SORL Auto Parts (SORL) 10-K 1 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Apr. 01, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	SORL Auto Parts Inc
Entity Central Index Key	0000714284
Trading Symbol	SORL
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 37,100,000
Entity Common Stock, Shares Outstanding		19,304,921

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 73,588,229	$ 4,221,940
Accounts receivable, net, including $261,889 and $1,297,734 from related parties as of December 31, 2018 and 2017, respectively	150,047,797	134,384,961
Bank acceptance notes from customers	62,052,225	116,040,688
Inventories, net	204,285,427	114,300,564
Prepayments, current, including $3,670,573 and $999,527 to related party as of December 31, 2018 and 2017, respectively	7,776,591	8,826,004
Restricted cash, current	19,307,003	376,236
Advances to related parties	79,739,417	72,318,224
Other current assets, net	15,697,448	5,555,568
Total Current Assets	612,494,137	456,024,185
Property, plant and equipment, net	96,053,386	79,828,006
Land use rights, net	21,124,455	14,912,134
Intangible assets, net	220,232	3,341
Deposits on loan agreements	10,199,324	10,712,865
Prepayments, non-current	31,575,238	16,594,987
Other assets, non-current	563,542
Restricted cash, non-current	18,067,374
Deferred tax assets	4,073,838	4,240,424
Total Non-current Assets	181,877,389	126,291,757
Total Assets	794,371,526	582,315,942
Current Liabilities
Accounts payable and bank acceptance notes to vendors, including $23,805,200 and $15,896,804 due to related parties as of December 31, 2018 and 2017, respectively	236,433,718	118,051,633
Deposits received from customers	51,529,795	43,087,473
Short term bank loans	217,940,471	125,380,899
Current portion of long term loans	21,141,029	24,266,031
Income tax payable, current	3,421,486	3,249,727
Accrued expenses	24,045,902	25,154,658
Due to related party	5,959,752	1,572,963
Deferred income	1,453,282	1,020,273
Other current liabilities	3,288,344	2,857,130
Total Current Liabilities	565,213,779	344,640,787
Long term loans, less current portion and net of unamortized debt issuance costs	14,429,404	37,383,224
Income tax payable, noncurrent	9,259,307
Total Non-current Liabilities	23,688,711	37,383,224
Total Liabilities	588,902,490	382,024,011
Equity
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2018 and 2017
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2018 and 2017	38,609	38,609
Additional paid-in capital	(28,582,654)	(28,582,654)
Reserves	20,007,007	17,562,357
Accumulated other comprehensive income	6,655,803	15,903,188
Retained earnings	178,535,378	168,244,329
Total SORL Auto Parts, Inc. Stockholders' Equity	176,654,143	173,165,829
Noncontrolling Interest In Subsidiaries	28,814,893	27,126,102
Total Equity	205,469,036	200,291,931
Total Liabilities and Equity	$ 794,371,526	$ 582,315,942

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, net, related parties	$ 261,889	$ 1,297,734
Prepayments, related party	3,670,573	999,527
Accounts payable and bank acceptance notes to vendors, related parties	$ 23,805,200	$ 15,896,804
Preferred stock, par value per share
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
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, 2018	Dec. 31, 2017
Income Statement [Abstract]
Sales	$ 468,049,906	$ 390,522,569
Include: sales to related parties	30,273,960	24,376,622
Cost of sales	345,534,015	286,336,367
Gross profit	122,515,891	104,186,202
Expenses:
Selling and distribution expenses	55,158,703	39,067,566
General and administrative expenses	26,939,370	22,023,338
Research and development expenses	16,366,393	11,004,560
Total operating expenses	98,464,466	72,095,464
Other operating income, net	10,122,416	3,039,824
Income from operations	34,173,841	35,130,562
Interest income	6,052,416	232,466
Government grants	4,307,609	2,264,055
Other income	260,448	101,475
Interest expenses	(13,570,956)	(3,100,396)
Other income (expenses)	43,219	(2,883,440)
Income before income taxes provision	31,266,577	31,744,722
Provision for income taxes	15,814,600	4,717,810
Net income	15,451,977	27,026,912
Net income attributable to noncontrolling interest in subsidiaries	2,716,278	2,702,691
Net income attributable to common stockholders	12,735,699	24,324,221
Comprehensive income:
Net income	15,451,977	27,026,912
Foreign currency translation adjustments	(10,274,872)	10,873,496
Comprehensive income	5,177,105	37,900,408
Comprehensive income attributable to noncontrolling interest in subsidiaries	1,688,791	3,790,041
Comprehensive income attributable to common stockholders	$ 3,488,314	$ 34,110,367
Weighted average common share - basic	19,304,921	19,304,921
Weighted average common share - diluted	19,304,921	19,304,921
EPS - basic	$ 0.66	$ 1.26
EPS - diluted	$ 0.66	$ 1.26

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows From Operating Activities
Net income	$ 15,451,977	$ 27,026,912
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	1,159,061	1,474,872
Depreciation and amortization	11,838,692	9,259,516
Deferred income tax	(37,588)	(807,058)
Loss (gain) on disposal of property and equipment	(40,779)	9,515
Amortization of debt issuance costs	1,168,449
Changes in assets and liabilities:
Account receivable	(23,258,262)	(26,640,753)
Bank acceptance notes from customers	120,433,497	(3,197,464)
Other currents assets	(10,884,355)	(4,371,425)
Inventories, net	(97,808,381)	(43,139,593)
Prepayments	942,352	1,877,272
Other assets	(577,381)
Accounts payable and bank acceptance notes to vendors	121,285,932	46,444,126
Income tax payable	9,534,690	2,126,238
Deposits received from customers	10,765,839	18,302,544
Deferred income	493,752	989,766
Other current liabilities and accrued expenses	692,584	4,466,181
Net Cash Flows Provided By Operating Activities	161,160,079	33,820,649
Cash Flows From Investing Activities
Deposits on loan agreements		(5,196,271)
Acquisition of property, plant, and equipment and land use rights	(55,376,169)	(52,259,319)
Deposits for acquisition of land use rights		(2,982,537)
Refund of deposits for acquisition of land use rights		2,982,537
Acquisition of intangible asset	(225,640)
Advances to related parties	(211,733,387)	(186,885,309)
Repayment of advances to related parties	129,577,381	118,436,661
Net Cash Flows Used In Investing Activities	(137,757,815)	(125,904,238)
Cash Flows From Financing Activities
Proceeds from short term bank loans	527,380,963	206,836,188
Repayment of short term bank loans	(426,390,447)	(113,440,430)
Proceeds from related parties	9,669,326	103,775,545
Repayments to related parties		(139,482,122)
Proceeds from long term loans		29,692,975
Repayment of long term loans	(24,859,848)	(3,008,756)
Payment of debt issuance costs		(1,767,572)
Net Cash Flows Provided By Financing Activities	85,799,994	82,605,828
Effects on changes in foreign exchange rate	(2,837,828)	542,161
Net change in cash, cash equivalents and restricted cash	106,364,430	(8,935,600)
Cash, cash equivalents, and restricted cash - beginning of the year	4,598,176	13,533,776
Cash, cash equivalents, and restricted cash - end of the year	110,962,606	4,598,176
Supplemental Cash Flow Disclosures:
Interest paid	11,653,031	2,860,931
Income taxes paid	6,343,206	3,398,629
Non-cash Investing and Financing Transactions
Liabilities assumed in connection with acquisition of property, plant, and equipment and land use rights	703,698
Land use rights transferred from prepayments	7,733,989
Borrowings from long term loans in the form of bank acceptance notes		29,692,975
Repayments from related party in the form of bank acceptance notes	70,818,463	35,706,576
Repayments to related party in the form of bank acceptance notes	5,097,556
Transfer of debt among related parties		3,711,622
Deposits on loan agreements deducted from proceeds of long term loans		$ 5,196,271

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Reconciliation of cash, cash equivalents, and restricted cash ) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$ 73,588,229	$ 4,221,940
Restricted cash, current	19,307,003	376,236
Restricted cash, non-current	18,067,374
Total cash, cash equivalents, and restricted cash	$ 110,962,606	$ 4,598,176

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($)	Common Stock	Additional Paid-in Capital	Reserves	Retained Earnings	Accumulated Other Comprehensive Income	Total SORL Auto Parts, Inc. Stockholders' Equity	Noncontrolling Interest	Total
Balance at Dec. 31, 2016	$ 38,609	$ (28,582,654)	$ 15,129,935	$ 146,352,530	$ 6,117,042	$ 139,055,462	$ 23,336,061	$ 162,391,523
Balance, shares at Dec. 31, 2016	19,304,921
Net income				24,324,221		24,324,221	2,702,691	27,026,912
Foreign currency translation adjustment					9,786,146	9,786,146	1,087,350	10,873,496
Transfer to reserve			2,432,422	(2,432,422)
Balance at Dec. 31, 2017	$ 38,609	(28,582,654)	17,562,357	168,244,329	15,903,188	173,165,829	27,126,102	200,291,931
Balance, shares at Dec. 31, 2017	19,304,921
Net income				12,735,699		12,735,699	2,716,278	15,451,977
Foreign currency translation adjustment					(9,247,385)	(9,247,385)	(1,027,487)	(10,274,872)
Transfer to reserve			2,444,650	(2,444,650)
Balance at Dec. 31, 2018	$ 38,609	$ (28,582,654)	$ 20,007,007	$ 178,535,378	$ 6,655,803	$ 176,654,143	$ 28,814,893	$ 205,469,036
Balance, shares at Dec. 31, 2018	19,304,921

