- Published: 31 March 2017
- Written by Editor
SORL Auto Parts Reports Approximately 40% Rise in Net Income in the Fourth Quarter of 2016
-Tables Follow -
SORL Auto Parts, Inc. and Subsidiaries |
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Consolidated Balance Sheets |
||||||
December 31, 2016 and December 31, 2015 |
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December 31, 2016 |
December 31, 2015 |
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Assets |
||||||
Current Assets |
||||||
Cash and cash equivalents |
US$ |
8,057,155 |
US$ |
30,230,828 |
||
Accounts receivable, net, including $5,025,509 and $- |
102,129,294 |
71,823,328 |
||||
Bank acceptance notes from customers |
42,697,276 |
22,870,791 |
||||
Short term investments |
- |
61,007,709 |
||||
Inventories, net |
65,776,517 |
73,661,860 |
||||
Prepayments |
10,797,601 |
3,350,607 |
||||
Current portion of prepaid capital lease interest |
- |
93,458 |
||||
Restricted cash |
5,476,621 |
785,999 |
||||
Other current assets |
1,124,608 |
1,241,864 |
||||
Deferred tax assets |
3,210,575 |
2,909,729 |
||||
Total Current Assets |
239,269,647 |
267,976,173 |
||||
Property, plant and equipment, net |
53,737,706 |
37,561,905 |
||||
Land use rights, net |
8,309,333 |
13,232,149 |
||||
Intangible assets, net |
11,438 |
23,854 |
||||
Security deposits on lease agreement |
- |
1,759,975 |
||||
Total Non-Current Assets |
62,058,477 |
52,577,883 |
||||
Total Assets |
US$ |
301,328,124 |
US$ |
320,554,056 |
||
Liabilities and Equity |
||||||
Current Liabilities |
||||||
Accounts payable and bank acceptance notes to |
US$ |
65,672,626 |
US$ |
35,292,277 |
||
Deposit received from customers |
22,733,742 |
20,012,087 |
||||
Short term bank loans |
27,416,376 |
23,367,207 |
||||
Income tax payable |
996,522 |
- |
||||
Accrued expenses |
20,103,392 |
13,870,587 |
||||
Capital lease obligations |
- |
3,519,949 |
||||
Other current liabilities |
2,013,943 |
2,067,449 |
||||
Total Current Liabilities |
138,936,601 |
98,129,556 |
||||
Total Liabilities |
138,936,601 |
98,129,556 |
||||
Equity |
||||||
Preferred stock - no par value; 1,000,000 authorized; |
- |
- |
||||
Common stock - $0.002 par value; 50,000,000 authorized, |
||||||
19,304,921 issued and outstanding as of |
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December 31, 2016 and 2015 |
38,609 |
38,609 |
||||
Additional paid-in capital |
(28,582,654) |
42,199,014 |
||||
Reserves |
15,129,935 |
13,207,972 |
||||
Accumulated other comprehensive income |
6,117,042 |
15,662,639 |
||||
Retained earnings |
146,352,530 |
129,055,099 |
||||
Total SORL Auto Parts, Inc. Stockholders' Equity |
139,055,462 |
200,163,333 |
||||
Noncontrolling Interest In Subsidiaries |
23,336,061 |
22,261,167 |
||||
Total Equity |
162,391,523 |
222,424,500 |
||||
Total Liabilities and Equity |
US$ |
301,328,124 |
US$ |
320,554,056 |
SORL Auto Parts, Inc. and Subsidiaries |
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Consolidated Statements of Income and Comprehensive Income |
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For The Years Ended on December 31, 2016 and 2015 |
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2016 |
2015 |
|||
Sales |
US$ |
272,120,504 |
US$ |
218,656,886 |
Include: sales to related parties |
13,436,421 |
7,781,763 |
||
Cost of sales |
199,216,223 |
159,246,468 |
||
Gross profit |
72,904,281 |
59,410,418 |
||
Expenses: |
||||
Selling and distribution expenses |
29,837,757 |
22,681,469 |
||
General and administrative expenses |
15,206,423 |
14,100,715 |
||
Impairment on long-lived assets |
- |
561,847 |
||
Research and development expenses |
7,709,533 |
7,358,563 |
||
Loss on disposal of subsidiary |
- |
3,170,821 |
||
Total operating expenses |
52,753,713 |
47,873,415 |
||
Other operating income, net |
3,041,701 |
3,204,286 |
||
Income from operations |
23,192,269 |
14,741,289 |
||
Interest income |
1,047,667 |
1,102,447 |
||
Government grants |
832,264 |
768,607 |
||
Other income |
1,244,078 |
2,217,204 |
||
Interest expenses |
(887,097) |
(1,269,091) |
||
Other expenses |
(807,858) |
(1,000,613) |
||
Income before provision for income taxes |
24,621,323 |
16,559,843 |
||
