SORL Auto Parts (SORL) 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
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-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		19,304,921

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 8,024,006	$ 73,588,229
Accounts receivable, net, including $341,110 and $261,889 from related parties as of March 31, 2019 and December 31, 2018, respectively	178,871,527	150,047,797
Bank acceptance notes from customers	73,404,114	62,052,225
Inventories, net	187,384,139	204,285,427
Prepayments, current, including $5,129,110 and $3,670,573 to related party at March 31, 2019 and December 31, 2018, respectively	17,350,867	7,776,591
Restricted cash, current	16,804,852	19,307,003
Advances to related parties	98,136,035	79,739,417
Deposits on loan agreements, current	5,197,891
Other current assets, net	11,566,191	15,697,448
Total Current Assets	596,739,622	612,494,137
Property, plant and equipment, net	107,063,204	96,053,386
Land use rights, net	21,355,991	21,124,455
Intangible assets, net	132,294	220,232
Deposits on loan agreements, non-current	5,197,891	10,199,324
Prepayments, non-current	33,069,906	31,575,238
Other assets, non-current	574,397	563,542
Restricted cash, non-current	18,415,386	18,067,374
Operating lease right of use assets	1,222,064
Deferred tax assets	3,566,545	4,073,838
Total Non-current Assets	190,597,678	181,877,389
Total Assets	787,337,300	794,371,526
Current Liabilities
Accounts payable and bank acceptance notes to vendors, including $30,167,916 and $23,805,200 due to related parties as of March 31, 2019 and December 31, 2018, respectively	226,765,213	236,433,718
Deposits received from customers	53,150,261	51,529,795
Short term bank loans	212,363,818	217,940,471
Current portion of long term loans, net of unamortized debt issuance costs	25,086,705	21,141,029
Income tax payable, current	3,229,510	3,421,486
Accrued expenses	19,499,647	24,045,902
Due to related party	6,820,963	5,959,752
Deferred income	1,259,842	1,453,282
Operating lease liabilities, current	492,494
Other current liabilities	3,452,129	3,288,344
Total Current Liabilities	552,120,582	565,213,779
Long term loans, less current portion and net of unamortized debt issuance costs	5,426,193	14,429,404
Operating lease liabilities, non-current	797,107
Income tax payable, non-current	9,259,307	9,259,307
Total Non-current Liabilities	15,482,607	23,688,711
Total Liabilities	567,603,189	588,902,490
Equity
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of March 31, 2019 and December 31, 2018
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of March 31, 2019 and December 31, 2018	38,609	38,609
Additional paid-in capital	(28,582,654)	(28,582,654)
Reserves	20,911,801	20,007,007
Accumulated other comprehensive income	10,516,102	6,655,803
Retained earnings	186,601,111	178,535,378
Total SORL Auto Parts, Inc. Stockholders' Equity	189,484,969	176,654,143
Noncontrolling Interest In Subsidiaries	30,249,142	28,814,893
Total Equity	219,734,111	205,469,036
Total Liabilities and Equity	$ 787,337,300	$ 794,371,526

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, net, related parties	$ 341,110	$ 261,889
Prepayments, related party	5,129,110	3,670,573
Accounts payable and bank acceptance notes to vendors, related parties	$ 30,167,916	$ 23,805,200
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 (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Sales	$ 136,219,924	$ 107,726,682
Include: sales to related parties	10,646,746	7,701,054
Cost of sales	99,699,354	77,527,196
Gross profit	36,520,570	30,199,486
Expenses:
Selling and distribution expenses	12,884,567	10,037,861
General and administrative expenses	7,374,893	4,773,778
Research and development expenses	4,951,536	3,590,402
Total operating expenses	25,210,996	18,402,041
Other operating income, net	2,462,602	2,197,324
Income from operations	13,772,176	13,994,769
Interest income	1,736,775	1,488,264
Government grants	1,792,412	133,933
Other income	54,680	27,066
Interest expenses	(3,972,498)	(3,353,711)
Exchange differences	(1,061,005)	(601,286)
Other expenses	(477,919)	(890,814)
Income before income taxes provision	11,844,621	10,798,221
Provision for income taxes	1,868,767	1,605,441
Net income	9,975,854	9,192,780
Net income attributable to noncontrolling interest in subsidiaries	1,005,327	919,278
Net income attributable to common stockholders	8,970,527	8,273,502
Comprehensive income:
Net income	9,975,854	9,192,780
Foreign currency translation adjustments	4,289,221	8,044,534
Comprehensive income	14,265,075	17,237,314
Comprehensive income attributable to noncontrolling interest in subsidiaries	1,434,249	1,723,731
Comprehensive income attributable to common stockholders	$ 12,830,826	$ 15,513,583
Weighted average common share - basic	19,304,921	19,304,921
Weighted average common share - diluted	19,304,921	19,304,921
EPS - basic	$ 0.46	$ 0.43
EPS - diluted	$ 0.46	$ 0.43

