ZHEJIANG, China, Nov. 14, 2012 /PRNewswire-FirstCall/ -- SORL
Auto Parts, Inc. (NASDAQ: SORL) ("SORL" or the "Company"), a
leading manufacturer and distributor of automotive brake systems as
well as other key safety-related auto parts in China, announced today its financial results
for the third quarter and first nine months ended September 30, 2012.
Third Quarter 2012 Financial Highlights
- Revenues for the third quarter of 2012 were $46.7 million;
- China domestic aftermarket
sales rose 5.2% year-over-year;
- Gross margin increased to 28.3% in the third quarter of
2012;
- Net Income was $3.4 million, or
$0.17 per diluted share, in the third
quarter of 2012;
- Cash flow from operating activities was $17.5 million and free cash-flow of $16.6 million was generated in the first nine
months.
Mr. Xiaoping Zhang, SORL's Chief
Executive Officer and Chairman, stated, "We posted a strong quarter
in the backdrop of continued weakness in the Chinese commercial
vehicle market, especially the heavy-duty segment. Despite major
disruptions in markets around the world and the slight decrease of
our sales, the sales of our high-quality and cost-competitive
products are growing and we are positioned to be a more competitive
player internationally. Our average selling price ("ASP") grew in
the international market primarily because we have successfully
shifted our product mix towards more high-value-added new products.
Lower truck fleet utilization and reduced construction activity
continue to depress the domestic Chinese truck market. For the
domestic OEM market, we are introducing new advanced products and
targeting the bus and light-duty commercial vehicle market until
the heavy-duty vehicle market rebounds. The aftermarket is
stable due to the higher number of vehicles in operation in
China and the expiration of OEM
warranties. With our well-established brand reputation and the
nature of our products as key safe-related components, our domestic
aftermarket business demonstrated strong resilience and we have
further leveraged our sales network and reached deeper into new
markets."
Ms. Jinrui Yu, SORL's Chief
Operating Officer, commented, "Our production equipment and new
product introductions in both domestic and international markets
continue to have margin expansion. While many of our competitors
are encountering more inflation-related challenges, we continue to
not only maintain, but grew our gross margin. With one of highest
gross margins in the industry, we strive to strengthen production
efficiency and improve pricing power across all market segments.
Our accelerated positive free cash-flow generation resulted from
strong collections coupled with reduced capital expenditures. We
are actively reducing short-term debt and encouraging customer
prepayments to secure the supplies of our new products. We have
positioned ourselves to take advantage of any market rebound with
our efficient manufacturing equipment and processes, higher-margin
new products, and improved financial flexibility."
Financial Performance
For the third quarter of 2012, net sales were $46.7 million, a slight decrease compared to
$47.6 million for the third quarter
of 2011. Revenues from the Company's domestic OEM customers were
$18.7 million, a slight decrease
compared to $20.8 million for the
third quarter of 2011. Revenues from China's domestic aftermarket were $12.2 million, a 5.2% increase over the previous
year's third quarter. Revenues from international markets were
$15.8 million, a 3.9% increase over
the $15.2 million from the same
period in 2011. The increase of international business was mainly
due to the improving conditions in the U.S. commercial vehicle
market and a broadening global customer base, as well as the
Company's continuous execution to strengthen and extend its
distribution networks through ongoing focus on increasing
brand recognition of SORL's products by end users.
China's GDP growth was 7.4% in
the third quarter of 2012, which was below the 7.6% growth in the
second quarter of 2012. These are the lowest quarterly growth rates
in the past three years, and commercial vehicle sales were
especially affected. According to industry data, overall commercial
vehicle sales declined by 4.4% during the 2012 third quarter and
sales of heavy-duty truck and trailers were 28.8% lower in the 2012
third quarter as compared with the same quarter last year. For the
first time since China entered its
industrialization and urbanization era, the growth rate of
commercial vehicle sales declined there over the first nine month
periods in two consecutive years. However, management believes that
continuing urbanization and the Chinese government's promotion of
public transportation will favor expansion of the bus OEM and
aftermarket.