Provision for income taxes |
3,266,413 |
2,034,776 |
||
Net income |
US$ |
21,354,910 |
US$ |
14,525,067 |
Net income attributable to noncontrolling interest in subsidiaries |
2,135,516 |
1,216,581 |
||
Net income attributable to common stockholders |
US$ |
19,219,394 |
US$ |
13,308,486 |
Comprehensive income: |
||||
Net income |
US$ |
21,354,910 |
US$ |
14,525,067 |
Foreign currency translation adjustments |
(10,606,219) |
(13,194,113) |
||
Comprehensive income |
10,748,691 |
1,330,954 |
||
Comprehensive income attributable to noncontrolling interest in |
1,074,894 |
(123,965) |
||
Comprehensive income attributable to common shareholders |
US$ |
9,673,797 |
US$ |
1,454,919 |
Weighted average common share - basic |
19,304,921 |
19,304,921 |
||
Weighted average common share - diluted |
19,304,921 |
19,304,921 |
||
EPS - basic |
US$ |
1.00 |
US$ |
0.69 |
EPS - diluted |
US$ |
1.00 |
US$ |
0.69 |
SORL Auto Parts, Inc. and Subsidiaries |
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Consolidated Statements of Cash Flows |
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For The Years Ended on December 31, 2016 and 2015 |
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2016 |
2015 |
|||
Cash Flows From Operating Activities |
||||
Net Income |
US$ |
21,354,910 |
US$ |
14,525,067 |
Adjustments to reconcile net income to net cash |
||||
provided by operating activities: |
||||
Allowance for doubtful accounts |
395,491 |
2,042,952 |
||
Depreciation and amortization |
7,239,908 |
7,409,441 |
||
Deferred income tax |
(502,903) |
(1,183,270) |
||
Gain on disposal of property and equipment |
- |
(47,556) |
||
Loss on disposal of subsidiary |
- |
3,170,821 |
||
Impairment on long-lived assets |
- |
561,847 |
||
Changes in assets and liabilities: |
||||
Account receivable |
(39,422,631) |
(10,617,554) |
||
Bank acceptance notes from customers |
(21,991,160) |
(6,446,881) |
||
Other currents assets |
(291,979) |
(412,073) |
||
Inventories, net |
3,281,901 |
5,100,033 |
||
Prepayments |
(7,366,749) |
299,376 |
||
Prepaid capital lease interest |
90,373 |
273,896 |
||
Accounts payable and bank acceptance notes to vendors |
31,988,447 |
22,657,753 |
||
Income tax payable |
1,314,808 |
(1,372,293) |
||
Deposits received from customers |
4,135,536 |
2,126,933 |
||
Other current liabilities and accrued expenses |
5,201,618 |
1,225,759 |
||
Net Cash Flows Provided By Operating Activities |
5,427,570 |
39,314,251 |
||
Cash Flows From Investing Activities |
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Change in short term investments |
58,993,591 |
(29,015,636) |
||
Acquisition of property, equipment, plant and land use |
(15,889,693) |
(3,062,369) |
||
Proceeds of disposal of property and equipment |
- |
47,571 |
||
Advance to related party |
(18,247,384) |
- |
||
Repayment from related party |
18,247,384 |
- |
||
Change in restricted cash |
(4,897,377) |
(809,344) |
||
Cash paid for disposal of subsidiary |
- |
(99,915) |
||
Net Cash Flows Provided by (Used In) Investing Activities |
38,206,521 |
(32,939,693) |
||
Cash Flows From Financing Activities |
||||
Proceeds from bank loans |
53,895,058 |
38,313,044 |
||
Repayment of bank loans |
(48,153,831) |
(24,218,204) |
||
Distribution to owners Distribution to controlling |
(70,781,668) |
- |
||
Repayment of capital lease |
(1,779,040) |
(3,624,493) |
||
Net Cash Flows Provided By (Used In) Financing |
(66,819,481) |
10,470,347 |
||
Effects on changes in foreign exchange rate |
(1,011,717) |
(623,674) |
||
Net change in cash and cash equivalents |
(22,173,673) |
16,221,231 |
||
Cash and cash equivalents- beginning of the year |
30,230,828 |
14,009,597 |
||
Cash and cash equivalents - end of the year |
US$ |
8,057,155 |
US$ |
30,230,828 |
Supplemental Cash Flow Disclosures: |
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Interest paid |
US$ |
807,587 |
US$ |
1,108,388 |
Income taxes paid |
US$ |
3,284,070 |
US$ |
4,590,244 |
Non-cash Investing and Financing Transactions |
||||
Transfer of plant and land use right to entity under |
US$ |
17,342,372 |
US$ |
- |
Liabilities assumed in connection with the plant and land |
US$ |
5,351,196 |
US$ |
- |
SOURCE SORL Auto Parts, Inc.