EXHIBIT 99.1

China Automotive Systems Reports Higher Net Sales and Profit in the 2016 Third Quarter  

WUHAN, China, Nov. 10, 2016 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2016.

Third Quarter 2016 Highlights

· Net sales increased 4.2% to $94.6 million, compared to $90.8 million in the third quarter of 2015;

· Gross margin increased to 21.1% compared to 17.5% in the third quarter of 2015;

· Net income attributable to parent company's common shareholders was $5.7 million, or diluted earnings per share of $0.18, compared to net income attributable to parent company's common shareholders of $4.3 million, or diluted earnings per share of $0.13, in the third quarter of 2015.

First Nine Months of 2016 Highlights

· Net sales were $312.5 million, compared to $323.5 million in the first nine months of 2015;

· Gross margin was 18.9%;

· Diluted earnings per share attributable to parent company's common shareholders was $0.52;

· Cash and cash equivalents, pledged cash deposits and short-term investments were $99.5 million as of September 30, 2016;

· Net cash flow from operating activities was $13.1 million.  

Mr. Qizhou Wu, the Chief Executive Officer of CAAS, commented, "We are encouraged to see all of our subsidiaries’ operations achieved growth in the third quarter of 2016 despite continuing lackluster growth in the Chinese economy. We continued to grow our electric power steering (“EPS”) business which grew by 26.1% and represented 27.0% of net sales compared with 22.4% in the same period last year. We remain optimistic about our EPS business and continue to expand our product portfolio and production capabilities. Even our traditional hydraulic steering products reversed its declining trend and registered an increase.”

“Internationally, our Brazilian assembly plant has completed its trials and begun commercial production to serve our Tier-1 customer in Brazil and Chinese OEMs operating in the region. We anticipate that our North American operations will continue to expand in the years ahead.” Mr. Wu concluded.

Mr. Jie Li, the Chief Financial Officer of CAAS, commented, "We maintain a strong balance sheet while continuing to invest in our products and production capacity to position CAAS to further penetrate the Chinese auto market and international markets as well. From a financial reporting perspective, the significantly weakening Chinese currency RMB against the US dollars negatively affected our third quarter results by 6.4%, as we still generate a majority of our sales in Mainland China while we report in US dollar. As part of our commitment to building long-term shareholder value, we continued to repurchase shares. As of September 30, 2016, approximately $1 million has been used to repurchases of 260 thousand shares and $4 million of additional shares may yet be repurchased under our share repurchase program.”

Third Quarter of 2016

In the third quarter of 2016, net sales increased 4.2% to $94.6 million, compared to $90.8 million in the same quarter of 2015. This increase was mainly due to higher volumes and a change in the product mix to more electric power steering systems (EPS).

Gross profit was $20.0 million in the third quarter of 2016, compared to $15.9 million in the third quarter of 2015. The gross margin was 21.1% in the third quarter of 2016, versus 17.5% in the third quarter of 2015.

Selling expenses were $3.8 million in the third quarter of 2016, compared to $3.3 million in the third quarter of 2015. Greater unit sales led to higher transportation expenses in the third quarter of 2016. Selling expenses represented 4.1% of net sales in the third quarter of 2016, compared to 3.7% in the third quarter of 2015.

General and administrative expenses ("G&A expenses") were $3.7 million in the third quarter of 2016, compared to $3.1 million in the same quarter of 2015. G&A expenses represented 4.0% of net sales in the third quarter of 2016 and 3.4% in the third quarter of 2015.

Research and development expenses ("R&D expenses") were $6.7 million in the third quarter of 2016, compared to $5.4 million in the third quarter of 2015. R&D expenses represented 7.1% of net sales in the third quarter of 2016 compared with 6.0% in the third quarter of 2015. The higher R&D expenses as a percentage of revenue was mainly due to continued development of new EPS products and acquiring advanced production equipment.

Net financial income was $0.8 million in the third quarter of 2016 compared to net financial income of $0.6 million in the third quarter of 2015.

