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, today announced its unaudited financial results for the
second quarter of 2019 and the first six months ended June 30,
2019.
Second Quarter 2019 Financial
Highlights
|
· |
Net sales increased 8.5% to $139.4 million compared with $128.5
million in the second quarter last year; |
|
· |
Gross profit increased 5.3% and the gross margin was 26.0% in the
second quarter of 2019 compared to a 26.8% gross margin in the same
period of 2018; |
|
· |
Diluted earnings per share were $0.29 compared with $0.35 in the
same quarter last year. |
First Six Months of 2019 Financial
Highlights
|
· |
Net sales increased 16.7% to $275.6 million compared with $236.2
million in same period of last year; |
|
· |
Gross profit increased 12.6% to $72.8 million from $64.6 million in
the same period in 2018; |
|
· |
Net income attributable to stockholders was$14.6 million or $0.76
per basic and diluted earnings per share, compared with $15.0
million, or $0.78 per basic and diluted share, in the same period
of 2018. |
Mr. Xiaoping Zhang, SORL's Chief Executive Officer and Chairman,
stated, “Our second quarter results were positive considering the
current state of Chinese economy as well as the commercial vehicles
sector. We have maintained our market leadership in China with new
advanced products.”
Second Quarter 2019 Financial
Performance
For the second quarter of 2019, net sales
increased by 8.5% to $139.4 million from $128.5 million for the
second quarter of 2018. Revenues from the Company's domestic OEM
customers increased by 10.6% to $69.2 million from $62.6 million in
the second quarter of 2018. Commercial vehicle sales in China
decreased in the second quarter of 2019, but SORL continued to
expand its leading market share due to higher product quality and
better service. Sales from China's domestic aftermarket increased
8.8% to $46.6 million in the second quarter of 2019 from $42.8
million in the same quarter of 2018. Higher aftermarket product
sales were generated due to the growing number of OEM warranties
that expired from prior new vehicle sales in China and the
Company’s marketing campaign to enhance market share through its
distribution campaign. Revenues from international markets
increased 2.0% to $23.6 million from $23.1 million in the second
quarter of 2018 primarily due to a larger customer base.
The gross profit for the second quarter of 2019
increased 5.3% to $36.3 million from $34.4 million for the second
quarter of 2018. Gross margin for the second quarter of 2019 was
26.0%, compared with a gross margin of 26.8% in the same quarter of
2018. The decrease in gross margin was primarily due to increased
sales promotion during the second quarter of 2019. Also, gross
profit and gross margin decreased in the passenger vehicle auto
parts operations. The focus for the remainder of 2019 is to
increase production efficiency, improve product technology, and
enhance SORL’s product portfolio, to help to maintain or increase
gross profit margins.
Operating expenses increased 21.1% to $32.7
million from $27.0 million in the second quarter of 2018. Operating
expenses rose due to higher research and development, selling and
distribution, and general and administrative expenses in the second
quarter of 2019. As a percentage of revenue, operating expenses
were 23.4% in the second quarter of 2019, compared with 21.0% in
the second quarter of 2018.
|
· |
Selling and distribution expenses increased 17.9% to $16.5 million,
or 11.8% of quarterly revenues, compared with $14.0 million, or
10.9% in the same quarter of 2018. The increase in expenses was
mainly due to higher packaging and repair expenses, increased
warranty fees and higher labor costs. |
|
· |
General and administrative ("G&A") expenses in the second
quarter of 2019 were $9.2 million, or 6.6% of revenue, compared
with $7.7 million, or 6.0% in the second quarter of 2018 primarily
due to higher labor expenses. |
|
· |
Research and development ("R&D") expenses were $7.0 million in
the second quarter of 2019 compared with $5.3 million in the same
quarter of 2018. As a percentage of revenue, R&D was 5.0% in
the second quarter of 2019 and compared with 4.1% of revenue in the
second quarter of 2018. The R&D program mainly focused on the
development of new, higher-margin, electronically controlled
products, products for new energy vehicles and upgrading legacy
brake products to enhance the Company’s market leadership. |
Income from operations was $6.1 million in the second quarter of
2019 compared with $9.8 million in the same quarter of 2018.
Interest income was $1.5 million in the second
quarter of 2019, compared with $0.8 million in the same quarter in
2018.
Financial expenses were $3.2 million in the
second quarter of 2019, compared with $3.5 million in the second
quarter of 2018. The decrease was due mainly to lower long-term
loans outstanding.
Exchange differences were $0.5 million in the
second quarter of 2019, compared with $1.1 million in the same
quarter in 2018.