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows From Operating Activities
Net income	$ 9,975,854	$ 9,192,780
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Allowance for doubtful accounts	(79,426)	278,397
Depreciation and amortization	3,382,629	2,847,303
Deferred income tax	580,171	900,839
Gain on disposal of property and equipment	(29,768)
Amortization of debt issuance costs	181,333	372,025
Changes in assets and liabilities:
Accounts receivable	(25,606,528)	(32,888,322)
Bank acceptance notes from customers	(10,059,686)	12,354,888
Inventories, net	20,637,304	996,280
Prepayments	(9,630,754)	(14,987,105)
Other currents assets, net	3,162,436	(1,890,438)
Operating lease right of use assets	125,799
Accounts payable and bank acceptance notes to vendors	(13,728,060)	63,073,488
Deposits received from customers	621,908	5,123,039
Income tax payable	(207,909)	(1,635,670)
Deferred income	(219,320)	(129,981)
Operating lease liabilities	(326,476)
Other current liabilities and accrued expenses	(4,598,818)	(7,302,268)
Net Cash Flows Provided By (Used In) Operating Activities	(25,819,311)	36,305,255
Cash Flows From Investing Activities
Acquisition of property, equipment, plant and land use rights	(13,252,877)	(19,682,775)
Advances to related parties	(15,305,460)	(67,694,035)
Repayment of advances to related parties		5,821,183
Net Cash Flows Used In Investing Activities	(28,558,337)	(81,555,627)
Cash Flows From Financing Activities
Proceeds from short term bank loans	113,629,530	222,636,613
Repayment of short term bank loans	(123,310,819)	(115,398,302)
Proceeds from related parties	739,289	264,565,400
Repayments to related parties		(256,883,171)
Repayment of long term loans	(5,869,199)	(6,401,331)
Net Cash Flows Provided By (Used In) Financing Activities	(14,811,199)	108,519,209
Effects on changes in foreign exchange rate	1,470,485	1,418,555
Net change in cash, cash equivalents and restricted cash	(67,718,362)	64,687,392
Cash, cash equivalents, and restricted cash - beginning of the period	110,962,606	4,598,176
Cash, cash equivalents, and restricted cash - end of the period	43,244,244	69,285,568
Supplemental Cash Flow Disclosures:
Interest paid	2,903,589	2,278,298
Income taxes paid	1,471,174	2,340,272
Non-cash Investing and Financing Transactions
Loans from related party in the form of bank acceptance notes		32,791,380
Repayments to related party in the form of bank acceptance notes		$ 5,846,083

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$ 8,024,006	$ 22,682,734
Restricted cash, current	16,804,852	46,602,834
Restricted cash, non-current	18,415,386
Total cash, cash equivalents, and restricted cash at end of the period	$ 43,244,244	$ 69,285,568

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (Unaudited) - 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, 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				8,273,502		8,273,502	919,278	9,192,780
Foreign currency translation adjustment					7,240,081	7,240,081	804,453	8,044,534
Transfer to reserve			827,350	(827,350)
Balance at Mar. 31, 2018	$ 38,609	(28,582,654)	18,389,707	175,690,481	23,143,269	188,679,412	28,849,833	217,529,245
Balance, shares at Mar. 31, 2018	19,304,921
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
Net income				8,970,527		8,970,527	1,005,327	9,975,854
Foreign currency translation adjustment					3,860,299	3,860,299	428,922	4,289,221
Transfer to reserve			904,794	(904,794)
Balance at Mar. 31, 2019	$ 38,609	$ (28,582,654)	$ 20,911,801	$ 186,601,111	$ 10,516,102	$ 189,484,969	$ 30,249,142	$ 219,734,111
Balance, shares at Mar. 31, 2019	19,304,921