The gross profit for the third quarter of 2012 was $13.2 million, slightly above than the gross
profit of $13.1 million, for the
third quarter of 2011. Gross margin was 28.3%, higher than the
27.4% gross margin in the same period of 2011. The gross margin
increase primarily resulted from the Company's improved production
efficiencies and the increased sales of higher-profit new
products.
Operating expenses increased by 3.1% to $9.3 million in the third quarter of 2012 from
$9.0 million in the third quarter of
2011. Operating expense increased to 19.9% of the revenue in the
third quarter of 2012 from 18.9% in the same quarter of 2011 mainly
due to the decrease of net sales by $0.1
million.
Selling and distribution expenses were $3.8 million, or 8.1% of quarterly revenue
compared with $2.9 million, or 6.1%
of revenues in the same quarter of 2011. The increase was mainly
due to higher packaging expenses as international customers and
domestic OEM customers have a specific requirement for packaging
and the company set new internal policy on packaging improvement to
avoid product damage during shipping and delivery.
General and administrative (G&A) expenses in the third
quarter of 2012 were $2.6 million, or
5.6% of revenue compared with $3.0
million, or 6.2% in the third quarter of 2011. The decrease
in expenses was mainly related to lower sales in the third quarter
of 2012 compared with the same quarter in 2011.
Research and development (R&D) expenses were $2.4 million, or 5.0% of revenue in the third
quarter of 2012 compared with $1.9
million, or 4.0% in the third quarter of 2011. The focus of
the R&D program was mainly to develop higher-margin
electronically controlled mechatronic products and upgrades to the
Company's traditional valve products.
Operating income was $3.9 million
for the third quarter of 2012, in line with the third quarter of
2011. Operating income as a percentage of sales was 8.4% in the
third quarter of 2012 compared with 8.5% in the third quarter of
2011.
Income tax expense was $1.2
million in the third quarter of 2012 compared with
$0.7 million in the same quarter
of 2011. For the quarter ended September 30,
2012, the effective income tax rate was 25%. However, upon
renewal of the High-Tech Enterprise certificate, the effective
income tax rate will be reduced to 15% later in 2012. Upon
receiving High-Tech Enterprise certificate, the Company will expect
a tax refund of partial tax payment in the previous quarters,
adjusting to the new tax rate.
Net income attributable to stockholders for the third quarter of
2012 was $3.4 million, or
$0.17 per basic and diluted share,
compared with $3.5 million, or
$0.18 on per basic and diluted share,
in the third quarter of 2011.
First Nine Months Financial Results
SORL's net sales for the first nine months of 2012 were
$143.4 million, compared with
$160.7 million for the same period in
2011.
For the nine months ended September 30,
2012, domestic OEM sales were $70.1
million, an 18.0% decrease from the same period in 2011.
Aftermarket sales were $33.7 million
reflecting a 2.4% increase from a year ago. International sales
declined 6.4% to $39.6 million
compared with last year's first nine month period.
SORL's gross profit declined to $39.6
million from $44.2 million
during the first nine months in 2011. Gross margin was 27.6% in
2012 compared with 27.5% for the first nine months of 2011.
Income from operations declined to $11.6
million from $16.4 million for
the first nine months of 2011. Operating margin was 8.1%
versus10.2% in the year ago same period.
The net income attributable to stockholders was $8.7 million, compared with $13.3 million in the first nine months of 2011,
with basic and diluted earnings per share ("EPS") of $0.45 and $0.69,
respectively.
Balance Sheet
As of September 30, 2012, the
Company had cash and cash equivalents of $27.9 million compared to $17.1 million on December
31, 2011. Bank acceptance notes to vendors decreased to
$12.3 million from $18.0 million at December
31, 2011. Short-term bank loans were reduced to $12.5 million from $16.4
million at the end of 2011. Total shareholder equity was
$182.7 million at the end of
September 2012 compared with
$174.1 million at December 31, 2011. Net cash flow from operating
activities was $17.5 million at
September 30, 2012. Working capital
was $126.8 million with a current
ratio of 4 to 1. Capital expenditures in the first nine months of
2012 were $0.9 million as compared to
$7.6 million in the same period of
2011.
