Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Summary of major commitments and contingencies

In addition to the bank loans, notes payables and the related interest and other payables, the following table summarizes the Company’s major commitments and contingencies as of March 31, 2025 (figures are in thousands of USD):


	Payment obligations by period
	2025		2026		2027		Thereafter		Total
Obligations for investment contracts⁽¹⁾	$	3,065	$	697	$	—	$	—	$	3,762
Obligations for purchasing and service agreements		28,480		4,033		—		—		32,513
Total	$	31,545	$	4,730	$	—	$	—	$	36,275

(1)

In October 2024, Hubei Henglong entered into an agreement with other parties to establish an associate company, “Jingzhou Jinyu Hotel Management Co., Ltd”, “Jingzhou Jinyu”. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 15.0 million, equivalent to approximately $2.1 million. As of March 31, 2025, Hubei Henglong has paid RMB 7.0 million, equivalent to approximately $1.0 million, representing 14.5% of Jingzhou Jinyu. The remaining consideration of RMB 8.0 million, equivalent to approximately $1.1 million, will be paid in 2025.

In July 2024, Hubei Henglong entered into an agreement with other parties to establish an associate company, Shanghai IAT. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 20.0 million, equivalent to approximately $2.8 million. As of March 31, 2025, Hubei Henglong has paid RMB 10.0 million, equivalent to approximately $1.4 million, representing 25.0% of Shanghai IAT’s equity. The remaining consideration of RMB 10.0 million, equivalent to approximately $1.4 million, will be paid in 2025 and 2026.

In June 2023, Hubei Henglong entered into an agreement with other parties to establish a limited partnership, Suzhou Mingzhi. According to the agreement, Hubei Henlong shall contribute a total capital of RMB 30.0 million, equivalent to approximately $4.2 million. As of March 31, 2025, Hubei Henglong has paid RMB 21.0 million, equivalent to approximately $2.9 million, representing 19.74% of Suzhou Mingzhi’s equity. The remaining consideration of RMB 9.0 million, equivalent to approximately $1.3 million, will be paid in 2025.

CHINA AUTOMOTIVE SYSTEMS INC 10-Q