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE A - 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 individual 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 individual 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 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.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE B - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (1) BASIS OF PRESENTATION The consolidated financial statements include the accounts of the Company and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted as permitted by the rules and regulations of the United States Securities and Exchange Commission (“SEC”), although the Company believes that the disclosures contained in this report are adequate to make the information presented not misleading. The consolidated balance sheet information as of December 31, 2018 was derived from the consolidated audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. These consolidated financial statements should be read in conjunction with the annual consolidated audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and other reports filed with the SEC. The accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. (2) SIGNIFICANT ACCOUNTING POLICIES a. ACCOUNTING METHOD The Company uses the accrual method of accounting for financial statement and tax return purposes. b. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 periods. 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. c. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and payable, bank acceptance notes from customers and to vendors, inventories, current prepayments, current deposits on loan agreements, other current assets, short term bank loans, current portion of long term loans, deposits received from customers, deferred income, current income tax payable, accrued expenses, current operating lease liabilities, and other current liabilities, 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. d. 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 D 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 certain bank deposits used to pledge for bank acceptance notes. e. RELATED PARTY TRANSACTIONS A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. f. BANK ACCEPTANCE NOTES RECEIVABLE Bank acceptance notes receivable 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. Bank acceptance notes do not bear interest. As of March 31, 2019 and December 31, 2018, bank acceptance notes from customers in the amount of $65,408,481 and $58,458,890, respectively, were pledged to endorsing banks to issue either short term bank loans or bank acceptance notes to vendors. The banks charge discount fees if the Company chooses to discount the bank acceptance notes from customers for cash before the maturity of the notes and such discount fees are included in interest expenses on the accompanying unaudited consolidated statements of income and comprehensive income. g . FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC. The Company’s functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company’s reporting currency, United States dollars (“US$”). All assets and liabilities are translated at the current rate. The stockholders’ equity accounts are translated at the appropriate historical rate. Revenue and expenses are translated at the weighted average rates in effect on the transaction dates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Recently Adopted Accounting Pro

Recently Adopted Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	NOTE C - RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (as amended by ASU 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01, collectively ASC Topic 842), using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The primary impact of applying ASC Topic 842 is the initial recognition of $1.6 million of lease liabilities and corresponding right-of-use assets on the Company’s consolidated balance sheet as of January 1, 2019, for leases classified as operating leases under ASC Topic 840, as well as enhanced disclosure of the Company’s leasing arrangements. There is no cumulative effect to retained earnings or other components of equity recognized as of January 1, 2019 and the adoption of this standard did not impact the consolidated statement of income and comprehensive income or consolidated statement of cash flows of the Company. The Company does not have finance lease arrangements as of March 31, 2019. See Note N for further discussion.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE D - RELATED PARTY TRANSACTIONS Related parties with whom the Company conducted business during the reporting periods 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 Changchun Kormee Auto Electric Co., Ltd. (“Changchun 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, Changchun Kormee and Ruili Meilian. The following related party transactions occurred for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 PURCHASES FROM: Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 3,087,121 $ - Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 662,454 355,493 Shanghai Dachao Electric Technology Co., Ltd. 235,170 145,618 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 76,802 2,471,243 Ruili Group Co., Ltd. 1,855,637 1,716,788 Hangzhou HangCheng Friction Material Co., Ltd. 14,792 - Ningbo Ruili Equipment Co., Ltd. 537,301 - Changchun Kormee Auto Electric Co., Ltd. 35,943 - Wenzhou Lichuang Automobile Parts Co., Ltd. 2,096,145 1,781,716 Total purchases $ 8,601,365 $ 6,470,858 SALES TO: Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 25,136 $ - Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 2,757,243 2,353,028 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 638,902 529,873 Ruili Group Co., Ltd. 6,842,914 4,411,287 Changchun Kormee Auto Electric Co., Ltd. 35,943 - Shanghai Tabouk Auto Components Co., Ltd. 346,608 406,866 Total sales $ 10,646,746 $ 7,701,054 As of March 31, 2019 As of December 31, 2018 ADVANCES TO RELATED PARTY Ruili Group Co., Ltd. $ 98,136,035 $ 79,739,417 Total $ 98,136,035 $ 79,739,417 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 341,110 $ 261,889 Total $ 341,110 $ 261,889 PREPAYMENT TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 5,129,110 $ 3,670,573 Total $ 5,129,110 $ 3,670,573 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 24,562,350 7,877,485 Shanghai Dachao Electric Technology Co., Ltd. 28,958 56,883 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 622,908 5,628,155 Wenzhou Lichuang Auto Parts Co., Ltd. 4,953,700 9,898,777 Changchun Kormee Auto Electric Co., Ltd. - 9,206 Hangzhou HangCheng Friction Material Co., Ltd. - 334,694 Total $ 30,167,916 $ 23,805,200 As of March 31, 2019 As of December 31, 2018 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 6,820,963 $ 5,959,752 $ 6,820,963 $ 5,959,752 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 in a short term. All the loans from related parties are non-interest bearing, unsecured and due on demand. 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 recorded interests of $1,394,267 with Ruili Group during the three months ended March 31, 2019, representing an effective interest rate of approximately 6.33% per annum. During the three months ended March 31, 2019, the Company obtained net proceeds of $739,289 in cash from related parties. In the same period, the Company provided Ruili Group net proceeds of $15,305,460. The Company entered into a lease agreement with Ruili Group. See Note N 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. The Company provided a guarantee for the credit line granted to Ruili Group by China Guangfa Bank in a maximum amount of RMB 71,000,000 (approximately $10,345,029) for the period from February 12, 2019 to January 16, 2020. 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. The Company has short term bank loans guaranteed or pledged by related parties. See Note J for more details.