Recent Developments
On November 5, 2012, SORL
announced the Company received a 400-unit order for its new
electric air compressors from Shen Zhen Wuzhoulong Motors Group
("Wuzhoulong"). Released in July
2012, the new electric air compressors are selling at
8,000 RMB per unit. In addition to
Wuzhoulong, the Company has also received indication of purchasing
interest for the same products from other large bus manufacturers
in China.
On October 15, 2012, SORL
announced that the Company obtained a patent in the People's Republic of China ("PRC") for a
new proprietary electric air dryer that is specifically designed
for new energy electric buses and specialty commercial vehicles.
Equipped with an internal electronic control unit to achieve
continuing desiccant regeneration, SORL's new electric air dryer
has a prolonged useful life and improves the working environment of
the vehicle's air control system. As a result, the dryer extends
the operating life of the entire air control system and improves
the vehicles' safety performance. The patent will be in effect from
2012 through 2030.
On September 24, 2012, the Company
announced that it won a new contract from Shanxi Automobile Group
Co., Ltd. ("Shanqi") to supply 90% of the re-card spring brake
chambers for the Delong F3000 heavy-duty truck models. The Delong
F3000 series is one of the heavy-duty truck models from Shaanxi
Auto and can be used in logistics, heavy loads, construction and
bridge building, ore transportation, municipal sanitation and the
transportation of hazardous materials. The new F3000 provides
superior quality for its customers.
On August 27, 2012, SORL announced
the launch of its newly developed electrically controlled power
steering pump, marking a technological breakthrough for the
electric bus market. SORL's electrically controlled power steering
pump is specifically designed for use in new energy electric
buses.
On July 18, 2012, the Company
announced it had launched a new generation of electric air brake
compressors to be used in electric buses. Air brake
compressors used in traditional vehicles are powered by an internal
combustion engine. SORL's new generation of electric air brake
compressors are powered by an electric motor, thereby increasing
fuel conservation and reducing pollution. The new compressors have
an extended life span as their control mechanism has been
significantly improved from standard air brake compressors. An
electric air compressor is a key safety related component for all
electric buses with an air brake system.
Business Outlook
For the fiscal year 2012, management revised their expectation
for net sales to be approximately $191.4
million and net income to be approximately $11.5 million. The net income guidance is
currently based upon 25% tax rate which is subject to change upon
the renewal approval of High-Tech Enterprise status. These targets
are based on the Company's current views on the operating and
market conditions, which are subject to change.
Conference Call
Management will host a conference call on Wednesday, November 14, 2012 at 8:00 a.m. EST / 9:00
p.m. Beijing Time to discuss its 2012 third quarter
financial results. Listeners may access the call by dialing U.S.
toll free number +1-877-407-0778, or +1-201-689-8565 for
international callers. A live web cast of the conference call will
also be available at http://www.sorl.cn.
A replay of the call will be available shortly after the
conference call through 11:59 p.m.
EST on December 14, 2012. The
replay dial-in numbers are: U.S. toll free number
+1-877-660-6853, or the international number is +1-201-612-7415;
using Account "286" and Conference ID "403633" to access the
replay.
About SORL Auto Parts, Inc.
As a global tier one supplier of brake and control systems to
the commercial vehicle industry, SORL Auto Parts, Inc. is the
market leader for brake systems of commercial vehicles, such as
trucks and buses in China. The
Company distributes products both within China and internationally under the SORL
trademark. SORL is listed among the top 100 auto component
suppliers in China, with a product
range that includes 65 categories with over 2000 specifications in
brake systems and others. The Company has four authorized
international sales centers in UAE, India, the United
States and Europe. SORL is
working to establish a broader global sales network. For more
information, please visit http://www.sorl.cn.