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS SORL Auto Parts, Inc. (together with its subsidiaries, “we,” “us,” “our” or the “Company” or “SORL”), a Delaware corporation incorporated on March 24, 1982, is principally engaged in the manufacture and distribution of vehicle brake systems and other key safety-related components, through its 90% ownership of Ruili Group Ruian Auto Parts Co., Ltd. (the “Joint Venture” or “Ruian”). The Company distributes products both in China and internationally under SORL trademarks. The Company’s product range includes 140 categories and over 2,000 different specifications. The Joint Venture was formed in the People’s Republic of China (“PRC” or “China”) as a Sino-Foreign joint venture on January 17, 2004, pursuant to the terms of a Joint Venture Agreement between the Ruili Group Co., Ltd. (the “Ruili Group”), a related party under common control, and Fairford Holdings Limited (“Fairford”), a wholly owned subsidiary of the Company. The Ruili Group was, incorporated in China in 1987 and specializes in the development, production and sale of various kinds of automotive parts. Fairford and the Ruili Group contributed 90% and 10%, respectively, of the paid-in capital of the Joint Venture. On November 11, 2009, the Company, through its wholly owned subsidiary, Fairford, entered into a joint venture agreement with MGR Hong Kong Limited (“MGR”), a Hong Kong-based global auto parts distribution specialist firm and an unaffiliated Taiwanese investor. The joint venture was named SORL International Holding, Ltd. (“SIH”) based in Hong Kong. SORL held a 60% interest in the joint venture, MGR held a 30% interest, and the Taiwanese investor held a 10% interest. SIH was primarily devoted to expanding SORL’s international sales network in Asia-Pacific and creating a larger footprint in Europe, the Middle East and Africa with a target to create a truly global distribution network. In December 2015, due to poor financial performance of SIH, Fairfold sold all of its interest in SIH to the Taiwanese investor. After this transaction, SIH ceased to be a distributor of SORL in the international market.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. ACCOUNTING METHOD The Company uses the accrual method of accounting for financial statement and tax return purposes. b. 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 income and comprehensive income 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 non-controlling interests in subsidiary undertakings is reflected in the consolidated statements of income and comprehensive income. 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. d. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivables and payables, prepaid expenses, bank acceptance notes from customers, inventories, other current assets, short term bank loans, current portion of long term loans, deposits received from customers and other payables and accruals, the carrying amounts approximate fair values due to their short maturities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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. 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. f. FINANCIAL RISK FACTORS AND FINANCIAL RISK MANAGEMENT The Company is exposed to the following risk factors: i) Credit risks - Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents and accounts receivable arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. 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 10.00% of its total revenues for the year ended December 31, 2018. 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 2018 ranged from 1.92% to 5.72% and the term ranged from approximately one month to one year. The Company also obtained long term loans from non-financial institutions for effective interest rates ranging from 6.16% to 8.50%. The Company’s income and cash flows are substantially independent of changes in market interest rates. 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. h . RESTRICTED CASH Restricted cash, current consists of bank deposits used to pledge bank acceptance notes, deposits for obtaining letters of credit from a local bank, and bank deposit held as a guarantee for the loans obtained by Wenzhou Lichuang Automobile Parts Co., Ltd., a related party, from the bank. Also see Note 4 for details on the guarantee provided to related party. Restricted cash, non-current consists of deposits guaranteed for construction projects and the non-current portion of some bank deposits used to pledge for bank acceptance notes. i . 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. j . 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. 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 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. k . 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 40 years. l . 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. m . 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. The allowances are calculated based on a detailed review of certain individual customer accounts, historical collectability rates, a general provision based on aging 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. n . BANK ACCEPTANCE NOTES FROM CUSTOMERS Bank acceptance notes from customers, generally due within six months and with specific payment terms and definitive due dates, are comprised of the notes issued by some customers to pay certain outstanding receivable balances to the Company, and the notes issued by the customers of related parties and transferred to the Company as loans from related parties or repayments from related parties. Bank acceptance notes do not bear interest. As of December 31, 2018 and 2017, notes receivables in the amount of $58,458,890 and $95,914,724, respectively, were pledged to endorsing banks to issue bank acceptance notes or short term bank loans. The banks charge discount fees if the Company chooses to discount the notes receivables for cash before the maturity of the notes. The Company incurred discount fees of $1,463,837 and $37,177 for the years ended December 31, 2018 and 2017, respectively, which were included in interest expenses. o . REVENUE RECOGNITION The Company has adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“ASC 606”) effective January 1, 2018. The Company has chosen to use the full retrospective transition method, under which it is required to revise its consolidated financial statements for the year ended December 31, 2017 as well as any applicable interim periods within the year ended December 31, 2017, as if ASC 606 had been effective for those periods. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for the goods. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. See Note 14 for details on revenues from contracts with customers. p . INCOME TAXES The Company accounts for income taxes under the provision of FASB ASC 740-10, Income Taxes q . FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC, The Company’s functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company’s reporting currency, U.S. dollars (“US$”). 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 average exchange rates during the period. 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. r . 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. s . RESEARCH AND DEVELOPMENT EXPENSES Research and development costs are expensed as incurred. Research and development expenses were $16,366,393 for the year ended December 31, 2018, as compared with $11,004,560 for the year ended December 31, 2017. t . SHIPPING AND HANDLING COSTS Shipping and handling cost are classified as selling expenses and are expensed as incurred. Shipping and handling costs were $11,358,223 and $7,094,863 for the years ended December 31, 2018 and 2017, respectively. u . ADVERTISING COSTS Advertising costs are classified as selling expenses and are expensed as incurred. Advertising costs were $737,530 and $440,582 for the years ended December 31, 2018 and 2017, respectively. v . 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 $3,113,913 and $1,570,290 for the years ended December 31, 2018 and 2017, respectively. w . PURCHASE DISCOUNTS Purchase discounts represent discounts received from vendors for purchasing raw materials and are netted in the cost of goods sold, if applicable. x . LEASE COMMITMENTS The Company has adopted FASB Accounting Standard Codification, or ASC 840, Lease y . 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. z . 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 deferred income and then offset against the cost of the related equipment upon acquisition. aa. 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, 2018 and 2017, the Company operated in two reportable business segments: (1) commercial vehicles brake systems (2) passenger vehicles brake systems. bb. RECENTLY ISSUED FINANCIAL STANDARDS In May 2014, the FASB ASU 2014-9, “Revenue from Contracts with Customers (Topic 606)”, which was further updated by ASU 2016-08 in March 2016, ASU 2016-10 in April 2016, ASU 2016-11 in May 2016, ASU 2016-12 in May 2016 and ASU 2016-20 in December 2016. ASC 606 outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP and supersedes the revenue recognition guidance existed at the time. The main principle of ASC 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company applied the ASC and its related updates on a full retrospective basis as of January 1, 2018. The adoption of ASC 606 did not impact the previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to retained earnings. See Note 14 for additional information. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 effective January 1, 2018. As a result of the adoption, net cash used in investing activities was adjusted to exclude the change in restricted cash, resulting in an increase of $5,275,390 in net cash used in investing activities in the amount previously reported for the year ended December 31, 2017. Restricted cash was included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. The amendments in this ASU add SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The Company adopted this standard and evaluated the impact from the Tax Cut and Jobs Act pursuant to SAB 118, see Note 16 for further disclosures. In July 2018, the FASB issued ASU 2018-09, “Codification Improvements”, which affects a wide variety of Topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. These amendments represent changes to clarify, correct errors in, or make minor improvements to the Codification, eliminating inconsistencies and providing clarifications in current guidance. Some of the amendments do not require transition guidance and will be effective upon issuance. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018 and December 2018, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 respectively, which contain modifications and improvements to ASU 2016-02. ASU 2018-11 provides another transition method in addition to the existing transition method by allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This ASU also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the non-lease component or components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the non-lease component(s) and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. The Company will adopt this new guidance for the year ending December 31, 2019 and interim periods in the year ending December 31, 2019. The Company estimates that approximately $1,163,000 would be recognized as total right-of-use assets and total lease liabilities on our consolidated balance sheet as of January 1, 2019. Other than as disclosed above, the Company does not expect the new standard to have a material impact on its remaining consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the potential impacts of ASU 2018-13 on its consolidated financial statements.

Reclassifications

Reclassifications	12 Months Ended
	Dec. 31, 2018
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, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 - RELATED PARTY TRANSACTIONS Related parties with whom the Company conducted business consist of the following: Name of Related Party Nature of Relationship Xiao Ping Zhang Principal shareholder, Chairman of the Board and Chief Executive Officer Shu Ping Chi Shareholder, member of the Board, wife of Xiao Ping Zhang Xiao Feng Zhang Shareholder, member of the Board, brother of Xiao Ping Zhang Ruili Group Co., Ltd. (“Ruili Group”) 10% shareholder of Joint Venture and is collectively controlled by Xiao Ping Zhang, Shu Ping Chi, and Xiao Feng Zhang Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. (“Guangzhou Kormee”) Controlled by Ruili Group Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. (“Ruian Kormee” and formerly known as “Ruian Kormee Automobile Braking Co., Ltd.”) Wholly controlled by Guangzhou Kormee Chuangchun Kormee Auto Electric Co., Ltd. (“Chuangchun Kormee”) Wholley controlled by Guangzhou Kormee Shanghai Dachao Electric Technology Co., Ltd. (“Shanghai Dachao”) Ruili Group holds 49% of the equity interests in Shanghai Dachao Ruili MeiLian Air Management System (LangFang) Co., Ltd. (“Ruili Meilian”) Controlled by Ruili Group Wenzhou Lichuang Automobile Parts Co., Ltd. (“Wenzhou Lichuang”) Controlled by Ruili Group Ningbo Ruili Equipment Co., Ltd. (“Ningbo Ruili”) Controlled by Ruili Group Shanghai Ruili Real Estate Development Co., Ltd. (“Shanghai Ruili”) Wholly owned by Ruili Group Kunshan Yuetu Real Estate Development Co., Ltd. (“Kunshan Yuetu”) Collectively owned by Ruili Group and Shu Ping Chi Shanghai Tabouk Auto Components Co., Ltd. (“Shanghai Tabouk”) Collectively owned by Xiao Feng Zhang and Xiao Ping Zhang Hangzhou Ruili Property Development Co., Ltd. Collectively owned by Ruili Group and Xiao Ping Zhang Hangzhou Hangcheng Friction Material Co., Ltd. (“Hangzhou Hangcheng”) Controlled by Ruili Group Hangzhou Ruili Binkang Real Estate Development Co. Ltd. Controlled by Hangzhou Ruili Property Development Co., Ltd. Hangzhou Ruili Real Estate Group Co. Ltd. Controlled by Ruili Group The Company continues to purchase primarily packaging materials from Ruili Group. In addition, the Company purchases automotive components from other related parties, including Guangzhou Kormee, Ruian Kormee, Ruili Meilian, Shanghai Dachao, Wenzhou Lichuang, Hangzhou Hangcheng, Changchun Kormee, and molds from Ningbo Ruili used in its production. The Company sells certain automotive products to the Ruili Group. The Company also sells parts to Guangzhou Kormee, Ruian Kormee, Shanghai Tabouk, Ruili Meilian and Changchun Kormee. The following related party transactions occurred for the years ended December 31, 2018 and 2017: For the Years Ended 2018 2017 PURCHASES FROM: Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. $ 6,279,500 $ 4,487,457 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 3,371,361 1,357,612 Shanghai Dachao Electric Technology Co., Ltd. 720,489 188,899 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 8,438,181 4,106,986 Ruili Group Co., Ltd. 7,909,463 5,478,853 Chuangchun Kormee Auto Electric Co., Ltd. 20,045 — Ningbo Ruili Equipment Co., Ltd. 4,093,773 — Hangzhou Hangcheng Friction Material Co., Ltd. 1,056,860 — Wenzhou Lichuang Auto Parts Co., Ltd. 15,933,012 5,446,212 Total Purchases $ 47,822,684 $ 21,066,019 SALES TO: Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. $ 10,020,480 $ 7,467,661 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 61,172 135,911 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 1,315,649 1,253,664 Ruili Group Co., Ltd. 17,140,343 14,108,062 Chuangchun Kormee Auto Electric Co., Ltd. 59,525 — Shanghai Tabouk Auto Components Co., Ltd. 1,676,791 1,411,324 Total Sales $ 30,273,960 $ 24,376,622 As of 2018 2017 ADVANCES TO RELATED PARTIES Ruili Group Co., Ltd. 79,739,417 5,711,605 Shanghai Ruili Real Estate Development Co., Ltd. — 65,069,497 Kunshan Yuetu Real Estate Development Co., Ltd. $ — $ 1,537,122 Total $ 79,739,417 $ 72,318,224 As of Ended 2018 2017 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 261,889 $ 1,297,734 Total $ 261,889 $ 1,297,734 ACCOUNTS PREPAYMENT TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 3,670,573 $ 999,527 Total $ 3,670,573 $ 999,527 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 7,877,485 3,414,719 Shanghai Dachao Electric Technology Co., Ltd. 56,883 83,178 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 5,628,155 1,993,787 Wenzhou Lichuang Auto Parts Co., Ltd. 9,898,777 10,405,120 Chuangchun Kormee Auto Electric Co., Ltd. 9,206 — Hangzhou HangCheng Friction Material Co., Ltd. 334,694 — Total $ 23,805,200 $ 15,896,804 For the Years Ended 2018 2017 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 5,959,752 $ 1,572,963 $ 5,959,752 $ 1,572,963 From time to time, the Company borrows from Ruili Group and its controlled companies for working capital purposes. In order to obtain the loans and mutually benefit both the debtor and creditor of the arrangement, the Company also advances to Ruili Group and its controlled companies, usually in a short term. All the loans borrowed from related parties are non-interest bearing, unsecured and due on demand. The advances to Shanghai Ruili and Kunshan Yuetu are due on demand, unsecured, and bear an interest rate of 5.22% per annum. In May 2018 the Company received repayments from Shanghai Ruili and Kunshan Yuetu in full. The interests received from these two related parties amount to $741,254 and $182,270 for the years ended December 31, 2018 and 2017, respectively. The advances to Ruili Group were due on demand, unsecured, and bear no interest during the year ended December 31, 2017. In year 2018, the Company charged Ruili Group an interest on the average balance advanced to them. The Company received interests of $ 2,361,866 from Ruili Group during the year ended December 31, 2018, representing an effective interest rate of approximately 8.40% per annum. During the year ended December 31, 2018, the Company obtained net proceeds of $9,669,326 in cash from related parties. Repayments in bank acceptance notes to related parties totaled $5,097,556. In the same period, the Company provided Ruili Group net proceeds of $146,944,697, and received repayment in the form of bank acceptance notes amounted to $70,818,463. The Company also advanced to Shanghai Ruili and Kunshan Yuetu in the amounts of $49,561,855 and $15,226,835, respectively, and collected cash repayment from them in the amounts of $112,857,719 and $16,719,662, respectively. During the year ended December 31, 2017, the Company obtained loans in a total amount of $103,775,545, of which $88,197,285 was obtained from Ruili Group and $15,578,260 from Ruian Kormee. The Company also borrowed the amount of $35,706,576 in the form of bank acceptance notes from Ruili Group. Cash repayments to related parties totaled $139,482,122, including $123,903,862 to Ruili Group and $15,578,260 to Ruian Kormee. During the year ended December 31, 2017, the Company advanced to its related parties in the amount of $186,885,309, including $117,296,565 to Ruili Group, $2,185,691 to Ruian Kormee, $65,918,404 to Shanghai Ruili and $1,484,649 to Kunshan Yuetu. Cash repayments received from related parties amounted to $118,436,661, including $115,467,364 from Ruili Group and $2,969,297 from Shanghai Ruili. The Company, Ruian Kormee, and Ruili Group also agreed that Ruili Group would transfer $3,711,622 in 2017 to Ruian Kormee by adjusting their corresponding balances with the Company. The Company entered into a lease agreement with Ruili Group. See Note 18 for more details. The Company provided a guarantee for the credit line granted to Ruili Group by the China Merchants Bank in the amount of RMB 40,000,000 (approximately $5,828,185) for a period of 12 months starting on October 24, 2016. The credit line was renewed on October 19, 2017 for 6 months. On April 13, 2018, Ruili Group and the bank reached another extension agreement and the guarantee will be provided by the Company until April 12, 2019. The Company provided a guarantee for the credit line granted to Ruili Group by Bank of Ningbo in a maximum amount of RMB 210,000,000 (approximately $30,597,972) for the period from July 20, 2018 to July 20, 2028. In year 2018, the Company also has a bank deposit in the amount of RMB 20,000,000 (approximately $2,914,093) used as a guarantee for loans obtained by Wenzhou Lichuang from China Merchant Bank. The amount was included in restricted cash, current. Also see Note 2. The Company has short term bank loans guaranteed or pledged by related parties. See Note 11 for more details.

