and December 31, 2023, the Company has used credit facilities for issue of bank notes with amount of $41.8 million and $47.4 million .

Accrued expenses and other pa_2

Accrued expenses and other payables (Tables)	9 Months Ended
Accrued expenses and other payables (Tables)	Sep. 30, 2024
Accrued expenses and other payables
Summary of accrued expenses and other payables	The Company’s accrued expenses and other payables as of September 30, 2024 and December 31, 2023 are summarized as follows (figures are in thousands of USD): September 30, 2024 December 31, 2023 Accrued expenses $ 12,614 $ 10,464 Warranty reserves (1) 36,108 30,440 Payables for overseas transportation and custom clearance — 400 Dividends payable to common shareholders (See Note 13) 14,830 — Dividends payable to holders of non-controlling interests 428 424 Other payables 1,273 3,043 Total $ 65,253 $ 44,771 (1) The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties are based on, among other things, historical experience, product changes, material expenses, services and transportation expenses arising from the manufactured products. Estimates will be adjusted on the basis of actual claims and circumstances.
Summary of product warranty liability	For the three and nine months ended September 30, 2024 and 2023, the warranties activities were as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 32,910 $ 33,948 $ 30,440 $ 32,435 Additions during the period 5,388 4,164 14,247 13,592 Settlement within the period (2,790) (3,340) (8,983) (9,973) Foreign currency translation gain/(loss) 600 217 404 (1,065) Balance at end of the period $ 36,108 $ 34,989 $ 36,108 $ 34,989

Additional paid-in capital (Tab

Additional paid-in capital (Tables)	9 Months Ended
Additional paid-in capital (Tables)	Sep. 30, 2024
Additional paid-in capital
Summary of additional paid-in capital	The Company’s positions in respect of the amounts of additional paid-in capital for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 69,722 $ 63,731 $ 63,731 $ 63,731 Contribution by the non-controlling interest of Henglong KYB — — 5,991 — Balance at end of the period $ 69,722 $ 63,731 $ 69,722 $ 63,731

Retained earnings (Tables)

Retained earnings (Tables)	9 Months Ended
Retained earnings (Tables)	Sep. 30, 2024
Retained earnings
Summary of appropriated retained earnings	The Company’s activities in respect of the amounts of appropriated retained earnings for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 12,174 $ 11,851 $ 11,851 $ 11,851 Appropriation of retained earnings — — 323 — Balance at end of the period $ 12,174 $ 11,851 $ 12,174 $ 11,851
Summary of unappropriated retained earnings	The Company’s activities in respect of the amounts of the unappropriated retained earnings for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 299,916 $ 264,460 $ 284,832 $ 247,174 Net income attributable to parent company 5,511 9,495 20,933 26,796 Accretion of redeemable non-controlling interests (7) (7) (22) (22) Appropriation of retained earnings — — (323) — Dividend payables to common shareholders (1) (24,149) — (24,149) — Balance at end of the period $ 281,271 $ 273,948 $ 281,271 $ 273,948 (1) To celebrate 20 th anniversary of Nasdaq listing, the Company announced that the Board of Directors has declared a special cash dividend of $0.8 per common share on July 19, 2024 . The aggregate amount of the special dividend payment was $24.1 million. As of September 30, 2024, $9.3 million of the dividend has been paid in August 2024 and the remaining $14.8 million will be paid before December 31, 2024.

Accumulated other comprehensi_2

Accumulated other comprehensive income (Tables)	9 Months Ended
Accumulated other comprehensive income (Tables)	Sep. 30, 2024
Accumulated other comprehensive income
Summary of accumulated other comprehensive income	The Company’s activities in respect of the amounts of accumulated other comprehensive income for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ (11,227) $ (14,936) $ (8,258) $ (3,413) Foreign currency translation adjustment attributable to parent company 5,859 1,739 2,890 (9,784) Balance at end of the period $ (5,368) $ (13,197) $ (5,368) $ (13,197)

Non-controlling interests (Tabl

Non-controlling interests (Tables)	9 Months Ended
Non-controlling interests (Tables)	Sep. 30, 2024
Non-controlling interests
Summary of non-controlling interests	The Company’s activities in respect of the amounts of the non-controlling interests’ equity for the three and nine months ended September 30, 2024 and 2023, are summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance at beginning of the period $ 35,230 $ 16,423 $ 23,345 $ 15,182 Net income attributable to non-controlling interests 2,562 1,749 5,159 3,799 Foreign currency translation adjustment attributable to non-controlling interests 725 1,841 500 1,032 Contribution by the non-controlling interest of Henglong KYB — — 9,513 — Balance at end of the period $ 38,517 $ 20,013 $ 38,517 $ 20,013

