SORL Auto Parts (SORL) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 30, 2016	Jun. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Registrant Name	SORL Auto Parts Inc
Entity Central Index Key	714,284
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 25,664,000
Trading Symbol	SORL
Entity Common Stock, Shares Outstanding		19,304,921

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 30,230,828	$ 14,009,597
Accounts receivable, net	71,823,328	68,171,387
Bank acceptance notes from customers	22,870,791	17,626,704
Short term investments	61,007,709	34,838,757
Inventories	73,661,860	84,186,766
Prepayments, including $- and $83,206 due from related parties at December 31, 2015 and 2014, respectively.	3,350,607	4,663,002
Current portion of prepaid capital lease interest	93,458	282,280
Restricted cash	785,999	0
Other current assets	1,241,864	1,282,182
Deferred tax assets	2,909,729	1,868,371
Total Current Assets	267,976,173	226,929,046
Property, plant and equipment, net	37,561,905	43,550,927
Land use rights, net	13,232,149	14,421,729
Intangible assets, net	23,854	37,661
Security deposits on lease agreement	1,759,975	1,867,719
Non-current portion of prepaid capital lease interest	0	99,180
Total Non-Current Assets	52,577,883	59,977,216
Total Assets	320,554,056	286,906,262
Current Liabilities
Accounts payable and bank acceptance notes to vendors, including $1,133,537 and $136,609 due to related parties at December 31, 2015 and 2014, respectively.	35,292,277	13,867,316
Deposit received from customers	20,012,087	19,045,172
Short term bank loans	23,367,207	9,539,476
Income tax payable	0	1,101,103
Accrued expenses	13,870,587	13,561,163
Current portion of capital lease obligations	3,519,949	3,735,438
Other current liabilities, including $0 and $17,681 due to related parties at December 31, 2015 and 2014, respectively.	2,067,449	2,131,527
Total Current Liabilities	98,129,556	62,981,195
Non-Current Liabilities
Non-current portion of capital lease obligations	0	3,735,437
Total Non-Current Liabilities	0	3,735,437
Total Liabilities	98,129,556	66,716,632
Equity
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2015 and 2014	0	0
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2015 and December 31, 2014	38,609	38,609
Additional paid-in capital	42,199,014	42,199,014
Reserves	13,207,972	12,019,532
Accumulated other comprehensive income	15,662,639	27,516,206
Retained earnings	129,055,099	116,935,053
Total SORL Auto Parts, Inc. Stockholders' Equity	200,163,333	198,708,414
Noncontrolling Interest In Subsidiaries	22,261,167	21,481,216
Total Equity	222,424,500	220,189,630
Total Liabilities and Equity	$ 320,554,056	$ 286,906,262

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Prepayments, related party	$ 0	$ 83,206
Accounts payable, related party	1,133,537	136,609
Other current liabilities, related party	$ 0	$ 17,681
Preferred stock, par or stated value per share	$ 0	$ 0
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.002	$ 0.002
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	19,304,921	19,304,921
Common stock, shares outstanding	19,304,921	19,304,921

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Sales	$ 218,656,886	$ 237,654,865
Include: sales to related parties	7,781,763	1,618,349
Cost of sales	159,246,468	170,793,868
Gross profit	59,410,418	66,860,997
Expenses:
Selling and distribution expenses	22,681,469	23,676,176
General and administrative expenses	14,100,715	18,011,110
Impairment on long-lived assets	561,847	0
Research and development expenses	7,358,563	7,601,342
Total operating expenses	44,702,594	49,288,628
Other operating income	3,204,286	2,270,147
Loss on disposal of subsidiary	(3,170,821)	0
Income from operations	14,741,289	19,842,516
Interest income	1,102,447	343,889
Government grants	768,607	301,572
Other income	2,217,204	304,540
Interest expenses	(1,269,091)	(1,119,250)
Other expenses	(1,000,613)	(1,632,869)
Income before provision for income taxes	16,559,843	18,040,398
Provision for income taxes	2,034,776	2,872,912
Net income	14,525,067	15,167,486
Net income attributable to noncontrolling interest in subsidiaries	1,216,581	1,366,456
Net income attributable to common stockholders	13,308,486	13,801,030
Comprehensive income:
Net income	14,525,067	15,167,486
Foreign currency translation adjustments	(13,194,113)	5,518,183
Comprehensive income	1,330,954	20,685,669
Comprehensive income attributable to noncontrolling interest in subsidiaries	(123,965)	1,834,153
Comprehensive income attributable to common shareholders	$ 1,454,919	$ 18,851,516
Weighted average common share - basic	19,304,921	19,304,921
Weighted average common share - diluted	19,304,921	19,304,921
EPS - basic	$ 0.69	$ 0.71
EPS - diluted	$ 0.69	$ 0.71

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities
Net Income	$ 14,525,067	$ 15,167,486
Adjustments to reconcile net income to net cash from operating activities:
Allowance for doubtful accounts	2,042,952	2,658,641
Depreciation and amortization	7,409,441	7,386,953
Deferred income tax	(1,183,270)	(431,640)
(Gain) or loss on disposal of property and equipment	(47,556)	53,052
Write-down of inventory	0	139,572
Loss on disposal of subsidiary	3,170,821	0
Impairment on long-lived assets	561,847	0
Changes in assets and liabilities:
Account receivable	(10,617,554)	(11,017,981)
Bank acceptance notes from customers	(6,446,881)	3,067,636
Other currents assets	(412,073)	1,200,416
Inventories	5,100,033	(5,836,031)
Prepayments	299,376	(776,251)
Prepaid capital lease interest	273,896	459,134
Accounts payable and bank acceptance notes to vendors	22,657,753	211,449
Income tax payable	(1,372,293)	585,087
Deposits received from customers	2,126,933	4,670,996
Other current liabilities and accrued expenses	1,225,759	5,022,675
Net Cash Flows Provided By Operating Activities	39,314,251	22,561,194
Cash Flows From Investing Activities
Change in short term investments	(29,015,636)	(34,371,133)
Acquisition of property and equipment	(3,062,369)	(4,003,170)
Proceeds of disposal of property and equipment	47,571	63,460
Change in restricted cash	(809,344)	0
Cash paid for disposal of subsidiary	(99,915)	0
Net Cash Flows Used In Investing Activities	(32,939,693)	(38,310,843)
Cash Flows From Financing Activities
Proceeds from bank loans	38,313,044	34,318,277
Repayment of bank loans	(24,218,204)	(29,524,282)
Repayment of capital lease	(3,624,493)	(3,685,299)
Net Cash Flows Provided By Financing Activities	10,470,347	1,108,696
Effects on changes in foreign exchange rate	(623,674)	408,566
Net change in cash and cash equivalents	16,221,231	(14,232,387)
Cash and cash equivalents- beginning of the year	14,009,597	28,241,983
Cash and cash equivalents - end of the year	30,230,828	14,009,597
Supplemental Cash Flow Disclosures:
Interest paid	1,108,388	1,135,177
Income taxes paid	$ 4,590,244	$ 2,714,779

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Reserves [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Stockholders' Equity [Member]	Non-controlling Interest [Member]
Balance at Dec. 31, 2013	$ 199,503,961	$ 38,609	$ 42,199,014	$ 10,609,435	$ 104,544,120	$ 22,465,720	$ 179,856,898	$ 19,647,063
Balance, shares at Dec. 31, 2013		19,304,921
Net income	15,167,486	$ 0	0	0	13,801,030	0	13,801,030	1,366,456
Foreign currency translation adjustment	5,518,183	0	0	0	0	5,050,486	5,050,486	467,697
Transfer to reserve	0	0	0	1,410,097	(1,410,097)	0	0	0
Balance at Dec. 31, 2014	$ 220,189,630	$ 38,609	42,199,014	12,019,532	116,935,053	27,516,206	198,708,414	21,481,216
Balance, shares at Dec. 31, 2014	19,304,921	19,304,921
Disposal of subsidiary	$ 903,916	$ 0	0	0	0	0	0	903,916
Net income	14,525,067	0	0	0	13,308,486	0	13,308,486	1,216,581
Foreign currency translation adjustment	(13,194,113)	0	0	0	0	(11,853,567)	(11,853,567)	(1,340,546)
Transfer to reserve	0	0	0	1,188,440	(1,188,440)	0	0	0
Balance at Dec. 31, 2015	$ 222,424,500	$ 38,609	$ 42,199,014	$ 13,207,972	$ 129,055,099	$ 15,662,639	$ 200,163,333	$ 22,261,167
Balance, shares at Dec. 31, 2015	19,304,921	19,304,921

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2015
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS The Company is principally engaged in the manufacture and distribution of vehicle brake systems and other key safety-related components, through its 90 the Ruili Group Ruian Auto Parts, Co., Ltd., a Sino-Foreign joint venture (the “Joint Venture” or “Ruian”) 60 On November 11, 2009, the Company entered into a joint venture agreement with MGR Hong Kong Limited (“MGR”), 60 30 10 On February 8, 2010, the Company sold 1,000,000 10.00 9.4 9.4 10 , a related party under common control, 1.0 43.4 53.8 On August 31, 2010, the Company, through the Joint Venture, executed an Agreement to acquire the assets of the hydraulic brake, power steering, and automotive electrical operations of the Ruili Group (the “Seller”). As a result of this acquisition, the Company's product offerings expanded to both commercial and passenger vehicles' brake systems and other key safety-related auto parts. The purchase price was RMB 170 25 8.0 8.0 5.2 The acquisition was accounted for as a transaction between the entities under common control because the CEO of the Company owns 63 50 On December 15, 2015, the Company entered into an agreement to dispose of its entire 60 77 600 3,170,821 .

