ZHEJIANG, China, Nov. 14, 2018 /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 and
nine-month periods ended September 30, 2018.
Third Quarter 2018 Financial Highlights
- Net sales increased by 7.2% to a third quarter record high of
$108.6 million compared
to $101.3 million in the third quarter of 2017;
- Gross margin for the third quarter of 2018 was 24.3%;
- Income from operations was $6.6
million;
- Net loss attributable to stockholders was $5.6 million and basic and diluted loss per share
were $0.29 in the third quarter of
2018;
- Excluding the impact of US tax reform, net income attributable
to stockholders for the third quarter of 2018 would have been
$5.4 million, or $0.28 per basic and diluted share, compared with
net income attributable to stockholders of $8.6 million, or $0.44 per basic and diluted share, in the third
quarter of 2017;
- Cash and cash equivalents at September 30,
2018 were $17.6 million with working capital of
$88.6 million.
Mr. Xiaoping Zhang, SORL's
Chairman and Chief Executive Officer, stated, "Our advanced
products maintained our market share in a softer economic growth
environment among OEMs in China. However, the growing pool of
vehicles beyond their warranty periods and our marketing efforts
have continued to create opportunities for increased sales and
further market penetration. As the largest aftermarket brake
components provider in China, we
believe that our increased sales and marketing campaigns enable us
to significantly gain market share in the aftermarket segment and
increasingly widen the distance over our major competitors while
many of our small competitors are encountering a credit crunch and
facing possibly discontinuing operations. International sales have
also risen due to greater acceptance of our advanced braking
products and our expanded geographic marketing. We hope that the
trade talk between the U.S. and China will come to an amicable resolution, as
America is an important growth market for us. Our high-quality
braking products are already being used in many vehicles in America
and customer feedback has been positive."
Third Quarter 2018 Financial Performance
Net sales for the third quarter of 2018 were $108.6 million, the highest sales for any third
quarter in the Company's history, compared with $101.3 million in the third quarter of 2017.
Revenues from the Company's domestic OEM customers of $50.3 million were approximately even with net
sales in the third quarter of 2017. Sales
from China's domestic aftermarket increased 15.7%
year-over-year to $36.4 million from
$31.5 million in the third
quarter of 2017. The expiration of OEM warranties from prior
years' new vehicle sales in China
drove the Company's aftermarket business. Revenues from
international markets rose 13.1% to $21.8
million from $19.3 million in
the third quarter of 2017, mainly due to the Company's growing
global customer base.
SORL's commercial vehicle brake sales increased 4.4%
year-over-year to $89.0 million and
represented 82.0% of total sales in the third quarter of
2018. The sales of passenger vehicle brake systems increased
by 22.5% year-over-year, to $19.6
million, which accounted for 18.0% of the total sales for
the third quarter of 2018.
Gross profit for the third quarter of 2018 was $26.3 million compared with $27.3
million for the third quarter of 2017. Gross margin for
the third quarter of 2018 was 24.3%, compared with a gross margin
of 26.9% in the same quarter of 2017. The decrease in gross
margin was primarily due to higher raw material costs and price
promotions designed to increase market share during the third
quarter of 2018.
Operating expenses increased by 41.9% to $22.7
million in the third quarter of 2018, from $16.0
million in the third quarter of 2017. As a percentage of
revenue, operating expenses were 20.9% in the third quarter of
2018, compared with 15.8% in the third quarter of 2017. The
increase in operating expenses was due to higher selling and
distribution, general and administrative, and research and
development expenses.
- Selling and distribution expenses rose to $13.2 million from $8.3
million in the same quarter of 2017. As a percentage of
revenue, selling and distribution expenses were 12.1% compared with
8.2% of quarterly revenues in the same quarter of 2017. The
increase in selling and distribution expenses was primarily the
result of higher freight and packaging expenses as unit volume rose
during the third quarter of 2018.
- General and administrative ("G&A") expenses for the third
quarter of 2018 were $5.1 million, or
4.7% of revenue, compared with $4.8 million, or 4.7% in the
third quarter of 2017.
- Research and development ("R&D") expenses were $4.5
million in the third quarter of 2018 compared with $2.9
million in the third quarter of 2017. As a percentage of
revenue, R&D was 4.1% in the third quarter of 2018, compared
with 2.9% of revenue in the third quarter of 2017. The Company
continues to develop new, higher-margin, electronically controlled
products, and upgrade the performance and quality of the Company's
traditional brake products, to capture greater market share.