Financial (expense)_income, n_2

Financial (expense)/income, net (Tables)	9 Months Ended
Financial (expense)/income, net (Tables)	Sep. 30, 2024
Financial (expense)/income, net
Summary of recorded financial (expense)/income, net	During the three and nine months ended September 30, 2024 and 2023, the Company recorded financial income, net which is summarized as follows (figures are in thousands of USD): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest income $ 508 $ 322 $ 1,345 $ 886 Foreign exchange (loss)/gain, net (579) (130) (1,967) 2,978 Bank charges (96) (29) (247) (160) Total financial (expense)/income, net $ (167) $ 163 $ (869) $ 3,704

Income per share (Tables)

Income per share (Tables)	9 Months Ended
Income per share (Tables)	Sep. 30, 2024
Income per share
Schedule of basic and diluted income per share	The calculations of basic and diluted income per share attributable to the parent company for the three months ended September 30, 2024 and 2023, were as follows (figures are in thousands of USD, except share and per share amounts): Three Months Ended September 30, 2024 2023 Numerator: Net income attributable to the parent company’s common shareholders - Basic and Diluted $ 5,504 $ 9,488 Denominator: Weighted average shares outstanding 30,185,702 30,185,702 Dilutive effects of stock options — 3,661 Denominator for dilutive income per share - Diluted 30,185,702 30,189,363 Net income per share attributable to parent company’s common shareholders - Basic $ 0.18 $ 0.31 Net income per share attributable to parent company’s common shareholders - Diluted $ 0.18 $ 0.31 The calculations of basic and diluted income per share attributable to the parent company for the nine months ended September 30, 2024 and 2023, were as follows (figures are in thousands of USD, except share and per share amounts): Nine Months Ended September 30, 2024 2023 Numerator: Net income attributable to the parent company’s common shareholders - Basic and Diluted $ 20,911 $ 26,774 Denominator: Weighted average shares outstanding 30,185,702 30,185,702 Dilutive effects of stock options — 4,958 Denominator for dilutive income per share - Diluted 30,185,702 30,190,660 Net income per share attributable to parent company’s common shareholders – Basic $ 0.69 $ 0.89 Net income per share attributable to parent company’s common shareholders - Diluted $ 0.69 $ 0.89

Related party transactions an_2

Related party transactions and balances (Tables)	9 Months Ended
Related party transactions and balances (Tables)	Sep. 30, 2024
Related party transactions and balances
Schedule of related party transactions and balances	Related party transactions are as follows (figures are in thousands of USD): Related party sales Three Months Ended September 30, 2024 2023 Merchandise sold to related parties $ 13,703 $ 8,407 Materials and others sold to related parties 410 233 Rental income obtained from related parties 80 82 Total $ 14,193 $ 8,722 Nine Months Ended September 30, 2024 2023 Merchandise sold to related parties $ 38,613 $ 35,177 Materials and others sold to related parties 1,580 1,560 Rental income obtained from related parties 275 221 Total $ 40,468 $ 36,958 Related party purchases Three Months Ended September 30, 2024 2023 Materials purchased from related parties $ 7,217 $ 6,266 Equipment purchased from related parties 1,427 2,820 Others purchased from related parties 59 20 Total $ 8,703 $ 9,106 Nine Months Ended September 30, 2024 2023 Materials purchased from related parties $ 21,874 $ 20,592 Equipment purchased from related parties 3,515 3,453 Others purchased from related parties 175 44 Total $ 25,564 $ 24,089 Related party receivables September 30, 2024 December 31, 2023 Accounts and notes receivable, net from related parties $ 18,658 $ 8,169 Related party advance payments September 30, 2024 December 31, 2023 Advance payments for property, plant and equipment to related parties $ 6,923 $ 5,759 Advance payments and others to related parties 1,989 1,991 Total $ 8,912 $ 7,750 Related party payables September 30, 2024 December 31, 2023 Accounts and notes payable $ 12,658 $ 12,839