Income from operations increased 15.2% to $5.7 million in the third quarter of 2016, compared to $5.0 million in the same quarter of 2015. The increase was mainly due to higher net sales and gross profit.

Income before income tax expenses and equity in earnings of affiliated companies was $6.7 million in the third quarter of 2016, compared to $5.2 million in the third quarter of 2015. The increase in income before income tax expenses and equity in earnings of affiliated companies was mainly due to higher operating income, lower interest expense and higher net financial income in the third quarter of 2016 compared with the third quarter of 2015.

Net income attributable to parent company's common shareholders was $5.7 million in the third quarter of 2016, compared to net income attributable to parent company's common shareholders of $4.3 million in the third quarter of 2015. Diluted earnings per share were $0.18 in the third quarter of 2016, compared to diluted earnings per share of $0.13 in the third quarter of 2015.

The weighted average number of diluted common shares outstanding was 31,911,722 in the third quarter of 2016, compared to 32,134,839 in the third quarter of 2015.

First Nine Months of 2016

Net sales for the first nine months of 2016 were $312.5 million, compared to $323.5 million in the first nine months of 2015. Nine-month gross profit was $59.1 million, compared to $59.4 million in the corresponding period last year. Nine-month gross margin was 18.9%, compared to 18.4% for the corresponding period in 2015. For the nine months ended September 30, 2016, gain on other sales amounted to $2.0 million, compared to $3.2 million for the corresponding period in 2015. Income from operations was $18.0 million compared to $22.6 million in the first nine months of 2015. Operating margin was 5.8%, compared to 7.0% for the corresponding period of 2015.

Net income attributable to parent company's common shareholders was $16.8 million compared with $20.5 million in the corresponding period last year. Diluted earnings per share were $0.52 in the first nine months of 2016, compared to diluted earnings per share of $0.64 for the corresponding period in 2015.

Balance Sheet

As of September 30, 2016, total cash and cash equivalents, pledged cash deposits and short-term investments were $99.5 million, total accounts receivable including notes receivable were $279.4 million, accounts payable were $210.0 million and bank and government loans were $39.9 million. Total parent company stockholders' equity was $312.2 million as of September 30, 2016, compared to $299.0 million as of December 31, 2015. Net cash flow from operating activities was $13.1 million for the first nine months of 2016. 

Business Outlook

Management has increased its revenue guidance for the full year 2016 to US$450 million. This target is based on the Company's current views on operating and market conditions, which are subject to change.

Conference Call

Management will conduct a conference call on November 10^th at 8:00 A.M. EST/9:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management´s presentation.To participate, please call the following numbers 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference call:

Phone Number: +1-877-407-8031 (North America)
Phone Number: +1-201-689-8031 (International)
China Toll Free: +86-400-1202-840

A replay of the call will be available on the company's website in the investor relations section.

About China Automotive Systems, Inc.

Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over5.5 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Chrysler Group LLC in North America. For more information, please visit: http://www.caasauto.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 30, 2016, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

For further information, please contact:

Jie Li 
Chief Financial Officer 
China Automotive Systems, Inc. 
Email: jieli@chl.com.cn

Investor Relations 
Email: caas@compassbell.com

- Tables Follow -

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income

(In thousands of USD, except share and per share amounts)

