The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

SORL Auto Parts Files 10-Q Amendment With Additional Income Statement

PHOTO (select to view enlarged photo)

ZHEJIANG, Nov. 19, 2010: SORL Auto Parts, Inc. ("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 that it has filed an amended Form 10-Q with the US Securities and Exchange Commission.  

On August 31, 2010, the Company acquired the assets of the hydraulic brake, power steering and automotive electrical parts segments of the automotive parts business of the Ruili Group Co., Ltd.

In the Form 10-Q filed on November 15th, as required by Generally Accepted Accounting Principles, the Company provided the consolidated three-month and nine-month financial results of both SORL's core brake product operations and the acquired automotive parts segments of the Ruili Group Co., Ltd., as if the acquisition had taken place on January 1, 2009.

However, SORL's operations for the three and nine months ended September 30, 2010, as a business matter, only included the results of the acquired business for the one month of September 2010.  To enhance understanding of the Company's financial performance, SORL filed an amendment to its Quarterly Report with the SEC, to provide certain non-GAAP information, and included in this non-GAAP presentation the results of the acquired business only for the month of September 2010.  Please refer to the Company's Form 10-Q amendment, which was filed with the SEC yesterday, for a presentation containing both the GAAP and non-GAAP information relating to the acquired business, and also containing, in the Management's Discussion and Analysis section, specific information relating to line items in the income statement that were affected.

Fourth Quarter Business Outlook

We project approximately $51 million of sales revenue and $4.6 million of net income attributable to our common stockholders for the fourth quarter ending December 31, 2010.

SEE ALSO: 2010 LA Auto Show - Press Pass Coverage