We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
SORL Auto Parts Inc | NASDAQ:SORL | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.71 | 4.69 | 4.72 | 0 | 01:00:00 |
x |
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o |
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
|
DELAWARE
|
|
30-0091294
|
(State
or other jurisdiction of
incorporation
or
organization)
|
|
(IRS
Employer
Identification
No.)
|
Large
Accelerated Filer
o
|
Accelerated
Filer
o
|
Non-Accelerated
Filer
x
|
|
|
Page
|
PART
I.
|
FINANCIAL
INFORMATION (Unaudited)
|
1
|
Item
1.
|
Financial
Statements:
|
1
|
|
Condensed
Consolidated Balance Sheets as of September 30, 2007 (Unaudited)
and
December 31, 2006 (Audited)
|
2
|
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
for the Three and Nine Months Ended September 30, 2007and
2006
|
3
|
|
Condensed
Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three
and Nine Months Ended September 30, 2007 and 2006
|
4
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) for the Three
and Nine
Months Ended September 30, 2007 and 2006
|
6
|
|
Notes
to the Condensed Consolidated Financial Statements (Unaudited)
|
7
|
Item
2.
|
Management’s
Discussion and Analysis or Financial Condition and Results of Operations
|
17
|
Item 3. |
Quantitative
and Qualitative Disclosures About Market Risk
|
29
|
Item 4. |
Controls
and Procedures
|
29
|
PART II. | OTHER INFORMATION |
30
|
Item 1. | Legal Proceedings |
30
|
Item 1A. | Risk Factors |
30
|
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
30
|
Item 3. | Defaults Upon Senior Securities |
31
|
Item 4. | Submission Of Matters To a Vote of Security Holders |
31
|
Item 5. | Other Information |
31
|
Item 6. | Exhibits |
31
|
SIGNATURES |
31
|
September 30,
2007
|
|
December 31,
2006
|
|
||||
|
|
(Unaudited)
|
|
(Audited)
|
|||
Assets
|
|||||||
Current
Assets
|
|||||||
Cash
and Cash Equivalents
|
US$
|
1,972,825
|
US$
|
11,137,501
|
|||
Accounts
Receivable, Net of Provision
|
31,351,401
|
26,750,778
|
|||||
Notes
Receivable
|
5,953,499
|
3,494,327
|
|||||
Inventory
|
8,814,201
|
4,528,856
|
|||||
Prepayments
|
2,276,728
|
5,532,802
|
|||||
Other
current assets
|
4,216,545
|
2,925,558
|
|||||
Total
Current Assets
|
54,585,199
|
54,369,822
|
|||||
Fixed
Assets
|
|||||||
Property,
Plant and Equipment
|
26,172,629
|
20,418,557
|
|||||
Less:
Accumulated Depreciation
|
(5,410,661
|
)
|
(4,106,901
|
)
|
|||
Property,
Plant and Equipment, Net
|
20,761,968
|
16,311,656
|
|||||
Land
Use Rights, Net
|
13,583,427
|
-
|
|||||
Other
Assets
|
|||||||
Deferred
compensation cost-stock options
|
84,480
|
129,207
|
|||||
Intangible
Assets
|
74,059
|
45,779
|
|||||
Less:
Accumulated Amortization
|
(22,768
|
)
|
(17,655
|
)
|
|||
Intangible
Assets, Net
|
51,291
|
28,124
|
|||||
Other
Non-current Assets
|
38,637
|
41,299
|
|||||
Total
Other Assets
|
174,408
|
198,630
|
|||||
Total
Assets
|
US$
|
89,105,002
|
US$
|
70,880,108
|
|||
Liabilities
and Shareholders' Equity
|
|||||||
Current
Liabilities
|
|||||||
Accounts
Payable and Notes Payable
|
US$
|
5,649,773
|
US$
|
4,620,692
|
|||
Deposit
Received from Customers
|
