ZHEJIANG, China, April 1, 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 financial results
for the fourth quarter and full year ended December 31, 2012.
Fourth Quarter 2012 Financial Highlights
- Revenues for the fourth quarter of 2012 were $48.8 million;
- Gross margin was 26.5% in the fourth quarter of 2012;
- Net Income attributable to stockholders was $4.1 million, or $0.21 per diluted share, in the fourth quarter of
2012;
- Cash flow from operating activities was $14.1 million with $1.6
million used to acquire property, plant and equipment;
- Cash and cash equivalent was $41.3
million versus $17.1 million
at December 31, 2011.
Full Year 2012 Financial Highlights
- Annual net sales of $192.2
million;
- Gross margin was 27.3%;
- Net income attributable to stockholders for fiscal 2012 was
$12.8 million, or $0.66 per diluted share;
- Cash flow from operating activities was $31.6 million with $2.5
million used to acquire property, plant and equipment.
Mr. Xiaoping Zhang, SORL's Chief
Executive Officer and Chairman, stated, "We recorded a strong
quarter and dramatically improved our balance sheet, considering
the weak market condition. The Chinese automotive market
experienced weakness in 2011 which continued during 2012. In
particular, the sales decline in the truck OEM market continued
throughout 2012, especially in the important heavy-duty truck
market. Slower construction activities continued to depress
downstream customer demand for new trucks. Given this environment,
we are pleased to have maintained our OEM market position and our
excellent relationships with our many OEM customers. We remain
focused on expanding our market share with OEMs through our
broadened product offerings of new, more advanced electronic
products and improved services. We have already increased sales to
the bus and construction equipment markets. Our Chinese aftermarket
sales are stable due to the growing number of vehicles in
operation, heightened safety requirements and the expiration of OEM
warranties. Our stable domestic aftermarket business is due to our
brand recognition for high-quality products and excellent service.
We are pleased with our international sales given the currency
fluctuations, uncertain growth prospects in Europe and the unstable environment in the
Middle East. Expansion in
international sales remains a priority for future growth and we
entered the large U.S. aftermarket parts market in 2012."
Ms. Jinrui Yu, SORL's Chief
Operating Officer, commented, "Our investments in higher-grade
production equipment and new product development continued to
enable SORL to hold a higher than industry average gross margin in
an inflationary environment where labor costs are rising. Our
tightened financial management had a profound impact to our balance
sheet. We have generated $29 million
free cash flow and added over $24
million to our cash accounts during 2012 to support our
operations, research and development and for future growth. Our
cash and cash equivalents reached $2.14 per share at December 31, 2012. We effectively increased our
collections and used our cash flow to pay down debt as our capital
expenditures were reduced with our current capacities. With our
improved financial strength, we are well positioned to now further
invest in additional cost-efficient equipment to generate stronger
earnings and cash flow when the domestic market experiences
stronger growth. We also look forward to entering new international
markets and to penetrate deeper into current markets."
Fourth Quarter 2012 Financial Performance
For the fourth quarter of 2012, net sales were $48.8 million, compared to $56.1 million for the fourth quarter of 2011.
Revenues from the Company's domestic OEM customers were
$23.7 million, compared to
$29.6 million for the fourth quarter
of 2011. Revenues from China's
domestic aftermarket were $11.7
million, in line with previous year's fourth quarter.
Revenues from international markets were $13.4 million, compared to $14.8 million from the same quarter in 2011.
The decrease in overall sales was related to the continuing
weakness in demand for commercial vehicles in China. GDP growth rate was 7.9% in the fourth
quarter of 2012 and 7.8% for the 2012 year according to the
National Bureau of Statistics. The growth rate for 2012 was the
slowest since 1999. A decline in investments in infrastructure and
other fixed assets reduced the need for trucks, especially
heavy-duty trucks which recorded a 15.8% sales decline compared
with the same quarter in 2011. Economic conditions in Europe, uncertainty in the Middle East and currency fluctuations reduced
our sales into international markets.
The gross profit for the fourth quarter of 2012 was $12.9 million, compared with $15.8 million, for the fourth quarter of 2011.
Gross margin was 26.5%, compared with 28.1% gross margin in the
same period of 2011. The gross margin decrease was primarily the
result of higher material and labor expenses, and the appreciation
of the Chinese currency against other currencies. The Company
believes that by improving production efficiencies and increasing
the sales of higher-profit new products, its gross margin will be
maintained or improved.