Interest expenses were $3.3
million in the third quarter of 2018 compared to $0.8
million in the third quarter of 2017. Increased interest expenses
were mainly due to a higher average interest rate and a higher
average amount of loans outstanding during the third quarter of
2018.
Income before provision for income taxes was $7.1 million for the third quarter of 2018
as compared with $11.2 million for the third quarter of
2017. The decrease in income before taxes was primarily due to
lower gross profit and higher operating expenses. Pretax
income margin was 6.5% in the third quarter of 2018, compared with
11.1% in the third quarter of 2017.
The provision for income taxes was $12.1 million in the
third quarter of 2018 compared with $1.6
million, in the third quarter of 2017. The significantly
higher taxes in the third quarter of 2018 compared with the third
quarter in 2017, were mainly due to one-time accrued taxes of
$11.0 million associated with the
U.S. tax reform related to the planned dividend distribution from
China (PRC) subsidiaries in order
to fulfill the payment of one-time accrued taxes.
Net loss attributable to stockholders for the third quarter of
2018 was $5.6 million, or $0.29 per basic and diluted
share, compared with net income attributable to stockholders
$8.6 million, or $0.44 per
basic and diluted share, in the third quarter of 2017.
Excluding the impact of the one-time accrued taxes related to
U.S. tax reform, net income attributable to stockholders for the
third quarter of 2018 would have been $5.4
million, or $0.28 per basic
and diluted share, compared with net income attributable to
stockholders of $8.6 million or
$0.44 per basic and diluted share in
the third quarter of 2017.
Nine-Month 2018 Financial Performance
Net sales for the first nine months of 2018 increased 28.8%
year-over-year to $344.8 million from $267.6
million for the first nine months of 2017. Revenues from the
Company's China OEM customers increased by 16.2% to $164.7
million from $141.8 million in
the same period in 2017. Revenues from China's domestic
aftermarket increased 62.3% to $117.3
million from $72.3
million in the first nine months of 2017. Revenues from
international markets increased 17.2% to $62.7 million from $53.5
million in the first nine months of 2017.
SORL's commercial vehicle brake sales increased 23.5%
year-over-year to $276.6 million and
represented 80.2% of total sales in the first nine months of
2018. The sales of passenger vehicle brake systems increased
by 56.3% year-over-year, to $68.2
million, which accounted for 19.8% of the total sales for
the first nine months of 2018.
Gross profit for the first nine months of 2018 increased 24.8%
to $91.0 million from $72.9 million in the same
period in 2017. Gross margin for the first nine months of 2018
decreased to 26.4% from 27.2% for the first nine months of
2017. The Company's gross margin declined due to higher raw
material costs and increased sales promotions to
increase its market share in both OEM and aftermarket segments.
Operating income for the first nine months of 2018 was
$30.4 million with an operating
margin of 8.8%.
Net income attributable to stockholders for the first nine
months of 2018 was $9.4 million, or $0.49 per basic and
diluted share, compared with $21.4 million,
or $1.11 per basic and diluted share, in the same period
in 2017.
Excluding the impact of U.S. tax reform, net income attributable
to stockholders for the first nine months of 2018 would have been
$20.4 million, or $1.06 per basic and diluted share, compared with
net income attributable to stockholders of $21.4 million or $1.11 per basic and diluted share in the same
period in 2017.
Balance Sheet
As of September 30, 2018, the Company's cash and cash
equivalents increased to $17.6
million from $4.2 million at
December 31, 2017. Total
stockholders' equity was $172.4 million at September
30, 2018. The Company had working capital of $85.0
million at September 30, 2018 with the current ratio of
1.2:1.
Cash-flow provided by operating activities for the first nine
months of 2018 was $81.2 million.
Business Outlook
Management has reiterated its fiscal year 2018 guidance for net
sales of approximately $450 million and revised net
income attributable to common stockholders to
approximately $16 million. Excluding the impact of U.S. tax
reform, the net income attributable to common stockholders would
have been expected to reach approximately $27 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, November 14, 2018, at 7:00 P.M. EST/ 8:00
A.M. Beijing Time on November 15,
2018 to discuss its 2018 third quarter 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.