877,625
|
508,268
|
|||||
Short
term bank loans
|
4,705,709
|
-
|
|||||
Income
tax payable
|
540,063
|
358,367
|
|||||
Accrued
Expenses
|
1,086,373
|
1,232,845
|
|||||
Other
Current Liabilities
|
491,823
|
454,430
|
|||||
|
|
||||||
Total
Current Liabilities
|
13,351,366
|
7,174,602
|
|||||
Total
Liabilities
|
13,351,366
|
7,174,602
|
|||||
Minority
Interest
|
7,545,894
|
6,336,557
|
|||||
Shareholders'
Equity
|
|||||||
Common
Stock - $0.002 Par Value; 50,000,000 authorized, 18,279,254 and 18,275,126
issued and outstanding as of September 30, 2007 and December 31,
2006
respectively
|
36,558
|
36,550
|
|||||
Additional
Paid In Capital
|
37,498,452
|
37,444,051
|
|||||
Reserves
|
1,640,403
|
797,116
|
|||||
Accumulated
other comprehensive income
|
3,553,626
|
1,102,469
|
|||||
Retained
Earnings
|
25,478,703
|
17,988,763
|
|||||
Total
Shareholders' Equity
|
68,207,742
|
57,368,949
|
|||||
Total
Liabilities and Shareholders' Equity
|
US$
|
89,105,002
|
US$
|
70,880,108
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
||||||||||
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
Sales
|
US$
|
29,703,227
|
21,288,002
|
US$
|
83,309,788
|
60,824,588
|
|||||||
Cost
of Sales
|
23,064,724
|
16,511,343
|
64,620,063
|
47,012,827
|
|||||||||
Gross
Profit
|
6,638,503
|
4,776,659
|
18,689,725
|
13,811,761
|
|||||||||
Operating
Expenses
|
|||||||||||||
Selling
and Distribution Expenses
|
1,928,763
|
1,163,077
|
4,444,053
|
3,407,535
|
|||||||||
General
and Administrative Expenses
|
1,682,071
|
1,028,862
|
4,402,694
|
2,212,113
|
|||||||||
Financial
Expenses
|
349,056
|
259,587
|
606,492
|
767,034
|
|||||||||
|
|
|
|
||||||||||
Total
Operating Expenses
|
3,959,890
|
2,451,526
|
9,453,239
|
6,386,682
|
|||||||||
Operating
Income
|
2,678,613
|
2,325,133
|
9,236,486
|
7,425,079
|
|||||||||
Other
Income
|
118,334
|
24,280
|
502,606
|
92,976
|
|||||||||
Non-Operating
Expenses
|
(10,357
|
)
|
(75,841
|
)
|
(94,996
|
)
|
(232,566
|
)
|
|||||
Income
Before Provision for Income Taxes
|
2,786,590
|
2,273,572
|
9,644,096
|
7,285,489
|
|||||||||
Provision
for Income Taxes
|
434,139
|
311,208
|
373,883
|
898,713
|
|||||||||
Net
Income Before Minority Interest & Other Comprehensive
Income
|
US$
|
2,352,451
|
1,962,364
|
US$
|
9,270,213
|
6,386,776
|
|||||||
Minority
Interest
|
239,867
|
196,236
|
936,986
|
638,677
|
|||||||||
Net
Income Attributable to Shareholders
|
2,112,584
|
1,766,128
|
8,333,227
|
5,748,099
|
|||||||||
Foreign
Currency Translation Adjustment
|
1,025,919
|
262,110
|
2,723,508
|
448,790
|
|||||||||
Minority
Interest's Share
|
(102,592
|
)
|
(26,211
|
)
|
(272,351
|
)
|
(44,879
|
)
|
|||||
Comprehensive
Income
|
3,035,911
|
2,002,027
|
10,784,384
|
6,152,010
|
|||||||||
Weighted
average common share - Basic
|
18,278,805
|
13,346,555
|
18,276,366
|
13,346,555
|
|||||||||
Weighted
average common share - Diluted
|
18,312,574
|
13,368,387
|
18,323,125
|
13,360,639
|
|||||||||
EPS –
Basic
|
0.12
|
0.13
|
0.46
|
0.43
|
|||||||||
EPS –
Diluted
|
0.12
|
0.13
|
0.45
|
0.43
|
Three
Months Ended September 30, 2007 and 2006
|
|||||||||||||||||||||||||
|
Number
of Share
|
|
|
Common
Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Reserves
|
|
|
Retained
Earnings
(Deficit)
|
|
|
Accumu. Other
Comprehensive
Income
|
|
|
Shareholders'
Equity
|
|
|
Minority
Interest
|
|||
Beginning
Balance - June 30, 2006
|
13,346,555
|
26,693
|
4,922,074
|
-
|
15,158,525
|
505,005.00
|
20,612,297
|
2,196,927
|
|||||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
1,766,128
|
-
|
1,766,128
|
196,236
|
|||||||||||||||||
Other
Comprehensive Income
|
-
|
-
|
-
|
-
|
-
|
235,899
|
235,899
|
26,211
|
|||||||||||||||||
Paid
In Capital Contributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Ending
Balance - September 30, 2006
|
13,346,555
|
26,693
|
4,922,074
|
16,924,653
|
740,904
|
22,614,324
|
2,419,374
|
||||||||||||||||||
Beginning
Balance - June 30, 2007
|
18,275,126
|
36,550
|
37,467,252
|
1,424,523
|
23,581,999
|
2,630,299
|
65,140,623
|
7,203,435
|
|||||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
2,112,584
|
-
|
2,112,584
|
239,867
|
|||||||||||||||||
Other
Comprehensive Income
|
-
|
-
|
-
|
-
|
-
|
923,327
|
923,327
|
102,592
|
|||||||||||||||||
Transfer
to reserve
|
-
|
-
|
-
|
215,880
|
-215,880
|
-
|
-
|
-
|
|||||||||||||||||
Common
Stock issued to previous employees
|
4,128
|
8
|
31,200
|
-
|
-
|
31,208
|
-
|
||||||||||||||||||
Ending
Balance - September 30, 2007
|
18,279,254
|
36,558
|
37,498,452
|
1,640,403
|
25,478,703
|
3,553,626
|
68,207,742
|
7,545,894
|
Nine
Months Ended September 30, 2007 and 2006
|
|||||||||||||||||||||||||
|
Number
of Share
|
|
|
Common
Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Reserves
|
|
|
Retained
Earnings
(Deficit)
|
|
|
Accumu. Other
Comprehensive
Income
|
|
|
Shareholders'
Equity
|
|
|
Minority
Interest
|
|||
Beginning
Balance - December 31, 2005
|
13,346,555
|
26,693
|
4,444,118
|
-
|
11,176,554
|
336,993
|
15,984,358
|
1,735,818
|
|||||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
5,748,099
|
-
|
5,748,099
|
638,677
|
|||||||||||||||||
Other
Comprehensive Income
|
-
|
-
|
-
|
-
|
-
|
403,911
|
403,911
|
44,879
|
|||||||||||||||||
Paid
In Capital Contributions
|
-
|
-
|
477,956
|
-
|
-
|
-
|
477,956
|
-
|
|||||||||||||||||
Ending
Balance - September 30, 2006
|
13,346,555
|
26,693
|
4,922,074
|
-
|
16,924,653
|
740,904
|
22,614,324
|
2,419,374
|
|||||||||||||||||
Beginning
Balance - December 31, 2006
|
18,275,126
|
36,550
|
37,444,051
|
797,116
|
17,988,763
|
1,102,469
|
57,368,949
|
6,336,557
|
|||||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
8,333,227
|
8,333,227
|
936,986
|
||||||||||||||||||
Other
Comprehensive Income
|
-
|
-
|
-
|
-
|
-
|
2,451,157
|
2,451,157
|
272,351
|
|||||||||||||||||
Transfer
to reserve
|
-
|
-
|
-
|
843,287
|
-843,287
|
-
|
-
|
-
|
|||||||||||||||||
4,128
options issued
|
-
|
-
|
23,201
|
-
|
-
|
-
|
23,201
|
-
|
|||||||||||||||||
Common
Stock issued to previous employees
|
4,128
|
8
|
31,200
|
-
|
-
|
-
|
31,208
|
-
|
|||||||||||||||||
Ending
Balance - September 30, 2007
|
18,279,254
|
36,558
|
37,498,452
|
1,640,403
|
25,478,703
|
3,553,626
|
68,207,742
|
7,545,894
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
||||
Cash