Accounts Receivable, Net

Accounts Receivable, Net	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	NOTE 5 - ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: December 31, December 31, 2018 2017 Accounts receivable $ 163,903,305 $ 148,312,117 Less: allowance for doubtful accounts (13,855,508 ) (13,927,156 ) Accounts receivable, net $ 150,047,797 $ 134,384,961 No customer individually accounted for more than 10% of our revenues or accounts receivable for the years ended December 31, 2018 and 2017. The changes in the allowance for doubtful accounts for the years ended December 31, 2018 and 2017 were summarized as follows: December 31, December 31, 2018 2017 Beginning balance $ 13,927,156 $ 11,686,417 Add: Increase (Decrease) to allowance 610,610 1,474,872 Effects on changes in foreign exchange rate (682,258 ) 765,867 Ending balance $ 13,855,508 $ 13,927,156

Inventories

Inventories	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6 - INVENTORIES On December 31, 2018 and December 31, 2017, inventories consisted of the following: December 31, December 31, 2018 2017 Raw Materials $ 53,821,973 $ 27,657,266 Work in process 89,516,949 40,805,434 Finished Goods 62,674,252 45,837,864 Less: Write-down of inventories (1,727,747 ) — Total Inventory $ 204,285,427 $ 114,300,564 The Company recorded write-down of potentially obsolete or slow-moving inventories of $808,789 and lower of cost or market adjustment of $918,958 for the year ended December 31, 2018.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 7 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following, on December 31, 2018 and 2017: December 31, December 31, 2018 2017 Machinery $ 130,912,861 $ 119,296,564 Molds 1,274,729 1,338,912 Office equipment 3,566,772 2,998,443 Vehicles 5,956,822 3,681,194 Buildings 20,610,137 20,127,148 Construction in progress 8,641,271 — Leasehold improvements 463,497 486,834 Sub-Total 171,426,089 147,929,095 Less: Accumulated depreciation (75,372,703 ) (68,101,089 ) Property, plant and equipment, net $ 96,053,386 $ 79,828,006 Depreciation expense charged to operations was $11,198,717 and $8,871,856 for the years ended December 31, 2018 and 2017, respectively. In July 2017, Ruian, a subsidiary of the Company, purchased plants and the associated land use rights from Yunding Holding Group Co., Ltd. at the purchase price of RMB 60.06 million (approximately $8.87 million). The total cost including related deed tax and stamp duty is RMB 58.95 million (approximately $8.88 million) net of value-added input tax in association with the purchase, which has been fully paid in cash as of December 31, 2017. The title of the plants and the associated land use rights was transferred to the Company in July 2017. The allocated costs for the land use rights and the plants are RMB 42.35 million (approximately $6.38 million) and RMB 16.60 million (approximately $2.50 million), respectively. The plants and associated land use rights will be used to meet Ruian’s growing operational needs and is located in the east side of the International Auto Parts District, Tangxia Town, Ruian City, Zhejiang Province, China with a land use area of 33,141 square meters and a building floor area of 25,016 square meters.

Land Use Rights, Net

Land Use Rights, Net	12 Months Ended
	Dec. 31, 2018
Land Use Rights [Abstract]
LAND USE RIGHTS, NET	NOTE 8 - LAND USE RIGHTS, NET December 31, December 31, Cost $ 22,283,776 $ 15,477,081 Less: Accumulated amortization (1,159,321 ) (564,947 ) Land use rights, net $ 21,124,455 $ 14,912,134 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. In July 2017, Ruian, a subsidiary of the Company, purchased plants and the associated land use rights from Yunding Holding Group Co., Ltd. in cash at the purchase price of RMB 60.06 million (approximately $8.87 million). The title of the plants and land use rights was transferred in July 2017. The allocated cost for the land use rights is RMB 42.35 million (approximately $6.38 million). Also see Note 7 for more details. In September 2017, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Xianghe Road and North Wansong Road, Binhai New District, Ruian City, Zhejiang Province, China with a total area of 17,029 square meters (the "Wansong Land"). The Company prepaid the amount of RMB 51.81 million (approximately $7.93 million) as full payment and RMB 20.00 million (approximately $3.01 million) as a refundable deposit. As of December 31, 2017, the deposit was refunded to the Company and the prepayment was included in prepayments, non-current in the consolidated balance sheets. The Company obtained the title to the land use rights in April 2018. In December 2017, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Fengjin Road and Wenhua Road, Binhai New District, Ruian City, Zhejiang Province, China. Prepayment of RMB 14.40 million (approximately $2.14 million) was made as down payment in 2017. During the year ended December 31, 2018, the Company paid additional amount of RMB 57.62 million (approximately $8.99 million). As of December 31, 2018, the purchase price of RMB 72.02 (approximately $11.13 million) was fully paid. As of the filing date, the title to the land use rights has not been transferred to the Company. The payments were included in prepayment, non-current as of December 31, 2018 on the accompanying consolidated balance sheets. In April 2018, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Tengda Road and Wanghai Road, Economic Development District, Ruian City, Zhejiang Province, China. Prepayment of RMB 42.54 million (approximately $6.43 million) was made during the year ended December 31, 2018. As of the filing date, the title to the land use rights has not been transferred to the Company. The payments were included in prepayment, non-current as of December 31, 2018 on the accompanying consolidated balance sheets. Amortization expenses were $636,717 and $379,121 for the years ended December 31, 2018 and 2017, respectively.

Prepayments

Prepayments	12 Months Ended
	Dec. 31, 2018
Prepayments [Abstract]
PREPAYMENTS	NOTE 9 - PREPAYMENTS Prepayments consisted of the following as of December 31, 2018 and 2017: December 31, December 31, Raw material suppliers $ 7,776,591 $ 8,826,004 Equipment and land use rights purchases 31,575,238 16,594,987 Total prepayments $ 39,351,829 $ 25,420,991 As of December 31, 2018, prepayments to raw material suppliers totaled $7,776,591, including prepayments to Ningbo Ruili, a related party under common control, in the amount of $3,670,573. Also see Note 4 for details. As of December 31, 2018 and 2017, the Company has prepayments of RMB 100.16 million (approximately $15.42 million) and RMB 66.21 million (approximately $10.07 million), respectively, for the land use rights as described in Note 8.

Deferred Tax Assets and Deferre

Deferred Tax Assets and Deferred Tax Liabilities	12 Months Ended
	Dec. 31, 2018
Components of Deferred Tax Assets and Liabilities [Abstract]
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES	NOTE 10- DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES Deferred tax assets as of December 31, 2018 and 2017 comprise of the following: December 31, December 31, 2018 2017 Deferred tax assets Allowance for doubtful accounts $ 2,205,048 $ 2,137,837 Revenue (net of cost) 308,046 160,766 Unpaid accrued expenses 501,276 955,287 Warranty 1,059,468 986,534 Deferred tax assets 4,073,838 4,240,424 Valuation allowance ― ― Net deferred tax assets $ 4,073,838 $ 4,240,424 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's subsidiary registered in the PRC is subject to income taxes within the PRC at the applicable tax rate. In December 2017, the Tax Cuts and Jobs Act (the "2017 Tax Act") was enacted into law. The 2017 Tax Act includes provisions for a new tax on global intangible low-taxed income ("GILTI") effective for tax years beginning after December 31, 2017. The GILTI provision imposes a tax to U.S. companies on the foreign income in excess of a deemed return on tangible assets of controlled foreign corporations, subject to certain deductions and limitations. The Company will report the tax impact of GILTI as a period cost when incurred. Accordingly, the Company is not providing deferred taxes for basis differences expected to reverse as GILTI in the future, as applicable. See Note 16 for more discussion. Prior to the enactment of the 2017 Tax Act, the Company's U.S. subsidiary did not have income tax liability.

Short Term Bank Loans

Short Term Bank Loans	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
SHORT TERM BANK LOANS	NOTE 11 - SHORT TERM BANK LOANS Bank loans represented the following as of December 31, 2018 and 2017: December 31, December 31, 2018 2017 Secured $ 217,940,471 $ 125,380,899 Total short term bank loan $ 217,940,471 $ 125,380,899 The Company obtained those short term loans from Bank of China, Bank of Ningbo, Agricultural Bank of China, China Minsheng Bank, Industrial Bank, China Citic bank and China Construction Bank, respectively, to finance general working capital as well as new equipment acquisition. Interest rate for the loans outstanding during the year ended December 31, 2018 ranged from 1.35% to 5.44% per annum. The maturity dates of the loans existing as of December 31, 2018 ranged from January 22, 2019 to December 28, 2019. As of December 31, 2018 and 2017, the Company’s accounts receivables of $0 and $5,472,169, respectively, were pledged as collateral under loan arrangements. The interest expenses, including discount fees, were $9,780,598 and $2,752,579 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, corporate or personal guarantees provided for those bank loans were as follows: $5,602,601 Guaranteed by Ruili Group, a related party $31,445,575 Pledged by Ruili Group, a related party, with its plant and land use rights $14,570,463 Pledged by Hangzhou Ruili Property Development Co., Ltd., a related party, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $5,099,662 Pledged by Hangzhou Ruili Property Development Co., Ltd., a related party, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Guaranteed by Ruili Group, a related party $2,914,093 Pledged by the Company with its bank acceptance notes $8,742,278 Pledged by the Company with its plant; Guaranteed by Hangzhou Ruili Property Development Co., Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $2,112,717 Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party, with its properties; Guaranteed by Hangzhou Ruili Property Development Co., Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $41,525,819 Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Pledged by Hangzhou Ruili Property Development Co., Ltd., a related party, with its properties; Pledged by Hangzhou Ruili Real Estate Group Ltd., a related party, with stocks rights $2,914,093 Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Pledged by Shanghai Ruili Real Estate, a related party, with its properties $32,055,018 Pledged by Shanghai Ruili Real Estate, a related party, with its properties; Guaranteed by Shanghai Ruili Real Estate, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $7,065,217 Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $2,405,583 Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders.; Pledged by Ruili Group, a related party, with its properties $2,404,126 Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Pledged by Ruili Group, a related party, with its properties $801,375 Guaranteed by Ruili Group, a related party; Guaranteed by Hangzhou Ruili Property Development Co., Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders $58,281,851 Pledged by Shanghai Ruili, a related party, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 12 - ACCRUED EXPENSES Accrued expenses consisted of the following as of December 31, 2018 and 2017: December 31, December 31, Accrued payroll $ 11,679,870 $ 11,063,726 Accrued warranty expenses 7,063,122 6,576,895 Other accrued expenses 5,302,910 7,514,037 Total accrued expenses $ 24,045,902 $ 25,154,658

Long Term Loans

Long Term Loans	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
LONG TERM LOANS	NOTE 13 - LONG TERM LOANS December 31, December 31, Aggregate outstanding principal balance $ 36,165,550 $ 63,471,308 Less: unamortized debt issuance costs (595,117 ) (1,822,053 ) Less: current portion (21,141,029 ) (24,266,031 ) Non-current portion $ 14,429,404 $ 37,383,224 In November 2017, the Company entered into two identical but independent loan agreements with Far Eastern Horizon Co., Ltd. (“Far Eastern”), each for a term of 36 months and with an effective interest rate of 8.38% per annum, payable monthly in arrears. The total long term obligations under the two agreements amounted to RMB 200,000,000 (approximately $30,608,185), pledged by the Company’s equipment in the original cost of RMB 205,690,574 (approximately $31,479,075). In connection with the loan agreements, the Company paid deposits in cash for an aggregated amount of RMB 35,000,000 (approximately $5,196,271), with an annual interest of 7% for 42 months to be received from Far Eastern. During the year ended December 31, 2017, the total proceeds of long term loans included cash of RMB 100,000,000 (approximately $14,846,488) and bank acceptance notes in the amount of RMB 100,000,000 (approximately $14,846,487). The Company also paid debt issuance costs in cash of RMB 5,000,000 (approximately $742,324). The repayments of principal totaled RMB 66,524,366 (approximately $9,931,000) and RMB 10,776,491 (approximately $1,599,930) for the years ended December 31, 2018 and 2017, respectively. The Company also received interest of RMB 1,986,849 (approximately $296,600) from Far Eastern during the year ended December 31, 2018. In November 2017, the Company entered into four independent loan agreements with COSCO Shipping Leasing Co., Ltd. (“COSCO”) for a term of 36 months each. Two of the agreements were signed on November 30, 2017 with an effective interest rate of 8.50% per annum, payable monthly in arrears. The other two agreements were entered into on November 15, 2017, with an effective interest rate of 4.31% per annum, payable monthly in arrears. The total long term obligations under the four agreements amounted to RMB 235,000,000 (approximately $35,964,617), pledged by the Company’s equipment in the original cost of RMB 238,333,639 (approximately $36,474,800). Total proceeds under these loan agreements, net of deposits on loan agreements of $5,196,271 which was deducted by COSCO, totaled $29,692,975, including cash of RMB 100,000,000 (approximately $14,846,487) and bank acceptance notes in the amount of RMB 100,000,000 (approximately $14,846,488). The Company also paid debt issuance costs in cash of RMB7,320,000 (approximately $1,025,248). The repayments of principal totaled RMB 99,998,463 (approximately $14,928,000) and RMB 9,489,290 (approximately $$1,408,826) for the years ended December 31, 2018 and 2017, respectively. The interest expense for long term loans was in the amount of $3,267,868 and $347,817 for the years ended December 31, 2018 and 2017, respectively. The following table summarizes the aggregate required repayments of principal amounts of the Company’s long term loans in the succeeding five years and thereafter: Amount For the years ending December 31, 2019 $ 21,647,158 2020 14,518,392 Total $ 36,165,550

Revenues from Contracts with Cu

Revenues from Contracts with Customers	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUES FROM CONTRACTS WITH CUSTOMERS	NOTE 14 - REVENUES FROM CONTRACTS WITH CUSTOMERS The Company accounted for revenue in accordance with ASC 606, which was adopted on January 1, 2018, using full retrospective method. The adoption of the standard did not impact the Company's revenue recognition. The Company provides a variety of standard products to its customers. The Company's contracts with its customers consist of a single, distinct performance obligation or promise to transfer auto parts to the customers. Generally, the Company's performance obligations are satisfied at a point in time when the control of the products is transferred to the customs, which normally occurs upon the delivery of products at shipping point or destination depending on the terms of the contracts. Payment term with our customers are established based on industry and regional practices and vary by customers. The Company elected to treat shipping and handling activities as fulfillment activities, and the related costs are recorded as selling expenses. The Company provides assurance type warranties, which are not separate performance obligations. See Note 19 for details concerning the expected costs associated with the Company's assurance warranty obligations. In accordance with ASC 606, the Company disaggregates revenue from contracts with customers by product type. See Note 20 for information regarding revenue disaggregation by product type. Deferred revenue is recorded when consideration is received from a customer prior to transferring goods to the customer under the terms of a sales contract. As of the years ended December 31, 2018 and 2017, the Company recorded a deferred revenue liability of $51,529,795 and $43,087,473, respectively, which was presented as "Deposits received from customers" on the accompanying consolidated balance sheets. During the years ended December 31, 2018 and 2017, the Company recognized $24,659,985 and $13,719,045, respectively, of deferred revenue included in the opening balances of deposits received from customers. The amounts were included in sales on the accompanying consolidated statements of income and comprehensive income.