A replay of the call will be available shortly after the
conference call through 7:00 A.M. EST
on December 14, 2018, or 8:00 A.M. Beijing Time on December 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 "40905" 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
+86-577-6581-7721
phyllis@sorl.com.cn
Kevin Theiss
Investor Relations
Awaken Advisors
212-521-4050
kevin.theiss@awakenlab.com
-tables follow –
SORL Auto Parts,
Inc. and Subsidiaries
Consolidated
Balance Sheets
September 30, 2018
and December 31, 2017
|
|
|
September 30,
2018
|
|
December 31,
2017
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
US$
|
17,609,594
|
|
US$
|
4,221,940
|
Accounts receivable,
net, including $1,506,254 and $1,297,734 from related party at
September 30, 2018 and December 31, 2017, respectively
|
|
163,749,395
|
|
|
134,384,961
|
Bank acceptance notes
from customers
|
|
101,136,391
|
|
|
116,040,688
|
Inventories
|
|
159,123,470
|
|
|
114,300,564
|
Prepayments, current,
including $3,094,333 and $999,527 to related parties at September
30, 2018 and December 31, 2017, respectively
|
|
31,442,128
|
|
|
8,826,004
|
Restricted cash,
current
|
|
19,062,778
|
|
|
376,236
|
Advances to related
parties
|
|
49,372,965
|
|
|
72,318,224
|
Other current assets,
net
|
|
14,455,642
|
|
|
5,555,568
|
Total
Current Assets
|
|
555,952,363
|
|
|
456,024,185
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
86,949,053
|
|
|
79,828,006
|
Land use rights,
net
|
|
21,245,899
|
|
|
14,912,134
|
Intangible assets,
net
|
|
309,947
|
|
|
3,341
|
Deposits on loan
agreements
|
|
10,175,602
|
|
|
10,712,865
|
Prepayments,
non-current
|
|
18,474,842
|
|
|
16,594,987
|
Restricted cash,
non-current
|
|
3,488,778
|
|
|
-
|
Deferred tax
assets
|
|
3,549,947
|
|
|
4,240,424
|
Total
Non-current Assets
|
|
144,194,068
|
|
|
126,291,757
|
Total
Assets
|
US$
|
700,146,431
|
|
US$
|
582,315,942
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable and
bank acceptance notes to vendors, including $22,782,059 and
$15,896,804 due to related parties at September 30, 2018 and
December 31, 2017, respectively
|
US$
|
211,456,843
|
|
US$
|
118,051,633
|
Deposits received
from customers
|
|
63,615,939
|
|
|
43,087,473
|
Short term bank
loans
|
|
143,991,909
|
|
|
125,380,899
|
Current portion of
long term loans
|
|
22,147,109
|
|
|
24,266,031
|
Income tax payable,
current
|
|
3,250,996
|
|
|
3,249,727
|
Accrued
expenses
|
|
18,604,139
|
|
|
25,154,658
|
Due to related
party
|
|
4,481,484
|
|
|
1,572,963
|
Deferred
income
|
|
605,691
|
|
|
1,020,273
|
Other current
liabilities
|
|
2,705,103
|
|
|
2,857,130
|
Total
Current Liabilities
|
|
470,859,213
|
|
|
344,640,787
|
|
|
|
|
|
|
Long term loans, less
current portion and net of unamortized debt issuance
costs
|
|
19,318,534
|
|
|
37,383,224
|
Income tax payable –
noncurrent
|
|
9,259,307
|
|
|
-
|
Total
Non-current Liabilities
|
|
28,577,841
|
|
|
37,383,224
|
Total
Liabilities
|
|
499,437,054
|
|
|
382,024,011
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Preferred stock - no
par value; 1,000,000 authorized; none issued and outstanding as of
September 30, 2018 and December 31, 2017
|
|
-
|
|
|
-
|
Common stock - $0.002
par value; 50,000,000 authorized, 19,304,921 issued and outstanding
as of September 30, 2018 and December 31, 2017
|
|
38,609
|
|
|
38,609
|
Additional paid-in
capital
|
|
(28,582,654)
|
|
|
(28,582,654)
|
Reserves
|
|
19,615,826
|
|
|
17,562,357
|
Accumulated other
comprehensive income
|
|
5,754,883
|
|
|
15,903,188
|
Retained
earnings
|
|
175,602,568
|
|
|
168,244,329
|
Total
SORL Auto Parts, Inc. Stockholders' Equity
