ZHEJIANG, China, March 29, 2012 /PRNewswire-Asia-FirstCall/
-- SORL Auto Parts, Inc. (NASDAQ: SORL) ("SORL" or
"the Company"), a leading supplier of brake and control systems to
the global commercial vehicle industry, announced today financial
results for the fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter Financial Highlights
- Record net sales were $56.1
million;
- Aftermarket and international market revenues increased 13.6%
and 26.5%, respectively, versus the fourth quarter of 2010;
- Gross margin was 28.1%, compared with 27.5% in the same quarter
of 2010 and 27.5%; in the third quarter of 2011;
- Net income attributable to stockholders for the fourth quarter
of 2011 was $3.3 million, or
$0.17 per diluted share.
Full Year 2011 Financial Highlights
- Record annual net sales of $216.8
million;
- Aftermarket and international market revenues increased 33.1%
and 17.7%, respectively, versus 2010;
- Gross margin was 27.7%;
- Net income attributable to stockholders for fiscal 2011 was
$16.7 million, or $0.86 per diluted share.
Mr. Xiaoping Zhang, SORL Auto
Parts' Chief Executive Officer and Chairman, stated, " 2011 was a
difficult year for the Chinese commercial vehicle market due to the
macro business environment and government monetary policies. We are
very proud that we defended our OEM market share, further
consolidated our leadership in the domestic aftermarket and
strengthened our expansion in the international market segments.
Over the years, our consistent delivery of products with excellent
quality has further strengthened our relationships with OEMs as
they remain highly selective of suppliers of safety-related auto
components. In the aftermarket segment, we benefited from higher
safety measures introduced by the Chinese government and our
ongoing effort in building relationships with end customers through
our robust nationwide distribution and marketing network. In the
international markets, we continued to implement our globalization
strategy by further expanding our global sales network. At the same
time, our highly cost-effective products and newly developed,
innovative products are helping us to further gain share in the
international markets. Our continuing R&D investments started
to bear fruit. The successful introduction of innovative products
has earned us new customer wins and helped improve our
profitability. Also, our further investment in modern
machinery equipment has enabled us to offset the pressure from
rising labor costs and raw material increases. Going forward, we
will continue to diversify our product offerings and further the
integration of our sales network and end markets. We are confident
of our ability to maintain steady progress despite the uncertain
market conditions."
Fourth Quarter 2011 Financial Performance
For the fourth quarter of 2011, net sales were $56.1 million versus $54.8
million for the fourth quarter of 2010. Revenues from the
Company's domestic OEM customers were $29.6
million, compared with $32.8
million for the fourth quarter of 2010. Revenues from
China's domestic aftermarket were
$11.7 million, a 13.6% increase over
the previous year's fourth quarter. Revenues from international
markets were $14.8 million, a 26.5%
increase from the same quarter in 2010.
The decline in OEM sales resulted from lower commercial vehicle
sales in China reflecting the
macroeconomic environment. Greater aftermarket sales reflected the
growing and large number of vehicles owned in China, tighter safety measures and the
expiration of vehicle warranties. New product sales and market
share increased in both the OEM and aftermarket as they helped to
improve safety factors for vehicles on the road and added new
functional features. International sales growth reflects the
recovery of the international markets, and also shows that the
continuous expansion of the Company's overseas sales network is
gaining traction.
Fourth quarter gross profit was $15.8
million in 2011 versus $15.6
million a year ago. Gross margin was 28.1%, compared with
27.5% in the same period a year ago and 27.5% in the third quarter
of 2011. Despite higher material costs, higher labor expenses, and
the consistent pressure from the appreciation of the Chinese
Renminbi ("RMB"), the Company improved its gross margin from
a year ago and from the preceding quarter, through introducing more
automated equipment to continually improve production efficiency,
and developing more value-added, advanced products to enhance
profitability.
Operating expenses were $12.5 million
in the fourth quarter of 2011 compared with $8.3 million in the fourth quarter of 2010. As a
percentage of revenue, operating expenses increased to 22.3% in the
fourth quarter 2011 from 15.2% a year ago.