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking
statements. Forward-looking statements can be identified by the use
of forward-looking terminology such as "will", "believes",
"expects" or similar expressions. These forward-looking statements
may also include statements about the Company's proposed
discussions related to its business or growth strategy, which are
subject to change. Such information is based upon expectations of
the Company's management that were reasonable when made, but may
prove to be incorrect. All of such assumptions are inherently
subject to uncertainties and contingencies beyond the Company's
control and upon assumptions with respect to future business
decisions, which are subject to change. The Company does not
undertake to update the forward-looking statements contained in
this press release. For additional information regarding known
material factors that could cause the Company's results to differ
from its projected results, please see its filings with the SEC,
including its Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and Current Reports on Form 8-K. Copies of filings made with
the SEC are available through the SEC's electronic data gathering
analysis retrieval system (EDGAR) at http://www.sec.gov.
Contact Information
Raymond Lin
86+13967776556
86+577+65817721
Email: ljf@sorl.com.cn
Phyllis Huang
86+15167705972
86+577+65817721
Email: Phyllis@sorl.com.cn
Kevin Theiss
Grayling
+1 646 284 9409
Email: kevin.theiss@grayling.com
- Tables follow –
SORL Auto Parts, Inc.
and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
December 31, 2011
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and Cash
Equivalents
|
US$
|
27,894,332
|
US$
|
17,116,692
|
|
Accounts Receivable, Net
of Provision,
including $1,518,832 and $747,053
due from related parties at September 30, 2012
and December 31, 2011, respectively.
|
|
62,505,358
|
|
65,344,441
|
|
Bank acceptance notes
from customers
|
|
12,321,831
|
|
17,980,145
|
|
Inventories
|
|
55,858,143
|
|
56,377,556
|
|
Prepayments
|
|
6,551,428
|
|
2,484,026
|
|
Other current
assets
|
|
1,949,043
|
|
4,960,061
|
|
Deferred tax
assets
|
|
738,758
|
|
605,539
|
|
Total Current
Assets
|
|
167,818,893
|
|
164,868,460
|
Fixed
Assets
|
|
|
|
|
|
Machinery
|
|
51,620,272
|
|
49,879,491
|
|
Molds
|
|
1,376,067
|
|
1,384,825
|
|
Office
equipment
|
|
1,542,569
|
|
1,439,305
|
|
Vehicles
|
|
1,999,715
|
|
1,853,111
|
|
Buildings
|
|
8,832,512
|
|
8,888,723
|
|
Machinery held under
capital lease
|
|
18,097,156
|
|
18,166,087
|
|
Construction in
progress
|
|
152,947
|
|
1,503,200
|
|
Less: Accumulated
Depreciation
|
|
(35,918,734)
|
|
(30,905,671)
|
|
Property, Plant and Equipment, Net
|
|
47,702,504
|
|
52,209,071
|
|
Leasehold Improvements
in Progress
|
|
348,418
|
|
375,604
|
|
|
|
|
|
|
Land Use Rights,
Net
|
|
14,740,843
|
|
15,111,078
|
|
|
|
|
|
|
Other Non-Current
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Assets
|
|
174,758
|
|
175,871
|
|
Less: Accumulated
Amortization
|
|
(104,131)
|
|
(92,237)
|
|
Intangible Assets, Net
|
|
70,627
|
|
83,634
|
|
Security Deposits On
Lease Agreement
|
|
1,868,002
|
|
1,879,890
|
|
Total Other Non-Current Assets
|
|
1,938,629
|
|
1,963,524
|
|
Total
Assets
|
US$
|
232,549,287
|
US$
|
234,527,737
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts Payable,
including $1,692,436 and $524,148
due to related parties at September 30, 2012 and
December 31, 2011, respectively.
|
US$
|
7,877,553
|
US$
|
10,772,396
|
|
Bank acceptance notes to
vendors
|
|
1,878,253
|
|
5,589,678
|
|
Deposit Received from
Customers
|
|
5,529,296
|
|
5,074,532
|
|
Short term bank
loans
|
|
12,453,336
|
|
16,448,527
|
|
Income tax
payable
|
|
1,137,724
|
|
273,781
|
|
Accrued
Expenses
|
|
9,481,855
|
|
8,808,788
|
|
Current Portion Of
Capital Lease Obligations
|
|
2,449,040
|
|
2,305,125
|
|
Other Current
Liabilities, including $217,088 and $143,950
due to related parties at September 30, 2012 and
December 31, 2011, respectively.