Reserve

Reserve	12 Months Ended
	Dec. 31, 2018
Reserve [Abstract]
RESERVE	NOTE 15 - RESERVE The reserve funds were comprised of the following: December 31, December 31, Statutory surplus reserve fund $ 20,007,007 $ 17,562,357 Total $ 20,007,007 $ 17,562,357 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, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 16 - INCOME TAXES In December 2017, the Tax Cuts and Jobs Act (the "2017 Tax Act") was enacted into law and the new legislation contains several key tax provisions that affected the Company, including, among others, a reduction of the federal corporate income tax rate to 21% effective January 1, 2018, and a recognition of the U.S. corporate income tax based on the deemed repatriation to the United States of the Company's share of previously deferred earnings of certain non-U.S. subsidiaries of the Company upon enactment of the 2017 Tax Act. The Company is required to recognize the effect of the 2017 Tax Act in the period of enactment. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), Income Tax Accounting Implications of the 2017 Tax Act, which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. During the three months ended September 30, 2018, the Company recognized a one-time transition tax of $11,022,985 that represented management's estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company's share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company also recognized related interest and penalty in the amount of $587,821. The Company elected to pay the one-time transition tax over eight years commencing in 2018. The actual impact of the U.S. Tax Reform on the Company may differ from management's estimates, and management may update its judgments based on future regulations or guidance issued or changes in the interpretations taken that would adjust the provisional amounts recorded. As of December 31, 2018, $2,451,499 was included in income tax payable as a current liability which the Company believes will be paid within one year and the remaining balance was included in income tax payable, non-current. As of the filing date, no transition tax payment has been made. The 2017 Tax Act also created a new requirement that, for the periods beginning after January 1, 2018, certain income (referred to as global intangible low-taxed income or "GILTI") earned by foreign subsidiaries in excess of a deemed return on tangible assets of foreign corporations must be included in U.S. taxable income. The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules – the period cost method, or (ii) account for GILTI in a company's measurement of deferred taxes – the deferred method. The Company elected to account for GILTI in the period the tax is incurred. The Company did not generate any GILTI during the year ended December 31, 2018. 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 2015, the Joint Venture was awarded the Chinese government's "High-Tech Enterprise" designation for a third time, which is valid for three years and it continues to be taxed at the 15% tax rate in 2015, 2016 and 2017. As the "High-Tech Enterprise" designation expired in 2018, the Joint Venture is undergoing the re-assessment by the government and the Company estimates it is highly probable that the designation will be awarded and therefore the 15% tax rate is used for the years ended December 31, 2018. The reconciliation of the effective income tax rate of the Company to the respective statutory income tax rates in the United States and the PRC for the years ended December 31, 2018 and 2017 is as follows: Years Ended December 31, 2018 2017 US statutory income tax rate 21.00 % 35.00 % Valuation allowance recognized with respect to the loss in the US company -21.00 % -35.00 % Impact of Tax Cuts and Jobs Act 37.45 % - China statutory income tax rate 25.00 % 25.00 % Effects of income tax exemptions and reliefs -10.00 % -10.00 % Effects of additional deduction allowed for R&D expenses -4.42 % -2.34 % Effects of expenses not deductible for tax purposes 2.32 % 0.79 % Other items 0.22 % 1.41 % Effective tax rate 50.58 % 14.86 % 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. The provisions for income taxes for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: Years Ended December 31, 2018 2017 Current $ 15,852,188 $ 5,524,868 Deferred (37,588 ) (807,058 ) Total $ 15,814,600 $ 4,717,810 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, 2018 and 2017.

Non-Controlling Interest in Sub

Non-Controlling Interest in Subsidiaries	12 Months Ended
	Dec. 31, 2018
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% non-controlling interest, owned by Ruili Group Co., Ltd., in Ruian. Net income attributable to non-controlling interest in subsidiaries amounted to $2,716,278 and $2,702,691 for the years ended December 31, 2018 and 2017, respectively. 2018 2017 10% non-controlling interest in Ruian $ 2,716,278 $ 2,702,691 Total $ 2,716,278 $ 2,702,691

Operating Leases

Operating Leases	12 Months Ended
	Dec. 31, 2018
Leases, Operating [Abstract]
OPERATING LEASES	NOTE 18 - OPERATING LEASES In December 2006, Ruian entered into a lease agreement with Ruili Group Co., Ltd., a related party, for the lease of two apartment buildings. These two apartment buildings are for Ruian's management personnel and staff, respectively. The initial lease term was 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 (approximately $305,980). In November 2016, Ruian entered into a lease agreement with Rui'an Xinhua Auto Parts Co., Ltd. for the lease of four complex building. These buildings are used as staff dormitories by Rui'an. The initial lease term was from November 15, 2016 to December 31, 2017. The lease was renewed to December 31, 2019. The annual lease expense is RMB 1,910,000 (approximately $278,295). The lease expenses were $668,088 and $311,776 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, future minimum rental payments are as follows: 2019 2020 2021 2022 Thereafter Operating Lease Commitments $ 584,276 $ 305,980 $ 305,980 $ 305,980 $ -

Warranty Liability

Warranty Liability	12 Months Ended
	Dec. 31, 2018
Warranty Claims [Abstract]
WARRANTY LIABILITY	NOTE 19 - WARRANTY LIABILITY Accrued warranty expenses are included in accrued expenses on the accompanying consolidated balance sheets. The movements of accrued warranty expenses for the year ended December 31, 2018 are as follows: Beginning balance at January 1, 2018 $ 6,576,895 Aggregate increase for new warranties issued during current period 3,113,913 Aggregate reduction for payments made and effect of exchange rate fluctuation 3,453,934 Ending balance at December 31, 2018 $ 7,063,122

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2018
Segment Reporting [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. The Company and its subsidiaries do not have long-lived assets in the United States for the reporting periods. 2018 2017 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 386,181,206 $ 330,201,227 Passenger vehicles brake systems 81,868,700 60,321,342 Net sales $ 468,049,906 $ 390,522,569 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 96,475,100 $ 89,355,410 Passenger vehicles brake systems 26,040,791 14,830,792 Gross profit $ 122,515,891 $ 104,186,202 Selling and distribution expenses 55,158,703 39,067,566 General and administrative expenses 26,939,370 22,023,338 Research and development expenses 16,366,393 11,004,560 Other operating income, net 10,122,416 3,039,824 Income from operations 34,173,841 35,130,562 Interest income 6,052,416 232,466 Government grants 4,307,609 2,264,055 Other income 260,448 101,475 Interest expenses (13,570,956 ) (3,100,396 ) Other expenses 43,219 (2,883,440 ) Income before income tax expense $ 31,266,577 $ 31,744,722 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 45,877,053 $ 44,185,254 Passenger vehicles brake systems 9,724,756 8,074,065 Total $ 55,601,809 $ 52,259,319 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 9,768,105 $ 7,828,921 Passenger vehicles brake systems 2,070,587 1,430,595 Total $ 11,838,692 $ 9,259,516 December 31, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 655,435,946 $ 492,348,129 Passenger vehicles brake systems 138,935,580 89,967,813 Total $ 794,371,526 $ 582,315,942 December 31, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 150,067,034 $ 106,779,681 Passenger vehicles brake systems 31,810,355 19,512,076 Total $ 181,877,389 $ 126,291,757

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 21 - COMMITMENTS AND CONTINGENCIES (1) The Company purchased the Dongshan Facility from Ruili Group in 2007 and subsequently transferred the plants and land use right to Ruili Group. The Company has never obtained the land use rights certificate nor the property ownership certificate of the building for the Dongshan Facility. The Company reserved the relevant tax amount of RMB 4,560,000 (approximately $745,220). This amount was determined based on a 3% tax rate on the consideration paid for the Dongshan Facility in the transaction, which the Company considered as the most probable amount of tax liability. The Dongshan Facility was transferred back to Ruili Group on May 5, 2016. (2) The Company purchased the Development Zone Facility from Ruili Group on May 5, 2016. As of the filing date, the Company has not yet obtained the land use rights certificate or the property ownership certificate for the building of the Development Zone Facility. The Company reserved the relevant tax amount of RMB 15,030,000 (approximately $2,300,205). This amount was determined based on a 3% tax rate on the consideration paid for the Development Zone Facility, which the Company considered as the most probable amount of tax liability. (3) The information of lease commitments is provided in Note 18. (4) The information of guarantees and assets pledged is provided in Note 4.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 22 - SUBSEQUENT EVENTS During the subsequent period, the Company obtained short term loans in the total amount of approximately $98.0 million from China Construction Bank, Agricultural Bank of China, China Zheshang Bank and Industrial Bank. Interest rates for those loans ranged from 3.53% to 5.35% per annum. The maturity dates of the loans existing as of the filing date ranged from January 2, 2019 to January 30, 2020. The Company continuously pledged bank acceptance notes to obtain loans from China Zheshang Bank and Bank of Ningbo. In the same period, the Company repaid loan principals and interest expenses in the total amount of approximately $109.6 million to China Citic bank, China Construction Bank, China Zheshang Bank, and Agricultural Bank of China. On February 12, 2019 the Company entered into a guarantee agreement with China Guangfa Bank, pursuant which the Company agreed to provide a maximum guarantee in the amount of RMB 71,000,000 (approximately $10,345,029) for Ruili Group from February 12, 2019 to January 16, 2020. During the subsequent period, the Company continued to advance to Ruili Group. See Note 4 for detail arrangement between the Company and Ruili Group.

Additional Information-Financia

Additional Information-Financial Statement Schedule I	12 Months Ended
	Dec. 31, 2018
Additional Information-Financial Statement Schedule I [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, 2018 and 2017 December 31, December 31, ASSETS Current Assets: Cash and cash equivalents $ - $ - Other current assets 86,828 86,828 Total Current Assets 86,828 86,828 Investments in subsidiaries 184,632,301 160,185,796 TOTAL ASSETS $ 184,719,129 $ 160,272,624 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Income tax payable – non-current 2,451,499 - Other current liability 2,921,411 2,921,411 Total Current Liabilities 5,372,910 2,921,411 Income tax payable - noncurrent 9,259,307 - Total Non-current Liabilities Total Liabilities 14,632,217 2,921,411 Stockholders’ Equity: Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2018 and 2017 - - Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2018 and 2017 38,609 38,609 Additional paid-in capital (28,582,654 ) (28,582,654 ) Retained earnings 198,630,957 185,895,258 Total Stockholders’ Equity 170,086,910 157,351,213 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 184,719,129 $ 160,272,624 Financial Information of Parent Company STATEMENTS OF INCOME For the Years Ended December 31, 2018 and 2017 For Years Ended 2018 2017 Investment income $ 24,446,505 $ 24,324,221 Provision for income taxes 11,710,806 - Net income attributable to stockholders $ 12,735,699 $ 24,324,221 Weighted average common share - Basic 19,304,921 19,304,921 Weighted average common share - Diluted 19,304,921 19,304,921 EPS - Basic $ 0.66 $ 1.26 EPS - Diluted $ 0.66 $ 1.26 Financial Information of Parent Company STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2018 and 2017 For Years Ended 2018 2017 Cash flow from operating activities: Net income $ 12,735,699 $ 24,324,221 Adjustments to reconcile net income to net cash used in operating activities : Investment in subsidiaries (24,446,505 ) -24,324,221 Income tax payable 11,710,806 Net cash used in operating activities - - Net change in cash and cash equivalents - - Cash and cash equivalents, beginning of the year - - Cash and cash equivalents, end of the year $ - $ - Financial Information of Parent Company STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For the Years Ended December 31, 2018 and 2017 Additional Number Common Paid-in Retained Shareholders’ of Share Stock Capital Earnings Equity Balance - December 31, 2016 19,304,921 38,609 42,199,014 161,571,037 133,026,992 Net income - - - 24,324,221 24,324,221 Balance - December 31, 2017 19,304,921 38,609 42,199,014 185,895,258 157,351,213 Net income - - 12,735,699 12,735,699 Balance - December 31, 2018 19,304,921 38,609 42,199,014 198,630,957 170,086,912

