SORL Auto Parts, Inc. (SORL) , a supplier of brake and control systems to the global commercial vehicle industry, announced that the Chinese government has renewed SORL's High-Tech Enterprise status.
The company said it was also designated as a High-Tech Enterprise beginning in 2009, the first year it was available, through the 2011 fiscal year. As a High-Tech Enterprise, SORL receives a preferred tax rate of 15% for the three years 2012 through 2014, compared with the normal 25% corporate tax rate.
The company said that it already has received its anticipated tax refund for the first three-quarters of 2012 of approximately $1.2 million or approximately RMB 7.64 million resulting from this designation.
For fiscal year 2012, the company reiterated its expectation for net sales to be approximately $191.4 million and revised its net income expectation to be approximately $12.7 million.
While announced the third-quarter result, the company expected net income to be approximately $11.5 million for fiscal 2012.
The company said that the revised net income guidance was based upon the preferred 15% tax rate from the renewal of the High-Tech Enterprise status.
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