Flows from Operating Activities
|
|||||||||||||
Net
Income
|
US$
|
2,112,584
|
1,766,128
|
US$
|
8,333,227
|
5,748,099
|
|||||||
Adjustments
to reconcile net income (loss) to net cash from operating
activities:
|
|||||||||||||
Minority
Interest
|
239,867
|
196,236
|
936,986
|
638,677
|
|||||||||
Bad
Debt Expense
|
(163,553
|
)
|
(83,168
|
)
|
23,623
|
(869,618
|
)
|
||||||
Depreciation
and Amortization
|
447,548
|
266,058
|
1,157,942
|
783,053
|
|||||||||
Loss
on disposal of Fixed Assets
|
(1,870
|
)
|
2,129
|
(762
|
)
|
69,032
|
|||||||
Stock-Based
Compensation Expense
|
46,117
|
89,672
|
99,136
|
259,077
|
|||||||||
Changes
in Assets and Liabilities:
|
|||||||||||||
Account
Receivables
|
1,198,001
|
1,250,818
|
(3,436,960
|
)
|
(1,991,058
|
)
|
|||||||
Notes
Receivables
|
3,449,736
|
(2,366,405
|
)
|
(2,165,666
|
)
|
(2,033,838
|
)
|
||||||
Other
Currents Assets
|
(238,235
|
)
|
(674,145
|
)
|
(1,150,292
|
)
|
(1,033,278
|
)
|
|||||
Inventory
|
(1,339,563
|
)
|
(923,930
|
)
|
(4,034,078
|
)
|
214,474
|
||||||
Prepayments
|
45,087
|
(309,766
|
)
|
3,377,736
|
82,795
|
||||||||
Account
Payables and Notes payable
|
(252,806
|
)
|
787,423
|
738,224
|
4,841,961
|
||||||||
Deposits
Received from Customers
|
56,601
|
161,447
|
338,953
|
(356,087
|
)
|
||||||||
Other
Current Liabilities and Accrued Expenses
|
315,101
|
366,871
|
2,470
|
643,287
|
|||||||||
|
|
|
|
||||||||||
Net
Cash Flows from Operating Activities
|
5,914,615
|
529,368
|
4,220,539
|
6,996,576
|
|||||||||
Cash
Flows from Investing Activities
|
|||||||||||||
Acquisition
of Property and Equipment
|
(5,521,198
|
)
|
(1,189,727
|
)
|
(10,856,559
|
)
|
(2,063,307
|
)
|
|||||
Acquisition
of Land Use Rights
|
(7,377,271
|
)
|
-
|
(7,377,271
|
)
|
-
|
|||||||
Investment
in Intangible Assets
|
(5,818
|
)
|
-
|
(25,733
|
)
|
-
|
|||||||
|
|
|
|
||||||||||
Net
Cash Flows from Investing Activities
|
(12,904,287
|
)
|
(1,189,727
|
)
|
(18,259,563
|
)
|
(2,063,307
|
)
|
|||||
Cash
Flows from Financing Activities
|
|||||||||||||
Proceeds
from (Repayment of) Bank Loans
|
3,159,176
|
(632,227
|
)
|
4,652,112
|
(5,152,615
|
)
|
|||||||
Net
Cash flows from Financing Activities
|
3,159,176
|
(632,227
|
)
|
4,652,112
|
(5,152,615
|
)
|
|||||||
Effects
on changes in foreign exchange rate
|
51,979
|
262,110
|
222,236
|
448,789
|
|||||||||
Net
Increase (Decrease) in Cash
|
(3,778,517
|
)
|
(1,030,476
|
)
|
(9,164,676
|
)
|
229,443
|
||||||
Cash
- Beginning of the term
|
5,751,342
|
2,221,050
|
11,137,501
|
961,131
|
|||||||||
Cash
- End of the term
|
US$
|
1,972,825
|
1,190,574
|
US$
|
1,972,825
|
1,190,574
|
|||||||
Supplemental
Cash Flow Disclosures:
|
|||||||||||||
Interest
Paid
|
105,363
|
163,862
|
118,277
|
565,802
|
|||||||||
Tax
Paid
|
331,779
|
297,662
|
1,185,215
|
586,420
|
|||||||||
Non-Cash
Transaction Disclosures:
|
|||||||||||||
Exchange
of Construction in Progress for Acquisition of Property and
Equipment
|
3,040,203
|
||||||||||||
Exchange
of Construction in Progress for Acquisition of Land Use
Rights
|
6,206,156
|
|
September 30,
2007
|
|
December 31,
2006
|
||||
Prepayment
|
|||||||
|
|||||||
Ruili
Group Co., Ltd.
