ZHEJIANG, China, Dec. 31, 2012 /PRNewswire-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 that the
Chinese government has renewed SORL's High-Tech Enterprise status.
The Company was also designated as a High-Tech Enterprise beginning
in 2009, the first year it was available, through the 2011 fiscal
year. As a High-Tech Enterprise, SORL receives a preferred tax rate
of 15% for the three years 2012 through 2014, compared with the
normal 25% corporate tax rate.
There are a number of criteria to qualify for the High-Tech
Enterprise including: a company must own proprietary intellectual
rights, operate in a government-selected industry, R&D
expenditures and income from high-tech products/services each must
meet a required minimum percentage of annual revenue, and the
number of R&D personnel must meet a required percentage
of total employees.
The Company already has received its anticipated tax refund for
the first three-quarters of 2012 of approximately $1.2 million (approximately RMB 7.64 million) resulting from this
designation.
For fiscal year 2012, management reiterates its expectation for
net sales to be approximately $191.4
million and revises its net income expectation to be
approximately $12.7 million. The
revised net income guidance is based upon the preferred 15% tax
rate from the renewal of the High-Tech Enterprise status. This
target is based on the Company's current views on the operating and
market conditions, which are subject to change.
Ms. Jinrui Yu, SORL Auto Parts'
COO, said, "The High-Tech Enterprise designation reflects the
Chinese government's desire to build the domestic technology base
by favoring only companies that are advancing technologies. Our
research and development program is innovating new products with
higher technology content to offer better solutions for our
customers' current vehicles and to prepare for future vehicles,
especially pure electric and plug-in hybrid vehicles promoted by
the Chinese government. Innovation will enable us to sustain our
leading position in the domestic market for brake systems and
better penetrate the global auto parts industry to gain momentum
for our future growth, strengthen our technology base and build
shareholder value."
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 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 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
SOURCE SORL Auto Parts, Inc.