China Automotive Systems, Inc. (CAAS) 2005年年度报告「NASDAQ」.pdf

1、 CAAS 2005 ANNUAL REPORT DEAR CHINA AUTOMOTIVE SYSTEMS SHAREHOLDERS:The past year was a significant milestone for China Automotive Systems,Inc.2005 has been a challenging year for both commercial vehicle and passenger vehicle sectors of Chinas auto industry.Our gross profit margin decreased in 2005.

2、The decline was principally due to new regulations imposed by the Chinese government and substantial increases in the prices of gasoline.During 2005,intense domestic competition and government regulation caused a significant decline in the ASP(Average Selling Price)of passenger vehicles.Sequentially

3、,the downward price pressure was passed onto auto part makers.On the commercial vehicle side,Chinas policy to cool down the over-inflated real estate market resulted in a substantial decrease in the demand for heavy-duty trucks.Much has been written about the short-and long-term prospects of the Chi

4、nese automotive market.Following Chinas entry into WTO,its auto demand experienced phenomenal growth,increased 37%,35%and 15%in 2002,2003 and 2004 respectively.According to Merrill Lynch equity research in March 2006,vehicle shipments from Chinese factories rose 13.5%year-over-year to 5.76m units in

5、 2005.Although slower than in recent years,the growth rate remains brisk.With the current output and sales volume of domestic made vehicles,China has now bypassed Japan to become the second largest automobile market in the world.Nevertheless,market penetration remains low at only around 2%,compared

6、with 50%60%in the US,Europe and Japan.Given the huge growth potential in Chinas GDP per capita,auto demand in China will definitely further expand over the coming decade.CAAS has well positioned itself to be a beneficiary of this expansion.Further more,with large foreign automakers increasing their