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China Automotive Systems' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: CAAS

The Company expressly disclaims any duty to provide updates to any forward-looking statements made in this call, whether as a result of new information, future events or otherwise. I will provide a brief overview and summary of the 2012 second quarter results and then I will turn the call over to management to conduct the question-and-answer session.

The 2012 second quarter results are un-audited numbers under U.S. GAAP. In our call today, I will review the financial results in U.S. dollars. Second quarter unit sales in 2012 continue to be sluggish as total vehicle sales increased by 10.1% to 4.8 million units. However the growth was uneven, as unit sales of passenger vehicles increased 16.6% to 3.8 million units and commercial vehicle sales of 996,973 units were 10.2% lower compared with the same quarter of 2011.

Chinese commercial truck sales continued to decline by 33.6% in the 2012 second quarter due to fewer infrastructure projects, continuing slow real estate market and relatively low utilization of truck fleets compared with a few years ago. These results reflect a slow GDP growth of 7.6% in the second quarter of 2012, the first [ph] quarterly GDP growth in the past three years.

Some of our motor sectors showed growth as sales of passenger vehicles rose 2.5% and light duty and light buses [ph] all posted higher sales in the second quarter of 2012 versus the same quarter of 2011. China’s vehicle export sales grew 28% to approximately 488,000 vehicles during the first six months of 2012 compared with the same period last year.

As Chinese exports increased in our customers established foreign operations, we will have growth opportunities in both the after-market and OEM markets with these vehicles. To fine tune the economy as inflation is no longer a threat, a less disputative monetary policy has been instituted.

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