Operating expenses decreased by 13.4% to $10.3 million in the fourth quarter of 2012 from
$11.9 million in the fourth quarter
of 2011. The decline in operating expenses reflected reduced
general and administrative expenses and lower research and
development expenditures. As a percentage of revenue, the operating
expense was 21.2% in the fourth quarter of 2012, approximately in
line with the same quarter of 2011.
Selling and distribution expenses were $4.9 million, or 10.0% of quarterly revenue
compared with $4.8 million, or 8.6%
of revenues in the same quarter of 2011. New packaging materials
needed to meet stricter packaging requirements, and higher
personnel salaries represented most of the increased costs during
the quarter.
General and administrative (G&A) expenses in the fourth
quarter of 2012 were $3.5 million, or
7.2% of revenue compared with $4.2
million, or 7.4% in the fourth quarter of 2011. The decline
in expenses was mainly due to expenditures related to lower sales
and vigorous cost management programs.
Research and development (R&D) expenses were $1.9 million, or 4.0% of revenue in the fourth
quarter of 2012 compared with $2.9
million, or 5.2% in the fourth quarter of 2011. The focus of
the R&D program was mainly to develop higher-margin
electronically controlled mechatronic products and upgrade the
Company's traditional valve products to capture market share. The
Company utilized stricter cost controls over R&D to ensure
these resources are effectively used as SORL re-qualified as a
high-tech enterprise.
Income before provision for income taxes was $3.1 million for the fourth quarter of 2012
compared to $3.7 million for the same
quarter of 2011. The reduced income reflected a decline in sales
which generated lower gross profits. The pretax income margin
percentage was 6.3% in the fourth quarter of 2012, compared with
6.5% in the fourth quarter of 2011.
The provision for income taxes changed to a refund of
$1.5 million in the fourth quarter of
2012 from a liability of $0.08
million in the fourth quarter in 2012. This change in
provision for income taxes reflected SORL receiving it high-tech
enterprise certification that lowers its income tax rate to 15% for
the years 2012 through 2014.
Net income attributable to stockholders for the fourth quarter
of 2012 was $4.1 million, or
$0.21 per basic and diluted share,
compared with $3.3 million, or
$0.17 on per basic and diluted share,
in the fourth quarter of 2011.
Full Year 2012 Financial Results
SORL's net sales for the twelve months ended December 31, 2012 were $192.2 million compared with $216.8 million in 2011.
For the twelve months ended December 31,
2012, domestic OEM sales were $93.9
million compared with $115.1
million in 2011 reflecting lower new commercial vehicle
sales in China during 2012 mainly
due to relatively slower economic growth and lower investments in
infrastructure projects during 2012. In 2012, aftermarket sales
increased to $45.4 million from
$44.6 million one year ago.
International sales were $53.0
million compared with $57.1
million last year, reflecting the effects of currency
fluctuations of the Chinese Renminbi and reduced inventories held
by some distributors.
SORL's gross profit was $52.5
million in 2012 compared with $60.0
million in 2011. Gross margin was 27.3% in 2012 compared
with 27.7% for 2011. Gross margin was affected by higher labor
expenses and raw material costs as well as the appreciation of the
Chinese currency. The Company's new production equipment to enhance
productivity and introduction of new higher-margin products has
successfully stabilized the gross margin. Additional production
equipment and advanced, higher-margin products will be added to
maintain or expand the gross margin.
SORL's operational expenses decreased to $36.7 million during 2012 from $37.1 million in 2011. Selling expenses rose by
$1.0 million compared with 2011
primarily due to new packaging materials to meet more strict
packaging standards as well as higher personnel costs. Lower
general and administrative expenses in 2012 were due to lower
sales-related activities and effective cost controls. The
$1.2 million reduction in R&D
costs from 2011 was mainly due to measures taken to increase
productivity.
SORL continues to build new products and upgrade traditional
technologies to improve the performance of those products to meet
global quality it expands its international presence. Financial
expenses decreased by $0.9 million to
$2.4 million from 2011, primarily
from lower interest and discount expenses.
Income before provision for income taxes was $16.3 million in 2012 compared with $21.0 million in 2011. The pretax income margin
was 8.5% versus 9.7% a year ago.
The net income attributable to stockholders in 2012 was
$12.8 million compared with
$16.7 million in 2011. Earnings per
share ("EPS"), both basic and diluted, for the full year ended
December 31, 2012 and 2011, were
$0.66 and $0.86 per share, respectively.