Selling and distribution expenses were $4.8 million, or 8.6% of quarterly revenue
compared with $4.1 million, or 7.5%
of revenue in the same quarter of 2010. The increase in expense and
percentage was mainly due to higher labor cost and higher domestic
and overseas transportation costs.
General and administrative (G&A) expenses in the fourth
quarter of 2011 were $4.2 million, or
7.4% of revenue, compared with $2.0
million, or 3.6% in the previous year's fourth quarter.
G&A expenses rose due to higher labor costs and expenditures
related to the Company's business expansion.
Research and development (R&D) expenses increased to
$2.9 million, or 5.2% of revenues,
compared with $1.9 million, or 3.5%
of revenues, for the same period of 2010. R&D expenses were
mainly allocated to investment in new mechatronic products to
develop higher-margin, electronically controlled products and
upgrading traditional valve products to better serve market
demands.
Financial expenses for the three months ended December 31, 2011 were $0.5 million compared with $0.4 million in the fourth quarter of 2010, which
was mainly increased interest expense and the financing
expense associated with a capital lease transaction.
Operating income was $3.3 million
for the fourth quarter 2011 compared with $7.3 million for the same quarter last year as
higher expenses were experienced in the fourth quarter of
2011.
Net income attributable to stockholders for the fourth quarter
of 2011 was $3.3 million, or
$0.17 per basic and diluted share,
down from $5.8 million, or $0.30 per basic and diluted share, in the fourth
quarter of 2010, and down from $3.5
million, or $0.18 per basic
and diluted share from the third quarter of 2011
Full Year 2011 Financial Results
SORL's net sales for the twelve months ended December 31, 2011, increased 8.7% year-over-year
to $216.8 million from $199.4 million in 2010.
For the twelve months, domestic OEM sales were $115.1 million compared with $117.4 million in 2010 reflecting lower new
commercial vehicle sales in China
during 2011 as generated by the macroeconomic environment. In
2011, aftermarket sales were $44.6
million reflecting a 33.1% increase from a year ago due to a
higher number of vehicles in operation, tighter safety measures for
vehicles in China, and the
expiration of warranties. International sales rose 17.7% to
$57.1 million compared with last
year, reflecting the gradual recovery of the international auto
markets. It also shows that the continuous expansion of the
Company's overseas sales network is gaining traction.
SORL's gross profit rose 3.2% to $60.0
million in 2011. Gross margin was 27.7% in 2011 compared
with 29.2% for 2010. Gross margin was affected by higher labor
expenses and raw material costs as well as the appreciation of the
Chinese currency. The Company has introduced new, more efficient
production equipment and strengthened investment in new
higher-margin products to stabilize the gross margin.
SORL's operational expenses increased by $6.7 million during 2011. As the Company
grew into a larger organization, administrative support and R&D
investment have been expanded to provide new and upgraded products
to ensure SORL's leadership in braking systems in China. The R&D program also enables SORL's
products to better meet global quality standards as the Company
accelerates the expansion of its global footprint. Financial
expense increased by $2.1 million to
$3.2 million mainly due to
higher interest expenses, financing expenses associated with the
Company's capital lease transaction and foreign exchange
losses.
Income from operations was $19.7
million in 2011 from $24.6
million in 2010. The operating margin was 9.1% versus 12.3%
a year ago.
The net income attributable to stockholders in 2011 was
$16.7 million from $20.4 million in 2010. Earnings per share
("EPS"), both basic and diluted, for the full year ended
December 31, 2011 and 2010, were
$0.86 and $1.06 per share, respectively.
Balance Sheet
At December 31, 2011, SORL had
cash and equivalents of $17.1 million
as compared to cash and cash equivalents of $6.7 million at December
31, 2010. The Company had working capital of $115.1 million versus $88.3 million at December
31, 2010 with a current ratio of 3.3 to 1.
Net cash provided by operating activities was $7.6 million for the twelve months ended
December 31, 2011.
Recent Developments
In November 2011, SORL and Nanjing
Iveco Automobile Co., Ltd. ("NAVECO"), China's leading manufacturer of construction
machinery equipment, signed a brake product development and supply
agreement. SORL has developed the brake system and will supply it
for several of NAVECO's new, high-end light trucks with a complete
braking system to include foot brake valves, spring brake chambers,
four-circuit and other braking products comprising the system.