Income before income taxes was $6.6 million for
the second quarter of 2019, compared to $8.7 million for the second
quarter of 2018. The pretax income margin was 4.7% in the second
quarter of 2019, compared with 6.8% in the second quarter of
2018.
The provision for income taxes was $0.3 million
in the second quarter of 2019, compared with $1.2 million in the
second quarter of 2018.
Net income attributable to stockholders for the
second quarter of 2019 was $5.6 million, or $0.29 per basic and
diluted share, compared with $6.7 million, or $0.35 on per basic
and diluted share, in the second quarter of 2018.
First Six Months 2019 Financial
Performance
Net sales for the first six months of 2019
increased 16.7% to $275.6 million from $236.2 million for the first
six months of 2018. Net sales from the Company's China OEM market
increased 26.0% to $144.1 million from $114.4 million in the same
period in 2018. Revenues from China's domestic aftermarket
increased 11.1% to $89.9 million from $80.9 million in the first
six months of 2018. Revenues from international markets increased
1.6% to $41.6 million from $40.9 million in the first six months of
2018.
Gross profit for the first six months of 2019
increased 12.6% to $72.8 million from $64.6 million in the same
period in 2018. Gross margin for the six months ended June 30,
2019, was 26.4% compared to 27.4% for the first six months of
2018.
Operating income for the first six months of
2019 decreased 16.6% to $19.9 million from $23.8 million in the
same period in 2018. Operating margin was 7.2% versus 10.1% in
first six months of 2018.
Net income attributable to stockholders for the
first six months of 2019 was $14.6 million, or $0.76 per basic and
diluted share, compared with $15.0 million, or $0.78 per basic and
diluted share, in the same period in 2018.
Balance Sheet
As of June 30, 2019, the Company had cash and
cash equivalents of $10.3 million up from $8.0 million at March 31,
2019 and compared with $73.6 million at December 31, 2018. Cash and
cash equivalents plus restricted cash was $24.9 million on June 30,
2019 compared with $92.9 million at December 31, 2018. Inventories
decreased to $183.5 million at June 30, 2019 from $204.3 million at
December 31, 2018. Bank acceptance notes from customers increased
to $73.7 million on June 30, 2019 from $62.1 million on December
31, 2018. Short-term bank loans increased to $224.4 million on June
30, 2019 from $217.9 million at December 31, 2018. Total equity was
$221.2 million at June 30, 2019. On June 30, 2019, working capital
was $35.7 million.
Business Outlook
For the fiscal year 2019, management has
reiterated its expectation for annual net sales to be approximately
$515 million and net income to be approximately $22.0 million.
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, August 14, 2019 at 8:00 P.M. EDT and
at 8:00 A.M. Beijing Time on Thursday, August 15, 2019 on
to discuss its 2019 second quarter and six months results.
Listeners may access the call by dialing U.S. toll free
number +1-877-407-0778 and +1-201-689-8565 for
international callers, and Mainland China toll free
+86-400-120-2840. A live web cast of the conference call will also
be available at http://www.sorl.cn or at
https://www.investornetwork.com/event/presentation/52973.
A replay of the call will be available shortly
after the conference call through 8:00 P.M.
EDT on September 14, 2018, or 8:00 A.M. Beijing Time
on September 15, 2018. The replay dial-in numbers are: U.S.