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
Commitments and contingencies (Tables)	Sep. 30, 2024
Commitments and contingencies
Summary of major commitments and contingencies	In addition to the bank loans, notes payables and the related interest and other payables, the following table summarizes the Company’s major commitments and contingencies as of September 30, 2024 (figures are in thousands of USD): Payment obligations by period 2024 2025 2026 Thereafter Total Obligations for investment contracts (1) $ — $ 2,854 $ 714 $ — $ 3,568 Obligations for purchasing and service agreements 26,498 3,945 — — 30,443 Total $ 26,498 $ 6,799 $ 714 $ — $ 34,011 (1) In July 2024, Hubei Henglong entered into an agreement with other parties to establish an associate company, Shanghai IAT. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 20.0 million, equivalent to approximately $2.8 million. As of September 30, 2024, Hubei Henglong has paid RMB 10.0 million, equivalent to approximately $1.4 million, representing 25.0% of Shanghai IAT’s equity. The remaining consideration of RMB 10.0 million, equivalent to approximately $1.4 million, will be paid within two years after December 31, 2024.

Segment reporting (Tables)

Segment reporting (Tables)	9 Months Ended
Segment reporting (Tables)	Sep. 30, 2024
Segment reporting
Schedule of product sector information by segment reporting	The Company’s product sector information for the three and nine months ended September 30, 2024 and 2023, is as follows (figures are in thousands of USD): Net Product Sales Net Income/(Loss) Three Months Ended Three Months Ended September 30, September 30, 2024 2023 2024 2023 Henglong $ 82,381 $ 63,580 $ 3,123 $ 2,715 Jiulong 17,237 15,605 (285) 302 Wuhu 13,305 11,841 125 (175) Hubei Henglong 18,684 27,602 382 2,572 Henglong KYB 51,809 33,491 5,025 4,619 Brazil Henglong 14,256 13,335 429 422 Other Entities 35,159 28,483 2,585 1,464 Total Segments 232,831 193,937 11,384 11,919 Corporate — — (3,411) (633) Eliminations (68,616) (56,396) 100 (42) Total $ 164,215 $ 137,541 $ 8,073 $ 11,244 Net Product Sales Net Income/(Loss) Nine Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Henglong $ 221,097 $ 192,503 $ 10,827 $ 6,755 Jiulong 52,704 52,106 1,861 1,360 Wuhu 31,163 26,726 (2,503) 471 Hubei Henglong 75,871 91,165 3,557 5,106 Henglong KYB 129,576 100,846 11,125 9,243 Brazil Henglong 38,931 36,264 2,269 3,459 Other Entities 99,260 75,057 4,339 4,497 Total Segments 648,602 574,667 31,475 30,891 Corporate — — (4,754) (1,489) Eliminations (186,385) (157,473) (629) 1,193 Total $ 462,217 $ 417,194 $ 26,092 $ 30,595

Organization and business (Deta

Organization and business (Details)	Sep. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Apr. 30, 2020	Mar. 31, 2019	Aug. 31, 2018
Shashi Jiulong Power Steering Gears Co., Ltd., "Jiulong"
Organization and business
Percentage Interest	100%		100%
Jingzhou Henglong Automotive Parts Co., Ltd., "Henglong"
Organization and business
Percentage Interest	100%		100%
Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., "Shenyang"
Organization and business
Percentage Interest	70%		70%
Wuhan Jielong Electric Power Steering Co., Ltd., "Jielong"
Organization and business
Percentage Interest	85%		85%
Wuhu Henglong Automotive Steering System Co., Ltd., "Wuhu"
Organization and business
Percentage Interest	100%		100%
Hubei Henglong Automotive System Group Co., Ltd., "Hubei Henglong"
Organization and business
Percentage Interest	100%		100%
Jingzhou Henglong Automotive Technology (Testing) Center, "Testing Center"
Organization and business
Percentage Interest	100%		100%
Chongqing Henglong Hongyan Automotive System Co., Ltd "Chongqing Henglong"
Organization and business
Percentage Interest	70%		70%
CAAS Brazil's Imports and Trade In Automotive Parts Ltd., "Brazil Henglong"
Organization and business
Percentage Interest	95.84%		95.84%
Wuhan Chuguanjie Automotive Science and Technology Ltd., "Wuhan Chuguanjie"
Organization and business
Percentage Interest	85%		85%
Hubei Henglong Group Shanghai Automotive Electronics Research and Development Ltd., "Shanghai Henglong"
Organization and business
Percentage Interest	100%		100%
Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., "Henglong KYB"
Organization and business
Percentage Interest	60%	6.60%	66.60%				66.60%
Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., "Wuhan Hyoseong"
Organization and business
Percentage Interest	51%		51%			51%
Wuhu Hongrun New Material Co., Ltd., "Wuhu Hongrun"
Organization and business
Percentage Interest	62%		62%
Changchun Hualong Automotive Technology Co Ltd Changchun Hualong
Organization and business
Percentage Interest	100%		100%		100%
Hubei Zhirong Automobile Technology Co., Ltd., "Zhirong"
Organization and business
Percentage Interest	100%		100%	100%