Balance Sheet
As of December 31, 2012, the
Company had cash and cash equivalents of $41.3 million compared to $17.1 million on December
31, 2011. Total equity increased to $188.5 million at the end of December 2012 compared with $174.1 million at December
31, 2011. At December 31,
2012, working capital was $124.8
million with a current ratio of 3.3 and no long-term debt.
Net cash flow from operating activities was $31.6 million with $2.5
million used for the acquisition of property and
equipment.
Recent Developments
In March 2013, SORL received
certification for the Company's pneumatic quick release valve,
pneumatic overflow valve, ABS sensor, pneumatic emergency relay
valve, and air pressure linking coupling heads, from TUV Rheinland,
a global leader in independent inspection and certification
services. This certification confirms the technical proficiency,
safety and reliability of these products and their suitability for
the European markets.
In December 2012, SORL announced
has received the "Excellent Supplier for the Military" award from
the Shaanxi Heavy Duty Truck Co., Ltd.("Shaanxi"), and the "Excellent Supplier"
designation from both the Sichuan South Chun Auto Group Company
Limited ("South Chun Group") and the Hubei Sanjiang Space Wanshan
Special Vehicle Co., Ltd. ("Wanshan"), for its overall outstanding
performance during the year of 2012.
In December 2012, SORL announced
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.
In November 2012, SORL was named a
'Quarterly Excellent Supplier' by the Zhengzhou Yutong Bus Co., Ltd
("Yutong") based on its overall outstanding performance during the
third quarter of 2012. SORL was rated as one of Yutong's excellent
suppliers measured by key performance criteria (quality, cost,
delivery, technology, and aftersales service), and required
management indicators (certification compliance, service quality,
change implementation, quality system, packing and labeling, and
environmental health and safety specifications). Recipients of the
quarterly Excellent Supplier award are prioritized to receive the
annual Excellent Supplier award, and potentially be rewarded with
more supply orders in the next year.
In November 2012, SORL received a
400-unit order for its new electric air compressor from Shen Zhen
Wuzhoulong Motors Group. Released in July
2012, the new electric air compressor is selling at
8,000 RMB per unit. 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 it is far easier to make them start or
stop working. An electric air compressor is a necessity for all
electric buses with an air brake system.
Business Outlook
For the fiscal year 2013, management expects 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.
"We are better positioned with new, more efficient production
equipment and a growing number of advanced electronically
controlled products to meet the needs of our OEM and aftermarket
customers. We are providing low-cost, high value products to
capture market share. We continue to build a stronger international
marketing network to increase our penetration with a focus on
chains selling to end users. Our operations will continue to
generate cash flow to strengthen our financial position," Ms. Yu
concluded.
Conference Call
Management will host a conference call on Monday, April 1, 2013 at 8:00 a.m. ET / 8:00
p.m. Beijing Time to discuss its 2012 fourth 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. ET
on May 1, 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
"411382" 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. 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
+86.139.6777.6556
+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
SORL
Auto Parts, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
US$
|
41,253,353
|
US$
|
17,116,692
|
|
Accounts
receivable, net of provision
|
|
62,153,509
|
|
65,344,441
|
|
Bank
acceptance notes from customers
|
|
10,098,390
|
|
17,980,145
|
|
Inventories
|
|
56,775,825
|
|
56,377,556
|
|
Prepayments
|
|
7,421,709
|
|
2,484,026
|
|
Other
current assets
|
|
1,183,487
|
|
4,960,061
|
|
Deferred
tax assets
|
|
687,632
|
|
605,539
|
|
Total Current Assets
|
|
179,573,905
|
|
164,868,460
|
Fixed
Assets
|
|
|
|
|
|
Machinery
|
|
52,212,579
|
|
49,879,491
|
|
Molds
|
|
1,384,781
|
|
1,384,825
|
|
Office
equipment
|
|
1,637,402
|
|
1,439,305
|
|
Vehicles
|
|
2,025,702
|
|
1,853,111
|
|
Buildings
|
|
8,888,441
|
|
8,888,723
|
|
Machinery
held under capital lease
|
|
18,165,511
|
|
18,166,087
|
|
Construction in progress
|
|
-
|
|
1,503,200
|
|
Less:
accumulated depreciation
|
|
(37,351,817)
|
|
(30,905,671)
|
|
Property, plant and equipment, net
|
|
46,962,599
|
|
52,209,071
|
|
Leasehold
improvements in progress
|
|
335,714
|
|
375,604
|
|
|
|
|
|
|
Land
Use Rights, Net
|
|
14,742,047
|
|
15,111,078
|
|
|
|
|
|
|
Other
Non-Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
assets
|
|
175,865
|
|
175,871
|
|
Less:
accumulated amortization
|
|
(108,976)
|
|
(92,237)
|
|
Intangible assets, net
|
|
66,889
|
|
83,634
|
|
Security
deposits on lease agreement
|
|
1,879,831
|
|
1,879,890
|
|
Total Other Non-Current Assets
|
|
1,946,720
|
|
1,963,524
|
|
Total
Assets
|
US$
|
243,560,985
|
US$
|
234,527,737
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable, including $33,083 and $524,148
due to related parties at December 31, 2012 and
December 31, 2011, respectively.
