ZHEJIANG, China, Nov. 14, 2013 /PRNewswire/ -- 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 unaudited financial
results for the third quarter of 2013 and the first nine
months ended September 30, 2013.
Third Quarter 2013 Financial Highlights
- Sales increased 16.7% year-over-year to a third-quarter record
high of $54.5 million;
- Gross margin was 26.6% in the third quarter of 2013 compared to
28.3% in the same period of 2012;
- Net Income attributable to stockholders was $3.3 million, or $0.17 per diluted share;
- Cash and cash equivalents were $32.5
million with a current ratio of 4.4 to 1 at September 30, 2013;
- Annual guidance was reiterated for sales of $207 million and net income of $13.7 million.
Mr. Xiaoping Zhang, SORL's Chief
Executive Officer and Chairman, stated, "We are excited to report a
new record high sales for any third quarter in our history. All
three of our business segments achieved growth. With our growing
portfolio of new advanced products offering significant value to
customers and our growing production efficiency, we are capturing
market share domestically and abroad.
"Our sales also benefitted from the continuing demand for
heavy-duty trucks, primarily from the pre-buy before the strict
enforcement of the new National IV emission standards and the
re-stocking due to low inventory levels. Aftermarket sales grew as
the warranties on the many newer vehicles sold over the past few
years are expiring, brakes need maintenance and repair, and we
increased promotional activity during the third quarter. We
continued to diversify our customer base with our sales to the bus
and construction equipment markets. With the Chinese GDP growth
rate increased to 7.8% in the third quarter, the central government
is revising its policies to put greater economic focus on
increasing domestic consumption. The continued Chinese government
support for urban public transportation creates the prospect for
SORL to gain from increased bus production."
Ms. Jinrui Yu, SORL's Chief
Operating Officer, commented, "We have strengthened investment in
our operations to capture more market share through enhanced
research and development and we added new advanced production
equipment to create greater economies of scale to support current
and future growth even as we pay down our bank debt. We expect to
maintain or improve our industry-leading gross margin with improved
economies-of-scale, increased sales of our growing portfolio of new
products with higher margins, and more efficient production."
Third Quarter 2013 Financial Performance
For the third quarter of 2013, net sales increased by 16.7% to
$54.5 million from $46.7 million for the third quarter of 2012.
Revenues from the Company's domestic OEM customers rose by 18.9% to
$22.3 million from $18.7 million in the third quarter of 2012. Sales
from China's domestic aftermarket
increased 7.6% to $13.1 million in
the third quarter of 2013 from $12.2
million in the same quarter of 2012. Revenues from
international markets increased 21.1% to $19.1 million, compared to $15.8 million in the third quarter of 2012.
SORL's overall sales increased due to higher demand in the
commercial vehicle OEM and aftermarket during the third quarter of
2013 as SORL's new product sales contributed to the sales increase
in both markets. New commercial vehicle unit sales in China increased by 10.9% during the third
quarter of 2013, mainly due to the continuing pre-buy of OEM
commercial vehicles and the inventory re-stocking to meet future
demand.
Aftermarket sales rose as the number of the Company's
sub-distributors increased compared with the same quarter last
quarter. Additionally, expiring OEM warranties increased, and
higher promotional activities and new products contributed to
higher sales in the aftermarket segment.
To control the risk of late payments by international customers,
orders in the second quarter of 2013 were not shipped until all
payments were received. With these payments completed in the third
quarter of 2013, the Company's export sales increased for the three
months ended September 30, 2013
compared to the same period in 2012.
The gross profit for the third quarter of 2013 increased 9.8% to
$14.5 million from $13.2 million for the third quarter of 2012.
Gross margin for the third quarter of 2013 was 26.6% from a gross
margin of 28.3% in the same quarter of 2012. The decrease in gross
margin reflected higher labor and raw materials costs as well as
currency appreciation.
Operating expenses increased to $10.5
million in the third quarter of 2013 from $8.7 million in the third quarter of 2012. The
increase in operating expenses from the third quarter of 2012
reflected higher expenditures in selling and distribution as well
as general and administrative expenses with comparable research and
development costs. As a percentage of revenue, these expenses were
19.2% in the third quarter of 2013, compared with 18.7% in the
third quarter of 2012, and compared with 19.5% in the second
quarter of 2013.