|
|
189,921
|
|
467,850
|
|
Total Current
Liabilities
|
|
40,996,978
|
|
49,740,677
|
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
|
Non-Current Portion Of
Capital Lease Obligations
|
|
8,543,777
|
|
10,469,265
|
|
Deferred tax
liabilities
|
|
276,341
|
|
236,385
|
|
Total
Non-Current Liabilities
|
|
8,820,118
|
|
10,705,650
|
|
|
|
|
|
|
|
Total Liabilities
|
US$
|
49,817,096
|
US$
|
60,446,327
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock - No Par
Value; 1,000,000 authorized;
none issued and outstanding as of September 30,
2012
and December 31, 2011
|
|
-
|
|
-
|
|
Common Stock - $0.002 Par
Value; 50,000,000 authorized,
|
|
|
|
|
|
19,304,921
and 19,304,921 issued and outstanding as of
|
|
|
|
|
|
September
30, 2012 and December 31, 2011
|
|
38,609
|
|
38,609
|
|
Additional Paid In
Capital
|
|
42,199,014
|
|
42,199,014
|
|
Reserves
|
|
9,237,054
|
|
8,375,392
|
|
Accumulated other
comprehensive income
|
|
20,944,526
|
|
21,910,957
|
|
Retained
Earnings
|
|
92,439,528
|
|
84,610,260
|
|
Total SORL Auto
Parts, Inc. Stockholders' equity
|
|
164,858,731
|
|
157,134,232
|
|
Noncontrolling
Interest In Subsidiaries
|
|
17,873,460
|
|
16,947,178
|
|
Total
Equity
|
|
182,732,191
|
|
174,081,410
|
|
Total Liabilities and
Stockholders' Equity
|
US$
|
232,549,287
|
US$
|
234,527,737
|
|
|
|
|
|
|
SORL Auto Parts, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Income and Comprehensive Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
US$
|
46,708,959
|
47,583,678
|
|
143,399,372
|
160,683,535
|
Include: sales to
related parties
|
|
|
1,092,343
|
1,195,634
|
|
5,046,533
|
2,488,750
|
Cost of Sales
|
|
|
|
|
33,485,059
|
34,531,204
|
|
103,779,982
|
116,459,662
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
13,223,900
|
13,052,474
|
|
39,619,390
|
44,223,873
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and Distribution
Expenses
|
3,765,768
|
2,923,832
|
|
10,460,168
|
9,452,586
|
General and
Administrative Expenses
|
2,630,786
|
2,968,222
|
|
9,981,552
|
9,647,944
|
Research and development
expenses
|
2,352,958
|
1,893,985
|
|
5,916,934
|
6,071,593
|
Financial
Expenses
|
|
|
|
|
541,326
|
1,227,502
|
|
1,668,945
|
2,667,700
|
|
|
|
|
|
|
|
|
|
|
|
Total
Expenses
|
|
|
|
|
9,290,838
|
9,013,541
|
|
28,027,599
|
27,839,823
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
3,933,062
|
4,038,933
|
|
11,591,791
|
16,384,050
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
|
|
|
|
|
1,207,961
|
488,747
|
|
1,972,781
|
953,104
|
Non-Operating
Expenses
|
|
|
|
|
(112,927)
|
(1,796)
|
|
(366,119)
|
(41,723)
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Provision for Income Taxes
|
5,028,096
|
4,525,884
|
|
13,198,453
|
17,295,431
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
|
1,180,601
|
660,446
|
|
3,479,019
|
2,583,266
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
US$
|
3,847,495
|
3,865,438
|
|
9,719,434
|
14,712,165
|
|
|
|
|
|
|
Other Comprehensive
Income - Foreign Currency Translation Adjustment
|
(460,819)
|
3,041,821
|
|
(1,068,653)
|
6,656,889
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive
Income
|
|
|
3,386,676
|
6,907,259
|
|
8,650,781
|
21,369,054
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Noncontrolling Interest In Subsidiaries
|
486,581
|
358,632
|
|
1,028,504
|
1,380,839
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income Attributable to Non-controlling Interest's Share
|