|
US$
|
14,324,633
|
US$
|
10,772,396
|
|
Bank
acceptance notes to vendors
|
|
-
|
|
5,589,678
|
|
Deposit
received from customers
|
|
6,599,746
|
|
5,074,532
|
|
Short term
bank loans
|
|
14,599,753
|
|
16,448,527
|
|
Income tax
payable
|
|
-
|
|
273,781
|
|
Accrued
expenses
|
|
8,501,819
|
|
8,808,788
|
|
Current
portion of capital lease obligations
|
|
10,458,352
|
|
2,305,125
|
|
Other
current liabilities, including $94,954 and
$143,950 due to related parties at December 31,
2012 and December 31, 2011, respectively.
|
|
313,006
|
|
467,850
|
|
Total Current Liabilities
|
|
54,797,309
|
|
49,740,677
|
|
|
|
|
|
|
Non-Current Liabilities
|
|
|
|
|
|
Non-current portion of capital lease
obligations
|
|
-
|
|
10,469,265
|
|
Deferred
tax liabilities
|
|
291,995
|
|
236,385
|
|
Total Non-Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
US$
|
55,089,304
|
US$
|
60,446,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock - No par value; 1,000,000
authorized; none issued and outstanding as of
December 31, 2012 and December 31, 2011
|
|
-
|
|
-
|
|
Common
stock - $0.002 par value; 50,000,000
authorized,
|
|
|
|
|
|
19,304,921
and 19,304,921 issued and outstanding
as of December 31, 2012 and December 31, 2011
|
|
38,609
|
|
38,609
|
|
|
|
|
|
|
|
Additional
paid-in capital
|
|
42,199,014
|
|
42,199,014
|
|
Reserves
|
|
9,676,183
|
|
8,375,392
|
|
Accumulated other comprehensive income
|
|
22,020,008
|
|
21,910,957
|
|
Retained
earnings
|
|
96,114,407
|
|
84,610,260
|
|
Total
SORL Auto Parts, Inc. Stockholders'
Equity
|
|
170,048,221
|
|
157,134,232
|
|
Noncontrolling Interest In
Subsidiaries
|
|
18,423,460
|
|
16,947,178
|
|
Total
Equity
|
|
188,471,681
|
|
174,081,410
|
|
Total
Liabilities and Stockholders' Equity
|
US$
|
243,560,985
|
US$
|
234,527,737
|
|
|
|
|
|
|
SORL
Auto Parts, Inc. and Subsidiaries
|
Consolidated Statements of Income and
Comprehensive Income
|
For
Years Ended on December 31, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
|
|
US$
|
192,217,399
|
|
216,788,518
|
Include:
sales to related parties
|
|
|
|
1,856,338
|
|
2,392,090
|
Cost of
sales
|
|
|
|
|
139,675,775
|
|
156,784,725
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
52,541,624
|
|
60,003,793
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling
and distribution expenses
|
|
15,330,507
|
|
14,290,988
|
General
and administrative expenses
|
|
13,512,003
|
|
13,818,136
|
Research
and development expenses
|
|
7,849,101
|
|
9,002,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,691,611
|
|
37,111,868
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
3,047,072
|
|
1,567,950
|
Financial
expenses
|
|
|
|
2,360,966
|
|
3,217,155
|
Non-operating expenses
|
|
|
|
(267,384)
|
|
(275,714)
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
16,268,735
|
|
20,967,006
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
|
|
2,005,125
|
|
2,664,052
|
|
|
|
|
|
|
|
|
|
Net income
before noncontrolling interest
|
|
|
|
|
|
& other comprehensive income
|
|
US$
|
14,263,610
|
|
18,302,954
|
|
|
|
|
|
Net income
attributable to noncontrolling interest in
subsidiaries
|
|
1,458,672
|
|
1,631,135
|
|
|
|
|
|
|
|
|
|
Net income
attributable to stockholders
|
|
|
12,804,938
|
|
16,671,819