- Selling and distribution expenses were $4.4 million, or 8.0% of quarterly revenues,
compared with $3.8 million, or 8.1%
in the same quarter of 2012. The increase in expenses was mainly
due to higher packaging and personnel expenses during the
quarter.
- General and administrative ("G&A") expenses in the third
quarter of 2013 were $3.7 million, or
6.8% of revenue, compared with $2.6
million, or 5.6% in the third quarter of 2012. The increase
in expenses was mainly due to higher personnel costs and
administrative expenses related to higher
revenues.
- Research and development ("R&D") expenses were $2.4 million in the third quarters of 2013 and
2012. As a percentage of revenue, R&D was 4.4% in the third
quarter of 2013 and declined compared to 5.0% of revenue in the
third quarter of 2012, due primarily to the increase in revenues in
the third quarter of 2013. The R&D program continues to mainly
focus on the development of new, higher-margin, electronically
controlled mechatronic products and to upgrade the Company's
traditional braking products to capture market share.
Financial expenses increased by $229,092 to $770,418 from $541,326 primarily due to higher currency
exchange losses from the appreciation of the Renminbi ("RMB")
against U.S. dollars during the third quarter of 2013.
Income before income taxes was $4.1
million for the third quarter of 2013 compared to
$5.0 million for the same quarter of
2012. The reduced income reflected lower operating income and other
income as well as higher financial expenses during the third
quarter of 2013 compared to the third quarter of 2012. The pretax
income margin was 7.5% in the third quarter of 2013, compared with
10.8% in the third quarter of 2012.
The provision for income taxes was $0.3
million, or an 8.2% tax rate, in the third quarter of 2013,
which is substantially reduced as compared with $1.2 million, or a 23.5% tax rate in the third
quarter in 2012. This change in provision for income taxes
primarily reflected that SORL received its high-tech enterprise
certification in December 2012 that
lowered its income tax rate to 15% for the years 2013 and 2014.
Net income attributable to stockholders for the third quarter of
2013 was $3.3 million, or
$0.17 per basic and diluted share,
compared with $3.4 million, or
$0.17 on per basic and diluted share,
in the third quarter of 2012.
First Nine Months 2013 Financial Performance
Net sales for the first nine months of 2013 increased 6.9% to
$153.3 million from $143.4 million for the first nine months of 2012.
Revenues from the Company's domestic OEM customers increased 7.9%
to $75.7 million from $70.1 million in the first nine months of 2012.
Revenues from China's domestic
aftermarket increased 4.2% to $35.1
million from $33.7 million in
the first nine months of 2012. Revenues from international markets
increased 7.4% to $42.5 million from
$39.6 million in the first nine
months of 2012.
Gross profit for the first nine months of 2013 increased 6.0% to
$42.0 million from $39.6 million for the same period in 2012. Gross
margin for the nine months ended June 30,
2013, declined to 27.4% from 27.6% for the first nine months
of 2012.
Operating income for the first nine months of 2013 declined to
$11.4 million from $13.3 million in the same period in 2012.
Operating margin was 7.4% versus 9.2% in first nine months of
2012.
Net income attributable to stockholders for the first nine
months of 2013 was $8.6 million, or
$0.44 per basic and diluted share,
compared with $8.7 million, or
$0.45 per basic and diluted share, in
the same period in 2012.
Balance Sheet
As of September 30, 2013, the
Company had cash and cash equivalents of $32.5 million compared to $41.3 million on December
31, 2012. The Company significantly reduced short-term bank
loan to $6.0 million on September 30, 2013 from $14.6 million at December
31, 2012. Total equity increased to $203.0 million at September 30, 2013 compared with $188.5 million at December
31, 2012. On September 30,
2013, working capital was $147.8
million with a current ratio of 4.4 to 1. Net cash flow from
operating activities was $1.1
million.
Recent Events
In August 2013, SORL was selected
as the exclusive developer for all air-operated valves for the
new-generation, model N211 medium-duty truck introduced by Anhui
Jianghuai Automobile Co., Ltd. ("JAC").
On August 15-17, 2013, the Company
attended the 2013 China International Public Transportation Expo
("the Expo") held in Shenzhen and
SORL's air brake valve Master Cylinder won the first "China Urban
Transportation Most Trusted Products" award.
