China Automotive Systems, Inc. $(CAAS)$, a leading supplier of power steering components and systems in China, announced its unaudited financial results for the first quarter ended March 31, 2025. The company reported a 19.9% year-over-year increase in net sales, reaching $167.1 million. Sales of electric power steering $(EPS)$ products saw a significant rise of 54.0% compared to the previous year. However, gross profit increased by 18.8% year-over-year to $28.6 million, with a slight decrease in gross margin to 17.1% from 17.3% in the first quarter of 2024. Income from operations decreased to $8.6 million from $9.7 million in the same period in 2024. Diluted income per share was reported at $0.24, down from $0.27 in the first quarter of 2024. The company ended the quarter with cash, cash equivalents, and short-term investments totaling $89.9 million. Notably, net cash provided by operating activities was $18.1 million, a 73.1% increase from the $10.5 million reported in the first quarter of 2024. The company highlighted that its Brazilian operations maintained growth momentum with a 30.2% increase year-over-year. Shashi Jiulong's sales also grew by 17.4% due to higher volumes in steering systems for Chinese commercial vehicles. However, Hubei Henglong's sales experienced a 10.3% decline, attributed to lower vehicle sales by Stellantis, potentially due to changing U.S. government policies.