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
|
126,661
|
|
7,978,225
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest's share
|
|
|
|
17,610
|
|
798,875
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
12,913,989
|
|
23,851,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common share - basic
|
|
|
19,304,921
|
|
19,304,921
|
|
|
|
|
|
|
|
|
|
Weighted
average common share - diluted
|
|
|
19,304,921
|
|
19,304,921
|
|
|
|
|
|
|
|
|
|
EPS -
basic
|
|
|
|
|
0.66
|
|
0.86
|
|
|
|
|
|
|
|
|
|
EPS -
diluted
|
|
|
|
|
0.66
|
|
0.86
|
SORL
Auto Parts, Inc. and Subsidiaries
|
Consolidated Statements of Cash
Flows
|
For
Years Ended on December 31, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Cash
Flows from Operating Activities
|
|
|
|
|
Net
income
|
|
|
|
US$
|
12,804,938
|
|
16,671,819
|
Adjustments to reconcile net income to
net
cash from operating activities:
|
|
|
|
|
Noncontrolling interest in subsidiaries
|
|
1,458,672
|
|
1,631,135
|
Allowance for doubtful accounts
|
|
|
|
106,067
|
|
542,585
|
Depreciation and amortization
|
|
|
7,405,347
|
|
7,224,777
|
Loss
on disposal of fixed assets
|
|
|
13,616
|
|
-
|
Changes in Assets and
Liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
|
2,793,879
|
|
(9,026,257)
|
Bank
acceptance notes from customers
|
|
7,881,310
|
|
10,466,157
|
Other currents assets
|
|
|
|
3,238,663
|
|
(1,509,742)
|
Inventories
|
|
|
|
|
(400,056)
|
|
(22,220,187)
|
Prepayments
|
|
|
|
(3,238,845)
|
|
2,170,550
|
Deferred tax assets
|
|
|
|
(82,113)
|
|
(182,516)
|
Accounts payable and bank acceptance notes
to
vendors
|
|
(1,357,047)
|
|
4,026,414
|
Income tax payable
|
|
|
|
(273,776)
|
|
(937,270)
|
Deposits received from customers
|
|
|
1,525,398
|
|
(2,723,038)
|
Other current liabilities and accrued
expenses
|
|
(314,755)
|
|
1,460,858
|
Deferred tax liabilities
|
|
|
|
55,619
|
|
54,235
|
Net Cash Flows from Operating
Activities
|
|
31,616,917
|
|
7,649,520
|
|
|
|
|
|
|
|
|
Cash
Flows from Investing Activities
|
|
|
|
|
Acquisition of property and equipment
|
|
(2,522,280)
|
|
(9,226,314)
|
Proceeds
of disposal of fixed assets
|
|
931,752
|
|
920,043
|
Prepayment
for sales-leaseback
|
|
|
(1,698,993)
|
|
-
|
Leasehold
improvements in progress
|
|
(33,708)
|
|
-
|
Acquisition of intangible assets
|
|
|
-
|
|
(764)
|
|
|
|
|
|
|
|
|
Net Cash Flows from Investing
Activities
|
|
(3,323,229)
|
|
(8,307,035)
|
|
|
|
|
|
|
|
|
Cash
Flows from Financing Activities
|
|
|
|
|
Repayment
of bank loans
|
|
(1,848,281)
|
|
(658,836)
|
Proceeds
(repayment) from capital leases
|
|
|
(2,315,670)
|
|
11,157,882
|
|
|
|
|
|
|
|
|
Net Cash flows from Financing
Activities
|
|
(4,163,951)
|
|
10,499,046
|
|
|
|
|
|
|
|
|
Effects
on changes in foreign exchange rate
|
|
6,924
|
|
584,083
|
|
|
|
|
|
|
|
|
Net change
in cash and cash equivalents
|
|
24,136,661
|
|
10,425,614
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents- beginning of the year
|
|
17,116,692
|
|
6,691,078
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents - end of the year
|
US$
|
41,253,353
|
|
17,116,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Disclosures:
|
|
|
|
|
Interest paid
|
|
|
|
1,737,170
|
|
2,480,385
|
Tax
paid
|
|
|
|
|
2,435,782
|
|
3,730,029
|
SOURCE SORL Auto Parts, Inc.