We exhibited from October 16-20,
2013, at the Equip Auto 2013 tradeshow in Paris to increase global awareness of the SORL
brand.
Business Outlook
For the fiscal year 2013, management reiterates its outlook for
net sales to be approximately $207
million and net income to be approximately $13.7 million. These targets are based on the
Company's current views on the operating and market conditions,
which are subject to change.
"The Chinese macroeconomic environment is uncertain in the near
term as the central government seeks to change the economic
priority to building national consumption of domestic goods rather
than exports and fixed asset investments. We believe commercial
vehicle inventory levels remain positive for continuing growth and
the pre-buy before the strict enforcement of the National IV
emission standards will continue over the near term. We
remain optimistic that our international sales will contribute more
to our sales growth over the next few years as customers in local
foreign markets recognize the value in performance and quality our
products provide," Ms. Yu concluded.
Conference Call
Management will host a conference call on Thursday, November 14, 2013 at 8:00 a.m. EST / 9:00
p.m. Beijing Time to discuss its 2013 third quarter
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
864001202840. 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, 2013, or
12:59 a.m. Beijing Time on
December 15, 2013. 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 Conference ID
"13572706" 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 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 within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the use of forward-looking terminology such as "expects,"
"anticipates," "believes," "targets," "goals," "projects,"
"intends," "plans," "seeks," "estimates," "may," "will," "should"
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. These
risks and uncertainties may include, but are not limited to general
political, economic and business conditions which may impact the
demand for commercial vehicles or passenger vehicles in
China and the other significant
markets where the Company's products are sold, uncertainty
regarding such political, economic and business conditions, trends
in consumer debt levels and bad debt write-offs, general
uncertainty related to possible recessions, natural disasters, the
political stability of China and
the impact of any of those events on demand for commercial or
passenger vehicles, changes in consumer confidence, new product
development and introduction, competitive products and pricing,
seasonality, availability of alternative sources of supply in the
case of the loss of any significant supplier or any supplier's
inability to fulfill the Company's orders, cost of labor and raw
materials, the loss of or curtailed sales to significant customers,
the Company's dependence on key employees and officers, the ability
to secure and protect trademarks, patents and other intellectual
property rights, potential effects of competition in the Company's
business, the dependency of the Company upon the normal operation
of its sole manufacturing facility, potential effect of the
economic and currency instability in China and countries to which the Company sold
its products, the ability of the Company to successfully manage its
expenses on a continuing basis, the continued availability to the
Company of financing and credit on favorable terms, business
disruptions, disease, general risks associated with doing business
in China or other countries
including, without limitation, foreign trade policies, import
duties, tariffs, quotas, political and economic stability, and the
other factors discussed in the Company's Annual Report on Form 10-K
and other filings with the Securities and Exchange Commission. 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
+86.139.6777.6556
+86.577.6581.7721
ljf@sorl.com.cn
Phyllis Huang
+86.151.6770.5972
+86.577.6581.7721
phyllis@sorl.com.cn
Kevin Theiss
Grayling
+1.646.284.9409
kevin.theiss@grayling.com
- Tables Follow -
SORL Auto Parts,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
US$
|
32,520,391
|
US$
|
41,253,353
|
|
Accounts receivable,
net of provision,
including $453,709 and $0 due from
related parties at September 30, 2013 and
December 31, 2012, respectively.
|
|
54,840,095
|
|
62,153,509
|
|
Bank acceptance notes
from customers
|
|
22,646,328
|
|
10,098,390
|
|
Inventories
|
|
70,976,416
|
|
56,775,825
|
|
Prepayments
|
|
6,176,942
|
|
5,722,743
|
|
Current portion of
prepaid capital lease interest
|
|
508,745
|
|
876,326
|
|
Other current
assets
|
|
3,029,184
|
|
1,183,487
|
|
Deferred tax
assets
|
|
1,001,555
|
|
687,632
|
|
Total
Current Assets
|
|
191,699,656
|
|
178,751,265
|
Fixed
Assets
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
46,351,853
|
|
46,962,599
|
|
Leasehold
improvements in progress
|
|
278,838
|
|
335,714
|
|
|
|
|
|
|
Land Use Rights,
Net
|
|
14,825,863
|
|
14,742,047
|
|
|
|
|
|
|
Other Non-Current
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
55,685
|
|
66,889
|
|
Security deposits on
lease agreement
|
|
1,858,909
|
|
1,879,831
|
|
Long term deferred
expense-prepaid interest
|
|
478,372
|
|
822,640
|
|
Total Other
Non-Current Assets
|
|
2,392,966
|
|
2,769,360
|
|
Total
Assets
|
US$
|
255,549,176
|
US$
|
243,560,985
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable,
including $722,787 and
$94,954 due to related parties at September
30, 2013 and December 31, 2012, respectively.