Accounts Receivable, Net

Accounts Receivable, Net	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	NOTE E - ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: March 31, December 31, 2019 2018 Accounts receivable $ 192,913,727 $ 163,903,305 Less: allowance for doubtful accounts (14,042,200 ) (13,855,508 ) Accounts receivable, net $ 178,871,527 $ 150,047,797 No customer individually accounted for more than 10% of the Company’s revenues or accounts receivable for the three months ended March 31, 2019 and 2018. The changes in the allowance for doubtful accounts at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, 2019 2018 Beginning balance $ 13,855,508 $ 13,927,156 Add: Increase (Decrease) to allowance (79,426 ) 610,610 Effects on changes in foreign exchange rate 266,118 (682,258 ) Ending balance $ 14,042,200 $ 13,855,508

Inventories, Net

Inventories, Net	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES, NET	NOTE F - INVENTORIES, NET At March 31, 2019 and December 31, 2018, inventories consisted of the following: March 31, December 31, 2019 2018 Raw Materials $ 43,083,794 $ 53,821,973 Work in process 78,087,090 89,516,949 Finished Goods 68,229,467 62,674,252 Less: Write-down of inventories (2,016,212 ) (1,727,747 ) Total Inventory $ 187,384,139 $ 204,285,427 The write-down of inventories amounted to $691,570 and $nil for the three months ended March 31, 2019 and 2018, respectively.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE G - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following at March 31, 2019 and December 31, 2018: March 31, December 31, 2019 2018 Machinery $ 138,421,155 $ 130,912,861 Molds 1,299,283 1,274,729 Office equipment 4,013,170 3,566,772 Vehicles 6,322,725 5,956,822 Buildings 21,007,127 20,610,137 Construction in progress 15,458,570 8,641,271 Leasehold improvements 472,424 463,497 Sub-Total 186,994,454 171,426,089 Less: Accumulated depreciation (79,931,250 ) (75,372,703 ) Property, plant and equipment, net $ 107,063,204 $ 96,053,386 Depreciation expense charged to operations was $3,117,643 and $2,711,374 for the three months ended March 31, 2019 and 2018, respectively.

Land Use Rights, Net

Land Use Rights, Net	3 Months Ended
	Mar. 31, 2019
Land Use Rights [Abstract]
LAND USE RIGHTS, NET	NOTE H - LAND USE RIGHTS, NET The balances for land use rights, net, as of March 31, 2019 and December 31, 2018 are as the following: March 31, December 31, 2019 2018 Cost $ 22,713,004 $ 22,283,776 Less: Accumulated amortization (1,357,013 ) (1,159,321 ) Land use rights, net $ 21,355,991 $ 21,124,455 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. As of December 31, 2018, the purchase price of RMB 72.02 million (approximately $11.13 million ) was fully paid. As of the filing date, the title to the land use rights has not been transferred. The payments were included as prepayment, non-current as of March 31, 2019 and 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 March 31, 2019 and December 31, 2018 on the accompanying consolidated balance sheets. Amortization expenses were $173,687 and $132,523 for the three months ended March 31, 2019 and 2018, respectively.