|
$
|
—
|
$
|
2,309,073
|
|||
Total
|
—
|
2,309,073
|
|||||
|
|||||||
Other
Accounts receivable
|
|||||||
Ruili
Group Co., Ltd.
|
$
|
1,686,125
|
$
|
903,304
|
|||
Total
|
1,686,125
|
903,304
|
|||||
Accounts
payable
|
|||||||
Ruili
Group Co., Ltd.
|
$
|
775,166
|
$
|
—
|
|||
Total
|
775,166
|
—
|
|
September
30,
2007
|
|
December
31,
2006
|
||||
Beginning
balance
|
$
|
8,769
|
$
|
914,721
|
|||
Add:
Increase to allowance
|
23,179
|
(905,952
|
)
|
||||
Less:
Accounts written off
|
—
|
—
|
|||||
|
|||||||
Ending
balance
|
$
|
31,948
|
$
|
8,769
|
|
|
September
30,
2007
|
December
31,
2006
|
||||
Accounts
receivable
|
$
|
31,383,349
|
$
|
26,759,547
|
|||
Less:
allowance for doubtful accounts
|
(31,948
|
)
|
(8,769
|
)
|
|||
|
|||||||
Account
receivable balance, net
|
$
|
31,351,401
|
$
|
26,750,778
|
September 30,
2007
|
December 31,
2006
|
||||||
Raw
Material
|
$
|
2,251,418
|
$
|
1,081,569
|
|||
Work
in process
|
4,122,246
|
2,429,979
|
|||||
Finished
Goods
|
2,440,537
|
1,017,308
|
|||||
Total
Inventory
|
$
|
8,814,201
|
$
|
4,528,856
|
|
September 30,
2007
|
|
December 31,
2006
|
||||
Machinery
|
$
|
16,732,950
|
$
|
12,123,775
|
|||
Molds
|
1,160,722
|
1,116,441
|
|||||
Office
equipment
|
310,282
|
226,647
|
|||||
Vehicle
|
711,442
|
310,681
|
|||||
Building
|
7,257,233
|
580,126
|
|||||
Construction
In Progress
|
—
|
6,060,887
|
|||||
Sub-Total
|
26,172,629
|
20,418,557
|
|||||
|
|||||||
Less:
Accumulated depreciation
|
(5,410,661
|
)
|
(4,106,901
|
)
|
|||
|
|||||||
Fixed
Assets, net
|
$
|
20,761,968
|
$
|
16,311,656
|
|
September 30,
2007
|
December 31,
2006
|
|||||
Cost:
|
$
|
13,583,427
|
$
|
—
|
|||
Less:
Accumulated amortization:
|
—
|
—
|
|||||
Land
use rights, net
|
$
|
13,583,427
|
$
|
—
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
Thereafter
|
||||||
$
1,354
|
$
|
5,845
|
$
|
5,845
|
$
|
5,845
|
$
|
5,845
|
$
|
26,557
|
|
September 30,
2007
|
December 31,
2006
|
|||||
Raw
material suppliers
|
$
|
1,585,404
|
$
|
5,080,452
|
|||
Equipment
purchase
|
691,324
|
452,350
|
|||||
|
|||||||
Total
prepayment
|
$
|
2,276,728
|
$
|
5,532,802
|
|
September 30,
2007
|
|
December 31,
2006
|
||||
|
|
||||||
Accrued
payroll
|
$
|
583,412
|
$
|
448,420
|
|||
Other
accrued expenses
|
502,961
|
784,425
|
|||||
Total
accrued expenses
|
$
|
1,086,373
|
$
|
1,232,845
|
|
September 30,
2007
|
December 31,
2006
|
|||||
Secured
|
$
|
4,705,709
|
$
|
—
|
|||
Less:
Current portion
|
$
|
(4,705,709
|
)
|
$
|
—
|
||
Non-current
portion
|
$
|
—
|
$
|
—
|
September 30,
2007
|
|
December 31,
2006
|
|
||||
|
|
||||||
Statutory
surplus reserve fund
|
$
|
1,640,403
|
$
|
797,116
|
|||
Total
|
$
|
1,640,403
|
$
|
797,116
|
26.4
|
%
|
|||
Tax
holidays and concessions
|
-13.2