toll free number +1-877-481-4010 or the international
number +1-919-882-2331; using Conference ID " 52973 " 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. For
example, when the Company describes the evaluation of the
preliminary non-binding proposal letter, it is using
forward-looking statements. 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
Phyllis Huang +86-151-6770-5972
+86-577-6581-7721phyllis@sorl.com.cn
Kevin TheissInvestor RelationsAwaken
Advisors212-521-4050kevin@awakenlab.com
-tables follow –
SORL Auto Parts, Inc. and
SubsidiariesConsolidated Balance
SheetsJune 30, 2019 and December 31,
2018
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
US$ |
10,294,982 |
|
|
US$ |
73,588,229 |
|
Accounts receivable, net, including $333,881 and $261,889 from
related parties as of June 30, 2019 and December 31, 2018,
respectively |
|
|
184,101,294 |
|
|
|
150,047,797 |
|
Bank acceptance notes from customers |
|
|
73,736,320 |
|
|
|
62,052,225 |
|
Inventories, net |
|
|
183,519,272 |
|
|
|
204,285,427 |
|
Prepayments, current, including $4,421,841 and $3,670,573 to
related party at June 30, 2019 and December 31, 2018,
respectively |
|
|
16,228,104 |
|
|
|
7,776,591 |
|
Restricted cash, current |
|
|
14,572,162 |
|
|
|
19,307,003 |
|
Advances to related parties |
|
|
76,586,592 |
|
|
|
79,739,417 |
|
Deposits on loan agreements, current |
|
|
5,091,131 |
|
|
|
- |
|
Other current assets, net |
|
|
11,432,369 |
|
|
|
15,697,448 |
|
Total Current Assets |
|
|
575,562,226 |
|
|
|
612,494,137 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
112,336,122 |
|
|
|
96,053,386 |
|
Land use rights, net |
|
|
20,745,600 |
|
|
|
21,124,455 |
|
Intangible assets, net |
|
|
39,291 |
|
|
|
220,232 |
|
Deposits on loan agreements, non-current |
|
|
5,091,131 |
|
|
|
10,199,324 |
|
Prepayments, non-current |
|
|
35,977,118 |
|
|
|
31,575,238 |
|
Other assets, non-current |
|
|
1,633,292 |
|
|
|
563,542 |
|
Restricted cash, non-current |
|
|
17,164,385 |
|
|
|
18,067,374 |
|
Deferred tax assets |
|
|
4,523,866 |
|
|
|
4,073,838 |
|
Total Non-current Assets |
|
|
197,510,805 |
|
|
|
181,877,389 |
|
Total Assets |
|
US$ |
773,073,031 |
|
|
US$ |
794,371,526 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and bank acceptance notes to vendors, including
$18,956,493 and $23,805,200 due to related parties at June 30, 2019
and December 31, 2018, respectively |
|
US$ |
193,279,964 |
|
|
US$ |
236,433,718 |
|
Deposits received from customers |
|
|
60,023,972 |
|
|
|
51,529,795 |
|
Short term bank loans |
|
|
224,366,412 |
|
|
|
217,940,471 |
|
Current portion of long term loans, net of unamortized debt
issuance costs |
|
|
21,976,961 |
|
|
|
21,141,029 |
|
Income tax payable, current |
|
|
4,481,767 |
|
|
|
3,421,486 |
|
Accrued expenses |
|
|
22,858,419 |
|
|
|
24,045,902 |
|
Due to related party |
|
|
7,774,184 |
|
|
|
5,959,752 |
|
Deferred income |
|
|
1,088,856 |
|
|
|
1,453,282 |
|
Other current liabilities |
|
|
4,040,963 |
|
|
|
3,288,344 |
|
Total Current Liabilities |
|
|
539,891,498 |
|
|
|
565,213,779 |
|
|
|
|
|
|
|
|
|
|
Long term loans, less current portion and net of unamortized debt
issuance costs |
|
|
2,895,552 |
|
|
|
14,429,404 |
|
Operating lease liabilities, non-current |
|
|
714,307 |
|
|
|
- |
|
Income tax payable, non-current |
|
|
8,377,468 |
|
|
|
9,259,307 |
|
Total Non-current Liabilities |
|
|
11,987,327 |
|
|
|
23,688,711 |
|
Total Liabilities |
|
|
551,878,825 |
|
|
|
588,902,490 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred stock - no par value; 1,000,000 authorized; none issued
and outstanding as of June 30, 2019 and December 31, 2018 |
|
|
- |
|
|
|
- |
|
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921
issued and outstanding as of June 30, 2019 and December 31,
2018 |
|
|
38,609 |
|
|
|
38,609 |
|
Additional paid-in capital |
|
|
(28,582,654 |
) |
|
|
(28,582,654 |
) |
Reserves |
|
|
21,480,613 |
|
|
|
20,007,007 |
|
Accumulated other comprehensive income |
|