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company uses the accrual method of accounting for financial statement and tax return purposes. The consolidated financial statements include the accounts of SORL Auto Parts, Inc. and its majority owned subsidiaries. All inter-company balances and transactions have been eliminated in the consolidation. The results of subsidiaries acquired or disposed of during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interest in subsidiaries undertakings is reflected in the consolidated statements of operations. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates. For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, short term investments, trade receivables and payables, prepaid expenses, deposits and other current assets, short-term bank borrowings, accounts payable, and other payables and accruals, the carrying amounts approximate fair values due to their short Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. The Company is exposed to the following risk factors: (i) Credit risks - The Company has policies in place to ensure that sales of products are made to customers with an appropriate credit history. The Company performs ongoing credit evaluations with respect to the financial condition of its creditors, but does not require collateral. In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover probable credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collection of outstanding accounts receivable. The Company has a concentration of credit risk due to geographic sales as a majority of its products are marketed and sold in the PRC. The Company has no customer that accounts for more than 5.0% of its total revenues for the year ended December 31, 2015. (ii) Liquidity risks - Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and ability to close out market positions. (iii) Interest rate risk - The interest rate of short-term bank borrowings obtained in 2015 ranged from 1.33 5.35 The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company’s short term investments include term deposits with an original maturity from three months to one year with financial institutions. Term deposits in the amount of $ 21,559,690 140,000,000 March 24, 2015 March 24, 2016 6,159,911 40,000,000 December 17, 2015 June 17, 2016 Restricted cash mainly represents bank deposits used to pledge the bank acceptance notes. The Company entered into credit agreements with commercial banks in China (“endorsing banks”) which agree to provide credit within stipulated limits. Within the stipulated credit limits, the Company can issue bank acceptance notes to its suppliers as payments for the purchases. In order to issue bank acceptance notes, the Company is generally required to make initial deposits or pledge note receivables to the endorsing banks in amounts of certain percentage of the face amount of the bank acceptance notes to be issued by the Company. The cash in such accounts is restricted for use over the terms of the bank acceptance notes, which are normally three to six months. Inventories are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The initial cost of the asset comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Category Estimated Useful Life (Years) Buildings 10 20 Machinery and equipment 5 10 Electronic equipment 5 Motor vehicles 5 10 Leasehold improvements The lesser of remaining lease term or 10 Significant improvements are capitalized when it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. When improvements are made to real property and those improvements are permanently affixed to the property, the title to those improvements automatically transfers to the owner of the property. The lessee’s interest in the improvements is not a direct ownership interest but rather it is an intangible right to use and benefit from the improvements during the term of the lease. Routine repairs and maintenance are expensed when incurred. Gains and losses on disposal of fixed assets are recognized in the income statement based on the net disposal proceeds less the carrying amount of the assets. According to the law of China, the government owns all the land in China. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. Land use rights are being amortized using the straight-line method over the estimated useful life of 45 The Company purchased the land use rights from Ruili Group, a related party. The Company has not yet obtained the land use right certificate. Long-lived assets, such as property, plant and equipment and other non-current assets, including intangible assets, are reviewed periodically for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. Intangible assets represent mainly the patent of technology, plus the computer software. Intangible assets are measured initially at cost. Intangible assets are recognized if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. After initial recognition, intangible assets are measured at cost less any impairment losses. Intangible assets with definite useful lives are amortized on a straight-line basis over their useful lives. The Company presents accounts receivables, net of allowances for doubtful accounts and returns, to ensure accounts receivable are not overstated due to being uncollectible. Accounts receivables generated from credit sales have general credit terms of 90 days for Chinese aftermarket customers. The allowances are calculated based on a detailed review of certain individual customer accounts, historical rates and an estimation of the overall economic conditions affecting the Company’s customer base. The Company reviews a customer’s credit history before extending credit. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company will write off the uncollectible receivables once any customers are bankrupt or there is a remote possibility that the Company will collect the outstanding balance. The write-off must be reported to the local tax authorities and the Company must receive official approval from them. To date, the Company has not written off any account receivables. Notes receivable generally due within six months are issued by some customers to pay certain outstanding receivable balances to the Company with specific payment terms and definitive due dates. Notes receivable do not bear interest. As of December 31, 2015, notes receivables in the amount of $ 13,647,583 538,517 726,096 Revenue from the sale of goods is recognized when the risks and rewards of ownership of the goods have transferred to the buyer including factors such as when persuasive evidence of an arrangement exits, delivery has occurred, the sales price is fixed and determinable, and collection is probable. Revenue consists of the invoice value for the sale of goods and services net of value-added tax (“VAT”), rebates and discounts and returns. The Company nets sales return in gross revenue, i.e., the revenue shown in the income statement is the net sales. The Company accounts for income taxes under the provision of FASB ASC 740-10, Income Taxes The Company maintains its books and accounting records in RMB, the currency of the PRC, The Company’s functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company’s reporting currency, U.S. dollars (“US$”). All assets and liabilities are translated at the current rate. The stockholders’ equity accounts are translated at appropriate historical rate. Revenue and expenses are translated at the weighted average rates in effect on the transaction dates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are include in the results of operations as incurred. Stock-based compensation expense is recognized based on grant-date fair value estimated in accordance with an authoritative pronouncement. The Company recognizes the compensation costs net of a forfeiture rate on a straight-line basis over the requisite service period of the award with a corresponding impact reflected in additional paid-in capital. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods. u. EMPLOYEES’ BENEFITS Mandatory contributions are made to Government’s health, retirement benefit and unemployment schemes at the statutory rates in force during the period, based on gross salary payments. The cost of these payments is charged to the statement of income in the same period as the related salary costs. v. RESEARCH AND DEVELOPMENT EXPENSES Research and development costs are classified as general and administrative expenses and are expensed as incurred. Research and development expenses were $ 7,358,563 7,601,342 w. SHIPPING AND HANDLING COSTS Shipping and handling cost are classified as selling expenses and are expensed as incurred. Shipping and handling costs were $ 4,428,406 5,610,737 x. ADVERTISING COSTS Advertising costs are classified as selling expenses and are expensed as incurred. Advertising costs were $ 285,844 339,551 y. WARRANTY CLAIMS The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties were based on, among other things, historical experience, product changes, material expenses, and service and transportation expenses arising from the manufactured product. Estimates will be adjusted on the basis of actual claims and circumstances. Warranty claims were $ 2,047,684 2,374,861 z. PURCHASE DISCOUNTS Purchase discounts represent discounts received from vendors for purchasing raw materials and are netted in the cost of goods sold, if applicable. aa. LEASE COMMITMENTS The Company has adopted FASB Accounting Standard Codification, or ASC 840, Lease the lease term is equal to 75% of the estimated economic life of the leased property or more ab. COST OF SALES Cost of sales consists primarily of materials costs, applicable local government levies, freight charges, purchasing and receiving costs, inspection costs, employee compensation, depreciation and related costs, which are directly attributable to production. Write-down of inventories to lower of cost or market is also recorded in cost of sales, if any. Government grants include cash subsidies as well as other subsidies received from the PRC government by the Joint Venture. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. Government grants are recognized when received and all the conditions specified in the grant have been met. Capital grants received in advance of the acquisition of equipment are recorded initially in other current liabilities and then offset against the cost of the related equipment upon acquisition. ad. SEGMENT REPORTING ASC Topic 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in two reportable business segments: (1) commercial vehicles brake systems (2) passenger vehicles brake systems. On December 15, 2015, the Company entered into an agreement to dispose of its entire 60 10 77 600 The Company determined that the disposal of SIH did not constitute a discontinued operation as it did not represent a strategic shift and the operation capacity of SIH was absorbed by the Joint Venture, the other subsidiary of the Company. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. In July 2015, The FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” In March 2016, the FASB issued ASU 2016-03, “Intangibles-Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance” In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” “Revenue from Contracts with Customers (Topic 606)”.

RECLASSIFICATIONS

RECLASSIFICATIONS	12 Months Ended
	Dec. 31, 2015
Prior Period Adjustment [Abstract]
RECLASSIFICATIONS	NOTE 3 - RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 - RELATED PARTY TRANSACTIONS Ruili Group owns 49 30 For Years Ended December 31, 2015 2014 PURCHASES FROM: Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. $ 1,488,151 $ 2,194,995 Ruian Kormee Vehicle Brake Co., Ltd. 765,971 1,250,174 Ruili Group Co., Ltd. 3,199,511 3,740,032 Shanghai Dachao Electric Technology Co., Ltd. 80,603 — Total Purchases $ 5,534,236 $ 7,185,201 SALES TO: Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. $ 946,061 $ 278,382 Ruian Kormee Vehicle Brake Co., Ltd. 38,753 213,974 Ruili Group Co., Ltd. 7,781,763 1,618,349 Total Sales $ 8,766,577 $ 2,110,705 During the years ended December 31, 2015 and 2014, for the sales mentioned above, the sales to Guangzhou Kormee and Ruian Kormee were sales of scrap materials and were included in other operating income in the consolidated statements of income and comprehensive income. The sales to Ruili Group were included in sales in the consolidated statements of income and comprehensive income. December 31, December 31, 2015 2014 PREPAYMENTS TO RELATED PARTY Ruian Kormee Vehicle Brake Co., Ltd. $ — $ 83,206 Total $ — $ 83,206 ACCOUNTS PAYABLE TO RELATED PARTIES Ruian Kormee Vehicle Brake Co., Ltd. $ 340,175 $ — Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. 75,968 59,011 Ruili Group Co., Ltd. 697,643 77,598 Shanghai Dachao Electric Technology Co., Ltd. 19,751 — Total $ 1,133,537 $ 136,609 OTHER PAYABLES TO RELATED PARTY MGR Hong Kong Limited $ — $ 17,681 Total $ — $ 17,681 The Company also entered into several lease agreements with related parties, see Note 18 for more details. During the years ended December 31, 2015 and 2014, the Company borrowed labors from Ruili Group and incurred wage expense of $ 5,052,313 11,917,917 In addition, the Company provided a guarantee for credit line granted to Ruili Group by Bank of Ningbo in a maximum amount of RMB 168,000,000 25,871,627 March 24, 2015 March 24, 2016 54,000,000 8,315,880 May 19, 2016 86,000,000 13,243,809 May 18, 2016 The Company provided a guarantee for the credit line granted to Ruili Group by China Everbright Bank in the amount of RMB 60,000,000 9,239,867 February 26, 2015 The Company provided a guarantee for the credit line granted to Ruili Group by China Guangfa Bank in the amount of RMB 54,000,000 8,315,880 September 22, 2015 The Company provided a guarantee for the credit line granted to Ruili Group by the China Merchants Bank in the amount of RMB 50,000,000 7,699,889 July 29, 2015 The Company pledged its term deposit of RMB 40,000,000 6,159,911 December 17, 2015 June 17, 2016 The Company provided a guarantee for the credit line granted to Ruili Group by the Bank of Ningbo in the amount of RMB 108,000,000 17,182,404 August 22, 2014 August 21, 2015 146,960,000 24,016,996 December 9, 2014 December 9, 2015

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	NOTE 5 - ACCOUNTS RECEIVABLE, NET December 31, December 31, 2015 2014 Accounts receivable $ 83,898,730 $ 74,646,974 Less: allowance for doubtful accounts (12,075,402) (6,475,587) Account receivable balance, net $ 71,823,328 $ 68,171,387 No customer individually accounted for more than 10% of our revenues or accounts receivable for the years ended December 31, 2015 and 2014. The changes in the allowance for doubtful accounts at December 31, 2015 and December 31, 2014 were summarized as follows: December 31, 2015 December 31, 2014 Beginning balance $ 6,475,587 $ 3,813,415 Add: Increase to allowance 5,599,815 2,662,172 Less: Accounts written off — — Ending balance $ 12,075,402 $ 6,475,587 In connection with the disposal of SIH, the Company estimated it would be difficult to collect the accounts receivables from SIH as it no longer retained the control. Therefore, the Company fully allowed the accounts receivables from SIH. $4,320,748 out of the increase to allowance was related to the allowance for doubtful accounts from SIH and was included in loss on disposal of subsidiary.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2015
INVENTORIES [Abstract]
INVENTORIES	NOTE 6 - INVENTORIES December 31, 2015 December 31, 2014 Raw Materials $ 13,038,945 $ 11,934,720 Work-in-process 28,786,709 30,020,125 Finished Goods 31,836,206 42,400,202 Less: Write-down of inventories — (168,281) Total Inventory $ 73,661,860 $ 84,186,766