|
%
|
||
Effective
tax rate
|
13.2
|
%
|
Beginning
balance at Jan 01, 2007
|
$
|
613,917
|
||
Accrued
during the nine months ended September 30, 2007:
|
$
|
912,623
|
||
Less:
Actual Paid during the nine months ended September 30, 2007:
|
$
|
1,212,312
|
||
Ending
balance at September 30, 2007
|
$
|
314,228
|
Number of Shares
|
% of Shares Issued
|
Initial Vesting Date
|
||
|
|
|
||
60,000
|
100%
|
March
1, 2009
|
0.00
|
%
|
|||
Expected
Volatility
|
96.54
|
%
|
||
Risk-Free
Interest Rate
|
4.59
|
%
|
||
Contractual
Term
|
3
years
|
|||
Stock
Price at Date of Grant
|
$
|
4.79
|
||
Exercise
Price
|
$
|
4.79
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
|
|
|
|
|
|||||||||
January
1, 2006
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||
Granted
|
60,000
|
4.79
|
3Years
|
—
|
|||||||||
Exercised
|
—
|
—
|
—
|
—
|
|||||||||
Forfeited
|
—
|
—
|
—
|
—
|
|||||||||
|
|||||||||||||
Outstanding
at
September
30, 2007
|
60,000
|
$
|
4.79
|
1.3Years
|
$
|
1
80,000
`
|
|||||||
|
|||||||||||||
Exercisable
at
September
30, 2007
|
—
|
—
|
—
|
—
|
Number
of Shares
|
%
of Shares Issued
|
Initial
Vesting Date
|
||
|
|
|
||
4,128
|
100%
|
June
20, 2007
|
Dividend
Yield
|
0.00
|
%
|
||
Expected
Volatility
|
141.47
|
%
|
||
Risk-Free
Interest Rate
|
5.14
|
%
|
||
Contractual
Term
|
3
years
|
|||
Stock
Price at Date of Grant
|
$
|
7.09
|
||
Exercise
Price
|
$
|
7.25
|
|
Warrants
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|
|||||
|
|
|
|
|
|||||||||
January
1, 2007
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||
Granted
|
4,128
|
$
|
7.25
|
3Years
|
—
|
||||||||
Exercised
|
—
|
—
|
—
|
—
|
|||||||||
Forfeited
|
—
|
—
|
—
|
—
|
|||||||||
|
|||||||||||||
Outstanding
at
September
30, 2007
|
4,128
|
$
|
7.25
|
2.8Years
|
$
|
2,229
|
|||||||
|
|||||||||||||
Exercisable
at
September
30, 2007
|
4,128
|
$
|
7.25
|
2.8Years
|
$
|
2,229
|
%
of Shares Issued
|
Initial
Vesting Date
|
|||
|
|
|
||
100,000
|
100%
|
January
5, 2006
|
Dividend
Yield
|
0.00
|
%
|
||
Expected
Volatility
|
95.01
|
%
|
||
Risk-Free
Interest Rate
|
4.36
|
%
|
||
Contractual
Term
|
4
years
|
|||
Stock
Price at Date of Grant
|
$
|
4.70
|
||
Exercise
Price
|
$
|
6.25
|
Warrants
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
|
|
|
|
|
|||||||||
January
1, 20 06
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||
Granted
|
100,000
|
$
|
6.25
|
4Years
|
—
|
||||||||
Exercised
|
—
|
—
|
—
|
—
|
|||||||||
Forfeited
|
—
|
—
|
—
|
—
|
|||||||||
|
|||||||||||||
Outstanding
at
September
30, 2007
|
100,000
|
$
|
6.25
|
2.3Years
|
$
|
154,000
|
|||||||
|
|||||||||||||
Exercisable
at
September
30, 2007
|
100,000
|
$
|
6.25
|
2.3Years
|
$
|
154,000
|
|
Three
Months ended
30-Sep-07
|
three
Months ended