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
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	b. 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 income and comprehensive income 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 non-controlling interests in subsidiary undertakings is reflected in the consolidated statements of income and comprehensive income.
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, accounts receivables and payables, prepaid expenses, bank acceptance notes from customers, inventories, other current assets, short term bank loans, current portion of long term loans, deposits received from customers and other payables and accruals, the carrying amounts approximate fair values due to their short maturities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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.
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 - Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents and accounts receivable arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. 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 10.00% of its total revenues for the year ended December 31, 2018. 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 2018 ranged from 1.92% to 5.72% and the term ranged from approximately one month to one year. The Company also obtained long term loans from non-financial institutions for effective interest rates ranging from 6.16% to 8.50%. The Company’s income and cash flows are substantially independent of changes in market interest rates.
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.
RESTRICTED CASH	h . RESTRICTED CASH Restricted cash, current consists of bank deposits used to pledge bank acceptance notes, deposits for obtaining letters of credit from a local bank, and bank deposit held as a guarantee for the loans obtained by Wenzhou Lichuang Automobile Parts Co., Ltd., a related party, from the bank. Also see Note 4 for details on the guarantee provided to related party. Restricted cash, non-current consists of deposits guaranteed for construction projects and the non-current portion of some bank deposits used to pledge for bank acceptance notes.
INVENTORIES	i . 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	j . 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. 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 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	k . 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 40 years.
IMPAIRMENT OF LONG-LIVED ASSETS	l . 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.
ACCOUNTS RECEIVABLES AND ALLOWANCE FOR BAD DEBTS	m . 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. The allowances are calculated based on a detailed review of certain individual customer accounts, historical collectability rates, a general provision based on aging 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.
BANK ACCEPTANCE NOTES FROM CUSTOMERS	n . BANK ACCEPTANCE NOTES FROM CUSTOMERS Bank acceptance notes from customers, generally due within six months and with specific payment terms and definitive due dates, are comprised of the notes issued by some customers to pay certain outstanding receivable balances to the Company, and the notes issued by the customers of related parties and transferred to the Company as loans from related parties or repayments from related parties. Bank acceptance notes do not bear interest. As of December 31, 2018 and 2017, notes receivables in the amount of $58,458,890 and $95,914,724, respectively, were pledged to endorsing banks to issue bank acceptance notes or short term bank loans. The banks charge discount fees if the Company chooses to discount the notes receivables for cash before the maturity of the notes. The Company incurred discount fees of $1,463,837 and $37,177 for the years ended December 31, 2018 and 2017, respectively, which were included in interest expenses.
REVENUE RECOGNITION	o . REVENUE RECOGNITION The Company has adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“ASC 606”) effective January 1, 2018. The Company has chosen to use the full retrospective transition method, under which it is required to revise its consolidated financial statements for the year ended December 31, 2017 as well as any applicable interim periods within the year ended December 31, 2017, as if ASC 606 had been effective for those periods. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for the goods. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. See Note 14 for details on revenues from contracts with customers.
INCOME TAXES	p . INCOME TAXES The Company accounts for income taxes under the provision of FASB ASC 740-10, Income Taxes
FOREIGN CURRENCY TRANSLATION	q . FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC, The Company’s functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company’s reporting currency, U.S. dollars (“US$”). 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 average exchange rates during the period. 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.
EMPLOYEES’ BENEFITS	r . 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	s . RESEARCH AND DEVELOPMENT EXPENSES Research and development costs are expensed as incurred. Research and development expenses were $16,366,393 for the year ended December 31, 2018, as compared with $11,004,560 for the year ended December 31, 2017.
SHIPPING AND HANDLING COSTS	t . SHIPPING AND HANDLING COSTS Shipping and handling cost are classified as selling expenses and are expensed as incurred. Shipping and handling costs were $11,358,223 and $7,094,863 for the years ended December 31, 2018 and 2017, respectively.
ADVERTISING COSTS	u . ADVERTISING COSTS Advertising costs are classified as selling expenses and are expensed as incurred. Advertising costs were $737,530 and $440,582 for the years ended December 31, 2018 and 2017, respectively.
WARRANTY CLAIMS	v . 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 $3,113,913 and $1,570,290 for the years ended December 31, 2018 and 2017, respectively.
PURCHASE DISCOUNTS	w . 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	x . LEASE COMMITMENTS The Company has adopted FASB Accounting Standard Codification, or ASC 840, Lease
COST OF SALES	y . 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	z . 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 deferred income and then offset against the cost of the related equipment upon acquisition.
SEGMENT REPORTING	aa. 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, 2018 and 2017, the Company operated in two reportable business segments: (1) commercial vehicles brake systems (2) passenger vehicles brake systems.
RECENTLY ISSUED FINANCIAL STANDARDS	bb. RECENTLY ISSUED FINANCIAL STANDARDS In May 2014, the FASB ASU 2014-9, “Revenue from Contracts with Customers (Topic 606)”, which was further updated by ASU 2016-08 in March 2016, ASU 2016-10 in April 2016, ASU 2016-11 in May 2016, ASU 2016-12 in May 2016 and ASU 2016-20 in December 2016. ASC 606 outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP and supersedes the revenue recognition guidance existed at the time. The main principle of ASC 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company applied the ASC and its related updates on a full retrospective basis as of January 1, 2018. The adoption of ASC 606 did not impact the previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to retained earnings. See Note 14 for additional information. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 effective January 1, 2018. As a result of the adoption, net cash used in investing activities was adjusted to exclude the change in restricted cash, resulting in an increase of $5,275,390 in net cash used in investing activities in the amount previously reported for the year ended December 31, 2017. Restricted cash was included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. The amendments in this ASU add SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The Company adopted this standard and evaluated the impact from the Tax Cut and Jobs Act pursuant to SAB 118, see Note 16 for further disclosures. In July 2018, the FASB issued ASU 2018-09, “Codification Improvements”, which affects a wide variety of Topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. These amendments represent changes to clarify, correct errors in, or make minor improvements to the Codification, eliminating inconsistencies and providing clarifications in current guidance. Some of the amendments do not require transition guidance and will be effective upon issuance. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018 and December 2018, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 respectively, which contain modifications and improvements to ASU 2016-02. ASU 2018-11 provides another transition method in addition to the existing transition method by allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This ASU also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the non-lease component or components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the non-lease component(s) and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. The Company will adopt this new guidance for the year ending December 31, 2019 and interim periods in the year ending December 31, 2019. The Company estimates that approximately $1,163,000 would be recognized as total right-of-use assets and total lease liabilities on our consolidated balance sheet as of January 1, 2019. Other than as disclosed above, the Company does not expect the new standard to have a material impact on its remaining consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the potential impacts of ASU 2018-13 on its consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Schedule of estimated useful life	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, 2018
Related Party Transactions [Abstract]
Schedule of nature of relationship under related party transactions	Name of Related Party Nature of Relationship Xiao Ping Zhang Principal shareholder, Chairman of the Board and Chief Executive Officer Shu Ping Chi Shareholder, member of the Board, wife of Xiao Ping Zhang Xiao Feng Zhang Shareholder, member of the Board, brother of Xiao Ping Zhang Ruili Group Co., Ltd. (“Ruili Group”) 10% shareholder of Joint Venture and is collectively controlled by Xiao Ping Zhang, Shu Ping Chi, and Xiao Feng Zhang Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. (“Guangzhou Kormee”) Controlled by Ruili Group Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. (“Ruian Kormee” and formerly known as “Ruian Kormee Automobile Braking Co., Ltd.”) Wholly controlled by Guangzhou Kormee Chuangchun Kormee Auto Electric Co., Ltd. (“Chuangchun Kormee”) Wholley controlled by Guangzhou Kormee Shanghai Dachao Electric Technology Co., Ltd. (“Shanghai Dachao”) Ruili Group holds 49% of the equity interests in Shanghai Dachao Ruili MeiLian Air Management System (LangFang) Co., Ltd. (“Ruili Meilian”) Controlled by Ruili Group Wenzhou Lichuang Automobile Parts Co., Ltd. (“Wenzhou Lichuang”) Controlled by Ruili Group Ningbo Ruili Equipment Co., Ltd. (“Ningbo Ruili”) Controlled by Ruili Group Shanghai Ruili Real Estate Development Co., Ltd. (“Shanghai Ruili”) Wholly owned by Ruili Group Kunshan Yuetu Real Estate Development Co., Ltd. (“Kunshan Yuetu”) Collectively owned by Ruili Group and Shu Ping Chi Shanghai Tabouk Auto Components Co., Ltd. (“Shanghai Tabouk”) Collectively owned by Xiao Feng Zhang and Xiao Ping Zhang Hangzhou Ruili Property Development Co., Ltd. Collectively owned by Ruili Group and Xiao Ping Zhang Hangzhou Hangcheng Friction Material Co., Ltd. (“Hangzhou Hangcheng”) Controlled by Ruili Group Hangzhou Ruili Binkang Real Estate Development Co. Ltd. Controlled by Hangzhou Ruili Property Development Co., Ltd. Hangzhou Ruili Real Estate Group Co. Ltd. Controlled by Ruili Group
Schedule of related party transactions	For the Years Ended 2018 2017 PURCHASES FROM: Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. $ 6,279,500 $ 4,487,457 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 3,371,361 1,357,612 Shanghai Dachao Electric Technology Co., Ltd. 720,489 188,899 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 8,438,181 4,106,986 Ruili Group Co., Ltd. 7,909,463 5,478,853 Chuangchun Kormee Auto Electric Co., Ltd. 20,045 — Ningbo Ruili Equipment Co., Ltd. 4,093,773 — Hangzhou Hangcheng Friction Material Co., Ltd. 1,056,860 — Wenzhou Lichuang Auto Parts Co., Ltd. 15,933,012 5,446,212 Total Purchases $ 47,822,684 $ 21,066,019 SALES TO: Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. $ 10,020,480 $ 7,467,661 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 61,172 135,911 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 1,315,649 1,253,664 Ruili Group Co., Ltd. 17,140,343 14,108,062 Chuangchun Kormee Auto Electric Co., Ltd. 59,525 — Shanghai Tabouk Auto Components Co., Ltd. 1,676,791 1,411,324 Total Sales $ 30,273,960 $ 24,376,622 As of 2018 2017 ADVANCES TO RELATED PARTIES Ruili Group Co., Ltd. 79,739,417 5,711,605 Shanghai Ruili Real Estate Development Co., Ltd. — 65,069,497 Kunshan Yuetu Real Estate Development Co., Ltd. $ — $ 1,537,122 Total $ 79,739,417 $ 72,318,224 As of Ended 2018 2017 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 261,889 $ 1,297,734 Total $ 261,889 $ 1,297,734 ACCOUNTS PREPAYMENT TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 3,670,573 $ 999,527 Total $ 3,670,573 $ 999,527 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 7,877,485 3,414,719 Shanghai Dachao Electric Technology Co., Ltd. 56,883 83,178 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 5,628,155 1,993,787 Wenzhou Lichuang Auto Parts Co., Ltd. 9,898,777 10,405,120 Chuangchun Kormee Auto Electric Co., Ltd. 9,206 — Hangzhou HangCheng Friction Material Co., Ltd. 334,694 — Total $ 23,805,200 $ 15,896,804 For the Years Ended 2018 2017 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 5,959,752 $ 1,572,963 $ 5,959,752 $ 1,572,963

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2018
Accounts Receivable, Net [Abstract]
Schedule of accounts receivable	December 31, December 31, 2018 2017 Accounts receivable $ 163,903,305 $ 148,312,117 Less: allowance for doubtful accounts (13,855,508 ) (13,927,156 ) Accounts receivable, net $ 150,047,797 $ 134,384,961
Schedule of allowance for doubtful accounts	December 31, December 31, 2018 2017 Beginning balance $ 13,927,156 $ 11,686,417 Add: Increase (Decrease) to allowance 610,610 1,474,872 Effects on changes in foreign exchange rate (682,258 ) 765,867 Ending balance $ 13,855,508 $ 13,927,156

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	December 31, December 31, 2018 2017 Raw Materials $ 53,821,973 $ 27,657,266 Work in process 89,516,949 40,805,434 Finished Goods 62,674,252 45,837,864 Less: Write-down of inventories (1,727,747 ) — Total Inventory $ 204,285,427 $ 114,300,564

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	December 31, December 31, 2018 2017 Machinery $ 130,912,861 $ 119,296,564 Molds 1,274,729 1,338,912 Office equipment 3,566,772 2,998,443 Vehicles 5,956,822 3,681,194 Buildings 20,610,137 20,127,148 Construction in progress 8,641,271 — Leasehold improvements 463,497 486,834 Sub-Total 171,426,089 147,929,095 Less: Accumulated depreciation (75,372,703 ) (68,101,089 ) Property, plant and equipment, net $ 96,053,386 $ 79,828,006

Land Use Rights, Net (Tables)

Land Use Rights, Net (Tables)	12 Months Ended
	Dec. 31, 2018
Land Use Rights [Abstract]
Schedule of land rights	December 31, December 31, Cost $ 22,283,776 $ 15,477,081 Less: Accumulated amortization (1,159,321 ) (564,947 ) Land use rights, net $ 21,124,455 $ 14,912,134

Prepayments (Tables)