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 7 - PROPERTY, PLANT AND EQUIPMENT December 31, 2015 December 31, 2014 Machinery $ 50,680,639 $ 51,619,990 Molds 1,343,730 1,425,992 Office equipment 2,077,411 2,257,208 Vehicles 1,983,028 2,040,061 Buildings 7,756,917 9,152,959 Machinery held under capital lease 29,012,601 29,012,601 Leasehold improvements 489,878 562,521 Sub-Total 93,344,204 96,071,332 Less: Accumulated depreciation (55,782,299) (52,520,405) Property, plant and equipment, net $ 37,561,905 $ 43,550,927 During the year ended December 31, 2015, the management identified a building previously purchased from Ruili Group as described in Note 8 with carrying value of $ 545,642 322,388 561,847 Depreciation expense charged to operations was $ 7,029,214 6,998,738

LAND USE RIGHTS

LAND USE RIGHTS	12 Months Ended
	Dec. 31, 2015
Land Use Rights [Abstract]
LAND USE RIGHTS	NOTE 8 – LAND USE RIGHTS December 31, 2015 December 31, 2014 Cost $ 16,182,560 $ 17,173,243 Less: Accumulated amortization (2,950,411) (2,751,514) Land use rights, net $ 13,232,149 $ 14,421,729 According to the law of China, the government owns all the land in China. Companies and individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The Company purchased the above land use rights from Ruili Group, a related party, as well as the building on the land in the total amount of approximately $ 20 6.7 4,560,000 745,220 3 368,247 374,425

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract]
INTANGIBLE ASSETS	NOTE 9 - INTANGIBLE ASSETS Gross intangible assets were $ 178,751 154,897 23,854 181,099 143,438 37,661 13,790 2016 2017 2018 2019 Thereafter $ 11,634 $ 8,857 $ 3,363 $ - $ -

PREPAYMENTS

PREPAYMENTS	12 Months Ended
	Dec. 31, 2015
Other Assets [Abstract]
PREPAYMENTS	NOTE 10 - PREPAYMENTS December 31, 2015 December 31, 2014 Raw material suppliers $ 3,210,160 $ 2,938,396 Equipment purchases 140,447 1,724,606 Total prepayments $ 3,350,607 $ 4,663,002

DEFERRED TAX ASSETS AND DEFERRE

DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES	12 Months Ended
	Dec. 31, 2015
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES [Abstract]
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES	NOTE 11- DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES December 31, 2015 December 31, 2014 Deferred tax assets - current Allowance for doubtful accounts $ 1,860,379 $ 990,496 Revenue (net of cost) 45,815 — Unpaid accrued expenses 180,174 180,392 Warranty 875,751 848,566 Deferred tax assets 2,962,119 2,019,454 Valuation allowance — — Net deferred tax assets - current $ 2,962,119 $ 2,019,454 Deferred tax liabilities - current Revenue (net of cost) $ — $ 151,083 Others 52,390 — Deferred tax liabilities - current 52,390 151,083 Net deferred tax assets - current $ 2,909,729 $ 1,868,371 Deferred taxation is calculated under the liability method in respect of taxation effect arising from all timing differences, which are expected with reasonable probability to realize in the foreseeable future. The Company and its subsidiaries do not have income tax liabilities in U.S. as the Company had no U.S. taxable income for the reporting period. The Company’s subsidiary registered in the PRC is subject to income taxes within the PRC at the applicable tax rate.

SHORT TERM BANK LOANS

SHORT TERM BANK LOANS	12 Months Ended
	Dec. 31, 2015
SHORT-TERM BANK LOANS [Abstract]
SHORT-TERM BANK LOANS	NOTE 12 – SHORT TERM BANK LOANS December 31, 2015 December 31, 2014 Secured $ 23,367,207 $ 9,539,476 The Company obtained those short term loans from Bank of China, Bank of Ningbo, China Construction Bank and Agricultural Bank of China, respectively, to finance general working capital as well as new equipment acquisition. Interest rate for the loans outstanding during the year ended December 31, 2015 ranged 1.33 5.35 The maturity dates of the loans existing as of December 31, 2015 ranged from January 4, 2016 May 17, 2016 As of December 31, 2015 and 2014, the Company’s accounts receivables of $ 15,836,158 12,328,735 The interest expense for short-term bank loans were $ 730,574 393,154 respectively. As of December 31, 2015, corporate or personal guarantees provided for those bank loans were as follows: $ 3,539,978 Pledged and guaranteed by Ruili Group, a related party, with its land and buildings. $ 16,827,229 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 3,000,000 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders and Jia Rui Zhang, the daughter of Mr. Xiao Ping Zhang and Ms. Shu Ping Ch

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
ACCRUED EXPENSES	NOTE 13 - ACCRUED EXPENSES December 31, 2015 December 31, 2014 Accrued payroll $ 4,049,357 $ 2,859,430 Accrued warranty expenses 5,838,343 5,657,106 Other accrued expenses 3,982,887 5,044,627 Total accrued expenses $ 13,870,587 $ 13,561,163

CAPITAL LEASE OBLIGATIONS

CAPITAL LEASE OBLIGATIONS	12 Months Ended
	Dec. 31, 2015
CAPITAL LEASE OBLIGATIONS [Abstract]
CAPITAL LEASE OBLIGATIONS	NOTE 14 –CAPITAL LEASE OBLIGATIONS December 31, 2015 December 31, 2014 Total capital lease obligations $ 3,519,949 $ 7,470,875 Less: current portion (3,519,949) (3,735,438) Non-current portion $ — $ 3,735,437 On September 13, 2011, the Company entered into a leasing agreement with International Far Eastern Leasing Co., Ltd., a subsidiary of China Sinochem Corporation, for a term of 60 7.95 January 4, 2017 48 6.4 28,396,853 91,428,571 14,545,950 11,428,571 1,818,244 10,705,357 1,703,212 1,904,761.9 303,041

RESERVE

RESERVE	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
RESERVE	NOTE 15 – RESERVE December 31, 2015 December 31, 2014 Statutory surplus reserve fund $ 13,207,972 $ 12,019,532 Total $ 13,207,972 $ 12,019,532 Pursuant to the relevant laws and regulations of Sino-Foreign joint venture enterprises, the profits of the Company's subsidiary, which are based on their PRC statutory financial statements, are available for distribution in the form of cash dividends after they have satisfied all the PRC tax liabilities, provided for losses in previous years, and made appropriations to reserve funds, as determined at the discretion of the board of directors in accordance with PRC accounting standards and regulations. As stipulated by the relevant laws and regulations for enterprises operating in the PRC, Ruian is required to make annual appropriations to the statutory surplus funds. In accordance with the relevant PRC regulations and the articles of association of the respective companies, Ruian is required to allocate a certain percentage of its profits after taxation, as determined in accordance with PRC accounting standards applicable to the Company, to the statutory surplus reserve until such reserve reaches 50% of the registered capital of the Company. Net income as reported in the U.S. GAAP financial statements differs from that as reported in the PRC statutory financial statements. In accordance with the relevant laws and regulations in the PRC, the profits available for distribution are based on the statutory financial statements. If Ruian has foreign currency available after meeting its operational needs, Ruian may make its profit distributions in foreign currency to the extent foreign currency is available. Otherwise, it is necessary to obtain approval and convert such distributions at an authorized bank. The reserve fund consists of retained earnings which have been allocated to the statutory reserve fund.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 16 - INCOME TAXES The Joint Venture is registered in the PRC, and is therefore subject to state and local income taxes within the PRC at the applicable tax rate on the taxable income as reported in the PRC statutory financial statements in accordance with relevant income tax laws. In 2009, the Joint Venture was awarded the Chinese government's "High-Tech Enterprise" designation. The High-Tech Enterprise certificate is valid for three years and provided for a reduced tax rate of 15 25 December 31, December 31, US Statutory income tax rate 35.00 % 35.00 % Valuation allowance recognized with respect to the loss in the US company -35.00 % -35.00 % HK Statutory income tax rate 16.50 % 16.50 % Valuation allowance recognized with respect to the loss in the HK company -16.50 % -16.50 % China statutory income tax rate 25.00 % 25.00 % Effect of income tax exemptions and reliefs -10.00 % -10.00 % Effects of additional deduction allowed for R&D expenses -3.33 % -1.81 % Effects of expenses not deductible for tax purposes 1.26 % 1.47 % Other items -0.64 % 1.26 % Effective tax rate 12.29 % 15.92 % Income taxes are calculated on a separate entity basis. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. There currently is no tax benefit or burden recorded for the entity located in U.S. The tax authority may examine the tax returns of the Company three years after the year ended. In the years of 2015 and 2014, there were no penalties and interest, which generally are recorded in the general and administrative expenses or in the tax expenses. December 31, 2015 December 31, 2014 Current $ 3,179,989 $ 3,304,552 Deferred (1,145,213) (431,640) Total $ 2,034,776 $ 2,872,912 ASC 740-10 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company‘s tax positions and considered that no provision for uncertainty in income taxes was necessary as of December 31, 2015 and 2014.

NON-CONTROLLING INTEREST IN SUB

NON-CONTROLLING INTEREST IN SUBSIDIARIES	12 Months Ended
	Dec. 31, 2015
NON-CONTROLLING INTEREST IN SUBSIDIARIES [Abstract]
NON-CONTROLLING INTEREST IN SUBSIDIARIES	NOTE 17 –NON-CONTROLLING INTEREST IN SUBSIDIARIES Non-controlling interest in subsidiaries represents a 10 40 1,216,581 1,366,456 2015 2014 10% non-controlling interest in Ruian $ 1,320,489 $ 1,566,774 40% non-controlling interest in SIH (103,908) (200,318) Total $ 1,216,581 $ 1,366,456

OPERATING LEASES WITH RELATED P

OPERATING LEASES WITH RELATED PARTIES	12 Months Ended
	Dec. 31, 2015
OPERATING LEASES WITH RELATED PARTIES [Abstract]
OPERATING LEASES WITH RELATED PARTIES	NOTE 18 – OPERATING LEASES WITH RELATED PARTIES In December 2006, Ruian entered into a lease agreement with Ruili Group Co., Ltd. for the lease of two apartment buildings. These two apartment buildings are for Ruian’s management personnel and staff, respectively. The lease term is from January 2013 to December 2016. This lease was amended in 2013 with a new lease term from January 1, 2013 to December 31, 2022. The annual lease expense is RMB 2,100,000 333,688 In May 2009, Ruian entered into a lease agreement with Ruili Group Co., Ltd. for the lease of a manufacturing plant. The lease term is from September 2009 to May 2017. In August 2010, a new lease agreement was signed between Ruian and Ruili Group Co., Ltd., under which Ruian leased 32,410 8,137,680 1,293,070 The lease expenses were $1,623,405 and $ 1,650,640 2016 2017 2018 2019 2020 Thereafter Operating Lease Commitments $ 1,576,580 $ 1,576,580 $ 323,395 $ 323,395 $ 323,395 $ 646,791

