SORL Auto Parts, Inc. (SORL) has reported a 44.41 percent jump in profit for the year ended Dec. 31, 2016. The company has earned $19.22 million, or $1 a share in the year, compared with $13.31 million, or $0.69 a share for the last year.
Revenues for the year were $285.56 million.
Operating income for the year was $23.19 million, compared with $14.74 million in the previous year.
Mr. Xiaoping Zhang, SORL's chief executive officer and chairman, stated, "We closed out the year on a high note as we achieved strong growth in the fourth quarter. As we are the market leader in China, we decided to take some strategic pricing adjustments to place greater pressure on some of the low-margin or low-quality smaller companies. As a result, our gross margin temporarily declined in the fourth quarter. However, with improved economies of scale, successful receivables collections and effective cost control programs, our operating margin remains attractive."
For fiscal year 2017, SORL Auto Parts, Inc. expects revenue to be $300 million. The company forecasts net income to be $21 million.
Operating cash flow drops significantly
SORL Auto Parts, Inc. has generated cash of $5.43 million from operating activities during the year, down 86.19 percent or $33.89 million, when compared with the last year.
Cash flow from investing activities was $38.21 million from investing activities during the year as against cash outgo of $32.94 million in the last year.
The company has spent $66.82 million cash to carry out financing activities during the year as against cash inflow of $10.47 million in the last year period.
Cash and cash equivalents stood at $8.06 million as on Dec. 31, 2016, down 73.35 percent or $22.17 million from $30.23 million on Dec. 31, 2015.
Working capital drops significantly
SORL Auto Parts, Inc. has witnessed a decline in the working capital over the last year. It stood at $100.33 million as at Dec. 31, 2016, down 40.93 percent or $69.51 million from $169.85 million on Dec. 31, 2015. Current ratio was at 1.72 as on Dec. 31, 2016, down from 2.73 on Dec. 31, 2015.
Debt moves up marginally
SORL Auto Parts, Inc. has witnessed an increase in total debt over the last one year. It stood at $27.42 million as on Dec. 31, 2016, up 1.97 percent or $0.53 million from $26.89 million on Dec. 31, 2015. SORL Auto Parts, Inc. has witnessed an increase in short-term debt over the last one year. It stood at $27.42 million as on Dec. 31, 2016, up 1.97 percent or $0.53 million from $26.89 million on Dec. 31, 2015. Total debt was 9.10 percent of total assets as on Dec. 31, 2016, compared with 8.39 percent on Dec. 31, 2015. Debt to equity ratio was at 0.17 as on Dec. 31, 2016, up from 0.12 as on Dec. 31, 2015. Interest coverage ratio improved to 26.14 for the year from 11.62 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