Prepayments (Tables)	12 Months Ended
	Dec. 31, 2018
Prepayments [Abstract]
Schedule of prepayments	December 31, December 31, Raw material suppliers $ 7,776,591 $ 8,826,004 Equipment and land use rights purchases 31,575,238 16,594,987 Total prepayments $ 39,351,829 $ 25,420,991

Deferred Tax Assets and Defer_2

Deferred Tax Assets and Deferred Tax Liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Components of Deferred Tax Assets and Liabilities [Abstract]
Schedule of deferred tax assets and liabilities	December 31, December 31, 2018 2017 Deferred tax assets Allowance for doubtful accounts $ 2,205,048 $ 2,137,837 Revenue (net of cost) 308,046 160,766 Unpaid accrued expenses 501,276 955,287 Warranty 1,059,468 986,534 Deferred tax assets 4,073,838 4,240,424 Valuation allowance ― ― Net deferred tax assets $ 4,073,838 $ 4,240,424

Short Term Bank Loans (Tables)

Short Term Bank Loans (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of bank loans	December 31, December 31, 2018 2017 Secured $ 217,940,471 $ 125,380,899 Total short term bank loan $ 217,940,471 $ 125,380,899

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
Schedule of accrued expenses	December 31, December 31, Accrued payroll $ 11,679,870 $ 11,063,726 Accrued warranty expenses 7,063,122 6,576,895 Other accrued expenses 5,302,910 7,514,037 Total accrued expenses $ 24,045,902 $ 25,154,658

Long Term Loans (Tables)

Long Term Loans (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of long term loan	December 31, December 31, Aggregate outstanding principal balance $ 36,165,550 $ 63,471,308 Less: unamortized debt issuance costs (595,117 ) (1,822,053 ) Less: current portion (21,141,029 ) (24,266,031 ) Non-current portion $ 14,429,404 $ 37,383,224
Schedule of long term loan succeeding	Amount For the years ending December 31, 2019 $ 21,647,158 2020 14,518,392 Total $ 36,165,550

Reserve (Tables)

Reserve (Tables)	12 Months Ended
	Dec. 31, 2018
Reserve [Abstract]
Schedule of reserve	December 31, December 31, Statutory surplus reserve fund $ 20,007,007 $ 17,562,357 Total $ 20,007,007 $ 17,562,357

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of reconciliation effective income tax rate	Years Ended December 31, 2018 2017 US statutory income tax rate 21.00 % 35.00 % Valuation allowance recognized with respect to the loss in the US company -21.00 % -35.00 % Impact of Tax Cuts and Jobs Act 37.45 % - China statutory income tax rate 25.00 % 25.00 % Effects of income tax exemptions and reliefs -10.00 % -10.00 % Effects of additional deduction allowed for R&D expenses -4.42 % -2.34 % Effects of expenses not deductible for tax purposes 2.32 % 0.79 % Other items 0.22 % 1.41 % Effective tax rate 50.58 % 14.86 %
Schedule of provisions for income taxes	Years Ended December 31, 2018 2017 Current $ 15,852,188 $ 5,524,868 Deferred (37,588 ) (807,058 ) Total $ 15,814,600 $ 4,717,810

Non-Controlling Interest in S_2

Non-Controlling Interest in Subsidiaries (Tables)	12 Months Ended
	Dec. 31, 2018
Non-Controlling Interest in Subsidiaries [Abstract]
Schedule of non-controlling interest in subsidiaries	2018 2017 10% non-controlling interest in Ruian $ 2,716,278 $ 2,702,691 Total $ 2,716,278 $ 2,702,691

Operating Leases (Tables)

Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2018
Leases, Operating [Abstract]
Schedule of future minimum rental payments	2019 2020 2021 2022 Thereafter Operating Lease Commitments $ 584,276 $ 305,980 $ 305,980 $ 305,980 $ -

Warranty Liability (Tables)

Warranty Liability (Tables)	12 Months Ended
	Dec. 31, 2018
Warranty Claims [Abstract]
Schedule of accrued warranty expenses	Beginning balance at January 1, 2018 $ 6,576,895 Aggregate increase for new warranties issued during current period 3,113,913 Aggregate reduction for payments made and effect of exchange rate fluctuation 3,453,934 Ending balance at December 31, 2018 $ 7,063,122

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of segment Information, by segment	2018 2017 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 386,181,206 $ 330,201,227 Passenger vehicles brake systems 81,868,700 60,321,342 Net sales $ 468,049,906 $ 390,522,569 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 96,475,100 $ 89,355,410 Passenger vehicles brake systems 26,040,791 14,830,792 Gross profit $ 122,515,891 $ 104,186,202 Selling and distribution expenses 55,158,703 39,067,566 General and administrative expenses 26,939,370 22,023,338 Research and development expenses 16,366,393 11,004,560 Other operating income, net 10,122,416 3,039,824 Income from operations 34,173,841 35,130,562 Interest income 6,052,416 232,466 Government grants 4,307,609 2,264,055 Other income 260,448 101,475 Interest expenses (13,570,956 ) (3,100,396 ) Other expenses 43,219 (2,883,440 ) Income before income tax expense $ 31,266,577 $ 31,744,722 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 45,877,053 $ 44,185,254 Passenger vehicles brake systems 9,724,756 8,074,065 Total $ 55,601,809 $ 52,259,319 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 9,768,105 $ 7,828,921 Passenger vehicles brake systems 2,070,587 1,430,595 Total $ 11,838,692 $ 9,259,516 December 31, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 655,435,946 $ 492,348,129 Passenger vehicles brake systems 138,935,580 89,967,813 Total $ 794,371,526 $ 582,315,942 December 31, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 150,067,034 $ 106,779,681 Passenger vehicles brake systems 31,810,355 19,512,076 Total $ 181,877,389 $ 126,291,757

Description of Business (Detail

Description of Business (Details)	Dec. 31, 2018	Dec. 31, 2017	Nov. 11, 2009	Jan. 17, 2004
Description Of Business [Line Items]
Ownership percentage	10.00%	10.00%
MGR Hong Kong Limited [Member]
Description Of Business [Line Items]
Ownership percentage			30.00%
Investor [Member]
Description Of Business [Line Items]
Ownership percentage			10.00%
SORL International Holding, Ltd. [Member]
Description Of Business [Line Items]
Ownership percentage			60.00%
Ruili Group Co., Ltd. [Member]
Description Of Business [Line Items]
Ownership percentage				10.00%
Fairford [Member]
Description Of Business [Line Items]
Ownership percentage				90.00%
Ruili Group Ruian Auto Parts Co., Ltd. [Member]
Description Of Business [Line Items]
Ownership percentage	90.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2018
Electronic equipment [Member]
Estimated Useful Life (Years)	5 years
Leasehold improvements [Member]
Estimated Useful Life, description	The lesser of remaining lease term or 10
Minimum [Member] | Buildings [Member]
Estimated Useful Life (Years)	10 years
Minimum [Member] | Machinery and equipment [Member]
Estimated Useful Life (Years)	5 years
Minimum [Member] | Motor vehicles [Member]
Estimated Useful Life (Years)	5 years
Maximum [Member] | Buildings [Member]
Estimated Useful Life (Years)	20 years
Maximum [Member] | Machinery and equipment [Member]
Estimated Useful Life (Years)	10 years
Maximum [Member] | Motor vehicles [Member]
Estimated Useful Life (Years)	10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2018USD ($)Segments	Dec. 31, 2017USD ($)Segments
Summary of Significant Accounting Policies (Textual)
Notes receivable amount	$ 58,458,890	$ 95,914,724
Discount fees	1,463,837	37,177
Research and development expenses	16,366,393	11,004,560
Shipping and handling costs	11,358,223	7,094,863
Advertising costs	$ 737,530	440,582
Lease commitment, description	(1) The lease transfers the title to the lessee at the end of the term; (2) the lease contains a bargain purchase option; (3) the lease term is equal to 75% of the estimated economic life of the leased property or more; (4) the present value of the minimum lease payment in the term equals or exceeds 90% of the fair value of the leased property.
Change in restricted cash, resulting in increase of net cash used in investing activities		$ 5,275,390
Number of business segments | Segments	2	2
Total right-of-use assets	$ 1,163,000
Land Use Right [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life	40 years
Interest Rate Risk [Member]
Summary of Significant Accounting Policies (Textual)
Short term bank, terms	The term ranged from approximately one month to one year.
Interest Rate Risk [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Interest rate of short term bank borrowings	1.92%
Interest rate of long term loans	6.16%
Interest Rate Risk [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Interest rate of short term bank borrowings	5.72%
Interest rate of long term loans	8.50%

Related Party Transactions (Det

Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2018
Xiao Ping Zhang [Member]
Nature of Common Ownership or Management Control Relationships	Principal shareholder, Chairman of the Board and Chief Executive Officer
Shu Ping Chi [Member]
Nature of Common Ownership or Management Control Relationships	Shareholder, member of the Board, wife of Xiao Ping Zhang
Xiao Feng Zhang [Member]
Nature of Common Ownership or Management Control Relationships	Shareholder, member of the Board, brother of Xiao Ping Zhang
Ruili Group [Member]
Nature of Common Ownership or Management Control Relationships	10% shareholder of Joint Venture and is collectively controlled by Xiao Ping Zhang, Shu Ping Chi, and Xiao Feng Zhang
Guangzhou Kormee [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group
Ruian Kormee [Member]
Nature of Common Ownership or Management Control Relationships	Wholly controlled by Guangzhou Kormee
Chuangchun Kormee Auto Electric Co., Ltd. ("Chuangchun Kormee") [Member]
Nature of Common Ownership or Management Control Relationships	Wholley controlled by Guangzhou Kormee
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Ruili Group holds 49% of the equity interests in Shanghai Dachao
Ruili MeiLian Air Management System (LangFang) Co.,Ltd [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group
Wenzhou Lichuang Auto Parts Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group
Ningbo Ruili Equipment Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group
Shanghai Ruili Real Estate Development Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Wholly owned by Ruili Group
Kunshan Yuetu Real Estate Development Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Collectively owned by Ruili Group and Shu Ping Chi
Shanghai Tabouk Auto Components Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Collectively owned by Xiao Feng Zhang and Xiao Ping Zhang
Hangzhou Ruili Property Development Co., Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Collectively owned by Ruili Group and Xiao Ping Zhang
Hangzhou Hangcheng Friction Material Co., Ltd. ("Hangzhou Hangcheng") [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group
Hangzhou Ruili Binkang Real Estate Development Co. Ltd [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Hangzhou Ruili Property Development Co., Ltd.
Hangzhou Ruili Real Estate Group Co. Ltd. [Member]
Nature of Common Ownership or Management Control Relationships	Controlled by Ruili Group

Related Party Transactions (D_2

Related Party Transactions (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
PURCHASES FROM	$ 47,822,684	$ 21,066,019
SALES TO	30,273,960	24,376,622
Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	6,279,500	4,487,457
SALES TO	10,020,480	7,467,661
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	3,371,361	1,357,612
SALES TO	61,172	135,911
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	720,489	188,899
Ruili MeiLian Air Management System (LangFang) Co., Ltd [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	8,438,181	4,106,986
SALES TO	1,315,649	1,253,664
Ruili Group Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	7,909,463	5,478,853
SALES TO	17,140,343	14,108,062
Chuangchun Kormee Auto Electric Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	20,045
SALES TO	59,525
Ningbo Ruili Equipment Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	4,093,773
Hangzhou HangCheng Friction Material Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	1,056,860
Wenzhou Lichuang Auto Parts Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	15,933,012	5,446,212
Shanghai Tabouk Auto Components Co., Ltd. [Member]
Related Party Transaction [Line Items]
SALES TO	$ 1,676,791	$ 1,411,324

Related Party Transactions (D_3

Related Party Transactions (Details 2) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
ADVANCES TO RELATED PARTIES	$ 79,739,417	$ 72,318,224
Ruili Group Co., Ltd. [Member]
ADVANCES TO RELATED PARTIES	79,739,417	5,711,605
Shanghai Ruili Real Estate Development Co., Ltd. [Member]
ADVANCES TO RELATED PARTIES		65,069,497
Kunshan Yuetu Real Estate Development Co., Ltd. [Member]
ADVANCES TO RELATED PARTIES		$ 1,537,122

Related Party Transactions (D_4

Related Party Transactions (Details 3) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 261,889	$ 1,297,734
Shanghai Tabouk Auto Components Co Ltd [Member]
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 261,889	$ 1,297,734

Related Party Transactions (D_5

Related Party Transactions (Details 4) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
ACCOUNTS PREPAYMENT TO RELATED PARTY	$ 3,670,573	$ 999,527
Ningbo Ruili Equipment Co., Ltd. [Member]
ACCOUNTS PREPAYMENT TO RELATED PARTY	$ 3,670,573	$ 999,527

Related Party Transactions (D_6

Related Party Transactions (Details 5) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
ACCOUNTS PAYABLE TO RELATED PARTIES	$ 23,805,200	$ 15,896,804
Guangzhou Ruili Kormee Automotive Electronic Control Technology Co.,Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	7,877,485	3,414,719
Shanghai Dachao Electric Technology Co Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	56,883	83,178
Ruili MeiLian Air Management System LangFang Co., Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	5,628,155	1,993,787
Wenzhou Lichuang Auto Parts Co Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	9,898,777	10,405,120
Chuangchun Kormee Auto Electric Co., Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	9,206
Hangzhou HangCheng Friction Material Co., Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	$ 334,694