	Three Months Ended September 30,
	2016			2015
Net product sales ($9,950 and $8,137 sold to related parties for the three months ended September 30, 2016 and 2015)	$	94,626		$	90,845
Cost of products sold ($5,869 and $5,721 purchased from related parties for the three months ended September 30, 2016 and 2015)		74,641			74,933
Gross profit		19,985			15,912
Gain on other sales		22			877
Less: Operating expenses
Selling expenses		3,840			3,319
General and administrative expenses		3,741			3,080
Research and development expenses		6,723			5,440
Total operating expenses		14,304			11,839
Income from operations		5,703			4,950
Other income, net		420			221
Interest expense		(201	)		(501	)
Financial income, net		800			556
Income before income tax expenses and equity in earnings of affiliated companies		6,722			5,226
Less: Income taxes		1,167			945
Equity in earnings of affiliated companies		304			100
Net income		5,859			4,381
Net income attributable to non-controlling interests		177			93
Net income attributable to parent company’s common shareholders	$	5,682		$	4,288
Comprehensive income:
Net income	$	5,859		$	4,381
Other comprehensive income:
Foreign currency translation loss, net of tax		(2,139	)		(12,477	)
Comprehensive income/(loss)		3,720			(8,096	)
Comprehensive income/(loss) attributable to non-controlling interests		119			(483	)
Comprehensive income/(loss) attributable to parent company	$	3,601		$	(7,613	)
Net income attributable to parent company’s common shareholders per share
Basic –	$	0.18		$	0.13
Diluted-	$	0.18		$	0.13
Weighted average number of common shares outstanding
Basic		31,911,360			32,121,019
Diluted		31,911,722			32,134,839

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income

(In thousands of USD, except share and per share amounts)

	Nine Months Ended September 30,
	2016			2015
Net product sales ($28,589 and $28,076 sold to related parties for the nine months ended September 30, 2016 and 2015)	$	312,497		$	323,455
Cost of products sold ($18,912 and $18,359 purchased from related parties for the nine months ended September 30, 2016 and 2015)		253,352			264,080
Gross profit		59,145			59,375
Gain on other sales		2,008			3,248
Less: Operating expenses
Selling expenses		12,273			10,989
General and administrative expenses		11,998			11,316
Research and development expenses		18,849			17,746
Total operating expenses		43,120			40,051
Income from operations		18,033			22,572
Other income, net		995			587
Interest expense		(524	)		(1,040	)
Financial income, net		1,270			2,018
Income before income tax expenses and equity in earnings of affiliated companies		19,774			24,137
Less: Income taxes		3,416			4,001
Equity in earnings of affiliated companies		561			264
Net income		16,919			20,400
Net income/(loss) attributable to non-controlling interests		164			(56	)
Net income attributable to parent company’s common shareholders	$	16,755		$	20,456
Comprehensive income:
Net income	$	16,919		$	20,400
Other comprehensive income:
Foreign currency translation loss, net of tax		(8,435	)		(12,316	)
Comprehensive income		8,484			8,084
Comprehensive loss attributable to non-controlling interests		(143	)		(649	)
Comprehensive income attributable to parent company	$	8,627		$	8,733
Net income attributable to parent company’s common shareholders per share
Basic –	$	0.52		$	0.64
Diluted-	$	0.52		$	0.64
Weighted average number of common shares outstanding
Basic		32,038,933			32,121,019
Diluted		32,040,514			32,136,003

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Balance Sheets

(In thousands of USD unless otherwise indicated)