|
|
172,429,232
|
|
|
173,165,829
|
Noncontrolling Interest In
Subsidiaries
|
|
28,280,145
|
|
|
27,126,102
|
Total
Equity
|
|
200,709,377
|
|
|
200,291,931
|
Total
Liabilities and Equity
|
US$
|
700,146,431
|
|
US$
|
582,315,942
|
SORL Auto Parts,
Inc. and Subsidiaries
Consolidated
Statements of Income (Loss) and Comprehensive Income
(Loss)
For the Three and
Nine Months Ended September 30, 2018 and 2017
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
US$
|
108,584,331
|
|
US$
|
101,329,628
|
|
US$
|
344,815,965
|
|
US$
|
267,589,953
|
Include: sales to
related parties
|
|
9,333,959
|
|
|
7,401,464
|
|
|
22,997,540
|
|
|
13,479,162
|
Cost of
sales
|
|
82,249,456
|
|
|
74,027,933
|
|
|
253,851,334
|
|
|
194,703,290
|
Gross
profit
|
|
26,334,875
|
|
|
27,301,695
|
|
|
90,964,631
|
|
|
72,886,663
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
13,160,875
|
|
|
8,283,704
|
|
|
37,154,745
|
|
|
22,877,889
|
General and
administrative expenses
|
|
5,051,684
|
|
|
4,761,787
|
|
|
17,519,873
|
|
|
13,517,222
|
Research and
development expenses
|
|
4,478,298
|
|
|
2,941,243
|
|
|
13,400,656
|
|
|
7,477,902
|
Total operating
expenses
|
|
22,690,857
|
|
|
15,986,734
|
|
|
68,075,274
|
|
|
43,873,013
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income, net
|
|
2,959,269
|
|
|
473,610
|
|
|
7,535,820
|
|
|
1,185,958
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
6,603,287
|
|
|
11,788,571
|
|
|
30,425,177
|
|
|
30,199,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
547,455
|
|
|
16,150
|
|
|
2,847,299
|
|
|
38,175
|
Government
grants
|
|
2,239,250
|
|
|
1,006,033
|
|
|
2,982,775
|
|
|
1,119,337
|
Other
income
|
|
229,520
|
|
|
47,262
|
|
|
432,213
|
|
|
47,976
|
Interest
expenses
|
|
(3,331,554)
|
|
|
(804,499)
|
|
|
(10,214,681)
|
|
|
(1,827,835)
|
Exchange
differences
|
|
906,538
|
|
|
(684,047)
|
|
|
1,396,460
|
|
|
(1,193,897)
|
Other
expenses
|
|
(55,835)
|
|
|
(202,735)
|
|
|
(1,200,920)
|
|
|
(343,024)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes provision
|
|
7,138,661
|
|
|
11,166,735
|
|
|
26,668,323
|
|
|
28,040,340
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
12,130,789
|
|
|
1,627,721
|
|
|
14,974,982
|
|
|
4,225,404
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
US$
|
(4,992,128)
|
|
US$
|
9,539,014
|
|
US$
|
11,693,341
|
|
US$
|
23,814,936
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest in subsidiaries
|
|
613,086
|
|
|
953,901
|
|
|
2,281,633
|
|
|
2,381,493
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
US$
|
(5,605,214)
|
|
US$
|
8,585,113
|
|
US$
|
9,411,708
|
|
US$
|
21,433,443
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
US$
|
(4,992,128)
|
|
US$
|
9,539,014
|
|
US$
|
11,693,341
|
|
US$
|
23,814,936
|
Foreign currency
translation adjustments
|
|
(8,307,355)
|
|
|
3,856,038
|
|
|
(11,275,895)
|
|
|
7,990,990
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
(13,299,483)
|
|
|
13,395,052
|
|
|
417,446
|
|
|
31,805,926
|
Comprehensive income
(loss) attributable to noncontrolling interest in
subsidiaries
|
|
(217,650)
|
|
|
1,339,505
|
|
|
1,154,043
|
|
|
3,180,592
|
Comprehensive income
(loss) attributable to common stockholders
|
US$
|
(13,081,833)
|
|
US$
|
12,055,547
|
|
US$
|
(736,597)
|
|
US$
|
28,625,334
|
|
|
|
|
|
|
|
|
|
|
|
|
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$
|
0.44
|
|
US$
|
0.49
|
|
US$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS -
diluted
|
US$
|
(0.29)
|
|
US$
|
0.44
|
|
US$
|
0.49
|
|
US$
|
1.11
|
SORL Auto Parts,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
For the