WARRANTY CLAIMS

WARRANTY CLAIMS	12 Months Ended
	Dec. 31, 2015
WARRANTY CLAIMS [Abstract]
WARRANTY CLAIMS	NOTE 19 – WARRANTY CLAIMS Warranty claims were $2,047,684 and $ 2,374,861 Beginning balance at January 1, 2014 $ 5,657,106 Aggregate increase for new warranties issued during current period 2,047,684 Aggregate reduction for payments made (1,866,447) Ending balance at December 31, 2015 $ 5,838,343

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2015
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	NOTE 20– SEGMENT INFORMATION The Company produces brake systems and other related components for different types of commercial vehicles (“Commercial Vehicle Brake Systems”). On August 31, 2010, the Company through Ruian, executed an Asset Purchase Agreement to acquire, and purchased, a segment of the passenger vehicle auto parts business (“Passenger Vehicle Brake Systems”) of Ruili Group. As a result of this acquisition, the Company's product offerings were expanded to both commercial and passenger vehicles' brake systems and other key safety-related auto parts. The Company has two operating segments: Commercial Vehicle Brake Systems and Passenger Vehicle Brake Systems. All of the Company’s long-lived assets are located in the PRC. Before the disposal of SIH, the Company also had long-lived assets located in Hong Kong. The Company and its subsidiaries do not have long-lived assets in the United States for the reporting periods. For Years Ended December 31, 2015 2014 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 178,672,655 $ 193,984,778 Passenger vehicles brake systems 39,984,231 43,670,087 Net sales $ 218,656,886 $ 237,654,865 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 48,652,822 $ 54,575,006 Passenger vehicles brake systems 10,757,596 12,285,991 Gross profit $ 59,410,418 $ 66,860,997 Selling and distribution expenses 22,681,469 23,676,176 General and administrative expenses 14,100,715 18,011,110 Impairment on long-lived assets 561,847 - Research and development expenses 7,358,563 7,601,342 Other operating income 3,204,286 2,270,147 Loss on disposal of subsidiary (3,170,821) - Income from operations 14,741,289 19,842,516 Interest income 1,102,447 343,889 Government grants 768,607 301,572 Other income 2,217,204 304,540 Interest expenses (1,269,091) (1,119,250) Other expenses (1,000,613) (1,632,869) Income before income tax expense $ 16,559,843 $ 18,040,398 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 2,511,143 $ 3,267,571 Passenger vehicles brake systems 551,226 735,599 Total $ 3,062,369 $ 4,003,170 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 6,054,254 $ 6,029,569 Passenger vehicles brake systems 1,355,187 1,357,384 Total $ 7,409,441 $ 7,386,953 December 31, 2015 December 31, 2014 TOTAL ASSETS Commercial vehicles brake systems $ 261,924,719 $ 234,186,022 Passenger vehicles brake systems 58,629,337 52,720,240 Total $ 320,554,056 $ 286,906,262 December 31, 2015 December 31, 2014 LONG LIVED ASSETS Commercial vehicles brake systems $ 42,961,388 $ 48,956,149 Passenger vehicles brake systems 9,616,495 11,021,067 Total $ 52,577,883 $ 59,977,216

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 21 – COMMITMENTS AND CONTINGENCIES (1) According to the laws of China, the Chinese government owns all the land in China. Companies and individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The Company purchased the land use rights and all buildings on the land from Ruili Group for approximately $ 20 4,560,000 745,220 3 (2) The information of lease commitments is provided in Note 14 and Note 18. (3) The information of guarantees and assets pledged is provided in Note 4.

ADDITIONAL INFORMATION-FINANCIA

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Additional Information-Financial Statement Schedule I	ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I This financial statements schedule has been prepared in conformity with U.S. GAAP. SORL AUTO PARTS, INC. This financial statements schedule has been prepared in conformity with U.S. GAAP. The parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the Company accounts for its subsidiaries using the equity method. Please refer to the notes to the consolidated financial statements presented above for additional information and disclosures with respect to these financial statements. Financial Information of Parent Company BALANCE SHEETS December 31, 2015 and 2014 December 31, 2015 December 31, 2014 ASSETS Current Assets: Cash and cash equivalents $ 80,910 $ 81,036 Other current assets 6,161 6,161 Total Current Assets 87,071 87,197 Investments in subsidiaries 187,423,606 175,539,210 TOTAL ASSETS $ 187,510,677 $ 175,626,407 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Other current liability 2,921,411 2,921,488 Total Current Liabilities 2,921,411 2,921,488 Total Liabilities 2,921,411 2,921,488 Stockholders' Equity: Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2015 and 2014 - - Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2015 and 2014 38,609 38,609 Additional paid-in capital 42,199,014 42,199,014 Retained earnings 142,351,643 130,467,296 Total Stockholders' Equity 184,589,266 172,704,919 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 187,510,677 $ 175,626,407 Financial Information of Parent Company STATEMENTS OF INCOME For The Years Ended December 31, 2015 and 2014 For Years Ended December 31, 2015 2014 Investment income $ 11,884,396 $ 14,100,968 Gain from disposal of subsidiary 77 - Financial expenses 126 - Net income attributable to stockholders $ 11,884,347 $ 14,100,968 Weighted average common share - Basic 19,304,921 19,304,921 Weighted average common share - Diluted 19,304,921 19,304,921 EPS - Basic $ 0.62 $ 0.73 EPS - Diluted $ 0.62 $ 0.73 Financial Information of Parent Company STATEMENTS OF CASH FLOWS For The Years Ended December 31, 2015 and 2014 For Years Ended December 31, 2015 2014 Cash flow from operating activities: Net income $ 11,884,347 $ 14,100,968 Adjustments to reconcile net income to net cash used in operating activities : Investment in subsidiaries (11,884,396) (14,100,968) Other current liabilities (77) - Net cash used in operating activities (126) - Net change in cash and cash equivalents (126) - Cash and cash equivalents, beginning of the year 81,036 81,036 Cash and cash equivalents, end of the year $ 80,910 $ 81,036 Financial Information of Parent Company STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For The Years Ended December 31, 2015 and 2014 Additional Number Common Paid-in Retained Stockholders' of Share Stock Capital Earnings Equity Balance – December 31, 2013 19,304,921 $ 38,609 $ 42,199,014 $ 116,366,328 $ 158,603,951 Net Income - - - 14,100,968 14,100,968 Balance - December 31, 2014 19,304,921 38,609 42,199,014 130,467,296 172,704,919 Net Income 11,884,347 11,884,347 Balance - December 31, 2015 19,304,921 $ 38,609 $ 42,199,014 $ 142,351,643 $ 184,589,266