|
6,187,063 |
|
|
|
6,655,803 |
|
Retained earnings |
|
|
191,670,424 |
|
|
|
178,535,378 |
|
Total SORL Auto Parts, Inc. Stockholders’ Equity |
|
|
190,794,055 |
|
|
|
176,654,143 |
|
Noncontrolling Interest In Subsidiaries |
|
|
30,400,151 |
|
|
|
28,814,893 |
|
Total Equity |
|
|
221,194,206 |
|
|
|
205,469,036 |
|
Total Liabilities and Equity |
|
US$ |
773,073,031 |
|
|
US$ |
794,371,526 |
|
SORL Auto Parts, Inc. and
SubsidiariesConsolidated Statements of Income and
Comprehensive Income (Loss)For the Three and Six
Months Ended June 30, 2019 and 2018 (Unaudited)
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
US$ |
139,373,482 |
|
|
US$ |
128,504,952 |
|
|
US$ |
275,593,406 |
|
|
US$ |
236,231,634 |
|
Include: sales to related parties |
|
|
7,971,932 |
|
|
|
5,962,527 |
|
|
|
18,618,678 |
|
|
|
13,663,581 |
|
Cost of sales |
|
|
103,104,120 |
|
|
|
94,074,682 |
|
|
|
202,803,474 |
|
|
|
171,601,878 |
|
Gross profit |
|
|
36,269,362 |
|
|
|
34,430,270 |
|
|
|
72,789,932 |
|
|
|
64,629,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution expenses |
|
|
16,463,830 |
|
|
|
13,956,009 |
|
|
|
29,348,397 |
|
|
|
23,993,870 |
|
General and administrative expenses |
|
|
9,221,426 |
|
|
|
7,694,411 |
|
|
|
16,596,319 |
|
|
|
12,468,189 |
|
Research and development expenses |
|
|
6,981,251 |
|
|
|
5,331,956 |
|
|
|
11,932,787 |
|
|
|
8,922,358 |
|
Total operating expenses |
|
|
32,666,507 |
|
|
|
26,982,376 |
|
|
|
57,877,503 |
|
|
|
45,384,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income, net |
|
|
2,495,568 |
|
|
|
2,379,227 |
|
|
|
4,958,170 |
|
|
|
4,576,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
6,098,423 |
|
|
|
9,827,121 |
|
|
|
19,870,599 |
|
|
|
23,821,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
1,479,841 |
|
|
|
811,580 |
|
|
|
3,216,616 |
|
|
|
2,299,844 |
|
Government grants |
|
|
1,707,433 |
|
|
|
609,592 |
|
|
|
3,499,845 |
|
|
|
743,525 |
|
Other income |
|
|
40,349 |
|
|
|
175,627 |
|
|
|
95,029 |
|
|
|
202,693 |
|
Interest expenses |
|
|
(3,173,047 |
) |
|
|
(3,529,416 |
) |
|
|
(7,145,545 |
) |
|
|
(6,883,127 |
) |
Exchange differences |
|
|
537,875 |
|
|
|
1,091,208 |
|
|
|
(523,130 |
) |
|
|
489,922 |
|
Other expenses |
|
|
(90,772 |
) |
|
|
(254,271 |
) |
|
|
(568,691 |
) |
|
|
(1,145,085 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes provision |
|
|
6,600,102 |
|
|
|
8,731,441 |
|
|
|
18,444,723 |
|
|
|
19,529,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
329,964 |
|
|
|
1,238,752 |
|
|
|
2,198,731 |
|
|
|
2,844,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
US$ |
6,270,138 |
|
|
US$ |
7,492,689 |
|
|
US$ |
16,245,992 |
|
|
US$ |
16,685,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest in
subsidiaries |
|
|
632,013 |
|
|
|
749,269 |
|
|
|
1,637,340 |
|
|
|
1,668,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
US$ |
5,638,125 |
|
|
US$ |
6,743,420 |
|
|
US$ |
14,608,652 |
|
|
US$ |
15,016,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
US$ |
6,270,138 |
|
|
US$ |
7,492,689 |
|
|
US$ |
16,245,992 |
|
|
US$ |
16,685,469 |
|
Foreign currency translation adjustments |
|
|
(4,810,043 |
) |
|
|
(11,013,074 |
) |
|
|
(520,822 |
) |
|
|
(2,968,540 |
) |
Comprehensive income (loss) |
|
|
1,460,095 |
|
|
|
(3,520,385 |
) |
|
|
15,725,170 |
|
|
|
13,716,929 |
|
Comprehensive income (loss) attributable to noncontrolling
interest in subsidiaries |
|
|
151,009 |
|
|
|
(352,038 |
) |
|
|
1,585,258 |
|
|
|
1,371,693 |
|
Comprehensive income (loss) attributable to common
stockholders |
|
US$ |
1,309,086 |
|
|
US$ |
(3,168,347 |
) |
|
US$ |
14,139,912 |
|
|
US$ |
12,345,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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$ |
0.29 |
|
|
US$ |
0.35 |
|
|
US$ |
0.76 |
|
|
US$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS - diluted |
|
US$ |
0.29 |
|
|
US$ |
0.35 |
|
|
US$ |
0.76 |
|
|
US$ |
0.78 |
|
SORL Auto Parts, Inc. and
SubsidiariesConsolidated Statements of Cash