Deferred Tax Assets

Deferred Tax Assets	3 Months Ended
	Mar. 31, 2019
Components of Deferred Tax Assets and Liabilities [Abstract]
DEFERRED TAX ASSETS	NOTE I - DEFERRED TAX ASSETS Deferred tax assets consisted of the following as of March 31, 2019 and December 31, 2018: March 31, December 31, 2019 2018 Deferred tax assets Allowance for doubtful accounts $ 2,235,493 $ 2,205,048 Revenue (net of cost) 331,492 308,046 Unpaid accrued expenses (87,797 ) 501,276 Warranty 1,087,357 1,059,468 Deferred tax assets 3,566,545 4,073,838 Valuation allowance - - Net deferred tax assets $ 3,566,545 $ 4,073,838 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.

Short Term Bank Loans

Short Term Bank Loans	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
SHORT TERM BANK LOANS	NOTE J - SHORT TERM BANK LOANS Bank loans represented the following as of March 31, 2019 and December 31, 2018: March 31, December 31, 2019 2018 Secured $ 212,363,818 $ 217,940,471 Total short term bank loan $ 212,363,818 $ 217,940,471 The Company obtained those short term loans from Bank of China, Bank of Ningbo, Agricultural Bank of China, China Minsheng Bank, Industrial Bank and China Construction Bank to finance general working capital as well as new acquisition of property, plant, and equipment. Interest rate for the loans outstanding during the three months ended March 31, 2019 ranged from 1.35% to 5.44% per annum. The maturity dates of the loans existing as of March 31, 2019 ranged from June 6, 2019 to March 20, 2020. The interest expenses, including discount fees, were $3,435,416 and $2,294,328 for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, corporate or personal guarantees provided for those bank loans were as follows: $ 32,672,459 Pledged by Ruili Group, a related party, with its land use rights and properties. $ 66,830,027 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. $ 7,201,307 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 5,710,518 Guaranteed by Ruili Group, a related party. $ 38,612,906 Pledged by Hangzhou Ruili Property Development Ltd., a related party, with its properties. Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 37,127,794 Pledged by Shanghai Ruili, a related party, with its properties. Guaranteed by Shanghai Ruili, a related party. Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 7,425,559 Pledged by the Company with bank deposits. $ 4,455,335 Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party, with its properties; Guaranteed by Hangzhou Ruili Property Development Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders. $ 2,451,920 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. $ 2,450,434 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. $ 7,425,559 Pledged by the Company; Guaranteed by Hangzhou Ruili Property Development Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company’s principal stockholders.

Long Term Loans

Long Term Loans	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
LONG TERM LOANS	NOTE K - LONG TERM LOANS March 31, December 31, 2019 2018 Aggregate outstanding principal balance $ 30,936,398 $ 36,165,550 Less: unamortized debt issuance costs, non-current portion (423,500 ) (595,117 ) Less: current portion, net of unamortized debt issuance costs (25,086,705 ) (21,141,029 ) Non-current portion $ 5,426,193 $ 14,429,404 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). The Company paid debt issuance costs in cash of RMB 5,000,000 (approximately $742,324). The repayments of principal totaled $2,467,526 and $2,593,828 for the three months ended March 31, 2019 and 2018, respectively. 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). The Company paid debt issuance costs in cash of RMB7,320,000 (approximately $1,025,248). The repayments of principal totaled $3,401,673 and $3,932,820 for the three months ended March 31, 2019 and 2018, respectively. The interest expenses for long term loans, including the amortization of debt issuance costs, were $537,082 and $1,059,383 for the three months ended March 31, 2019 and 2018, respectively.