NAVECO plans to produce approximately 300,000 units of these
high-end light truck models in 2015 and SORL is the sole braking
supplier to date. Small volumes of the new braking systems have
been completed with full commercial production beginning in
2012.
In December 2011, SORL Europe, a
subsidiary of SORL, celebrated the opening of its regional
headquarters office at "La Maison de l'Automobile", Brussels, Belgium on December 14, 2011. Mr. Xiao Ping Zhang, Chairman and CEO of the
Company, Mr. Jean Francois Barth,
Managing Director SORL International Holding, and General Manager
of SORL Europe, and other guests attended the ceremony.
In December 2011, the Company's
subsidiary, Ruili Group Ruian Auto Parts Co., Ltd, received the
"2011 Excellent Supplier" award from the Bei Ben Heavy-Duty Truck
Co., Ltd. ("Bei Ben"). Only 53
suppliers received the "Excellent Supplier" award among the 400
suppliers that participated in Bei
Ben's 2011 annual supplier meeting. SORL's sales of
electrical and valve products to Bei
Ben are estimated to grow by 10% to approximately
54 million RMB, or $8.5 million, in
2012.
In January 2012, the Company
announced that it expects to generate RMB60
million in 2012 sales as the exclusive supplier of breathing
spring brake chambers to its OEM customers' Shaanxi Auto, JAC and
Beiqi Foton for their latest vehicles. The new breathing spring
brake chamber is a timely response to the changing requirements of
OEM customers' new vehicle models. The Company's new breathing
spring brake chambers provide higher performance, reliability and
quality than older spring chambers to enhance the road safety
factor. The Chinese government is implementing new regulations to
improve vehicle and driving safety which will enhance the sales
potential of the Company's new spring brake chamber.
In January 2012, the Company
announced that its subsidiary, Ruili Group Ruian Auto Parts Co.,
Ltd., was awarded a "Class A Supplier" designation from Zoomlion
Mobile Crane Branch ("Zoomlion") and it will supply approximately
70% of the brake systems and related components to Zoomlion's crane
truck fleet in 2012. SORL is the only brake system supplier to
achieve the Class A Supplier title by Zoomlion. Zoomlion Mobile
Crane Branch is a division of Changsha Zoomlion Heavy Industry
Science & Technology Development Co., Ltd., China's leading manufacturer of construction
machinery equipment. As a Class A Supplier of Zoomlion, SORL will
receive large volume orders, preferential payment terms, and
strategic cooperation. In 2011, SORL started to supply Zoomlion
crane trucks with braking air processing unit (APU) technology. As
the relationship progressed and evolved, SORL moved to provide
Zoomlion's crane trucks with the entire brake system and related
components to upgrade the braking technology and safety.
In March 2012, Ms. Jinrui Yu replaced Mr. Baojian Tao as the Company's Chief Operating
Officer, effective immediately. With more than 15 years of
experience in the auto parts industry, Ms. Yu has served as the
Company's Production and International Market Vice President since
August 2009. From 2004 to 2009, Ms. Yu served as the
Company's Export Department Manager. Prior to that, Ms. Yu
served as International sales Manager of Ruili Group Co., Ltd.,
which specializes in manufacturing auto parts, and from 1997 to
1999, Ms. Yu worked in the OEM market sales department of Ruili
group Co., Ltd.
Business Outlook
We project approximately $234
million of sales revenue and $18.7
million of net income attributable to our common
stockholders for the full year ending December 31, 2012. "We remain cautiously
optimistic as Chinese OEM market still awaits catalyst. We will
continue to increase production efficiency and improve product mix.
Our success in maintaining domestic OEMs sales in 2011 has proven
SORL's resilience and competitiveness in a soft OEM market. We
continue to execute our international expansion strategy and build
a stronger international foothold in 2012, as we expect more new
customer wins in many emerging markets." Mr. Zhang concluded.
Conference Call
Management will host a conference call on Thursday, March 29, 2012 at 8:00 a.m. EDT / 8:00
p.m. Beijing Time to discuss its 2011 fourth quarter and
year financial results. Listeners may access the call by dialing
U.S. toll free number +1-877-407-0778, +1-201-689-8565 for
international callers, and China
toll free 00-800-4626-6666. 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.