Organization and business - Add

Organization and business - Additional Information (Details) ¥ in Millions, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
	Apr. 30, 2020 CNY (¥)	Apr. 30, 2020 USD ($)	Mar. 31, 2024 CNY (¥)	Mar. 31, 2024 USD ($)	Sep. 30, 2024 item	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2019	Mar. 31, 2019	Aug. 31, 2018	May 31, 2017
Organization and business
Number of vehicles manufactured					60
Number of largest privately owned car manufacturers					3
Brazil Henglong
Organization and business
Equity method investment, ownership percentage (as a percent)											15.84%
Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., "Henglong KYB"
Organization and business
Equity method investment, ownership percentage (as a percent)			6.60%	6.60%	60%	66.60%				66.60%
Consideration for additional equity interest acquired \| ¥			¥ 110
Changchun Hualong Automotive Technology Co Ltd Changchun Hualong
Organization and business
Equity method investment, ownership percentage (as a percent)	100%	100%			100%	100%
Consideration for additional equity interest acquired	¥ 1.2	$ 0.2
Third Party
Organization and business
Equity method investment, ownership percentage (as a percent)	47.90%	47.90%
Hubei Zhirong Automobile Technology Co., Ltd., "Zhirong"
Organization and business
Equity method investment, ownership percentage (as a percent)					100%	100%	100%
Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., "Wuhan Hyoseong"
Organization and business
Equity method investment, ownership percentage (as a percent)					51%	51%			51%
Hanlin Chen
Organization and business
Equity method investment, ownership percentage (as a percent)	52.10%	52.10%			57.22%
Hubei Henglong formed Wuhu Hongrun New Material Co., Ltd "Wuhu Hongrun"
Organization and business
Equity method investment, ownership percentage (as a percent)								62%
Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., "Henglong KYB"
Organization and business
Consideration for additional equity interest acquired \| $				$ 15.5
Hubei Henglong & KYB Automobile Electric Steering System Co., Ltd., "Henglong KYB" \| Brazil Henglong
Organization and business
Equity method investment, ownership percentage (as a percent)											0%

Accounts and notes receivable_3

Accounts and notes receivable, net - Advance Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts and notes receivable, net
Accounts and notes receivable, net	$ 314,173	$ 269,406
Unrelated parties
Accounts and notes receivable, net
Accounts receivable - unrelated parties	177,145	164,231
Notes receivable - unrelated parties	131,138	112,605
Total accounts and notes receivable	308,283	276,836
Less: allowance for credit losses	(12,768)	(15,599)
Accounts and notes receivable, net	295,515	261,237
Related parties
Accounts and notes receivable, net
Accounts and notes receivable - related parties	20,191	9,573
Less: allowance for credit losses	(1,533)	(1,404)
Accounts and notes receivable, net	$ 18,658	$ 8,169

Accounts and notes receivable_4

Accounts and notes receivable, net - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) customer	Sep. 30, 2023 USD ($) customer	Sep. 30, 2024 USD ($) customer	Sep. 30, 2023 USD ($) customer	Dec. 31, 2023 USD ($)
Accounts and notes receivable, net
Notes receivable pledged as collateral	$ 2,500		$ 2,500		$ 11,500
Accounts receivable pledged as collateral	400		400		$ 500
Allowance for accounts and notes receivable	$ 900	$ 10	$ 900	$ 500
Five largest customers \| Revenue \| Product Concentration Risk
Accounts and notes receivable, net
Number of customers \| customer	5	5	5	5
Concentration risk (as a percent)	50.30%	42.20%	49.20%	40.90%
Five largest customers \| Accounts receivable \| Credit concentration risk
Accounts and notes receivable, net
Concentration risk (as a percent)				5.30%
Customer One \| Revenue \| Product Concentration Risk
Accounts and notes receivable, net
Concentration risk (as a percent)	17.80%	18.30%	14.80%	19.40%
Customer One \| Accounts receivable \| Credit concentration risk
Accounts and notes receivable, net
Concentration risk (as a percent)			10.30%
Customer Two \| Revenue \| Product Concentration Risk
Accounts and notes receivable, net
Concentration risk (as a percent)			13.60%
Customer Two \| Accounts receivable \| Credit concentration risk
Accounts and notes receivable, net
Concentration risk (as a percent)			3.30%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventories
Raw materials	$ 23,243	$ 28,505
Work in process	18,523	17,123
Finished goods	57,310	62,760
Fulfillment costs for development service	9,804	4,004
Total	$ 108,880	$ 112,392