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
ACCOUNTING METHOD	a. ACCOUNTING METHOD The Company uses the accrual method of accounting for financial statement and tax return purposes.
PRINCIPLES OF CONSOLIDATION	The consolidated financial statements include the accounts of SORL Auto Parts, Inc. and its majority owned subsidiaries. All inter-company balances and transactions have been eliminated in the consolidation. The results of subsidiaries acquired or disposed of during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interest in subsidiaries undertakings is reflected in the consolidated statements of operations.
USE OF ESTIMATES	c. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates.
FAIR VALUE OF FINANCIAL INSTRUMENTS	d. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, short term investments, trade receivables and payables, prepaid expenses, deposits and other current assets, short-term bank borrowings, accounts payable, and other payables and accruals, the carrying amounts approximate fair values due to their short Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature.
RELATED PARTY TRANSACTIONS	e. RELATED PARTY TRANSACTIONS A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.
FINANCIAL RISK FACTORS AND FINANCIAL RISK MANAGEMENT	f. FINANCIAL RISK FACTORS AND FINANCIAL RISK MANAGEMENT The Company is exposed to the following risk factors: (i) Credit risks - The Company has policies in place to ensure that sales of products are made to customers with an appropriate credit history. The Company performs ongoing credit evaluations with respect to the financial condition of its creditors, but does not require collateral. In order to determine the value of the Company’s accounts receivable, the Company records a provision for doubtful accounts to cover probable credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collection of outstanding accounts receivable. The Company has a concentration of credit risk due to geographic sales as a majority of its products are marketed and sold in the PRC. The Company has no customer that accounts for more than 5.0% of its total revenues for the year ended December 31, 2015. (ii) Liquidity risks - Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and ability to close out market positions. (iii) Interest rate risk - The interest rate of short-term bank borrowings obtained in 2015 ranged from 1.33 5.35
CASH AND CASH EQUIVALENTS	g. CASH AND CASH EQUIVALENTS The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.
SHORT TERM INVESTMENTS	h. SHORT TERM INVESTMENTS The Company’s short term investments include term deposits with an original maturity from three months to one year with financial institutions. Term deposits in the amount of $ 21,559,690 140,000,000 March 24, 2015 March 24, 2016 6,159,911 40,000,000 December 17, 2015 June 17, 2016
RESTRICTED CASH	i. RESTRICTED CASH Restricted cash mainly represents bank deposits used to pledge the bank acceptance notes. The Company entered into credit agreements with commercial banks in China (“endorsing banks”) which agree to provide credit within stipulated limits. Within the stipulated credit limits, the Company can issue bank acceptance notes to its suppliers as payments for the purchases. In order to issue bank acceptance notes, the Company is generally required to make initial deposits or pledge note receivables to the endorsing banks in amounts of certain percentage of the face amount of the bank acceptance notes to be issued by the Company. The cash in such accounts is restricted for use over the terms of the bank acceptance notes, which are normally three to six months.
INVENTORIES	j. INVENTORIES Inventories are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
PROPERTY, PLANT AND EQUIPMENT	k. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The initial cost of the asset comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Category Estimated Useful Life (Years) Buildings 10 20 Machinery and equipment 5 10 Electronic equipment 5 Motor vehicles 5 10 Leasehold improvements The lesser of remaining lease term or 10 Significant improvements are capitalized when it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. When improvements are made to real property and those improvements are permanently affixed to the property, the title to those improvements automatically transfers to the owner of the property. The lessee’s interest in the improvements is not a direct ownership interest but rather it is an intangible right to use and benefit from the improvements during the term of the lease. Routine repairs and maintenance are expensed when incurred. Gains and losses on disposal of fixed assets are recognized in the income statement based on the net disposal proceeds less the carrying amount of the assets.
LAND USE RIGHTS	l. LAND USE RIGHTS According to the law of China, the government owns all the land in China. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. Land use rights are being amortized using the straight-line method over the estimated useful life of 45 The Company purchased the land use rights from Ruili Group, a related party. The Company has not yet obtained the land use right certificate.
IMPAIRMENT OF LONG-LIVED ASSETS	m. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, such as property, plant and equipment and other non-current assets, including intangible assets, are reviewed periodically for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
INTANGIBLE ASSETS	n. INTANGIBLE ASSETS Intangible assets represent mainly the patent of technology, plus the computer software. Intangible assets are measured initially at cost. Intangible assets are recognized if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. After initial recognition, intangible assets are measured at cost less any impairment losses. Intangible assets with definite useful lives are amortized on a straight-line basis over their useful lives.
ACCOUNTS RECEIVABLES AND ALLOWANCE FOR BAD DEBTS	o. ACCOUNTS RECEIVABLES AND ALLOWANCE FOR BAD DEBTS The Company presents accounts receivables, net of allowances for doubtful accounts and returns, to ensure accounts receivable are not overstated due to being uncollectible. Accounts receivables generated from credit sales have general credit terms of 90 days for Chinese aftermarket customers. The allowances are calculated based on a detailed review of certain individual customer accounts, historical rates and an estimation of the overall economic conditions affecting the Company’s customer base. The Company reviews a customer’s credit history before extending credit. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company will write off the uncollectible receivables once any customers are bankrupt or there is a remote possibility that the Company will collect the outstanding balance. The write-off must be reported to the local tax authorities and the Company must receive official approval from them. To date, the Company has not written off any account receivables.
NOTES RECEIVABLE	p. NOTES RECEIVABLE Notes receivable generally due within six months are issued by some customers to pay certain outstanding receivable balances to the Company with specific payment terms and definitive due dates. Notes receivable do not bear interest. As of December 31, 2015, notes receivables in the amount of $ 13,647,583 538,517 726,096
REVENUE RECOGNITION	q. REVENUE RECOGNITION Revenue from the sale of goods is recognized when the risks and rewards of ownership of the goods have transferred to the buyer including factors such as when persuasive evidence of an arrangement exits, delivery has occurred, the sales price is fixed and determinable, and collection is probable. Revenue consists of the invoice value for the sale of goods and services net of value-added tax (“VAT”), rebates and discounts and returns. The Company nets sales return in gross revenue, i.e., the revenue shown in the income statement is the net sales.
INCOME TAXES	r. INCOME TAXES The Company accounts for income taxes under the provision of FASB ASC 740-10, Income Taxes
FOREIGN CURRENCY TRANSLATION	s. FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC, The Company’s functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company’s reporting currency, U.S. dollars (“US$”). All assets and liabilities are translated at the current rate. The stockholders’ equity accounts are translated at appropriate historical rate. Revenue and expenses are translated at the weighted average rates in effect on the transaction dates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are include in the results of operations as incurred.
STOCK-BASED COMPENSATION	t. STOCK-BASED COMPENSATION Stock-based compensation expense is recognized based on grant-date fair value estimated in accordance with an authoritative pronouncement. The Company recognizes the compensation costs net of a forfeiture rate on a straight-line basis over the requisite service period of the award with a corresponding impact reflected in additional paid-in capital. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods.
EMPLOYEES’ BENEFITS	u. EMPLOYEES’ BENEFITS Mandatory contributions are made to Government’s health, retirement benefit and unemployment schemes at the statutory rates in force during the period, based on gross salary payments. The cost of these payments is charged to the statement of income in the same period as the related salary costs.
RESEARCH AND DEVELOPMENT EXPENSES	v. RESEARCH AND DEVELOPMENT EXPENSES Research and development costs are classified as general and administrative expenses and are expensed as incurred. Research and development expenses were $ 7,358,563 7,601,342
SHIPPING AND HANDLING COSTS	w. SHIPPING AND HANDLING COSTS Shipping and handling cost are classified as selling expenses and are expensed as incurred. Shipping and handling costs were $ 4,428,406 5,610,737
ADVERTISING COSTS	x. ADVERTISING COSTS Advertising costs are classified as selling expenses and are expensed as incurred. Advertising costs were $ 285,844 339,551
WARRANTY CLAIMS	y. WARRANTY CLAIMS The Company provides for the estimated cost of product warranties when the products are sold. Such estimates of product warranties were based on, among other things, historical experience, product changes, material expenses, and service and transportation expenses arising from the manufactured product. Estimates will be adjusted on the basis of actual claims and circumstances. Warranty claims were $ 2,047,684 2,374,861
PURCHASE DISCOUNTS	z. PURCHASE DISCOUNTS Purchase discounts represent discounts received from vendors for purchasing raw materials and are netted in the cost of goods sold, if applicable.
LEASE COMMITMENTS	aa. LEASE COMMITMENTS The Company has adopted FASB Accounting Standard Codification, or ASC 840, Lease the lease term is equal to 75% of the estimated economic life of the leased property or more
COST OF SALES	ab. COST OF SALES Cost of sales consists primarily of materials costs, applicable local government levies, freight charges, purchasing and receiving costs, inspection costs, employee compensation, depreciation and related costs, which are directly attributable to production. Write-down of inventories to lower of cost or market is also recorded in cost of sales, if any.
GOVERNMENT GRANTS	ac. GOVERNMENT GRANTS Government grants include cash subsidies as well as other subsidies received from the PRC government by the Joint Venture. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. Government grants are recognized when received and all the conditions specified in the grant have been met. Capital grants received in advance of the acquisition of equipment are recorded initially in other current liabilities and then offset against the cost of the related equipment upon acquisition.
SEGMENT REPORTING	ad. SEGMENT REPORTING ASC Topic 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in two reportable business segments: (1) commercial vehicles brake systems (2) passenger vehicles brake systems.
DISPOSAL OF SUBSIDIARY	ae. DISPOSAL OF SUBSIDIARY On December 15, 2015, the Company entered into an agreement to dispose of its entire 60 10 77 600 The Company determined that the disposal of SIH did not constitute a discontinued operation as it did not represent a strategic shift and the operation capacity of SIH was absorbed by the Joint Venture, the other subsidiary of the Company.
RECENTLY ISSUED FINANCIAL STANDARDS	af. RECENTLY ISSUED FINANCIAL STANDARDS In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. In July 2015, The FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” In March 2016, the FASB issued ASU 2016-03, “Intangibles-Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance” In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” “Revenue from Contracts with Customers (Topic 606)”.

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment by Estimated Useful Life	Depreciation is calculated using the straight-line method over the estimated useful life of the respective assets as follows: Category Estimated Useful Life (Years) Buildings 10 20 Machinery and equipment 5 10 Electronic equipment 5 Motor vehicles 5 10 Leasehold improvements The lesser of remaining lease term or 10

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
Schedule of Related Party Transactions	The following related party transactions occurred for the years ended December 31, 2015 and 2014: For Years Ended December 31, 2015 2014 PURCHASES FROM: Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. $ 1,488,151 $ 2,194,995 Ruian Kormee Vehicle Brake Co., Ltd. 765,971 1,250,174 Ruili Group Co., Ltd. 3,199,511 3,740,032 Shanghai Dachao Electric Technology Co., Ltd. 80,603 — Total Purchases $ 5,534,236 $ 7,185,201 SALES TO: Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. $ 946,061 $ 278,382 Ruian Kormee Vehicle Brake Co., Ltd. 38,753 213,974 Ruili Group Co., Ltd. 7,781,763 1,618,349 Total Sales $ 8,766,577 $ 2,110,705 December 31, December 31, 2015 2014 PREPAYMENTS TO RELATED PARTY Ruian Kormee Vehicle Brake Co., Ltd. $ — $ 83,206 Total $ — $ 83,206 ACCOUNTS PAYABLE TO RELATED PARTIES Ruian Kormee Vehicle Brake Co., Ltd. $ 340,175 $ — Guangzhou Kormee Vehicle Brake Technology Development Co., Ltd. 75,968 59,011 Ruili Group Co., Ltd. 697,643 77,598 Shanghai Dachao Electric Technology Co., Ltd. 19,751 — Total $ 1,133,537 $ 136,609 OTHER PAYABLES TO RELATED PARTY MGR Hong Kong Limited $ — $ 17,681 Total $ — $ 17,681

ACCOUNTS RECEIVABLE, NET (Table

ACCOUNTS RECEIVABLE, NET (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS RECEIVABLE [Abstract]
Schedule of Allowance for Doubtful Accounts	Accounts receivable, net consisted of the following: December 31, December 31, 2015 2014 Accounts receivable $ 83,898,730 $ 74,646,974 Less: allowance for doubtful accounts (12,075,402) (6,475,587) Account receivable balance, net $ 71,823,328 $ 68,171,387 December 31, 2015 December 31, 2014 Beginning balance $ 6,475,587 $ 3,813,415 Add: Increase to allowance 5,599,815 2,662,172 Less: Accounts written off — — Ending balance $ 12,075,402 $ 6,475,587

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2015
INVENTORIES [Abstract]
Schedule of Inventories	On December 31, 2015 and December 31, 2014, inventories consisted of the following: December 31, 2015 December 31, 2014 Raw Materials $ 13,038,945 $ 11,934,720 Work-in-process 28,786,709 30,020,125 Finished Goods 31,836,206 42,400,202 Less: Write-down of inventories — (168,281) Total Inventory $ 73,661,860 $ 84,186,766

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment consisted of the following, on December 31, 2015 and December 31, 2014: December 31, 2015 December 31, 2014 Machinery $ 50,680,639 $ 51,619,990 Molds 1,343,730 1,425,992 Office equipment 2,077,411 2,257,208 Vehicles 1,983,028 2,040,061 Buildings 7,756,917 9,152,959 Machinery held under capital lease 29,012,601 29,012,601 Leasehold improvements 489,878 562,521 Sub-Total 93,344,204 96,071,332 Less: Accumulated depreciation (55,782,299) (52,520,405) Property, plant and equipment, net $ 37,561,905 $ 43,550,927

LAND USE RIGHTS (Tables)

LAND USE RIGHTS (Tables)	12 Months Ended
	Dec. 31, 2015
Land Use Rights [Abstract]
Schedule Of Land Rights	December 31, 2015 December 31, 2014 Cost $ 16,182,560 $ 17,173,243 Less: Accumulated amortization (2,950,411) (2,751,514) Land use rights, net $ 13,232,149 $ 14,421,729

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract]
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Future estimated amortization expense is as follows: 2016 2017 2018 2019 Thereafter $ 11,634 $ 8,857 $ 3,363 $ - $ -

PREPAYMENTS (Tables)

PREPAYMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Other Assets [Abstract]
Schedule of Prepayments	Prepayments consisted of the following as of December 31, 2015 and December 31, 2014: December 31, 2015 December 31, 2014 Raw material suppliers $ 3,210,160 $ 2,938,396 Equipment purchases 140,447 1,724,606 Total prepayments $ 3,350,607 $ 4,663,002

DEFERRED TAX ASSETS AND DEFER38

DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES [Abstract]
Schedule of Deferred Tax Assets and Liabilities	Deferred tax assets as of December 31, 2015 and December 31, 2014 comprise of the following: December 31, 2015 December 31, 2014 Deferred tax assets - current Allowance for doubtful accounts $ 1,860,379 $ 990,496 Revenue (net of cost) 45,815 — Unpaid accrued expenses 180,174 180,392 Warranty 875,751 848,566 Deferred tax assets 2,962,119 2,019,454 Valuation allowance — — Net deferred tax assets - current $ 2,962,119 $ 2,019,454 Deferred tax liabilities - current Revenue (net of cost) $ — $ 151,083 Others 52,390 — Deferred tax liabilities - current 52,390 151,083 Net deferred tax assets - current $ 2,909,729 $ 1,868,371

SHORT TERM BANK LOANS (Tables)

