Wednesday, January 2, 2013

SORL Auto Parts, Inc. (SORL) Receives High-Tech Enterprise Status and Preferred Tax Rate

SORL Auto Parts, a leading supplier of brake and control systems to the global commercial vehicle industry, recently announced that the Chinese government renewed its status as a High-Tech Enterprise. SORL will receive a preferred tax rate of 15% for three fiscal years, compared with the normal 25% corporate tax rate.

Qualifications include:

• Own proprietary intellectual rights
• Operate in a government-selected industry
• R&D expenditures and income from high-tech products/services each must meet a required minimum percentage of annual revenue
• The number of R&D personnel must meet a required percentage of total employees

SORL has received its anticipated tax refund for the first three quarters of 2012 of approximately $1.2 million (approximately RMB 7.64 million) resulting from this designation.

Ms. Jinrui Yu, SORL Auto Parts’ COO, said, “The High-Tech Enterprise designation reflects the Chinese government’s desire to build the domestic technology base by favoring only companies that are advancing technologies. Our research and development program is innovating new products with higher technology content to offer better solutions for our customers’ current vehicles and to prepare for future vehicles, especially pure electric and plug-in hybrid vehicles promoted by the Chinese government. Innovation will enable us to sustain our leading position in the domestic market for brake systems and better penetrate the global auto parts industry to gain momentum for our future growth, strengthen our technology base and build shareholder value.”

For fiscal year 2012, management stated expectations for net sales to be approximately $191.4 million and revised its net income expectation to be approximately $12.7 million. The revised net income guidance is based upon the preferred 15% tax rate from the renewal of the High-Tech Enterprise status.

As the market leader for commercial vehicles brake systems, such as trucks and buses in China, SORL Auto Parts distributes products within China and internationally under the SORL trademark. SORL is listed among the top 100 auto component suppliers in China, and has a product range that includes 65 categories with over 2,000 specifications in brake systems and others. SORL is working to establish a broader global sales network and currently has four authorized international sales centers in UAE, India, the United States, and Europe.

For more information, please visit www.sorl.cn

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