Inventories - Additional inform

Inventories - Additional information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Inventories
Inventory write-down to cost of product sold	$ 1.4	$ 2.1	$ 7.3	$ 7

Long-term investments (Details)

Long-term investments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Long-term investments
Long-term investments	$ 60,236	$ 60,173
Chongqing Venture Fund
Long-term investments
Long-term investments	12,530	13,158
Hubei Venture Fund
Long-term investments
Long-term investments	12,197	12,217
Suzhou Qingshan
Long-term investments
Long-term investments	8,453	8,409
Suzhou Venture Fund
Long-term investments
Long-term investments	2,267	3,387
Suzhou Mingzhi
Long-term investments
Long-term investments	2,132	1,261
Sentient AB
Long-term investments
Long-term investments	19,952	20,417
Shanghai IAT
Long-term investments
Long-term investments	1,422
Henglong Tianyu
Long-term investments
Long-term investments	732	793
Jiangsu Intelligent
Long-term investments
Long-term investments	$ 551	$ 531

Long-term investments - Summari

Long-term investments - Summarizes of Condensed Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Long-term investments
Revenue	$ 164,215	$ 137,541	$ 462,217	$ 417,194
Gross profit	26,356	24,757	79,727	69,093
Net Income (Loss)	5,504	9,488	20,911	26,774
Equity Method Investments \| Chongqing Venture Fund and Suzhou Venture Fund
Long-term investments
Loss from continuing operations	(438)	(3,729)	(3,425)	(2,342)
Net Income (Loss)	$ (438)	$ (3,729)	$ (3,425)	$ (2,342)

Long-term investments - Additio

Long-term investments - Additional information (Details) ¥ in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2024 CNY (¥)	Sep. 30, 2024 USD ($)	Jul. 31, 2024 CNY (¥)	Jul. 31, 2024 USD ($)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)
Suzhou Mingzhi
Long-term investments
Investment payable					¥ 30	$ 4.3
Consideration paid	¥ 15	$ 2.1
Percentage of equity interest held	19.74%	19.74%
Equity method investment, ownership percentage (as a percent)	19.74%	19.74%
Shanghai IAT
Long-term investments
Investment payable			¥ 20	$ 2.8
Consideration paid	¥ 10	$ 1.4
Equity method investment, ownership percentage (as a percent)	25%	25%

Property, plant and equipment_3

Property, plant and equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, plant and equipment, net
Gross balance of property, plant and equipment	$ 335,232	$ 328,363
Less: Accumulated depreciation	(233,625)	(226,436)
Less: Impairment	(904)	(568)
Balance of property, plant and equipment, net	100,703	101,359
Machinery and equipment
Property, plant and equipment, net
Gross balance of property, plant and equipment	248,571	241,761
Buildings
Property, plant and equipment, net
Gross balance of property, plant and equipment	63,786	64,390
Electronic equipment
Property, plant and equipment, net
Gross balance of property, plant and equipment	5,191	5,804
Motor vehicles
Property, plant and equipment, net
Gross balance of property, plant and equipment	4,682	4,587
Construction in progress
Property, plant and equipment, net
Gross balance of property, plant and equipment	$ 13,002	$ 11,821

Property, plant and equipment_4

Property, plant and equipment, net - Additional information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, plant and equipment, net
Depreciation	$ 4.7	$ 3.9	$ 13.7	$ 12.7
Pledged property, plant and equipment and land use rights with net book value	$ 35.9		$ 35.9		$ 43.3

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Loans
Short-term bank loans	$ 59,029	$ 48,005
Current portion of long-term bank loans	715
Subtotal	59,744	48,005
Long-term bank loans	958	1,221
Less: Current portion of long-term bank loans	(715)
Subtotal	243	1,221
Total	$ 59,987	$ 49,226

