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China Automotive announced that a settlement hearing will be held on February 5, 2021 at the Court of Chancery in Wilmington, Delaware. The purpose of the hearing is to determine among other things, whether the proposed Stipulation of Settlement should be approved as fair, reasonable and adequate; whether the action should be dismissed with prejudice and the releases specified and described in the settlement should be granted and whether Plaintiffs' Counsel's application for an award of attorneys' fees and reimbursement of litigation expenses should be approved. If the settlement is approved by the court, no further action is required by current CAAS stockholders. Because the settlement is non-monetary, CAAS stockholders do not have to submit a claim form or take any other action in connection with the settlement. Management expects the impact of the suit on the company's consolidated financial statements to be immaterial. On January 7, 2019, three purported stockholders of the Company filed a stockholder derivative complaint on behalf of the company against the company's directors Hanlin Chen, Qizhou Wu and Guangxun Xu and former directors Arthur Wong and Robert Tung in the Delaware Court of Chancery. The complaint alleged that the directors had breached their fiduciary duties by approving and paying excessive compensation to the non-employee directors of the company, Arthur Wong, Guangxun Xu and Robert Tung, and failed to make full and accurate disclosure of all material information with respect to director qualification and director compensation paid in 2017 in the company's annual proxy statement on Schedule 14A filed on October 10, 2018. The directors have engaged their own counsel to answer this complaint. The directors of the company will continue to answer this complaint.

China Automotive announced that it shipped approximately 70,000 commercial vehicle steering systems to Chinese truck OEM producers and the North America aftermarket in the month of November. As Chinese industrial production accelerated its recovery after the pandemic, Chinese truck producers such as Beiqi Foton, Shaanxi Auto, SinoTruck, FAW and Dongfeng Motor have significantly increased their orders to CAAS in recent months. In the month of November, total shipments of commercial vehicle steering systems has reached a company monthly historical high, and the monthly sales run rate of 70,000 units is expected to continue into Q1 of 2021. In addition, a brand-new assembly line for intelligent RCB steering systems, or iRCB, for commercial vehicles has been installed and is currently undergoing testing. Specifically designed for autonomous-driven commercial vehicles, CAAS' proprietary commercial vehicle iRCB systems feature electric motor assisted power steering to provide maximum assistance in parking, and in lane keeping at highway speeds. While the company plans to officially launch the product in 2021, more than 10 major domestic OEMs have already expressed strong interest in this product. This new product is expected to be produced on this new dedicated production line.

China Automotive announced that it shipped approximately 120,000 units from its portfolio of electric power steering, or EPS, products for use in Chinese electric vehicles, or EV, during 2020. Sales of Chinese EVs approximately doubled year-over-year to 144,000 units in the month of October. With this rapid growth of EVs occurring in China, the outlook is for booming growth as the Chinese government has set an EV car target of 25% of all new cars by 2025.