(45,971)
|
304,278
|
|
(102,222)
|
665,905
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive
Income Attributable to Non-controlling Interest's Share
|
440,610
|
662,910
|
|
926,282
|
2,046,744
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable
to Stockholders
|
US$
|
3,360,914
|
3,506,806
|
|
8,690,930
|
13,331,326
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income Attributable to Stockholders
|
(414,848)
|
2,737,543
|
|
(966,431)
|
5,990,984
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive
Income Attributable to Stockholders
|
US$
|
2,946,066
|
6,244,349
|
|
7,724,499
|
19,322,310
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
share - Basic
|
19,304,921
|
19,304,921
|
|
19,304,921
|
19,304,921
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
share - Diluted
|
19,304,921
|
19,304,921
|
|
19,304,921
|
19,304,921
|
|
|
|
|
|
|
|
|
|
|
|
EPS - Basic
|
|
|
|
|
|
0.17
|
0.18
|
|
0.45
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
EPS - Diluted
|
|
|
|
US$
|
0.17
|
0.18
|
|
0.45
|
0.69
|
SORL Auto Parts, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
Nine months Ended
September 30, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
Net Income
|
|
|
|
US$
|
9,719,434
|
14,712,165
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
from operating activities:
|
|
|
|
|
Bad Debt
Expense
|
|
|
|
(143,830)
|
498,014
|
Depreciation and
Amortization
|
|
|
5,602,370
|
5,253,922
|
Loss on disposal
of Fixed Assets
|
|
|
10,359
|
-
|
Changes in
Assets and Liabilities:
|
|
|
|
Accounts
Receivable
|
|
|
|
3,102,469
|
(10,107,006)
|
Bank acceptance
notes from customers
|
|
5,587,439
|
7,868,796
|
Other Currents
Assets
|
|
|
|
2,491,925
|
(1,291,002)
|
Inventories
|
|
|
|
|
172,988
|
(14,663,142)
|
Prepayments
|
|
|
|
(4,112,124)
|
(1,688,537)
|
Deferred tax
assets
|
|
|
|
(138,079)
|
(164,779)
|
Accounts Payable
and Bank acceptance notes to vendors
|
|
(6,544,574)
|
5,354,507
|
Income Tax
Payable
|
|
|
|
866,586
|
81,293
|
Deposits Received
from Customers
|
|
|
487,330
|
(3,412,311)
|
Other Current
Liabilities and Accrued Expenses
|
|
373,621
|
1,609,813
|
Deferred tax
liabilities
|
|
|
|
41,633
|
40,407
|
|
Net Cash Flows
from Operating Activities
|
|
17,517,547
|
4,092,139
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
Acquisition of Property
and Equipment
|
|
(941,286)
|
(7,589,518)
|
Sales proceeds of
disposal of fixed assets
|
|
6,886
|
-
|
Leasehold Improvements
in Progress
|
|
(31,069)
|
-
|
|
|
|
|
|
|
|
|
Net Cash Flows
from Investing Activities
|
|
(965,469)
|
(7,589,518)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
Proceeds from (Repayment
of) Bank Loans
|
|
(3,921,092)
|
(1,586,011)
|
Proceeds from (Repayment
of) Capital lease
|
|
(1,708,171)
|
11,242,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash flows
from Financing Activities
|
|
(5,629,263)
|
9,656,339
|
|
|
|
|
|
|
|
Effects on changes in
foreign exchange rate
|
|
(145,175)
|
508,648
|
|
|
|
|
|
|
|
Net Change in Cash and
Cash Equivalents
|
|
10,777,640
|
6,667,608
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents- Beginning of the year
|
|
17,116,692
|
6,691,078
|
|
|
|
|
|
|
|
Cash and cash
Equivalents - End of the period
|
US$
|
27,894,332
|
13,358,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Disclosures:
|
|
|
|
Interest
Paid
|
|
|
|
1,929,388
|
2,044,898
|
Tax
Paid
|
|
|
|
|
4,765,828
|
2,626,344
|
SOURCE SORL Auto Parts, Inc.