Wednesday, April 25, 2007
SORL Auto Parts, Inc. Reports Net Income of $2.9 Million for the First Six Months of 2005
SORL Auto Parts, Inc. (OTC BB: SAUP) a leading international auto parts manufacturer based in China, today announced record financial results for the second quarter ended June 30, 2005.
SORL Auto Parts, Inc. ("SORL" or the "Company") reported net income for the second quarter ended June 30, 2005 increased by $0.2 million, or 19 percent, to $1.4 million or $0.11 per share, compared to $1.2 million, or $0.09 per share, for the same period a year ago. For the first six months of 2005, net income increased by $0.8 million, or 35 percent, to $2.9 million or $0.22 per share, compared to $2.1 million or $0.16 per share, for the first six months of 2004.
Sales for the second quarter ended June 30, 2005 increased by $3.6 million, or 31 percent, to $14.9 million from $11.3 million for the same period a year ago. For the first six months of 2005, sales increased by $9 million, or 44 percent, to $29.4 million compared to $20.5 million for the same period a year ago. The increase is primarily due to the increase in volume of our products shipped as a result of our aggressive expansion into new markets, especially in North America. Export sales grew by approximately 91 percent and accounted for approximately one third of total sales.
SORL reported that gross profit for the second quarter ended June 2005 increased by $0.7 million, or 26 percent, to $3.4 million from $2.7 million a year ago. For the first six months of 2005, gross profit increased by $1.7 million or 34 percent, to $6.6 million from $4.9 million for the same period a year ago. The improvement in gross profit was attributed to increased sales in both the domestic and international markets. The gross profit margin dropped 2 percent from 24 percent in the first half of 2004 to 22 percent in the first half of 2005. This decrease was due to the fact that 10 percent of the Company's gross sales were from products that were purchased from outside vendors as opposed to products manufactured internally, which carry lower costs and higher profit margins.
Selling, general, administration and related sales expenses for the second quarter ended June 30, 2005 were $1.6 million, or 11 percent of net sales. This compares to $1.2 million, or 11 percent of net sales for the same period last year. For the first six months of 2005, selling, general, administration and related sales expenses were $3.1 million or 11 percent of net sales compared to $2.4 million or 12 percent of net sales for the first six months of 2004. The decrease in these expenses was primarily due to economies of scales resulting from the increase in sales.
Cash and cash equivalents for the second quarter totaled $0.3 million. There was surplus working capital of $8.6 million for that same period.
Company Chairman and Chief Executive Officer Xiaoping Zhang said, "The Company had another outstanding quarter propelled by improvements in product quality, new marketing initiatives and growing export sales. Export sales accounted for more than 30 percent of total sales in the second quarter 2005, and we see many more opportunities for expansion into international markets and continued strong growth in export sales over the next two years."
About SORL Auto Parts, Inc.
SORL Auto Parts, Inc. is engaged in the manufacture and distribution of automotive air brake valves and hydraulic break valves primarily for the commercial vehicle market for vehicles weighting more than three tons, such as trucks, vans and buses in the People's Republic of China (PRC). The Company distributes products both in China and internationally under SORL trademarks. The Company's product range includes 36 types of brake valves with over 800 different specifications. The Company is rated as one of the top 100 auto component suppliers in China. The Company has two international sales centers in Australia and UAE, with additional new offices slated for opening in the U.S. and other locations in the near future.
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act
SORL Auto Parts, Inc. ("SORL" or the "Company") reported net income for the second quarter ended June 30, 2005 increased by $0.2 million, or 19 percent, to $1.4 million or $0.11 per share, compared to $1.2 million, or $0.09 per share, for the same period a year ago. For the first six months of 2005, net income increased by $0.8 million, or 35 percent, to $2.9 million or $0.22 per share, compared to $2.1 million or $0.16 per share, for the first six months of 2004.
Sales for the second quarter ended June 30, 2005 increased by $3.6 million, or 31 percent, to $14.9 million from $11.3 million for the same period a year ago. For the first six months of 2005, sales increased by $9 million, or 44 percent, to $29.4 million compared to $20.5 million for the same period a year ago. The increase is primarily due to the increase in volume of our products shipped as a result of our aggressive expansion into new markets, especially in North America. Export sales grew by approximately 91 percent and accounted for approximately one third of total sales.
SORL reported that gross profit for the second quarter ended June 2005 increased by $0.7 million, or 26 percent, to $3.4 million from $2.7 million a year ago. For the first six months of 2005, gross profit increased by $1.7 million or 34 percent, to $6.6 million from $4.9 million for the same period a year ago. The improvement in gross profit was attributed to increased sales in both the domestic and international markets. The gross profit margin dropped 2 percent from 24 percent in the first half of 2004 to 22 percent in the first half of 2005. This decrease was due to the fact that 10 percent of the Company's gross sales were from products that were purchased from outside vendors as opposed to products manufactured internally, which carry lower costs and higher profit margins.
Selling, general, administration and related sales expenses for the second quarter ended June 30, 2005 were $1.6 million, or 11 percent of net sales. This compares to $1.2 million, or 11 percent of net sales for the same period last year. For the first six months of 2005, selling, general, administration and related sales expenses were $3.1 million or 11 percent of net sales compared to $2.4 million or 12 percent of net sales for the first six months of 2004. The decrease in these expenses was primarily due to economies of scales resulting from the increase in sales.
Cash and cash equivalents for the second quarter totaled $0.3 million. There was surplus working capital of $8.6 million for that same period.
Company Chairman and Chief Executive Officer Xiaoping Zhang said, "The Company had another outstanding quarter propelled by improvements in product quality, new marketing initiatives and growing export sales. Export sales accounted for more than 30 percent of total sales in the second quarter 2005, and we see many more opportunities for expansion into international markets and continued strong growth in export sales over the next two years."
About SORL Auto Parts, Inc.
SORL Auto Parts, Inc. is engaged in the manufacture and distribution of automotive air brake valves and hydraulic break valves primarily for the commercial vehicle market for vehicles weighting more than three tons, such as trucks, vans and buses in the People's Republic of China (PRC). The Company distributes products both in China and internationally under SORL trademarks. The Company's product range includes 36 types of brake valves with over 800 different specifications. The Company is rated as one of the top 100 auto component suppliers in China. The Company has two international sales centers in Australia and UAE, with additional new offices slated for opening in the U.S. and other locations in the near future.
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act
# posted by Medical Information : 4:14 AM
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