SHORT TERM BANK LOANS (Tables)	12 Months Ended
	Dec. 31, 2015
SHORT-TERM BANK LOANS [Abstract]
Schedule of Bank Loans	Bank loans represented the following as of December 31, 2015 and December 31, 2014: December 31, 2015 December 31, 2014 Secured $ 23,367,207 $ 9,539,476
Schedule of Personal or Corporate Guarantees	As of December 31, 2015, corporate or personal guarantees provided for those bank loans were as follows: $ 3,539,978 Pledged and guaranteed by Ruili Group, a related party, with its land and buildings. $ 16,827,229 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 3,000,000 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders and Jia Rui Zhang, the daughter of Mr. Xiao Ping Zhang and Ms. Shu Ping Ch

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following as of December 31, 2015 and December 31, 2014: December 31, 2015 December 31, 2014 Accrued payroll $ 4,049,357 $ 2,859,430 Accrued warranty expenses 5,838,343 5,657,106 Other accrued expenses 3,982,887 5,044,627 Total accrued expenses $ 13,870,587 $ 13,561,163

CAPITAL LEASE OBLIGATIONS (Tabl

CAPITAL LEASE OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
CAPITAL LEASE OBLIGATIONS [Abstract]
Schedule of Capital Lease Obligations	December 31, 2015 December 31, 2014 Total capital lease obligations $ 3,519,949 $ 7,470,875 Less: current portion (3,519,949) (3,735,438) Non-current portion $ — $ 3,735,437

RESERVE (Tables)

RESERVE (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of Reserve	The reserve funds were comprised of the following: December 31, 2015 December 31, 2014 Statutory surplus reserve fund $ 13,207,972 $ 12,019,532 Total $ 13,207,972 $ 12,019,532

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of the effective income tax rate of the Joint Venture to the statutory income tax rate in the PRC for the years ended on December 31, 2015 and 2014 is as follows: December 31, December 31, US Statutory income tax rate 35.00 % 35.00 % Valuation allowance recognized with respect to the loss in the US company -35.00 % -35.00 % HK Statutory income tax rate 16.50 % 16.50 % Valuation allowance recognized with respect to the loss in the HK company -16.50 % -16.50 % China statutory income tax rate 25.00 % 25.00 % Effect of income tax exemptions and reliefs -10.00 % -10.00 % Effects of additional deduction allowed for R&D expenses -3.33 % -1.81 % Effects of expenses not deductible for tax purposes 1.26 % 1.47 % Other items -0.64 % 1.26 % Effective tax rate 12.29 % 15.92 %
Schedule of Income Tax Provision	The provisions for income taxes for the years ended December 31, 2015 and 2014, respectively, are summarized as follows: December 31, 2015 December 31, 2014 Current $ 3,179,989 $ 3,304,552 Deferred (1,145,213) (431,640) Total $ 2,034,776 $ 2,872,912

NON-CONTROLLING INTEREST IN S44

NON-CONTROLLING INTEREST IN SUBSIDIARIES (Tables)	12 Months Ended
	Dec. 31, 2015
NON-CONTROLLING INTEREST IN SUBSIDIARIES [Abstract]
Schedule of Non-controlling Interest	2015 2014 10% non-controlling interest in Ruian $ 1,320,489 $ 1,566,774 40% non-controlling interest in SIH (103,908) (200,318) Total $ 1,216,581 $ 1,366,456

OPERATING LEASES WITH RELATED45

OPERATING LEASES WITH RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2015
Assets, Current [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	As of December 31, 2015, future minimum rental payments are as follows: 2016 2017 2018 2019 2020 Thereafter Operating Lease Commitments $ 1,576,580 $ 1,576,580 $ 323,395 $ 323,395 $ 323,395 $ 646,791

WARRANTY CLAIMS (Tables)

WARRANTY CLAIMS (Tables)	12 Months Ended
	Dec. 31, 2015
WARRANTY CLAIMS [Abstract]
Schedule of Accrued Warranty Expenses	The movement of accrued warranty expenses for the year ended December 31, 2015 is as follows: Beginning balance at January 1, 2014 $ 5,657,106 Aggregate increase for new warranties issued during current period 2,047,684 Aggregate reduction for payments made (1,866,447) Ending balance at December 31, 2015 $ 5,838,343

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
SEGMENT INFORMATION [Abstract]
Schedule of Segment Information, by Segment	For Years Ended December 31, 2015 2014 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 178,672,655 $ 193,984,778 Passenger vehicles brake systems 39,984,231 43,670,087 Net sales $ 218,656,886 $ 237,654,865 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 48,652,822 $ 54,575,006 Passenger vehicles brake systems 10,757,596 12,285,991 Gross profit $ 59,410,418 $ 66,860,997 Selling and distribution expenses 22,681,469 23,676,176 General and administrative expenses 14,100,715 18,011,110 Impairment on long-lived assets 561,847 - Research and development expenses 7,358,563 7,601,342 Other operating income 3,204,286 2,270,147 Loss on disposal of subsidiary (3,170,821) - Income from operations 14,741,289 19,842,516 Interest income 1,102,447 343,889 Government grants 768,607 301,572 Other income 2,217,204 304,540 Interest expenses (1,269,091) (1,119,250) Other expenses (1,000,613) (1,632,869) Income before income tax expense $ 16,559,843 $ 18,040,398 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 2,511,143 $ 3,267,571 Passenger vehicles brake systems 551,226 735,599 Total $ 3,062,369 $ 4,003,170 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 6,054,254 $ 6,029,569 Passenger vehicles brake systems 1,355,187 1,357,384 Total $ 7,409,441 $ 7,386,953 December 31, 2015 December 31, 2014 TOTAL ASSETS Commercial vehicles brake systems $ 261,924,719 $ 234,186,022 Passenger vehicles brake systems 58,629,337 52,720,240 Total $ 320,554,056 $ 286,906,262 December 31, 2015 December 31, 2014 LONG LIVED ASSETS Commercial vehicles brake systems $ 42,961,388 $ 48,956,149 Passenger vehicles brake systems 9,616,495 11,021,067 Total $ 52,577,883 $ 59,977,216

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details Textual) $ / shares in Units, ¥ in Millions	Feb. 08, 2010USD ($)$ / sharesshares	Aug. 31, 2010USD ($)	Aug. 31, 2010CNY (¥)	Dec. 31, 2015USD ($)	Dec. 31, 2015HKD	Dec. 31, 2014USD ($)	Mar. 09, 2010USD ($)	Nov. 11, 2009
Description Of Business [Line Items]
Common stock, price per share | $ / shares	$ 10
Stock issued, shares | shares	1,000,000
Proceeds from Share Issuance	$ 9,400,000
Additional paid-in capital				$ 42,199,014		$ 42,199,014
Loss on disposal of subsidiary				$ (3,170,821)		$ 0
Asset Acquisition Agreement Ruili Group [Member]
Description Of Business [Line Items]
Purchase price of acquired entity		$ 25,000,000	¥ 170
Ruian [Member]
Description Of Business [Line Items]
Ownership percentage				90.00%
SIH [Member]
Description Of Business [Line Items]
Equity interest in its subsidiary				60.00%	60.00%
Proceeds from Sale of Equity Method Investments				$ 77	HKD 600
Loss on disposal of subsidiary				$ 3,170,821
Machinery and Equipment [Member] | Asset Acquisition Agreement Ruili Group [Member]
Description Of Business [Line Items]
Purchase price of acquired entity		8,000,000
Inventory [Member] | Asset Acquisition Agreement Ruili Group [Member]
Description Of Business [Line Items]
Purchase price of acquired entity		8,000,000
Accounts Receivable [Member] | Asset Acquisition Agreement Ruili Group [Member]
Description Of Business [Line Items]
Purchase price of acquired entity		$ 5,200,000
Ruili Group, Co., Ltd. [Member]
Description Of Business [Line Items]
Investment in subsidiaries							$ 1,000,000
Noncontrolling interest in subsidiary				10.00%
Ruili Group, Co., Ltd. [Member] | Chief Executive Officer [Member]
Description Of Business [Line Items]
Ownership percentage				63.00%
SORL International Holding, Ltd. [Member]
Description Of Business [Line Items]
Ownership percentage				60.00%				60.00%
Investment in subsidiaries							$ 9,400,000
Additional paid-in capital	43,400,000
Increased paid in capital	$ 53,800,000
Noncontrolling interest in subsidiary				40.00%
SORL International Holding, Ltd. [Member] | Chief Executive Officer [Member]
Description Of Business [Line Items]
Ownership percentage				0.00%
MGR Hong Kong Limited [Member] | SIH [Member]
Description Of Business [Line Items]
Ownership percentage				30.00%
Taiwanese Investor [Member]
Description Of Business [Line Items]
Ownership percentage				10.00%

SUMMARY OF SIGNIFICANT ACCOUN49

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2015
Buildings [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Buildings [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Electronic Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Motor vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Motor vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	The lesser of remaining lease term or 10

SUMMARY OF SIGNIFICANT ACCOUN50

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015HKD	Dec. 31, 2014USD ($)	Dec. 31, 2015CNY (¥)
Summary of Significant Accounting Policy [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	1.33%	1.33%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	5.35%	5.35%
Research and Development Expense	$ 7,358,563		$ 7,601,342
Shipping, Handling and Transportation Costs	4,428,406		5,610,737
Advertising Expense	285,844		339,551
Product Warranty Accrual, Warranties Issued	$ 2,047,684		2,374,861
Lease Terms	the lease term is equal to 75% of the estimated economic life of the leased property or more	the lease term is equal to 75% of the estimated economic life of the leased property or more
Line of Credit Facility, Collateral Fees, Amount	$ 538,517		$ 726,096
SIH [Member]
Summary of Significant Accounting Policy [Line Items]
Proceeds from Sale of Equity Method Investments	$ 77	HKD 600
Equity interest in its subsidiary	60.00%	60.00%
Notes Receivable [Member]
Summary of Significant Accounting Policy [Line Items]
Pledged assets amount	$ 13,647,583
Ruili Group Co Ltd [Member] | Time Deposits [Member]
Summary of Significant Accounting Policy [Line Items]
Pledged assets amount	$ 21,559,690			¥ 140,000,000
Maturity date, Start	Mar. 24, 2015	Mar. 24, 2015
Maturity date, End	Mar. 24, 2016	Mar. 24, 2016
Hangzhou Xiangwei Wuzi Co [Member] | Time Deposits [Member]
Summary of Significant Accounting Policy [Line Items]
Pledged assets amount	$ 6,159,911			¥ 40,000,000
Maturity date, Start	Dec. 17, 2015	Dec. 17, 2015
Maturity date, End	Jun. 17, 2016	Jun. 17, 2016
Taiwanese Investor [Member]
Summary of Significant Accounting Policy [Line Items]
Ownership percentage	10.00%			10.00%
Use Rights [Member]
Summary of Significant Accounting Policy [Line Items]
Finite-Lived Intangible Asset, Useful Life	45 years	45 years
Notes Payable to Banks [Member]
Summary of Significant Accounting Policy [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	1.33%	1.33%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	5.35%	5.35%
Maturity date, Start	Jan. 4, 2016	Jan. 4, 2016
Maturity date, End	May 17, 2016	May 17, 2016
Notes Payable to Banks [Member] | Minimum [Member]
Summary of Significant Accounting Policy [Line Items]
Debt Instrument, Term	3 months	3 months
Notes Payable to Banks [Member] | Maximum [Member]
Summary of Significant Accounting Policy [Line Items]
Debt Instrument, Term	1 year	1 year