|
US$
|
8,952,443
|
US$
|
14,324,633
|
|
Deposit received from
customers
|
|
14,129,926
|
|
6,599,746
|
|
Short term bank
loans
|
|
6,033,111
|
|
14,599,753
|
|
Accrued
expenses
|
|
10,888,980
|
|
8,501,819
|
|
Current portion of
capital lease obligations
|
|
3,717,818
|
|
10,458,352
|
|
Other current
liabilities, including $82,670
and $33,083 due to related parties
at September 30, 2013 and December 31,
2012, respectively.
|
|
160,278
|
|
313,006
|
|
Total
Current Liabilities
|
|
43,882,556
|
|
54,797,309
|
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
|
Non-current portion
of capital lease obligations
|
|
8,365,089
|
|
-
|
|
Deferred tax
liabilities
|
|
342,019
|
|
291,995
|
|
Total
Non-Current Liabilities
|
|
8,707,108
|
|
291,995
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
52,589,664
|
|
55,089,304
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock - no
par value; 1,000,000
authorized; none issued and outstanding as
of September 30, 2013 and December 31,
2012
|
|
-
|
|
-
|
|
Common Stock - $0.002
par value;
50,000,000 authorized, 19,304,921 issued
and outstanding as of September 30, 2013
and December 31, 2012
|
|
38,609
|
|
38,609
|
|
Additional paid-in
capital
|
|
42,199,014
|
|
42,199,014
|
|
Reserves
|
|
10,523,452
|
|
9,676,183
|
|
Accumulated other
comprehensive income
|
|
26,364,789
|
|
22,020,008
|
|
Retained
earnings
|
|
103,845,929
|
|
96,114,407
|
|
Total SORL Auto
Parts, Inc.
Stockholders' Equity
|
|
182,971,793
|
|
170,048,221
|
|
Noncontrolling
Interest In Subsidiaries
|
|
19,987,719
|
|
18,423,460
|
|
Total
Equity
|
|
202,959,512
|
|
188,471,681
|
|
Total Liabilities
and Stockholders'
Equity
|
US$
|
255,549,176
|
US$
|
243,560,985
|
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,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
US$
|
54,488,640
|
US$
|
46,708,959
|
US$
|
153,317,804
|
US$
|
143,399,372
|
Include: sales to
related parties
|
|
825,101
|
|
1,092,343
|
|
2,067,673
|
|
5,046,533
|
Cost of
sales
|
|
|
|
|
39,969,212
|
|
33,485,059
|
|
111,332,963
|
|
103,779,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
14,519,428
|
|
13,223,900
|
|
41,984,841
|
|
39,619,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
4,383,239
|
|
3,765,768
|
|
12,122,573
|
|
10,460,168
|
General and
administrative expenses
|
3,696,715
|
|
2,630,786
|
|
13,079,992
|
|
9,981,552
|
Research and
development expenses
|
2,384,902
|
|
2,352,958
|
|
5,392,513
|
|
5,916,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
10,464,856
|
|
8,749,512
|
|
30,595,078
|
|
26,358,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
4,054,572
|
|
4,474,388
|
|
11,389,763
|
|
13,260,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
858,653
|
|
1,207,961
|
|
1,723,767
|
|
1,972,781
|
Financial
expenses
|
|
|
|
(770,418)
|
|
(541,326)
|
|
(2,208,756)
|
|
(1,668,945)
|
Non-operating
expenses
|
|
|
|
(77,073)
|
|
(112,927)
|
|
(210,243)
|
|
(366,119)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before
provision
for income taxes
|
|
|
4,065,734
|
|
5,028,096
|
|
10,694,531
|
|
13,198,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
332,027
|
|
1,180,601
|
|
1,040,215
|
|
3,479,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
US$
|
3,733,707
|
US$
|
3,847,495
|
US$
|
9,654,316
|
US$
|
9,719,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to
noncontrolling interest in subsidiaries
|
423,087
|
|
486,581