Related Party Transactions (D_7

Related Party Transactions (Details 6) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
DUE TO RELATED PARTY	$ 5,959,752	$ 1,572,963
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
DUE TO RELATED PARTY	$ 5,959,752	$ 1,572,963

Related Party Transactions (D_8

Related Party Transactions (Details Textual)	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2018CNY (¥)
Related Party Transactions (Textual)
Repayments of related party debt		$ 139,482,122
Proceeds from related party debt	$ 9,669,326	103,775,545
Receivable with imputed interest, effective yield (interest rate)	5.22%
Loans assumed		103,775,545
Repayments in bank acceptance notes to related parties	5,097,556
Collected cash repayment from related parties		118,436,661
Interests received from related parties	741,254	182,270
Cash repayments to related parties		139,482,122
Advanced to related parties		186,885,309
Wenzhou Lichuang [Member]
Related Party Transactions (Textual)
Bank deposits	2,914,093
Wenzhou Lichuang [Member] | RMB [Member]
Related Party Transactions (Textual)
Bank deposits	20,000,000
Ruili Group Co., Ltd. [Member]
Related Party Transactions (Textual)
Repayments of related party debt	70,818,463
Proceeds from related party debt	146,944,697
Ruili Group Co., Ltd. [Member] | Credit Line by Bank of Ningbo [Member]
Related Party Transactions (Textual)
Guarantee amount	$ 30,597,972
Guarantee start date	Jul. 20, 2018
Guarantee end date	Jul. 20, 2028
Ruili Group Co., Ltd. [Member] | Credit Line by Bank of Ningbo [Member] | RMB [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			¥ 210,000,000
Ruili Group Co., Ltd. [Member] | Credit Line by China Merchants Bank [Member]
Related Party Transactions (Textual)
Guarantee amount	$ 5,828,185
Ruili Group Co., Ltd. [Member] | Credit Line by China Merchants Bank [Member] | RMB [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			¥ 40,000,000
Ruili Group [Member]
Related Party Transactions (Textual)
Receivable with imputed interest, effective yield (interest rate)	8.40%
Repayments in bank acceptance notes to related parties		35,706,576
Collected cash repayment from related parties		115,467,364
Interests received from related parties	$ 2,361,866	88,197,285
Cash repayments to related parties		123,903,862
Advanced to related parties		117,296,565
Ruian Kormee [Member]
Related Party Transactions (Textual)
Interests received from related parties		15,578,260
Cash repayments to related parties		15,578,260
Advanced to related parties		2,185,691
Amount transfer by Ruili Group		3,711,622
Shanghai Ruili [Member]
Related Party Transactions (Textual)
Collected cash repayment from related parties	112,857,719	2,969,297
Advanced to related parties	49,561,855	65,918,404
Kunshan Yuetu [Member]
Related Party Transactions (Textual)
Collected cash repayment from related parties	16,719,662
Advanced to related parties	$ 15,226,835	$ 1,484,649

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable, Net [Abstract]
Accounts receivable	$ 163,903,305	$ 148,312,117
Less: allowance for doubtful accounts	(13,855,508)	(13,927,156)
Accounts receivable, net	$ 150,047,797	$ 134,384,961

Accounts Receivable, Net (Det_2

Accounts Receivable, Net (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable, Net [Abstract]
Beginning balance	$ 13,927,156	$ 11,686,417
Add: Increase (Decrease) to allowance	610,610	1,474,872
Effects on changes in foreign exchange rate	(682,258)	765,867
Ending balance	$ 13,855,508	$ 13,927,156

Accounts Receivable, Net (Det_3

Accounts Receivable, Net (Details Textual)	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable, Net [Abstract]
Ownership percentage	10.00%	10.00%

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 53,821,973	$ 27,657,266
Work in process	89,516,949	40,805,434
Finished goods	62,674,252	45,837,864
Less: Write-down of inventories	(1,727,747)
Total Inventory	$ 204,285,427	$ 114,300,564

Inventories (Details Textual)

Inventories (Details Textual)	12 Months Ended
	Dec. 31, 2018USD ($)
Inventories (Textual)
Write-down of potentially obsolete or slow-moving inventories	$ 808,789
Lower of cost or market adjustment	$ 918,958

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Sub-Total	$ 171,426,089	$ 147,929,095
Less: Accumulated depreciation	(75,372,703)	(68,101,089)
Property, plant and equipment, net	96,053,386	79,828,006
Machinery [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	130,912,861	119,296,564
Molds [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	1,274,729	1,338,912
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	3,566,772	2,998,443
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	5,956,822	3,681,194
Buildings [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	20,610,137	20,127,148
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	8,641,271
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	$ 463,497	$ 486,834

Property, Plant and Equipment_4

Property, Plant and Equipment, Net (Details Textual)	1 Months Ended	12 Months Ended
	Jul. 31, 2017USD ($)m²	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Apr. 30, 2018m²
Property, Plant and Equipment [Line Items]
Depreciation		$ 11,198,717	$ 8,871,856
Purchase price	$ 8,870,000
Total cost including related deed tax and stamp duty	8,880,000
Land use area | m²				17,029
Land [Member]
Property, Plant and Equipment [Line Items]
Allocated costs	$ 6,380,000
Land use area | m²	33,141
Building [Member]
Property, Plant and Equipment [Line Items]
Allocated costs	$ 2,500,000
Land use area | m²	25,016
RMB [Member]
Property, Plant and Equipment [Line Items]
Purchase price	$ 60,060,000
Total cost including related deed tax and stamp duty	58,950,000
RMB [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Allocated costs	42,350,000
RMB [Member] | Building [Member]
Property, Plant and Equipment [Line Items]
Allocated costs	$ 16,600,000

Land Use Rights, Net (Details)

Land Use Rights, Net (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Land Use Rights [Abstract]
Cost	$ 22,283,776	$ 15,477,081
Less: Accumulated amortization	(1,159,321)	(564,947)
Land use rights, net	$ 21,124,455	$ 14,912,134

Land Use Rights, Net (Details T

Land Use Rights, Net (Details Textual)	1 Months Ended	12 Months Ended
	Jul. 31, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Apr. 30, 2018m²
Land Use Rights [Line Items]
Amortization expense, land use rights		$ 636,717	$ 379,121
Payments to acquire intangible assets		225,640
Area of Land | m²				17,029
Use Rights [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets		11,130,000
Additional payment to acquire intangible assets		8,990,000
Use Rights [Member] | Development Zone Facility [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			2,140,000
Intersection Tengda Road [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets		6,430,000
Yunding Holding Group Co [Member]
Land Use Rights [Line Items]
Amortization expense, land use rights	$ 6,380,000
Purchase price of land use rights	8,870,000
Ruian [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			7,930,000
Refundable deposit			3,010,000
RMB [Member] | Development Zone Facility [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			51,810,000
RMB [Member] | Use Rights [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets		72,020,000
Additional payment to acquire intangible assets		57,620,000
RMB [Member] | Use Rights [Member] | Development Zone Facility [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			14,400,000
RMB [Member] | Intersection Tengda Road [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets		$ 42,540,000
RMB [Member] | Yunding Holding Group Co [Member]
Land Use Rights [Line Items]
Amortization expense, land use rights	42,350,000
Purchase price of land use rights	$ 60,060,000
RMB [Member] | Ruian [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			51,810,000
Refundable deposit			$ 20,000,000

Prepayments (Details)

Prepayments (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Prepayments [Abstract]
Raw material suppliers	$ 7,776,591	$ 8,826,004
Equipment and land use rights purchases	31,575,238	16,594,987
Total prepayments	$ 39,351,829	$ 25,420,991

Prepayments (Details Textual)

Prepayments (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Prepayments (Textual)
Prepayments to raw material suppliers	$ 7,776,591	$ 8,826,004
Prepayments to related party under common control	3,670,573
Prepayments to purchase land use rights	15,420,000	10,070,000
RMB [Member]
Prepayments (Textual)
Prepayments to purchase land use rights	$ 100,160,000	$ 66,209,999

Deferred Tax Assets and Defer_3

Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Allowance for doubtful accounts	$ 2,205,048	$ 2,137,837
Revenue (net of cost)	308,046	160,766
Unpaid accrued expenses	501,276	955,287
Warranty	1,059,468	986,534
Deferred tax assets	4,073,838	4,240,424
Valuation allowance
Net deferred tax assets	$ 4,073,838	$ 4,240,424

Short Term Bank Loans (Details)

Short Term Bank Loans (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Total short term bank loan	$ 217,940,471	$ 125,380,899
Secured [Member]
Total short term bank loan	$ 217,940,471	$ 125,380,899

Short Term Bank Loans (Details

Short Term Bank Loans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Accounts receivable pledged as collateral	$ 0	$ 5,472,169
Guaranteed by Ruili Group, a related party [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	5,602,601
Pledged by Ruili Group, a related party, with its plant and land use rights [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	31,445,575
Pledged by Hangzhou Ruili Zhiye Development Ltd., a related party under common control, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	14,570,463
Pledged by Hangzhou Ruili Zhiye Development Ltd., a related party under common control, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Guaranteed by Ruili Group, a related party [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	5,099,662
Pledged by the Company with its bank acceptance notes [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	2,914,093
Pledged by Ruili Group Rui'an Auto Parts with its plant; Guaranteed by Hangzhou Ruili Zhiye Development Ltd., a related party under common control; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	8,742,278
Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party under common control, with its properties; Guaranteed by Hangzhou Ruili Zhiye Development Ltd., a related party under common control; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	2,112,717
Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Pledged by Hangzhou Ruili Zhiye Development Ltd., a related party under common control, with its properties; Pledged by Hangzhou Ruili Real Estate Group Ltd., a related party under common control, with stocks rights [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	41,525,819
Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders; Pledged by Shanghai Ruili Real Estate, a related party, with its properties [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	2,914,093
Pledged by Shanghai Ruili Jiaye Real Estate, a related party, with its properties; Guaranteed by Shanghai Ruili Jiaye Real Estate, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	32,055,018
Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	7,065,217
Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders.; Pledged by Ruili Group, a related party, with its properties [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	2,405,583
Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders; Pledged by Ruili Group, a related party, with its properties [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	2,404,126
Guaranteed by Ruili Group, a related party; Guaranteed by Hangzhou Ruili Zhiye Development Ltd., a related party under common control; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	801,375
Pledged by Shanghai Ruili, a related party, with its properties; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	$ 58,281,851
Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	3.53%
Maximum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	5.35%
Short Term Loans [Member]
Short-term Debt [Line Items]
Interest expenses	$ 9,780,598	$ 2,752,579
Maturity dates of loans	The maturity dates of the loans existing as of December 31, 2018 ranged from January 22, 2019 to December 28, 2019.
Short Term Loans [Member] | Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	5.44%
Short Term Loans [Member] | Maximum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	1.35%

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued payroll	$ 11,679,870	$ 11,063,726
Accrued warranty expenses	7,063,122	6,576,895
Other accrued expenses	5,302,910	7,514,037
Total accrued expenses	$ 24,045,902	$ 25,154,658

Long Term Loans (Details)

Long Term Loans (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Aggregate outstanding principal balance	$ 36,165,550	$ 63,471,308
Less: unamortized debt issuance costs	(595,117)	(1,822,053)
Less: current portion	(21,141,029)	(24,266,031)
Non-current portion	$ 14,429,404	$ 37,383,224

Long Term Loans (Details 1)

Long Term Loans (Details 1)	Dec. 31, 2018USD ($)
Debt Disclosure [Abstract]
2019	$ 21,647,158
2020	14,518,392
Total	$ 36,165,550

Long Term Loans (Details Textua

Long Term Loans (Details Textual)	1 Months Ended		12 Months Ended
	Nov. 30, 2017USD ($)	Nov. 30, 2017CNY (¥)	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)	Dec. 31, 2017USD ($)	Nov. 30, 2017CNY (¥)	Nov. 15, 2017
Long Term Loans (Textual)
Interest expense			$ 3,267,868		$ 347,817
Payment of debt issuance costs					1,767,572
Cash proceeds of long term loan					14,846,488
Bank acceptance notes					14,846,487
Total proceeds from loan agreements					5,196,271
RMB [Member]
Long Term Loans (Textual)
Cash proceeds of long term loan					100,000,000
Bank acceptance notes					100,000,000
COSCO Shipping Leasing Co., Ltd [Member]
Long Term Loans (Textual)
Debt instrument term	36 months	36 months
Debt instrument interest rate percentage	8.50%					8.50%	4.31%
Total long term obligations	$ 35,964,617
Pledged by the Company's equipment in the original cost	36,474,800
Payment of debt issuance costs	$ 1,025,248		14,928,000		1,408,826
Cash proceeds of long term loan					14,846,487
Bank acceptance notes					14,846,488
Total proceeds from loan agreements					29,692,975
COSCO Shipping Leasing Co., Ltd [Member] | RMB [Member]
Long Term Loans (Textual)
Total long term obligations | ¥						¥ 235,000,000
Pledged by the Company's equipment in the original cost | ¥						¥ 238,333,639
Payment of debt issuance costs		¥ 7,320,000		¥ 99,998,463	9,489,290
Cash proceeds of long term loan					100,000,000
Bank acceptance notes					100,000,000
Far Eastern Horizon Co., Ltd [Member]
Long Term Loans (Textual)
Debt instrument term	36 months	36 months
Debt instrument interest rate percentage	8.38%					8.38%
Total long term obligations	$ 30,608,185
Pledged by the Company's equipment in the original cost	31,479,075
Payment of debt issuance costs	$ 742,324		9,931,000		1,599,930
Received interest			$ 296,600
Far Eastern Horizon Co., Ltd [Member] | Loan Agreements [Member]
Long Term Loans (Textual)
Debt instrument term	42 months	42 months
Debt instrument interest rate percentage	7.00%					7.00%
Paid deposits in cash for aggregated amount	$ 5,196,271
Far Eastern Horizon Co., Ltd [Member] | RMB [Member]
Long Term Loans (Textual)
Total long term obligations | ¥						¥ 200,000,000
Pledged by the Company's equipment in the original cost | ¥						¥ 205,690,574
Payment of debt issuance costs		¥ 5,000,000		66,524,366	$ 10,776,491
Received interest | ¥				¥ 1,986,849
Far Eastern Horizon Co., Ltd [Member] | RMB [Member] | Loan Agreements [Member]
Long Term Loans (Textual)
Paid deposits in cash for aggregated amount | ¥		¥ 35,000,000