EDT on April 29, 2012, or
11:59 a.m. Beijing Time on
April 30, 2012. The replay dial-in
numbers are: U.S. Toll-Free +1-877-660-6853, or
International is +1-201-612-7415; using Account "286" and
Conference ID "391332" 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. ranked No. 1
for market share in the segment for commercial vehicles brake
systems, 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 system 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 our proposed discussions related
to our business or growth strategy, which is subject to change.
Such information is based upon expectations of our management that
were reasonable when made but may prove to be incorrect. All of
such assumptions are inherently subject to uncertainties and
contingencies beyond our control and upon assumptions with respect
to future business decisions, which are subject to change. We do
not undertake to update the forward-looking statements contained in
this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the
forward-looking statements contained in this press release, see our
most recent Annual Report filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and our subsequent SEC filings.
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
Ben Chen
VP Finance & Corporate Secretary
+86 577 6581 7721
+86 13868890009
Email: ben@sorl.com.cn
Kevin Theiss
Grayling
+1 646 284 9409
Email: kevin.theiss@grayling.com
-- Tables Follow --
SORL Auto Parts, Inc.
and Subsidiaries
|
Consolidated Balance
Sheets
|
December 31, 2011 and
December 31, 2010
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and Cash
Equivalents
|
US$
|
17,116,692
|
US$
|
6,691,078
|
|
Accounts Receivable, Net
of Provision
|
|
65,344,441
|
|
54,168,856
|
|
Bank acceptance notes
from customers
|
|
17,980,145
|
|
27,318,361
|
|
Inventory
|
|
56,377,556
|
|
31,960,053
|
|
Prepayments
|
|
2,484,026
|
|
7,632,674
|
|
Other current assets,
including $0 and $52,743 from
related parties at December 31, 2011 and December 31,
2010, respectively.
|
|
4,960,061
|
|
3,497,659
|
|
Deferred tax
assets
|
|
605,539
|
|
398,034
|
|
Total Current
Assets
|
|
164,868,460
|
|
131,666,715
|
Fixed
Assets
|
|
|
|
|
|
Machinery
|
|
49,879,491
|
|
55,889,093
|
|
Molds
|
|
1,384,825
|
|
1,316,374
|
|
Office
equipment
|
|
1,439,305
|
|
1,142,754
|
|
Vehicle
|
|
1,853,111
|
|
1,347,516
|
|
Building
|
|
8,888,723
|
|
8,230,424
|
|
Machinery held under
capital lease
|
|
18,166,087
|
|
-
|
|
Construction in
progress
|
|
1,503,200
|
|
-
|
|
Less: Accumulated
Depreciation
|
|
(30,905,671)
|
|
(23,032,160)
|
|
Property, Plant and Equipment, Net
|
|
52,209,071
|
|
44,894,001
|
|
Leasehold Improvements
in Progress
|
|
375,604
|
|
424,881
|
|
|
|
|
|
|
Land Use Rights,
Net
|
|
15,111,078
|
|
14,298,522
|
|
|
|
|
|
|
Other Non-Current
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
Assets
|
|
175,871
|
|
166,510
|
|
Less: Accumulated
Amortization
|
|
(92,237)
|
|
(71,868)
|
|
Intangible Assets, Net
|
|
83,634
|
|
94,642
|
|
Security Deposits On
Lease Agreement
|
|
1,879,890
|
|
-
|
|
Deferred tax
assets
|
|
|
|
|
|
Total Other Non-Current Assets
|
|
1,963,524
|
|
94,642
|
|
Total
Assets
|
US$
|
234,527,737
|
US$
|
191,378,761
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts Payable,
including $524,148 and $3,151,493
due to related parties at December 31, 2011 and
December 31, 2010, respectively.
|
US$
|
10,772,396
|
US$
|
10,672,514
|
|
Bank acceptance notes to
vendors
|
|
5,589,678
|
|
966,373
|
|
Deposit Received from
Customers
|
|
5,074,532
|
|
7,484,839
|
|
Short term bank
loans
|
|
16,448,527
|
|
15,770,448
|
|
Income tax
payable
|
|
273,781
|
|
1,174,976
|
|
Accrued
Expenses
|
|
8,808,788
|
|
6,777,830
|
|
Current Portion Of
Capital Lease Obligations
|
|
2,305,125
|
|
-
|
|
Other Current
Liabilities, including $143,950 and $64,600
due to related parties at December 31, 2011 and
December 31, 2010, respectively.