30-Sep-06
|
|||||||||||
Air
brake valves & related components
|
$
|
22.4
|
M |
75
|
%
|
$
|
15.9
|
M |
75
|
%
|
|||
Non-valve
products
|
$
|
7.3
|
M |
25
|
%
|
$
|
5.4
|
M |
25
|
%
|
|||
Total
|
$
|
29.7
|
M |
100
|
%
|
$
|
21.3
|
M |
100
|
%
|
|
Three Months
ended
30-Sep-07
|
|
%
|
|
Three Months
ended
30-Sep-06
|
|
%
|
|
|||||
(U.S.
dollars in million)
|
|||||||||||||
China
OEM market
|
$
|
9.2
|
31
|
%
|
$
|
6.7
|
32
|
%
|
|||||
China
Aftermarket
|
$
|
7.7
|
26
|
%
|
$
|
5.2
|
24
|
%
|
|||||
International
market
|
$
|
12.8
|
43
|
%
|
$
|
9.4
|
44
|
%
|
|||||
Total
|
$
|
29.7
|
100
|
%
|
$
|
21.3
|
100
|
%
|
(1)
|
Increased
transportation expenses for domestic sales: Because of the shorter
lead
time resulting from the delivery requirements of the OEM
’
s,
products
needed to be shipped more frequently in smaller quantities. Accordingly,
the associated transportation expenses increased by $ 261,746 for
the
three months ended September 30, 2007, as compared to $196,821 for
the
same period of 2006, even though the Company had taken many steps
to
optimize its shipping
management. , .
|
(2)
|
Packaging
costs were $ 484,539 for the three months ended September 30, 2007,
an
increase of $162,467 as compared with the same period of 2006 , as
a
result of the increase in international sales which generally require
a
higher standard for packaging material.
|
(3)
|
Advertising
costs were $ 106,437 for the three months ended September 30, 2007,
as
compared to $1,335 for the same period of 2006, an increase of
$105,102.
|
(1) |
The
expansion of economic activities, facilities and workforce resulted
in
increased depreciation, office expenses, staff salary and welfare,
travel
expenses, supplies and utilities totaling $ 479,420, as compared
to the
same period of 2006.
|
(2) |
R&D
expense, which is included in general and administrative expenses,
increased by $ 152,696, as compared to the same period of 2006, as
discussed below.
|
(3) |
Additionally, there
was an increase in professional fees of $69,281. The professional
fees included audit and legal fees associated with SEC filings, related
consulting fees, stock transfer fees and other items associated with
the
costs of being a public entity. The aforementioned increases were
partly
offset by a decreased stock-based compensation expenses at
$43,555.
|
|
Nine
Months ended
30-Sep-07
|
Nine
Months ended
30-Sep-06
|
|||||||||||
Air
brake valves & related components
|
$
|
63.7
|
M |
76
|
%
|
$
|
44.6
|
M |
73
|
%
|
|||
Non-valve
products
|
$
|
19.6
|
M |
24
|
%
|
$
|
16.2
|
M |
27
|
%
|
|||
Total
|
$
|
83.3
|
M |
100
|
%
|
$
|
60.8
|
M |
100
|
%
|
|
Nine
Months
ended
30-Sep-07
|
%
|
Nine
Months
ended
30-Sep-06
|
%
|
|||||||||
(U.S.