Loans - Additional Information

Loans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Loans
Total credit facility	$ 185.5	$ 185.5	$ 195.8
Loan drawn on aggregate amount		$ 53.7	$ 49.2
Weighted average interest rate	2.50%		2.60%

Accounts and notes payable (Det

Accounts and notes payable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts and notes payable
Accounts and notes payable	$ 271,792	$ 253,578
Unrelated parties
Accounts and notes payable
Accounts payable - unrelated parties	165,893	147,712
Notes payable - unrelated parties	93,241	93,027
Accounts and notes payable	259,134	240,739
Related parties
Accounts and notes payable
Accounts and notes payable	$ 12,658	$ 12,839

Accounts and notes payable - Ad

Accounts and notes payable - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Accounts and notes payable
Cash pledged as collateral	$ 40	$ 39.3
Notes receivable pledged as collateral	2.5	11.5
Property, plant and equipment and land use right pledged as collateral	$ 41.8	$ 47.4

Accrued expenses and other pa_3

Accrued expenses and other payables (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued expenses and other payables
Accrued expenses	$ 12,614	$ 10,464
Warranty reserves	36,108	30,440
Payables for overseas transportation and custom clearance		400
Dividends payable to common shareholders (See Note 13)	14,830
Dividends payable to holders of non-controlling interests	428	424
Other payables	1,273	3,043
Total	$ 65,253	$ 44,771

Accrued expenses and other pa_4

Accrued expenses and other payables - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accrued expenses and other payables
Balance at beginning of the period	$ 32,910	$ 33,948	$ 30,440	$ 32,435
Additions during the period	5,388	4,164	14,247	13,592
Settlement within the period	(2,790)	(3,340)	(8,983)	(9,973)
Foreign currency translation gain/(loss)	600	217	404	(1,065)
Balance at end of the period	$ 36,108	$ 34,989	$ 36,108	$ 34,989

Fair value measurement (Details

Fair value measurement (Details) - Foreign exchange forward contracts - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Fair value measurement
Foreign exchange forward contracts mature	12 months
Loss from change in fair value of foreign exchange forward contracts	$ 0	$ 40

Redeemable non-controlling in_2

Redeemable non-controlling interests (Details) $ in Thousands, ¥ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2020 CNY (¥)	Sep. 30, 2020 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Redeemable non-controlling interests
Percentage of interest, redemption price	6%	6%
Accretion of temporary equity redemption value					$ 600
Temporary equity accretion to redemption value, adjustment			$ 7	$ 7	$ 22	$ 22
Hubei Venture Fund
Redeemable non-controlling interests
Issuance of shares by a subsidiary	¥ 5	$ 700

Additional paid-in capital (Det

Additional paid-in capital (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Additional paid-in capital
Balance at beginning of the period	$ 69,722	$ 63,731	$ 63,731	$ 63,731
Contribution by the non-controlling interest of Henglong KYB	0	0	5,991	0
Balance at end of the period	$ 69,722	$ 63,731	$ 69,722	$ 63,731

Retained earnings (Details)

Retained earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Retained earnings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retained earnings
Statutory accounting practices statutory surplus required percentage			10%
Percentage of statutory surplus reserve			50%
Statutory accounting practices statutory capital and surplus required	$ 0		$ 0
Statutory accounting practices statutory capital and surplus reserve	$ 0	$ 0	$ 300	$ 0

Retained earnings - Appropriate

Retained earnings - Appropriated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retained earnings
Balance at beginning of the period			$ 11,851
Balance at end of the period	$ 12,174		12,174
Appropriated
Retained earnings
Balance at beginning of the period	12,174	$ 11,851	11,851	$ 11,851
Appropriation of retained earnings	0	0	323	0
Balance at end of the period	$ 12,174	$ 11,851	$ 12,174	$ 11,851

Retained earnings - Unappropria

Retained earnings - Unappropriated (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retained earnings
Balance at beginning of the period				$ 284,832
Accretion of redeemable non-controlling interests		$ (7)	$ (7)	(22)	$ (22)
Dividends paid to the common shareholders				9,318
Balance at end of the period		281,271		281,271
Q3 dividend
Retained earnings
Dividend payables to common shareholders		24,100
Dividends paid to the common shareholders	$ 9,300
Dividends payable to holders remaining		$ 14,800		14,800
Dividend of per common share		$ 0.8
Dividends payable, date declared		Jul. 19, 2024
Unappropriated
Retained earnings
Balance at beginning of the period		$ 299,916	264,460	284,832	247,174
Net income attributable to parent company		5,511	9,495	20,933	26,796
Accretion of redeemable non-controlling interests		(7)	(7)	(22)	(22)
Appropriation of retained earnings				(323)
Dividend payables to common shareholders		(24,149)		(24,149)
Balance at end of the period		$ 281,271	$ 273,948	$ 281,271	$ 273,948