|
|
467,850
|
|
559,575
|
|
Total Current
Liabilities
|
|
49,740,677
|
|
43,406,555
|
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
|
Non-Current Portion Of
Capital Lease Obligations
|
|
10,469,265
|
|
-
|
|
Deferred tax
liabilities
|
|
236,385
|
|
171,981
|
|
Total
Non-Current Liabilities
|
|
10,705,650
|
|
171,981
|
|
|
|
|
|
|
|
Total Liabilities
|
US$
|
60,446,327
|
|
43,578,536
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock - No Par
Value; 1,000,000 authorized;
none issued and outstanding as of December 31, 2011
and December 31, 2010
|
|
-
|
|
-
|
|
Common Stock - $0.002
Par Value; 50,000,000 authorized,
|
|
|
|
|
|
19,304,921 and
19,304,921 issued and outstanding as of
|
|
|
|
|
|
December 31, 2011 and
2010
|
|
38,609
|
|
38,609
|
|
Additional Paid In
Capital
|
|
42,199,014
|
|
42,199,014
|
|
Reserves
|
|
8,375,392
|
|
6,641,547
|
|
Accumulated other
comprehensive income
|
|
21,910,957
|
|
14,731,607
|
|
Retained
Earnings
|
|
84,610,260
|
|
69,672,286
|
|
Total SORL Auto
Parts, Inc. stockholders' equity
|
|
157,134,232
|
|
133,283,063
|
|
Noncontrolling
Interest In Subsidiaries
|
|
16,947,178
|
|
14,517,162
|
|
Total
Equity
|
|
174,081,410
|
|
147,800,225
|
|
Total Liabilities and
Stockholders' Equity
|
US$
|
234,527,737
|
US$
|
191,378,761
|
|
|
|
|
|
|
|
SORL Auto Parts, Inc.
and Subsidiaries
|
Consolidated
Statements of Income and Comprehensive Income
|
For Years Ended on
December 31, 2011 and 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Sales
|
US$
|
216,788,518
|
|
199,365,154
|
Include: sales to
related parties
|
|
2,392,090
|
|
1,304,624
|
Cost of Sales
|
|
156,784,725
|
|
141,228,963
|
|
|
|
|
|
Gross Profit
|
|
60,003,793
|
|
58,136,191
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Selling and Distribution
Expenses
|
|
14,290,988
|
|
13,466,981
|
|
General and
Administrative Expenses
|
|
13,818,136
|
|
11,761,401
|
|
Research and development
expenses
|
|
9,002,744
|
|
7,223,705
|
|
Financial
Expenses
|
|
3,217,155
|
|
1,127,777
|
|
|
|
|
|
|
|
|
Total
Expenses
|
|
40,329,023
|
|
33,579,864
|
|
|
|
|
|
Operating
Income
|
|
19,674,770
|
|
24,556,327
|
|
|
|
|
|
Other Income
|
|
1,567,950
|
|
826,700
|
Non-Operating
Expenses
|
|
(275,714)
|
|
(221,046)
|
|
|
|
|
|
Income Before Provision
for Income Taxes
|
|
20,967,006
|
|
25,161,981
|
|
|
|
|
|
Provision for Income
Taxes
|
|
2,664,052
|
|
2,751,913
|
|
|
|
|
|
Net Income
|
US$
|
18,302,954
|
|
22,410,068
|
|
|
|
|
|
Other Comprehensive
Income - Foreign Currency Translation Adjustment
|
7,978,225
|
|
4,213,528
|
|
|
|
|
|
Total Comprehensive
Income
|
|
26,281,179
|
|
26,623,596
|
|
|
|
|
|
Less:
|
|
|
|
|
Net income attributable
to Noncontrolling Interest In Subsidiaries
|
1,631,135
|
|
2,041,245
|
|
|
|
|
|
Other Comprehensive
Income Attributable to Non-controlling Interest's Share
|
798,875
|
|
421,624
|
|
|
|
|
|
Total Comprehensive
Income Attributable to Non-controlling Interest's Share
|
2,430,010
|
|
2,462,869
|
|
|
|
|
|
Net Income Attributable
to Stockholders
|
|
16,671,819
|
|
20,368,823
|
|
|
|
|
|
Other Comprehensive
Income Attributable to Stockholders
|
7,179,350
|
|
3,791,904
|
|
|
|
|
|
Total Comprehensive
Income Attributable to Stockholders
|
23,851,169
|
|
24,160,727
|
|
|
|
|
|
Weighted average common
share - Basic
|
|
19,304,921
|
|
19,304,921
|
|
|
|
|
|
Weighted average common
share - Diluted
|
|
19,304,921
|
|
19,304,921
|
|
|
|
|
|
EPS - Basic
|
|
0.86
|
|
1.06
|
|
|
|
|
|
EPS - Diluted
|
|
0.86
|
|
1.06
|
|
|
|
|
|
|
|
SORL Auto Parts, Inc.