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
PURCHASES FROM:	$ 5,534,236	$ 7,185,201
SALES TO:	8,766,577	2,110,705
Guangzhou Kormee [Member]
Related Party Transaction [Line Items]
PURCHASES FROM:	1,488,151	2,194,995
SALES TO:	946,061	278,382
Ruian Kormee [Member]
Related Party Transaction [Line Items]
PURCHASES FROM:	765,971	1,250,174
SALES TO:	38,753	213,974
Ruili Group, Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM:	3,199,511	3,740,032
SALES TO:	7,781,763	1,618,349
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM:	$ 80,603	$ 0

RELATED PARTY TRANSACTIONS (D52

RELATED PARTY TRANSACTIONS (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
PREPAYMENTS	$ 0	$ 83,206
ACCOUNTS PAYABLE	1,133,537	136,609
OTHER PAYABLES	0	17,681
Mgr Hong Kong Limited [Member]
Related Party Transaction [Line Items]
OTHER PAYABLES	0	17,681
Ruian Kormee [Member]
Related Party Transaction [Line Items]
PREPAYMENTS	0	83,206
ACCOUNTS PAYABLE	340,175	0
Ruili Group Co Ltd [Member]
Related Party Transaction [Line Items]
ACCOUNTS PAYABLE	697,643	77,598
Guangzhou Kormee [Member]
Related Party Transaction [Line Items]
ACCOUNTS PAYABLE	75,968	59,011
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
ACCOUNTS PAYABLE	$ 19,751	$ 0

RELATED PARTY TRANSACTIONS (D53

RELATED PARTY TRANSACTIONS (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015CNY (¥)
6-month Fixed Term Deposit 2 [Member]
Related Party Transaction [Line Items]
Pledged assets amount	$ 13,243,809		¥ 86,000,000
Pledged Assets, Maturity Date	May 18, 2016
Ruili Group Co Ltd [Member]
Related Party Transaction [Line Items]
Wage expense	$ 5,052,313	$ 11,917,917
Ruili Group Co Ltd [Member] | Shanghai Dachao [Member]
Related Party Transaction [Line Items]
Ownership percentage	49.00%		49.00%
Ruili Group Co Ltd [Member] | 6-month Fixed Term Deposit 1 [Member]
Related Party Transaction [Line Items]
Pledged assets amount	$ 8,315,880		¥ 54,000,000
Pledged Assets, Maturity Date	May 19, 2016
Ruili Group Co Ltd [Member] | 6-month Fixed Term Deposit 3 [Member]
Related Party Transaction [Line Items]
Maturity date, Start	Dec. 17, 2015
Maturity date, End	Jun. 17, 2016
Ruili Group Co Ltd [Member] | Credit Line by Bank of Ningbo [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 17,182,404		108,000,000
Guarantee start date	Aug. 22, 2014
Guarantee end date	Aug. 21, 2015
Ruili Group Co Ltd [Member] | Credit Line by China Zheshang Bank [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 24,016,996		146,960,000
Guarantee start date	Dec. 9, 2014
Guarantee end date	Dec. 9, 2015
Ruili Group Co Ltd [Member] | Credit Line by China Everbright Bank [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 9,239,867		60,000,000
Guarantee start date	Feb. 26, 2015
Guarantee end date	Feb. 26, 2017
Ruili Group Co Ltd [Member] | Credit Line by China Guangfa Bank [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 8,315,880		54,000,000
Guarantee start date	Sep. 22, 2015
Guarantee end date	Sep. 22, 2017
Ruili Group Co Ltd [Member] | Credit Line by China Merchants Bank [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 7,699,889		50,000,000
Guarantee start date	Jul. 29, 2015
Guarantee end date	Jul. 29, 2017
Ruili Group Co Ltd [Member] | Credit Line by Bank of Ningbo [Member]
Related Party Transaction [Line Items]
Guarantee amount	$ 25,871,627		168,000,000
Guarantee start date	Mar. 24, 2015
Guarantee end date	Mar. 24, 2016
Hangzhou Xiangwei Wuzi Co [Member] | 6-month Fixed Term Deposit 3 [Member]
Related Party Transaction [Line Items]
Pledged assets amount	$ 6,159,911		¥ 40,000,000
Mgr Hong Kong Limited [Member] | SIH [Member]
Related Party Transaction [Line Items]
Ownership percentage	30.00%		30.00%

ACCOUNTS RECEIVABLE, NET (Detai

ACCOUNTS RECEIVABLE, NET (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts receivable	$ 83,898,730	$ 74,646,974
Less: allowance for doubtful accounts	(12,075,402)	(6,475,587)
Account receivable, net	$ 71,823,328	$ 68,171,387

ACCOUNTS RECEIVABLE, NET (Det55

ACCOUNTS RECEIVABLE, NET (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Balance	$ 6,475,587	$ 3,813,415
Add: Increase to allowance	5,599,815	2,662,172
Less: Accounts written off	0	0
Balance	$ 12,075,402	$ 6,475,587

ACCOUNTS RECEIVABLE, NET (Det56

ACCOUNTS RECEIVABLE, NET (Details Textual)	Dec. 31, 2015USD ($)
SIH [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, related parties	$ 4,320,748

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventory [Line Items]
Raw Materials	$ 13,038,945	$ 11,934,720
Work in process	28,786,709	30,020,125
Finished Goods	31,836,206	42,400,202
Less: Write-down of inventories	0	(168,281)
Total Inventory	$ 73,661,860	$ 84,186,766

PROPERTY, PLANT AND EQUIPMENT58

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 93,344,204	$ 96,071,332
Less: accumulated depreciation	(55,782,299)	(52,520,405)
Property, plant and equipment, net	37,561,905	43,550,927
Machinery [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	50,680,639	51,619,990
Molds [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,343,730	1,425,992
Office equipments [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,077,411	2,257,208
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,983,028	2,040,061
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,756,917	9,152,959
Machinery held under capital lease [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	29,012,601	29,012,601
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 489,878	$ 562,521

PROPERTY, PLANT AND EQUIPMENT59

PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 7,029,214	$ 6,998,738
Property, Plant and Equipment, Gross	93,344,204	96,071,332
Net of accumulated depreciation	55,782,299	52,520,405
Impairment of Long-Lived Assets Held-for-use	561,847	0
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	7,756,917	$ 9,152,959
Buildings [Member] | Ruili Group [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	545,642
Net of accumulated depreciation	$ 322,388

LAND USE RIGHTS (Details)

LAND USE RIGHTS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Cost	$ 16,182,560	$ 17,173,243
Less: Accumulated amortization	(2,950,411)	(2,751,514)
Land use rights, net	$ 13,232,149	$ 14,421,729

LAND USE RIGHTS (Details Textua

LAND USE RIGHTS (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015CNY (¥)
Land Use Rights [Line Items]
Amortization expense, land use rights	$ 368,247	$ 374,425
Tax Rate Land Use Rights	3.00%		3.00%
Relevant tax amount reserved	$ 745,220		¥ 4,560,000
Ruili Group Co Ltd [Member]
Land Use Rights [Line Items]
Payments To Acquire Land Use Rights And Associated Building	20,000,000
Payments to Acquire Buildings	$ 6,700,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details)	Dec. 31, 2015USD ($)
2,016	$ 11,634
2,017	8,857
2,018	3,363
2,019	0
Thereafter	$ 0

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Gross intangible assets	$ 178,751	$ 181,099
Less: accumulated amortization	154,897	143,438
Net intangible assets	23,854	37,661
Amortization expense	$ 11,980	$ 13,790

PREPAYMENTS (Details)

PREPAYMENTS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Raw material suppliers	$ 3,210,160	$ 2,938,396
Equipment purchases	140,447	1,724,606
Total prepayments	$ 3,350,607	$ 4,663,002

DEFERRED TAX ASSETS AND DEFER65

DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets - current
Allowance for doubtful accounts	$ 1,860,379	$ 990,496
Revenue (net of cost)	45,815	0
Unpaid accrued expenses	180,174	180,392
Warranty	875,751	848,566
Deferred tax assets	2,962,119	2,019,454
Valuation allowance	0	0
Net deferred tax assets - current	2,962,119	2,019,454
Deferred tax liabilities - current
Revenue (net of cost)	0	151,083
Others	52,390	0
Deferred tax liabilities - current	52,390	151,083
Net deferred tax assets - current	$ 2,909,729	$ 1,868,371

SHORT TERM BANK LOANS (Details)

SHORT TERM BANK LOANS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
SHORT-TERM BANK LOANS [Abstract]
Secured	$ 23,367,207	$ 9,539,476

SHORT TERM BANK LOANS (Details

SHORT TERM BANK LOANS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term loans, minimum interest rate	1.33%
Short-term loans, maximum interest rate	5.35%
Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	$ 16,827,229
Ruili Group, Co., Ltd. [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	3,539,978
Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both principal stockholders and Jia Rui Zhang, the daughter of Mr. Xiao Ping Zhang and Ms. Shu Ping Chi [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	$ 3,000,000
Short Term Bank Loans [Member]
Short-term Debt [Line Items]
Short-term loans, minimum interest rate	1.33%
Short-term loans, maximum interest rate	5.35%
Maturity date, Start	Jan. 4, 2016
Maturity date, End	May 17, 2016
Interest expenses	$ 730,574	$ 393,154
Accounts receivable pledged as collateral	$ 15,836,158	$ 12,328,735

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accrued payroll	$ 4,049,357	$ 2,859,430
Accrued warranty expenses	5,838,343	5,657,106
Other accrued expenses	3,982,887	5,044,627
Total accrued expenses	$ 13,870,587	$ 13,561,163

CAPITAL LEASE OBLIGATIONS (Deta

CAPITAL LEASE OBLIGATIONS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Total capital lease obligations	$ 3,519,949	$ 7,470,875
Less: current portion	(3,519,949)	(3,735,438)
Non-current portion	$ 0	$ 3,735,437

CAPITAL LEASE OBLIGATIONS (De70

CAPITAL LEASE OBLIGATIONS (Details Textual)	Sep. 13, 2011	Dec. 31, 2015USD ($)	Dec. 31, 2015CNY (¥)	Dec. 31, 2015CNY (¥)	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Security deposits on lease agreement		$ 1,759,975			$ 1,867,719
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Lease expiration date		Jan. 4, 2017	Jan. 4, 2017
Lease collateral amount		$ 28,396,853
Capital lease obligation obtained		14,545,950	¥ 91,428,571
Security deposits on lease agreement		$ 1,818,244		¥ 11,428,571
Capital lease, frequency of payments		monthly	monthly
Capital lease, periodic payment amount		$ 303,041	¥ 1,904,761.9
Interest rate	7.95%	6.40%		6.40%
Capital lease, prepaid interest		$ 1,703,212	¥ 10,705,357
Debt Instrument, Term	60 months	48 months	48 months