Accumulated other comprehensi_3

Accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated other comprehensive income
Balance at beginning of the period	$ (11,227)	$ (14,936)	$ (8,258)	$ (3,413)
Foreign currency translation adjustment attributable to parent company	5,859	1,739	2,890	(9,784)
Balance at end of the period	$ (5,368)	$ (13,197)	$ (5,368)	$ (13,197)

Treasury stock (Details)

Treasury stock (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended	12 Months Ended
	Mar. 29, 2022	Sep. 30, 2024	Dec. 31, 2023	Mar. 30, 2023
Treasury stock
Stock repurchased during period		666,074	666,074
Treasury stock, shares		2,152,600	2,152,600
Maximum
Treasury stock
Stock repurchased during period, value	$ 5
Share price per share through March 30, 2024				$ 4

Non-controlling interests (Deta

Non-controlling interests (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Non-controlling interests
Balance at beginning of the period	$ 35,230	$ 16,423	$ 23,345	$ 15,182
Net income attributable to non-controlling interests	2,562	1,749	5,159	3,799
Foreign currency translation adjustment attributable to non-controlling interests	725	1,841	500	1,032
Contribution by the non-controlling interest of Henglong KYB			9,513
Balance at end of the period	$ 38,517	$ 20,013	$ 38,517	$ 20,013

Net product sales (Details)

Net product sales (Details) - USD ($) $ in Millions	9 Months Ended
Net product sales (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Net product sales
Contract with customer, deposits	$ 11.5		$ 8.6
Revenue from contract with customer, including assessed tax	5.6	$ 6.9
Customer deposits recognized as net product sales revenue	2.7	4.1
Customer deposits from the beginning balance recognized as net product sales revenue	$ 2.5	$ 2.6

Financial (expense)_income, n_3

Financial (expense)/income, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financial (expense)/income, net
Interest income	$ 508	$ 322	$ 1,345	$ 886
Foreign exchange (loss)/gain, net	(579)	(130)	(1,967)	2,978
Bank charges	(96)	(29)	(247)	(160)
Total financial (expense)/income, net	$ (167)	$ 163	$ (869)	$ 3,704

Income per share (Details)

Income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income attributable to the parent company's common shareholders - Basic and Diluted	$ 5,504	$ 9,488	$ 20,911	$ 26,774
Denominator:
Weighted average shares outstanding (in shares)	30,185,702	30,185,702	30,185,702	30,185,702
Dilutive effects of stock options		3,661		4,958
Denominator for dilutive income per share - Diluted	30,185,702	30,189,363	30,185,702	30,190,660
Net income attributable to parent company's common shareholders per share -
Net income per share attributable to parent company's common shareholders - Basic (in dollars per share)	$ 0.18	$ 0.31	$ 0.69	$ 0.89
Net income per share attributable to parent company's common shareholders - Diluted (in dollars per share)	$ 0.18	$ 0.31	$ 0.69	$ 0.89

Income Per Share - Additional i

Income Per Share - Additional information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Employee Stock Option
Income Per Share
Ordinary shares excluded from the computation of diluted net loss per ordinary share	22,500	22,500	22,500	22,500

Significant concentrations (Det

Significant concentrations (Details)	9 Months Ended
Significant concentrations (Details)	Sep. 30, 2024
Significant concentrations
Minimum percentage of profit allocated to foreign investment	10%
Registered capital percentage	50%