|
|
1,075,525
|
|
1,028,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
common stockholders
|
|
US$
|
3,310,620
|
US$
|
3,360,914
|
US$
|
8,578,791
|
US$
|
8,690,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
Net income
|
|
US$
|
3,733,707
|
US$
|
3,847,495
|
US$
|
9,654,316
|
US$
|
9,719,434
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
|
|
1,023,444
|
|
(460,819)
|
|
4,833,515
|
|
(1,068,653)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
4,757,151
|
|
3,386,676
|
|
14,487,831
|
|
8,650,781
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
attributable to
noncontrolling interest in
subsidiaries
|
|
|
|
532,333
|
|
440,610
|
|
1,564,259
|
|
926,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
attributable to
common shareholders
|
|
|
|
US$
|
4,224,818
|
US$
|
2,946,066
|
US$
|
12,923,572
|
US$
|
7,724,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
US$
|
0.17
|
US$
|
0.17
|
US$
|
0.44
|
US$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS -
diluted
|
|
|
|
US$
|
0.17
|
US$
|
0.17
|
US$
|
0.44
|
US$
|
0.45
|
SORL Auto Parts,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net income
|
US$
|
9,654,316
|
US$
|
9,719,434
|
|
Adjustments to
reconcile net income to net
cash from operating activities:
|
|
|
|
|
|
Bad debt
expense
|
|
1,371,727
|
|
(143,830)
|
|
Depreciation and
amortization
|
|
5,960,145
|
|
5,602,370
|
|
Deferred income
taxes
|
|
(252,018)
|
|
(96,446)
|
|
Loss on disposal of
fixed assets
|
|
5,196
|
|
10,359
|
|
Changes In Assets
and Liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
8,037,713
|
|
3,102,469
|
|
Bank acceptance notes
from customers
|
|
(12,252,121)
|
|
5,587,439
|
|
Other currents
assets
|
|
(1,756,558)
|
|
2,491,925
|
|
Inventories
|
|
(12,687,012)
|
|
172,988
|
|
Prepayments
|
|
(319,823)
|
|
(4,112,124)
|
|
Accounts payable and
bank acceptance notes to vendors
|
|
(6,259,596)
|
|
(6,544,574)
|
|
Income tax
payable
|
|
-
|
|
866,586
|
|
Deposits received
from customers
|
|
7,317,768
|
|
487,330
|
|
Other current
liabilities and accrued expenses
|
|
2,248,257
|
|
373,621
|
|
Net Cash Flows
Provided By Operating
Activities
|
|
1,067,994
|
|
17,517,547
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
(3,356,852)
|
|
(941,286)
|
|
Proceeds of disposal
of fixed assets
|
|
14,602
|
|
6,886
|
|
Leasehold
improvements in progress
|
|
-
|
|
(31,069)
|
|
|
|
|
|
|
|
Net Cash Flows
Used In Investing Activities
|
|
(3,342,250)
|
|
(965,469)
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
Proceeds from bank
loans
|
|
60,307,996
|
|
23,152,945
|
|
Repayment of bank
loans
|
|
(69,079,151)
|
|
(27,263,968)
|
|
Proceeds from capital
lease
|
|
12,783,841
|
|
-
|
|
Repayment of capital
lease
|
|
(11,400,163)
|
|
(1,708,171)
|
|
|
|
|
|
|
|
Net Cash Flows
Used In Financing Activities
|
|
(7,387,477)
|
|
(5,819,194)
|
|
|
|
|
|
|
|
Effects on changes
in foreign exchange rate
|
|
928,771
|
|
44,756
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(8,732,962)
|
|
10,777,640
|
|
|
|
|
|
|
|
Cash and cash
equivalents- beginning of the year
|
|
41,253,353
|
|
17,116,692
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of the period
|
US$
|
32,520,391
|
US$
|
27,894,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Disclosures:
|
|
|
|
|
|
Interest
paid
|
US$
|
1,247,619
|
US$
|
1,929,388
|
|
Tax paid
|
US$
|
1,772,230
|
US$
|
4,765,828
|
|
SOURCE SORL Auto Parts, Inc.