Revenues from Contracts With Cu

Revenues from Contracts With Customers	3 Months Ended
	Mar. 31, 2019
Revenues From Contracts With Customers
REVENUES FROM CONTRACTS WITH CUSTOMERS	NOTE L - REVENUES FROM CONTRACTS WITH CUSTOMERS In accordance with ASC 606, the Company disaggregates revenue from contracts with customers by product type. See Note P 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 March 31, 2019 and December 31, 2018, the Company recorded a deferred revenue liability of $53,150,261 and $51,529,795, respectively, which was presented as “Deposits received from customers” on the accompanying consolidated balance sheets. During the three months ended March 31, 2019, the Company recognized $12,667,148 of deferred revenue included in the opening balance of deposits received from customers. The amount was included in sales on the accompanying consolidated statement of income and comprehensive income.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE M - INCOME TAXES During the year ended December 31, 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 of $587,821 in the year ended December 31, 2018. The Company recognized additional interest and penalty of $77,415 in the three months ended March 31, 2019. 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 March 31, 2019, $2,528,913 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. 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 Company elected to account for GILTI tax in the period the tax is incurred, and therefore included it in estimating the annual effective tax rate. 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 2018, the Joint Venture was awarded the Chinese government’s “High-Tech Enterprise” designation for a fourth time, which is valid for three years and it continues to be taxed at the 15% tax rate in 2018, 2019 and 2020. The reconciliation of the effective income tax rate of the Company to the statutory income tax rate in the PRC for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended Three Months Ended US statutory income tax rate 21.00 % 21.00 % Valuation allowance recognized with respect to the loss in the US company -21.00 % -21.00 % 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 -1.79 % -2.51 % Effects of expenses not deductible for tax purposes 1.91 % 0.52 % Other items 0.65 % 1.86 % Effective tax rate 15.78 % 14.87 % 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 three months ended March 31, 2019 and 2018, respectively, are summarized as follows: Three Months Ended Three Months Ended Current $ 1,288,596 $ 704,603 Deferred 580,171 900,838 Total $ 1,868,767 $ 1,605,441

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2019
Leases, Operating [Abstract]
OPERATING LEASES	NOTE N - OPERATING LEASES The Company entered into various operating lease agreements for certain of its staff dormitories including a lease agreement with its related party. In December 2006, Ruian entered into a lease agreement with Ruili Group Co., Ltd., a related party, for the lease of two apartment buildings for Ruian’s management personnel and staff. 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). Balance sheet information related to operating leases is as follows: March 31, Operating lease right of use assets $ 1,222,064 Operating lease liabilities, current $ 492,494 Operating lease liabilities, non-current 797,107 Total operating lease liabilities $ 1,289,601 For the three months ended March 31, 2019, the Company had operating lease costs of $144,117 and the reduction in operating lease right of use assets was $125,799. Cash paid for amounts included in the measurement of operating lease liabilities was $344,794 during the three months ended March 31, 2019. The weighted-average remaining lease term and the weighted-average discount rate of our leases are as follows: March 31, Weighted-average remaining lease term 3 years Weighted-average discount rate 5.24 % The following table summarizes the maturity of our operating lease liabilities as of March 31, 2019: 2019 (remaining) $ 470,285 2020 311,873 2021 311,873 2022 311,873 2023 and thereafter - Total lease payment 1,405,904 Less imputed interest (116,303 ) Total lease liabilities $ 1,289,601

Warranty Claims

Warranty Claims	3 Months Ended
	Mar. 31, 2019
Warranty Claims [Abstract]
WARRANTY CLAIMS	NOTE O - WARRANTY CLAIMS Warranty claims were $1,008,084 and $833,684 for the three months ended March 31, 2019 and 2018, respectively. Warranty claims are included in selling and distribution expenses on the accompanying consolidated statements of income and comprehensive income. Accrued warranty expenses are included in the balances of accrued expenses on the accompanying consolidated balance sheets. The movement of accrued warranty expenses for the three months ended March 31, 2019 was as follows: Beginning balance at January 1, 2019 $ 7,063,122 Aggregate increase for new warranties issued during current period 1,008,084 Aggregate reduction for payments made and effect of exchange rate fluctuation (822,156 ) Ending balance at March 31, 2019 $ 7,249,050