Related party transactions an_3

Related party transactions and balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Related party sales
Revenue	$ 164,215	$ 137,541	$ 462,217	$ 417,194
Related party payables
Accounts and notes payable	271,792		271,792		$ 253,578
Related parties
Related party sales
Revenue	13,703	8,407	38,613	35,177
Related party purchases
Related party purchases	8,703	9,106	25,564	24,089
Related party receivables
Accounts and notes receivable, net from related parties	18,658		18,658		8,169
Related party advance payments
Advance payments for property, plant and equipment to related parties	6,923		6,923		5,759
Advance payments and others to related parties	1,989		1,989		1,991
Total	8,912		8,912		7,750
Related party payables
Accounts and notes payable	12,658		12,658		$ 12,839
Merchandise sales \| Related parties
Related party sales
Revenue	13,703	8,407	38,613	35,177
Material and other sales \| Related parties
Related party sales
Revenue	410	233	1,580	1,560
Rental income \| Related parties
Related party sales
Revenue	80	82	275	221
Related party sales \| Related parties
Related party sales
Revenue	14,193	8,722	40,468	36,958
Materials \| Related parties
Related party purchases
Related party purchases	7,217	6,266	21,874	20,592
Equipment \| Related parties
Related party purchases
Related party purchases	1,427	2,820	3,515	3,453
Others purchased \| Related parties
Related party purchases
Related party purchases	$ 59	$ 20	$ 175	$ 44

Related party transactions an_4

Related party transactions and balances - Additional information (Details)	Sep. 30, 2024	Apr. 30, 2020
Hanlin Chen
Related party transactions and balances
Percentage Interest	57.22%	52.10%

Commitments and contingencies_2

Commitments and contingencies (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Commitments and contingencies
2024	$ 26,498
2025	6,799
2026	714
Total	34,011
Obligations for investment contracts
Commitments and contingencies
2025	2,854
2026	714
Total	3,568
Obligations for purchasing and service agreements
Commitments and contingencies
2024	26,498
2025	3,945
Total	$ 30,443

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) ¥ in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2024 CNY (¥)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Jul. 31, 2024 CNY (¥)	Jul. 31, 2024 USD ($)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)
Shanghai IAT
Commitments and contingencies
Investment payable				¥ 20	$ 2.8
Consideration paid	¥ 10	$ 1.4
Equity method investment, ownership percentage (as a percent)	25%		25%
Consideration payable	¥ 10		$ 1.4
Consideration payable term	2 years	2 years
Suzhou Mingzhi
Commitments and contingencies
Investment payable						¥ 30	$ 4.3
Consideration paid	¥ 15	$ 2.1
Equity method investment, ownership percentage (as a percent)	19.74%		19.74%
Consideration payable	¥ 15		$ 2.1

Segment reporting - Additional

Segment reporting - Additional information (Details)	Sep. 30, 2024 product item	Sep. 30, 2023 item product
Segment reporting
Number of product sectors \| product	15	15
Number of principal profit makers	6	6
Number of sectors engaged in development, manufacturing and sale of products	9	9

Segment reporting - Product sec

Segment reporting - Product sector information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment reporting
Net Product Sales	$ 164,215	$ 137,541	$ 462,217	$ 417,194
Net Income/(Loss)	8,073	11,244	26,092	30,595
Operating segments \| Corporate
Segment reporting
Net Product Sales	0	0
Net Income/(Loss)	(3,411)	(633)	(4,754)	(1,489)
Eliminations
Segment reporting
Net Product Sales	(68,616)	(56,396)	(186,385)	(157,473)
Net Income/(Loss)	100	(42)	(629)	1,193
Henglong \| Operating segments
Segment reporting
Net Product Sales	82,381	63,580	221,097	192,503
Net Income/(Loss)	3,123	2,715	10,827	6,755
Jiulong \| Operating segments
Segment reporting
Net Product Sales	17,237	15,605	52,704	52,106
Net Income/(Loss)	(285)	302	1,861	1,360
Wuhu \| Operating segments
Segment reporting
Net Product Sales	13,305	11,841	31,163	26,726
Net Income/(Loss)	125	(175)	(2,503)	471
Hubei Henglong \| Operating segments
Segment reporting
Net Product Sales	18,684	27,602	75,871	91,165
Net Income/(Loss)	382	2,572	3,557	5,106
Henglong KYB \| Operating segments
Segment reporting
Net Product Sales	51,809	33,491	129,576	100,846
Net Income/(Loss)	5,025	4,619	11,125	9,243
Brazil Henglong \| Operating segments
Segment reporting
Net Product Sales	14,256	13,335	38,931	36,264
Net Income/(Loss)	429	422	2,269	3,459
Other Entities \| Operating segments
Segment reporting
Net Product Sales	35,159	28,483	99,260	75,057
Net Income/(Loss)	2,585	1,464	4,339	4,497
Total Segments \| Operating segments
Segment reporting
Net Product Sales	232,831	193,937	648,602	574,667
Net Income/(Loss)	$ 11,384	$ 11,919	$ 31,475	$ 30,891