RESERVE (Details)

RESERVE (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Statutory Accounting Practices [Line Items]
Statutory surplus reserve fund	$ 13,207,972	$ 12,019,532
Total	$ 13,207,972	$ 12,019,532

INCOME TAXES (Details)

INCOME TAXES (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax [Line Items]
China statutory income tax rate	25.00%	25.00%
Effect of income tax exemptions and reliefs	(10.00%)	(10.00%)
Effects of additional deduction allowed for R&D expenses	(3.33%)	(1.81%)
Effects of expenses not deductible for tax purposes	1.26%	1.47%
Other items	(0.64%)	1.26%
Effective tax rate	12.29%	15.92%
HONG KONG
Income Tax [Line Items]
Foreign Statutory income tax rate	16.50%	16.50%
Valuation allowance recognized with respect to the loss in the company	(16.50%)	(16.50%)
UNITED STATES
Income Tax [Line Items]
Foreign Statutory income tax rate	35.00%	35.00%
Valuation allowance recognized with respect to the loss in the company	(35.00%)	(35.00%)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
INCOME TAXES [Abstract]
Current	$ 3,179,989	$ 3,304,552
Deferred	(1,183,270)	(431,640)
Total	$ 2,034,776	$ 2,872,912

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
"High-Tech Enterprise" income tax rate	15.00%
US Statutory income tax rate	25.00%	25.00%

NON-CONTROLLING INTEREST IN S75

NON-CONTROLLING INTEREST IN SUBSIDIARIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net income attributable to noncontrolling interest in subsidiaries	$ 1,216,581	$ 1,366,456
Ruili Group [Member]
Net income attributable to noncontrolling interest in subsidiaries	1,320,489	1,566,774
SORL International Holding, Ltd. [Member]
Net income attributable to noncontrolling interest in subsidiaries	$ (103,908)	$ (200,318)

NON-CONTROLLING INTEREST IN S76

NON-CONTROLLING INTEREST IN SUBSIDIARIES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Net income attributable to noncontrolling interest in subsidiaries	$ 1,216,581	$ 1,366,456
SIH [Member]
Noncontrolling Interest [Line Items]
Equity interest in its subsidiary	60.00%
Ruili Group Co Ltd [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest in subsidiary	10.00%
Net income attributable to noncontrolling interest in subsidiaries	$ 1,320,489	1,566,774
Sorl International Holding Ltd [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest in subsidiary	40.00%
Net income attributable to noncontrolling interest in subsidiaries	$ (103,908)	$ (200,318)

OPERATING LEASES WITH RELATED77

OPERATING LEASES WITH RELATED PARTIES (Details)	Dec. 31, 2015USD ($)
OPERATING LEASES WITH RELATED PARTIES [Abstract]
2,016	$ 1,576,580
2,017	1,576,580
2,018	323,395
2,019	323,395
2,020	323,395
Thereafter	$ 646,791

OPERATING LEASES WITH RELATED78

OPERATING LEASES WITH RELATED PARTIES (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)m²	Dec. 31, 2015CNY (¥)m²	Dec. 31, 2014USD ($)
Operating Leased Assets [Line Items]
Lease expenses | $	$ 1,623,405		$ 1,650,640
Apartment Buildings [Member] | Ruili Group [Member]
Operating Leased Assets [Line Items]
Number of apartments	2	2
Annual lease expense	$ 333,688	¥ 2,100,000
Manufacturing Plant [Member] | Ruili Group [Member]
Operating Leased Assets [Line Items]
Area of manufacturing plant | m²	32,410	32,410
Annual lease expense	$ 1,293,070	¥ 8,137,680

WARRANTY CLAIMS (Details)

WARRANTY CLAIMS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Beginning balance at January 1, 2014	$ 5,657,106
Aggregate increase for new warranties issued during current period	2,047,684	$ 2,374,861
Aggregate reduction for payments made	(1,866,447)
Ending balance at December 31, 2015	$ 5,838,343	$ 5,657,106

WARRANTY CLAIMS (Details Textua

WARRANTY CLAIMS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Product Warranty Accrual, Warranties Issued	$ 2,047,684	$ 2,374,861

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Sales	$ 218,656,886	$ 237,654,865
Gross profit	59,410,418	66,860,997
Selling and distribution expenses	22,681,469	23,676,176
General and administrative expenses	14,100,715	18,011,110
Impairment on long-lived assets	561,847	0
Research and development expenses	7,358,563	7,601,342
Other operating income	3,204,286	2,270,147
Loss on disposal of subsidiary	(3,170,821)	0
Income from operations	14,741,289	19,842,516
Interest income	1,102,447	343,889
Government grants	768,607	301,572
Other income	2,217,204	304,540
Interest expenses	(1,269,091)	(1,119,250)
Other expenses	(1,000,613)	(1,632,869)
Income before income tax expense	16,559,843	18,040,398
CAPITAL EXPENDITURE	3,062,369	4,003,170
DEPRECIATION AND AMORTIZATION	7,409,441	7,386,953
TOTAL ASSETS	320,554,056	286,906,262
LONG LIVED ASSETS	52,577,883	59,977,216
INTERSEGMENT SALES [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Commercial Vehicles Brake Systems [Member]
Segment Reporting Information [Line Items]
Sales	178,672,655	193,984,778
Gross profit	48,652,822	54,575,006
CAPITAL EXPENDITURE	2,511,143	3,267,571
DEPRECIATION AND AMORTIZATION	6,054,254	6,029,569
TOTAL ASSETS	261,924,719	234,186,022
LONG LIVED ASSETS	42,961,388	48,956,149
Commercial Vehicles Brake Systems [Member] | INTERSEGMENT SALES [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Passenger Vehicles Brake Systems [Member]
Segment Reporting Information [Line Items]
Sales	39,984,231	43,670,087
Gross profit	10,757,596	12,285,991
CAPITAL EXPENDITURE	551,226	735,599
DEPRECIATION AND AMORTIZATION	1,355,187	1,357,384
TOTAL ASSETS	58,629,337	52,720,240
LONG LIVED ASSETS	9,616,495	11,021,067
Passenger Vehicles Brake Systems [Member] | INTERSEGMENT SALES [Member]
Segment Reporting Information [Line Items]
Sales	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual)	Sep. 28, 2007USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015CNY (¥)
Contingencies [Line Items]
Purchase price of land use rights	$ 20,000,000
Relevant tax amount reserved		$ 745,220	¥ 4,560,000
Tax rate, land use right		3.00%	3.00%

ADDITIONAL INFORMATION-FINANC83

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 30,230,828	$ 14,009,597	$ 28,241,983
Other current assets	1,241,864	1,282,182
Total Current Assets	267,976,173	226,929,046
TOTAL ASSETS	320,554,056	286,906,262
Current Liabilities:
Other current liability	2,067,449	2,131,527
Total Current Liabilities	98,129,556	62,981,195
Total Liabilities	98,129,556	66,716,632
Stockholders' Equity:
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2015 and 2014	0	0
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2015 and 2014	38,609	38,609
Additional paid-in capital	42,199,014	42,199,014
Total Stockholders' Equity	200,163,333	198,708,414
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	320,554,056	286,906,262
Parent Company [Member]
Current Assets:
Cash and cash equivalents	80,910	81,036	81,036
Other current assets	6,161	6,161
Total Current Assets	87,071	87,197
Investments in subsidiaries	187,423,606	175,539,210
TOTAL ASSETS	187,510,677	175,626,407
Current Liabilities:
Other current liability	2,921,411	2,921,488
Total Current Liabilities	2,921,411	2,921,488
Total Liabilities	2,921,411	2,921,488
Stockholders' Equity:
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2015 and 2014	0	0
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2015 and 2014	38,609	38,609
Additional paid-in capital	42,199,014	42,199,014
Retained earnings	142,351,643	130,467,296
Total Stockholders' Equity	184,589,266	172,704,919	$ 158,603,951
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 187,510,677	$ 175,626,407

ADDITIONAL INFORMATION-FINANC84

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Gain from disposal of subsidiary	$ (3,170,821)	$ 0
Net income attributable to stockholders	$ 13,308,486	$ 13,801,030
Weighted average common share - Basic	19,304,921	19,304,921
Weighted average common share - Diluted	19,304,921	19,304,921
EPS - Basic	$ 0.69	$ 0.71
EPS - Diluted	$ 0.69	$ 0.71
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Investment income	$ 11,884,396	$ 14,100,968
Gain from disposal of subsidiary	77	0
Financial expenses	126	0
Net income attributable to stockholders	$ 11,884,347	$ 14,100,968
Weighted average common share - Basic	19,304,921	19,304,921
Weighted average common share - Diluted	19,304,921	19,304,921
EPS - Basic	$ 0.62	$ 0.73
EPS - Diluted	$ 0.62	$ 0.73

ADDITIONAL INFORMATION-FINANC85

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flow from operating activities:
Net income	$ 13,308,486	$ 13,801,030
Adjustments to reconcile net income to net cash used in operating activities:
Net cash used in operating activities	39,314,251	22,561,194
Net change in cash and cash equivalents	16,221,231	(14,232,387)
Cash and cash equivalents- beginning of the year	14,009,597	28,241,983
Cash and cash equivalents - end of the year	30,230,828	14,009,597
Parent Company [Member]
Cash flow from operating activities:
Net income	11,884,347	14,100,968
Adjustments to reconcile net income to net cash used in operating activities:
Investment in subsidiaries	(11,884,396)	(14,100,968)
Net cash used in operating activities	(126)	0
Other current liabilities	(77)	0
Net change in cash and cash equivalents	(126)	0
Cash and cash equivalents- beginning of the year	81,036	81,036
Cash and cash equivalents - end of the year	$ 80,910	$ 81,036

ADDITIONAL INFORMATION-FINANC86

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balance	$ 198,708,414
Balance, shares	19,304,921
Net Income	$ 13,308,486	$ 13,801,030
Balance	$ 200,163,333	$ 198,708,414
Balance, shares	19,304,921	19,304,921
Parent Company [Member]
Balance	$ 172,704,919	$ 158,603,951
Net Income	11,884,347	14,100,968
Balance	$ 184,589,266	$ 172,704,919
Common Stock [Member]
Balance, shares	19,304,921	19,304,921
Balance, shares	19,304,921	19,304,921
Common Stock [Member] | Parent Company [Member]
Balance	$ 38,609	$ 38,609
Balance, shares	19,304,921	19,304,921
Net Income		$ 0
Balance	$ 38,609	$ 38,609
Balance, shares	19,304,921	19,304,921
Additional paid-in capital [Member] | Parent Company [Member]
Balance	$ 42,199,014	$ 42,199,014
Net Income		0
Balance	42,199,014	42,199,014
Accumulated deficit [Member] | Parent Company [Member]
Balance	130,467,296	116,366,328
Net Income	11,884,347	14,100,968
Balance	$ 142,351,643	$ 130,467,296