FlowsFor the Six Months Ended June 30, 2019 and
2018 (Unaudited)
|
|
Six months ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
Net income |
|
US$ |
16,245,992 |
|
|
US$ |
16,685,469 |
|
Adjustments to reconcile net income to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
Allowance for doubtful accounts |
|
|
1,633,832 |
|
|
|
1,445,353 |
|
Depreciation and amortization |
|
|
6,927,367 |
|
|
|
5,832,558 |
|
Deferred income tax |
|
|
(461,097 |
) |
|
|
642,345 |
|
Gain on disposal of property and equipment |
|
|
(38,330 |
) |
|
|
(73,809 |
) |
Amortization of debt issuance costs |
|
|
325,413 |
|
|
|
697,633 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(36,315,794 |
) |
|
|
(52,930,675 |
) |
Bank acceptance notes from customers |
|
|
(11,918,635 |
) |
|
|
36,822,604 |
|
Inventories, net |
|
|
20,653,641 |
|
|
|
(24,642,342 |
) |
Prepayments |
|
|
(8,856,410 |
) |
|
|
(25,749,865 |
) |
Other currents assets, net |
|
|
2,048,887 |
|
|
|
(5,158,214 |
) |
Accounts payable and bank acceptance notes to vendors |
|
|
(43,192,905 |
) |
|
|
99,655,568 |
|
Deposits received from customers |
|
|
8,669,926 |
|
|
|
20,470,159 |
|
Income tax payable |
|
|
189,523 |
|
|
|
(1,918,494 |
) |
Deferred income |
|
|
(365,935 |
) |
|
|
(259,132 |
) |
Other current liabilities and accrued expenses |
|
|
(757,093 |
) |
|
|
(5,426,422 |
) |
Net Cash Flows Provided By (Used in) Operating
Activities |
|
|
(45,211,618 |
) |
|
|
66,092,736 |
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
Acquisition of property, equipment, plant and land use
rights |
|
|
(27,478,369 |
) |
|
|
(33,712,960 |
) |
Advances to related parties |
|
|
(15,305,460 |
) |
|
|
(190,438,634 |
) |
Repayment of advances to related parties |
|
|
20,849,370 |
|
|
|
222,337,244 |
|
Proceeds from disposal of property and equipment |
|
|
528 |
|
|
|
- |
|
Net Cash Flows Used In Investing Activities |
|
|
(21,933,931 |
) |
|
|
(1,814,350 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from short term bank loans |
|
|
213,297,377 |
|
|
|
296,959,191 |
|
Repayment of short term bank loans |
|
|
(206,444,518 |
) |
|
|
(256,944,835 |
) |
Proceeds from related parties |
|
|
1,843,951 |
|
|
|
311,026,410 |
|
Repayments to related parties |
|
|
- |
|
|
|
(328,443,191 |
) |
Repayment of long term loans |
|
|
(11,078,979 |
) |
|
|
(12,800,786 |
) |
Net Cash Flows Provided By (Used In) Financing
Activities |
|
|
(2,382,169 |
) |
|
|
9,796,789 |
|
|
|
|
|
|
|
|
|
|
Effects on changes in foreign exchange rate |
|
|
596,641 |
|
|
|
(2,289,500 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(68,931,077 |
) |
|
|
71,785,675 |
|
Cash, cash equivalents, and restricted cash - beginning of the
year |
|
|
110,962,606 |
|
|
|
4,598,176 |
|
Cash, cash equivalents, and restricted cash - end of the
year |
|
US$ |
42,031,529 |
|
|
US$ |
76,383,851 |
|
Supplemental Cash Flow Disclosures: |
|
|
|
|
|
|
|
|
Interest paid |
|
US$ |
5,697,269 |
|
|
US$ |
5,521,273 |
|
Income taxes paid |
|
US$ |
2,464,974 |
|
|
US$ |
4,120,342 |
|
|
|
|
|
|
|
|
|
|
Non-cash Investing and Financing Transactions |
|
|
|
|
|
|
|
|
Loans from related party in the form of bank acceptance
notes |
|
US$ |
- |
|
|
US$ |
33,721,267 |
|
Repayments to related party in the form of bank acceptance
notes |
|
US$ |
- |
|
|
US$ |
5,846,083 |
|
Repayments from related party in the form of bank acceptance
notes |
|
US$ |
- |
|
|
US$ |
19,612,146 |
|
Liabilities assumed in connection with acquisition of property,
plant and equipment |
|
US$ |
338,025 |
|
|
US$ |
- |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted
cash to the consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
US$ |
10,294,982 |
|
|
US$ |
24,525,413 |
|
Restricted cash, current |
|
|
14,572,162 |
|
|
|
51,858,438 |
|
Restricted cash, non-current |
|
|
17,164,385 |
|
|
|
- |
|
Total cash, cash equivalents, and restricted cash |
|
US$ |
42,031,529 |
|
|
US$ |
76,383,851 |
|
# # #
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