dollars in million)
|
|||||||||||||
China
OEM market
|
$
|
30.1
|
36
|
%
|
$
|
18.5
|
30
|
%
|
|||||
China
Aftermarket
|
$
|
21.1
|
25
|
%
|
$
|
17.9
|
29
|
%
|
|||||
International
market
|
$
|
32.1
|
39
|
%
|
$
|
24.4
|
41
|
%
|
|||||
Total
|
$
|
83.3
|
100
|
%
|
$
|
60.8
|
100
|
%
|
(1)
|
Increased
transportation expenses for domestic sales
:
Because of the shorter lead time resulting from the delivery requirements
of the OEM
’
s,
products
needed to be shipped more frequently in smaller quantities.
Accordingly, the associated transportation expenses increased by $$
473,121 for the nine months ended September 30, 2007, as compared
to
$451,377 for the same period of 2006, even though the Company had
taken
many steps to optimize its shipping management.
|
(2)
|
Packaging
costs were $ 1,386,103 for the nine months ended September 30, 2007,
an
increase of $804,890 as compared with the same period of 2006 , as
a
result of the increase in international sales which generally require
a
higher standard for packaging material.
|
(3)
|
Advertising
costs were $ 107,023 for the nine months ended September 30, 2007,
as
compared to $23,358 for the same period of 2006, an increase of
$83,682.
|
(4)
|
The
Company recorded product warranty expenses at $ 912,623 for the nine
months ended September 30, 2006, as compared to $1,174,437 for the
same
period of 2006, a decrease of $261,814. During the nine months ended
September 30, 2006, there was one large amount of a one-time
indemnification payment to an OEM customer, resulting from
miscommunication in certain technical parameters for the
products.
|
(1) |
The
expansion of economic activities, facilities and workforce resulted
in
increased depreciation, office expenses, staff salary and welfare,
travel
expenses, supplies and utilities totaling $708,993, as compared to
the
same period of 2006.
|
(2) |
R&D
expense, which is included in general and administrative expenses,
increased by $ 466,232, as compared to the same period of 2006, as
discussed below.
|
(3) |
Stock-based
compensation expenses decreased by $ 191,149, as compared to $259,077
for
the same period of 2006.
|
(4) |
During
the nine months ended September 30, 2006, the Joint Venture reversed
a bad
debt provision resulting from collecting a significant portion of
accounts
receivable with aging over one year, which had been reflected as
a
reduction to general and administrative expenses. Compared with the
negative $869,463 of bad debt provision for the nine month ended
September
30, 2006, the bad debt provision included in general and administrative
expenses was $23,623 for the nine months ended September 30, 2007,
an
increase of by $893,086.
|
(a)
|
Evaluation
of Disclosure Controls and
Procedures.
|
(b)
|
Changes
in Internal Controls.
|
1. |
Election
of Directors
|
2. |
Ratification
of Auditors
|
For
|
Against
|
Abstain
|
17,273,934
|
21,985
|
27,968
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
promulgated under the Securities and Exchange Act of 1934, as amended.
|
|
|
|
|
31.2
|
Certification
of Principal Accounting Officer pursuant to Rule 13a-14 and Rule
15d-14(a)
promulgated under the Securities and Exchange Act of 1934, as amended.
|
|
|
|
|
32.1
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
32.2
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Dated
:November 12, 2007
|
SORL
AUTO PARTS, INC.
|
|
|
|
|
By:
|
/s/ Xiao
Ping Zhang
|
|
|
Name:
Xiao Ping Zhang
|
|
|
Title:
Chief Executive Officer
|
|
By:
|
/s/ Zong
Yun Zhou
|
|
|
Name:
Zong Yun Zhou
|
|
|
Title:
Chief Financial Officer
(Principal
Financial Officer)
|
1 Year SORL Auto Parts Chart |
1 Month SORL Auto Parts Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions