China Automotive Systems, Inc (NASDAQ:CAAS) shares are trading higher after the company reported fourth-quarter FY23 sales growth of 23.6% year-on-year to $159.20 million.

The gross profit margin expanded by 240 basis points Y/Y to 21.8%, and the gross profit climbed 38.8% to $34.7 million.

The operating income for the quarter was $13.6 million versus an operating loss of $(2.6) million in the fourth quarter of 2022.

The company held total cash and cash equivalents, pledged cash and short-term investments of $166.3 million at year end.

Net income attributable to the parent company's common shareholders rose by 153.5% to $10.9 million from $4.3 million last year.

The company reported an EPS of $0.36 compared to $0.14 last year.

"We expect our North America business to recover in 2024 and domestic China market to stabilize. We remain optimistic about our market positions as many of our Chinese OEM customers are preparing for aggressive global expansion," said CEO Qizhou Wu.

Outlook: China Automotive Systems expects FY24 revenue of $605 million against an estimate of $593.11 million

Price Action: CAAS shares are trading higher by 7.12% at $3.61 in premarket Thursday.