Nine Months Ended September 30, 2018 and 2017
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net income
|
US$
|
11,693,341
|
|
US$
|
23,814,936
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
doubtful accounts
|
|
179,744
|
|
|
759,854
|
Depreciation and
amortization
|
|
8,926,695
|
|
|
6,623,082
|
Amortization of debt
issuance costs
|
|
966,547
|
|
|
42,583
|
Gain on disposal of
fixed assets
|
|
(73,809)
|
|
|
-
|
Deferred income
tax
|
|
520,741
|
|
|
-
|
Changes in assets
and liabilities:
|
|
|
|
|
|
Account
receivable
|
|
(38,780,246)
|
|
|
(19,276,498)
|
Bank acceptance notes
from customers
|
|
68,016,837
|
|
|
2,056,320
|
Other currents
assets
|
|
(9,983,968)
|
|
|
(2,317,124)
|
Inventories
|
|
(52,611,953)
|
|
|
(13,792,530)
|
Prepayments
|
|
(19,823,567)
|
|
|
(1,312,081)
|
Accounts payable and
bank acceptance notes to vendors
|
|
86,724,938
|
|
|
1,347,005
|
Income tax
payable
|
|
7,432,808
|
|
|
909,912
|
Deposits received
from customers
|
|
24,058,536
|
|
|
16,516,529
|
Deferred
income
|
|
(382,627)
|
|
|
-
|
Other current
liabilities and accrued expenses
|
|
(5,671,820)
|
|
|
(371,575)
|
Net Cash Flows
Provided By Operating Activities
|
|
81,192,197
|
|
|
15,000,413
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
Acquisition of
property, equipment, and land use rights
|
|
(40,142,267)
|
|
|
(36,882,570)
|
Deposit for
acquisition of land use rights
|
|
|
|
|
(2,982,537)
|
Acquisition of
intangible assets
|
|
(367,931)
|
|
|
|
Advances to related
parties
|
|
(214,800,362)
|
|
|
(8,919,241)
|
Repayments of
advances to related parties
|
|
222,337,244
|
|
|
-
|
Net Cash Flows
Used In Investing Activities
|
|
(32,973,316)
|
|
|
(48,784,348)
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
Proceeds from short
term bank loans
|
|
353,441,949
|
|
|
84,149,040
|
Repayments of short
term bank loans
|
|
(325,651,416)
|
|
|
(36,149,680)
|
Proceeds from related
parties
|
|
311,692,664
|
|
|
93,191,843
|
Repayments to related
parties
|
|
(328,624,110)
|
|
|
(113,071,629)
|
Repayments of long
term loans
|
|
(18,957,775)
|
|
|
-
|
Net Cash Flows
Provided By (Used In) Financing Activities
|
|
(8,098,688)
|
|
|
28,119,574
|
|
|
|
|
|
|
Effects on changes in
foreign exchange rate
|
|
(4,557,219)
|
|
|
484,733
|
|
|
|
|
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
35,562,974
|
|
|
(5,179,628)
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash - beginning of the
period
|
|
4,598,176
|
|
|
13,533,776
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash - end of the period
|
US$
|
40,161,150
|
|
US$
|
8,354,148
|
|
|
|
|
|
|
Supplemental Cash
Flow Disclosures:
|
|
|
|
|
|
Interest
paid
|
US$
|
7,849,753
|
|
US$
|
1,255,540
|
Income taxes
paid
|
US$
|
5,157,755
|
|
US$
|
3,272,909
|
|
|
|
|
|
|
Non-cash Investing
and Financing Transactions
|
|
|
|
|
|
Repayments to related
party in the form of bank acceptance notes
|
US$
|
5,846,083
|
|
US$
|
-
|
Loans from related
parties in the form of bank acceptance notes
|
US$
|
33,721,267
|
|
US$
|
23,515,527
|
Repayments from
related party in the form of bank acceptance notes
|
US$
|
26,771,056
|
|
US$
|
-
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
Cash and cash
equivalents
|
US$
|
17,609,594
|
|
US$
|
7,653,174
|
Restricted cash,
current
|
|
19,062,778
|
|
|
700,974
|
Restricted cash,
non-current
|
|
3,488,778
|
|
|
-
|
Total cash, cash
equivalents, and restricted cash
|
US$
|
40,161,150
|
|
US$
|
8,354,148
|
View original
content:http://www.prnewswire.com/news-releases/sorl-auto-parts-announces-third-quarter-record-high-sales-in-2018-300750637.html
SOURCE SORL Auto Parts, Inc.