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
For Years Ended on
December 31, 2011 and 2010
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net Income
|
US$
|
18,302,954
|
|
22,410,068
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
from
operating activities:
|
|
|
|
|
Bad Debt
Expense
|
|
542,585
|
|
256,097
|
Depreciation and
Amortization
|
|
7,224,777
|
|
5,351,778
|
Changes in
Assets and Liabilities:
|
|
|
|
|
Accounts
Receivable
|
|
(9,026,257)
|
|
(5,088,446)
|
Bank acceptance
notes from customers
|
|
10,466,157
|
|
(13,617,416)
|
Other Current
Assets
|
|
(1,509,742)
|
|
1,955,374
|
Inventory
|
|
(22,220,187)
|
|
(7,051,537)
|
Prepayments
|
|
2,170,550
|
|
157,299
|
Deferred
tax assets
|
|
(182,516)
|
|
(168,510)
|
Accounts
Payable and Bank acceptance notes to vendors
|
|
4,026,414
|
|
1,588,281
|
Income Tax
Payable
|
|
(937,270)
|
|
596,693
|
Deposits Received
from Customers
|
|
(2,723,038)
|
|
3,644,043
|
Other Current
Liabilities and Accrued Expenses
|
|
1,460,858
|
|
2,169,513
|
Deferred
tax liabilities
|
|
54,235
|
|
60,794
|
Net Cash Flows
from Operating Activities
|
|
7,649,520
|
|
12,264,031
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
Acquisition of
Property and Equipment
|
|
(9,226,314)
|
|
(16,928,230)
|
Proceeds of
disposal of fixed assets
|
|
920,043
|
|
-
|
Acquisition of
automotive parts business
|
|
-
|
|
(24,963,964)
|
Acquisition of
Intangible Assets
|
|
(764)
|
|
-
|
Net Cash Flows
from Investing Activities
|
|
(8,307,035)
|
|
(41,892,194)
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
Proceeds from
(Repayment of) Bank Loans
|
|
(658,836)
|
|
15,529,510
|
Proceeds from
capital lease obligations, net of security deposit
|
|
11,157,882
|
|
-
|
Proceeds from
Share Issuance
|
|
-
|
|
9,399,978
|
Capital
contributed by Minority Stockholders
|
|
-
|
|
1,038,900
|
|
|
|
|
|
Net Cash flows
from Financing Activities
|
|
10,499,046
|
|
25,968,388
|
|
|
|
|
|
Effects on changes in
foreign exchange rate
|
|
584,083
|
|
95,594
|
|
|
|
|
|
Net Change in Cash and
Cash Equivalents
|
|
10,425,614
|
|
(3,564,181)
|
|
|
|
|
|
Cash and Cash
Equivalents- Beginning of the year
|
|
6,691,078
|
|
10,255,259
|
|
|
|
|
|
Cash and cash
Equivalents - End of the year
|
US$
|
17,116,692
|
|
6,691,078
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Disclosures:
|
|
|
|
|
Interest
Paid
|
|
2,480,385
|
|
550,393
|
Tax
Paid
|
|
3,730,029
|
|
2,961,875
|
SOURCE SORL Auto Parts, Inc.