	September 30, 2016			December 31, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	39,062		$	69,676
Pledged cash		21,077			31,402
Short-term investments		39,337			21,209
Accounts and notes receivable, net - unrelated parties		255,794			254,397
Accounts and notes receivable, net - related parties		23,637			21,918
Advance payments and others - unrelated parties		10,891			4,381
Advance payments and others - related parties		845			544
Inventories		74,484			65,570
Current deferred tax assets		6,610			6,962
Total current assets		471,737			476,059
Non-current assets:
Long-term time deposits		898			5,082
Property, plant and equipment, net		94,063			84,151
Intangible assets, net		588			2,793
Other receivables, net - unrelated parties		2,283			3,882
Other receivables, net - related parties		73			14
Advance payment for property, plant and equipment - unrelated parties		16,507			15,192
Advance payment for property, plant and equipment - related parties		6,625			8,863
Long-term investments		15,202			6,152
Goodwill		-			608
Non-current deferred tax assets		4,898			4,899
Total assets	$	612,874		$	607,695
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank and government loans	$	39,942		$	40,929
Accounts and notes payable - unrelated parties		204,502			197,105
Accounts and notes payable - related parties		5,538			6,363
Customer deposits		741			1,613
Accrued payroll and related costs		6,619			6,332
Accrued expenses and other payables		29,731			31,383
Accrued pension costs		4,365			4,664
Taxes payable		7,233			9,284
Amounts due to shareholders/directors		332			345
Advances payable (current portion)		322			-
Current deferred tax liabilities		177			194
Total current liabilities		299,502			298,212
Long-term liabilities:
Long-term bank loan		669			-
Advances payable		529			1,922
Non-current deferred tax liabilities		-			266
Total liabilities	$	300,700		$	300,400
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.0001 par value - Authorized - 80,000,000 shares; Issued – 31,861,756 and 32,338,302 shares as of September 30, 2016 and December 31, 2015, respectively	$	3		$	3
Additional paid-in capital		64,627			64,627
Retained earnings-
Appropriated		10,521			10,379
Unappropriated		223,235			206,622
Accumulated other comprehensive income		10,284			18,412
Treasury stock – 476,546 and 217,283 shares as of September 30, 2016 and December 31, 2015, respectively		(1,991	)		(1,000	)
Total parent company stockholders' equity		306,679			299,043
Non-controlling interests		5,495			8,252
Total stockholders' equity		312,174			307,295
Total liabilities and stockholders' equity	$	612,874		$	607,695

China Automotive Systems, Inc. and Subsidiaries

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands of USD unless otherwise indicated)

	Nine Months Ended September 30,
	2016			2015
Cash flows from operating activities:
Net income	$	16,919		$	20,400
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation and amortization		10,732			11,509
Reversal of provision for doubtful accounts		(126	)		(124	)
Inventory write downs		2,353			1,522
Deferred income taxes		(142	)		(1,180	)
Equity in earnings of affiliated companies		(561	)		(236	)
Gain on disposal of Fujian Qiaolong		(698	)		-
(Gain)/loss on fixed assets disposals		(6	)		2
Changes in operating assets and liabilities (net of the impact of disposal of Fujian Qiaolong):
(Increase) decrease in:
Pledged cash		9,711			2,696
Accounts and notes receivable		(18,471	)		19,801
Advance payments and others		(2,798	)		(1,741	)
Inventories		(18,244	)		(6,723	)
Increase (decrease) in:
Accounts and notes payable		14,990			(17,021	)
Customer deposits		(613	)		(381	)
Accrued payroll and related costs		544			(1,068	)
Accrued expenses and other payables		1,309			1,109
Accrued pension costs		(160	)		(842	)
Taxes payable		(1,582	)		(3,671	)
Advances payable		(75	)		-
Net cash provided by operating activities		13,082			24,052
Cash flows from investing activities:
Increase/(decrease) in other receivables		2,382			(1,965	)
Proceeds from disposition of a subsidiary, net of cash disposed of $1,063		1,953			-
Cash received from property, plant and equipment sales		511			573
Payments to acquire property, plant and equipment		(27,161	)		(24,077	)
Payments to acquire intangible assets		(60	)		(947	)
Purchase of short-term investments		(28,181	)		(12,264	)
Proceeds from maturities of short-term investments		13,236			25,038
Investment under equity method		(8,682	)		(1,636	)
Net cash used in investing activities		(46,002	)		(15,278	)
Cash flows from financing activities:
Proceeds from bank and government loans		12,151			11,420
Repayments of bank and government loans		(7,145	)		(8,685	)
Dividends paid to the non-controlling interests holders		(464	)		(1,121	)
Dividends paid to the holders of the Company’s common stock		-			(252	)
Repurchase of common stock		(991	)		-
Net cash provided by financing activities		3,551			1,362
Effects of exchange rate on cash and cash equivalents		(1,245	)		(2,577	)
Net decrease in cash and cash equivalents		(30,614	)		7,559
Cash and cash equivalents at beginning of period		69,676			68,505
Cash and cash equivalents at end of period	$	39,062		$	76,064