Revenues from Contracts with _2

Revenues from Contracts with Customers (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues from Contracts with Customers (Textual)
Deferred revenue liability	$ 51,529,795	$ 43,087,473
Deferred revenue included in the opening balances of deposits received from customers	$ 24,659,985	$ 13,719,045

Reserve (Details)

Reserve (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Reserve [Abstract]
Statutory surplus reserve fund	$ 20,007,007	$ 17,562,357
Total	$ 20,007,007	$ 17,562,357

Reserve (Details Textual)

Reserve (Details Textual)	Dec. 31, 2018
Reserve (Textual)
Percentage of statutory surplus	50.00%

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
US statutory income tax rate	21.00%	35.00%
Valuation allowance recognized with respect to the loss in the US company	(21.00%)	(35.00%)
Impact of Tax Cuts and Jobs Act	37.45%
China statutory income tax rate	25.00%	25.00%
Effects of income tax exemptions and reliefs	(10.00%)	(10.00%)
Effects of additional deduction allowed for R&D expenses	(4.42%)	(2.34%)
Effects of expenses not deductible for tax purposes	2.32%	0.79%
Other items	0.22%	1.41%
Effective tax rate	50.58%	14.86%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current	$ 15,852,188	$ 5,524,868
Deferred	(37,588)	(807,058)
Total	$ 15,814,600	$ 4,717,810

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes (Textual)
High-Tech enterprise income tax rate	15.00%	15.00%	15.00%	15.00%
Federal corporate income tax rate		21.00%
Recognized related interest and penalty amount	$ 587,821
Company recognized a one-time transition tax	11,022,985
Taxes payable as current liability	$ 2,451,499
Effective tax rate, description	The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules – the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes – the deferred method.

Non-Controlling Interest in S_3

Non-Controlling Interest in Subsidiaries (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Total	$ 2,716,278	$ 2,702,691
10% non-controlling interest in Ruian [Member]
Total	$ 2,716,278	$ 2,702,691

Non-Controlling Interest in S_4

Non-Controlling Interest in Subsidiaries (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Non-Controlling Interest in Subsidiaries (Textual)
Total	$ 2,716,278	$ 2,702,691
Ruian [Member]
Non-Controlling Interest in Subsidiaries (Textual)
Non-controlling interest, percenatge	10.00%

Operating Leases (Details)

Operating Leases (Details)	Dec. 31, 2018USD ($)
Leases, Operating [Abstract]
2019	$ 584,276
2020	305,980
2021	305,980
2022	305,980
Thereafter

Operating Leases (Details Textu

Operating Leases (Details Textual)	1 Months Ended		12 Months Ended
	Nov. 30, 2016USD ($)	Nov. 30, 2016CNY (¥)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2006USD ($)	Dec. 31, 2006CNY (¥)
Operating Leased Assets [Line Items]
Lease expenses			$ 668,088	$ 311,776
Building [Member] | Ruian [Member]
Operating Leased Assets [Line Items]
Annual lease expense					$ 305,980
Description of lease term					These two apartment buildings are for Ruian's management personnel and staff, respectively. The initial lease term was 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.	These two apartment buildings are for Ruian's management personnel and staff, respectively. The initial lease term was 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.
Building [Member] | Ruian [Member] | RMB [Member]
Operating Leased Assets [Line Items]
Annual lease expense | ¥						¥ 2,100,000
Manufacturing plant [Member] | Ruian [Member]
Operating Leased Assets [Line Items]
Annual lease expense	$ 278,295
Description of lease term	The initial lease term was from November 15, 2016 to December 31, 2017. The lease was renewed to December 31, 2019.	The initial lease term was from November 15, 2016 to December 31, 2017. The lease was renewed to December 31, 2019.
Manufacturing plant [Member] | Ruian [Member] | RMB [Member]
Operating Leased Assets [Line Items]
Annual lease expense | ¥		¥ 1,910,000

Warranty Liability (Details)

Warranty Liability (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
Warranty Claims [Abstract]
Beginning balance at January 1, 2018	$ 6,576,895
Aggregate increase for new warranties issued during current period	3,113,913
Aggregate reduction for payments made and effect of exchange rate fluctuation	3,453,934
Ending balance at December 31, 2018	$ 7,063,122

Segment Information (Details)

Segment Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
NET SALES TO EXTERNAL CUSTOMERS
Net sales	$ 468,049,906	$ 390,522,569
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	122,515,891	104,186,202
Selling and distribution expenses	55,158,703	39,067,566
General and administrative expenses	26,939,370	22,023,338
Research and development expenses	16,366,393	11,004,560
Other operating income, net	10,122,416	3,039,824
Income from operations	34,173,841	35,130,562
Interest income	6,052,416	232,466
Government grants	4,307,609	2,264,055
Other income	260,448	101,475
Interest expenses	(13,570,956)	(3,100,396)
Other expenses	43,219	(2,883,440)
Income before income tax expense	31,266,577	31,744,722
CAPITAL EXPENDITURE
Total	55,601,809	52,259,319
DEPRECIATION AND AMORTIZATION
Total	11,838,692	9,259,516
TOTAL ASSETS
Total assets	794,371,526	582,315,942
LONG LIVED ASSETS
Long lived assets	181,877,389	126,291,757
Commercial Vehicles Brake Systems [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales	386,181,206	330,201,227
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	96,475,100	89,355,410
CAPITAL EXPENDITURE
Total	45,877,053	44,185,254
DEPRECIATION AND AMORTIZATION
Total	9,768,105	7,828,921
TOTAL ASSETS
Total assets	655,435,946	492,348,129
LONG LIVED ASSETS
Long lived assets	150,067,034	106,779,681
Passenger Vehicles Brake Systems [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales	81,868,700	60,321,342
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	26,040,791	14,830,792
CAPITAL EXPENDITURE
Total	9,724,756	8,074,065
DEPRECIATION AND AMORTIZATION
Total	2,070,587	1,430,595
TOTAL ASSETS
Total assets	138,935,580	89,967,813
LONG LIVED ASSETS
Long lived assets	$ 31,810,355	$ 19,512,076

Commitments and Contingencies (

Commitments and Contingencies (Details)	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)
Commitments And Contingencies [Line Items]
Relevant tax amount reserved | $	$ 2,300,205
Tax rate, land use right	3.00%	3.00%
RMB [Member]
Commitments And Contingencies [Line Items]
Relevant tax amount reserved | ¥		¥ 15,030,000
Development Zone Facility [Member]
Commitments And Contingencies [Line Items]
Relevant tax amount reserved | $	$ 745,220
Tax rate, land use right	3.00%	3.00%
Development Zone Facility [Member] | RMB [Member]
Commitments And Contingencies [Line Items]
Relevant tax amount reserved | ¥		¥ 4,560,000
Tax rate, land use right	3.00%	3.00%

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Feb. 12, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Short term loans total amount		$ 98,000,000
Maturity dates, description		The maturity dates of the loans existing as of the filing date ranged from January 2, 2019 to January 30, 2020.
Repayments of debt		$ 91,600,000
Minimum [Member]
Subsequent Event [Line Items]
Interest rates		3.53%
Maximum [Member]
Subsequent Event [Line Items]
Interest rates		5.35%
Subsequent Event [Member]
Subsequent Event [Line Items]
Guarantee amount	$ 10,345,029
Subsequent Event [Member] | RMB [Member]
Subsequent Event [Line Items]
Guarantee amount	$ 71,000,000

Additional Information-Financ_2

Additional Information-Financial Statement Schedule I (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 73,588,229	$ 4,221,940
Other current assets	15,697,448	5,555,568
Total Current Assets	612,494,137	456,024,185
TOTAL ASSETS	794,371,526	582,315,942
Current Liabilities
Income tax payable – non-current	3,421,486	3,249,727
Other current liabilities	3,288,344	2,857,130
Total Current Liabilities	565,213,779	344,640,787
Income tax payable - noncurrent	9,259,307
Total Non-current Liabilities	23,688,711	37,383,224
Total Liabilities	588,902,490	382,024,011
Stockholders' Equity:
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2018 and December 31, 2017
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2018 and 2017	38,609	38,609
Additional paid-in capital	(28,582,654)	(28,582,654)
Retained earnings	178,535,378	168,244,329
Total Stockholders' Equity	205,469,036	200,291,931	$ 162,391,523
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	794,371,526	582,315,942
Parent Company [Member]
Current Assets
Cash and cash equivalents
Other current assets	86,828	86,828
Total Current Assets	86,828	86,828
Investments in subsidiaries	184,632,301	160,185,796
TOTAL ASSETS	184,719,129	160,272,624
Current Liabilities
Income tax payable – non-current	2,251,499
Other current liabilities	2,921,411	2,921,411
Total Current Liabilities	5,372,910	2,921,411
Income tax payable - noncurrent	9,259,307
Total Non-current Liabilities
Total Liabilities	14,632,217	2,921,411
Stockholders' Equity:
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of December 31, 2018 and December 31, 2017
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of December 31, 2018 and 2017	38,609	38,609
Additional paid-in capital	(28,582,654)	28,582,654
Retained earnings	198,630,957	185,895,258
Total Stockholders' Equity	170,086,912	157,351,213	$ 133,026,992
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 184,719,129	$ 160,272,624

Additional Information-Financ_3

Additional Information-Financial Statement Schedule I (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Investment income	$ 6,052,416	$ 232,466
Provision for income taxes	15,814,600	4,717,810
Net income attributable to common stockholders	$ 12,735,699	$ 24,324,221
Weighted average common share - Basic	19,304,921	19,304,921
Weighted average common share - Diluted	19,304,921	19,304,921
EPS - Basic	$ 0.66	$ 1.26
EPS - Diluted	$ 0.66	$ 1.26
Parent Company [Member]
Investment income	$ 24,446,505	$ 24,324,221
Provision for income taxes	11,710,806
Net income attributable to common stockholders	$ 12,735,699	$ 24,324,221
Weighted average common share - Basic	19,304,921	19,304,921
Weighted average common share - Diluted	19,304,921	19,304,921
EPS - Basic	$ 1.27	$ 1.26
EPS - Diluted	$ 1.27	$ 1.26

Additional Information-Financ_4

Additional Information-Financial Statement Schedule I (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flow from operating activities:
Net income	$ 15,451,977	$ 27,026,912
Adjustments to reconcile net income to net cash used in operating activities :
Investment in subsidiaries	(6,052,416)	(232,466)
Income tax payable	9,534,690	2,126,238
Net change in cash and cash equivalents	161,160,079	33,820,649
Cash and cash equivalents, beginning of the year	4,221,940
Cash and cash equivalents, end of the year	73,588,229	4,221,940
Parent Company [Member]
Cash flow from operating activities:
Net income	12,735,699	24,324,221
Adjustments to reconcile net income to net cash used in operating activities :
Investment in subsidiaries	(24,446,505)	(24,324,221)
Income tax payable	11,710,806
Net change in cash and cash equivalents
Net change in cash, cash equivalents, and restricted cash
Cash and cash equivalents, beginning of the year
Cash and cash equivalents, end of the year

Additional Information-Financ_5

Additional Information-Financial Statement Schedule I (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Balance	$ 200,291,931	$ 162,391,523
Net income	15,451,977	27,026,912
Balance	205,469,036	200,291,931
Parent Company [Member]
Balance	157,351,213	133,026,992
Net income	12,735,699	24,324,221
Balance	170,086,912	157,351,213
Common Stock [Member]
Balance	$ 38,609	$ 38,609
Balance, shares	19,304,921	19,304,921
Balance	$ 38,609	$ 38,609
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
Balance	$ 38,609	$ 38,609
Balance, shares	19,304,921	19,304,921
Additional Paid-in Capital [Member]
Balance	$ (28,582,654)	$ (28,582,654)
Balance	(28,582,654)	(28,582,654)
Additional Paid-in Capital [Member] | Parent Company [Member]
Balance	42,199,014	42,199,014
Net income
Balance	42,199,014	42,199,014
Retained Earnings [Member]
Balance	168,244,329	146,352,530
Balance	178,535,378	168,244,329
Retained Earnings [Member] | Parent Company [Member]
Balance	185,895,258	161,571,037
Net income	12,735,699	24,324,221
Balance	$ 198,630,957	$ 185,895,258

Additional Information-Financ_6

Additional Information-Financial Statement Schedule I (Details Textual) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Additional Information-Financial Statement Schedule I (Textual)
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 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
Parent [Member]
Additional Information-Financial Statement Schedule I (Textual)
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 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