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE P - SEGMENT INFORMATION The Company has two operating segments: Commercial Vehicle Brake Systems and Passenger Vehicle Brake Systems. For the reporting periods, 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. Three Months Ended Three Months Ended NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 108,381,809 $ 91,615,325 Passenger vehicles brake systems 27,838,115 16,111,357 Net sales $ 136,219,924 $ 107,726,682 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 31,419,163 $ 25,769,805 Passenger vehicles brake systems 5,101,407 4,429,681 Gross profit $ 36,520,570 $ 30,199,486 Selling and distribution expenses 12,884,567 10,037,861 General and administrative expenses 7,374,893 4,773,778 Research and development expenses 4,951,536 3,590,402 Other operating income, net 2,462,602 2,197,324 Income from operations 13,772,176 13,994,769 Interest income 1,736,775 1,488,264 Government grants 1,792,412 133,933 Other income 54,680 27,066 Interest expenses (3,972,498 ) (3,353,711 ) Exchange differences (1,061,005 ) (601,286 ) Other expenses (477,919 ) (890,814 ) Income before income tax expense $ 11,844,621 $ 10,798,221 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 10,543,989 $ 16,738,232 Passenger vehicles brake systems 2,708,888 2,944,543 Total $ 13,252,877 $ 19,682,775 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 2,691,220 $ 2,421,346 Passenger vehicles brake systems 691,409 425,957 Total $ 3,382,629 $ 2,847,303 March 31, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 626,405,556 $ 492,348,129 Passenger vehicles brake systems 160,931,744 89,967,813 Total $ 787,337,300 $ 582,315,942 March 31, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 151,639,513 $ 106,779,681 Passenger vehicles brake systems 38,958,165 19,512,076 Total $ 190,597,678 $ 126,291,757

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE Q - 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 N. (4) The information of guarantees and assets pledged is provided in Note D.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE R - SUBSEQUENT EVENTS During the subsequent period, the Company obtained short term loans in an aggregate amount of approximately $14.3 million from Industrial Bank Co., Ltd. and China Zheshang Bank. Interest rate for those loans range from 4.57% to 5.22% per annum. The maturity date of the loans existing as of the filing date is April 17, 2020. The Company continuously pledged bank acceptance notes to obtain loans from China Zheshang Bank. In the same period, the Company repaid loan principals and interest expenses in the total amount of approximately $7.3 million to China Zheshang Bank.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
ACCOUNTING METHOD	a. ACCOUNTING METHOD The Company uses the accrual method of accounting for financial statement and tax return purposes.
USE OF ESTIMATES	b. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 periods. 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	c. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and payable, bank acceptance notes from customers and to vendors, inventories, current prepayments, current deposits on loan agreements, other current assets, short term bank loans, current portion of long term loans, deposits received from customers, deferred income, current income tax payable, accrued expenses, current operating lease liabilities, and other current liabilities, 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.
RESTRICTED CASH	d. 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 D 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 certain bank deposits used to pledge for bank acceptance notes.
RELATED PARTY TRANSACTIONS	e. RELATED PARTY TRANSACTIONS A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.
BANK ACCEPTANCE NOTES RECEIVABLE	f. BANK ACCEPTANCE NOTES RECEIVABLE Bank acceptance notes receivable 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. Bank acceptance notes do not bear interest. As of March 31, 2019 and December 31, 2018, bank acceptance notes from customers in the amount of $65,408,481 and $58,458,890, respectively, were pledged to endorsing banks to issue either short term bank loans or bank acceptance notes to vendors. The banks charge discount fees if the Company chooses to discount the bank acceptance notes from customers for cash before the maturity of the notes and such discount fees are included in interest expenses on the accompanying unaudited consolidated statements of income and comprehensive income.
FOREIGN CURRENCY TRANSLATION	g . FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC. The Company's functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company's reporting currency, United States dollars ("US$"). All assets and liabilities are translated at the current rate. The stockholders' equity accounts are translated at the appropriate historical rate. Revenue and expenses are translated at the weighted average rates in effect on the transaction dates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of stockholders' equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2019
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 Changchun Kormee Auto Electric Co., Ltd. ("Changchun 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	Three Months Ended March 31, 2019 2018 PURCHASES FROM: Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 3,087,121 $ - Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 662,454 355,493 Shanghai Dachao Electric Technology Co., Ltd. 235,170 145,618 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 76,802 2,471,243 Ruili Group Co., Ltd. 1,855,637 1,716,788 Hangzhou HangCheng Friction Material Co., Ltd. 14,792 - Ningbo Ruili Equipment Co., Ltd. 537,301 - Changchun Kormee Auto Electric Co., Ltd. 35,943 - Wenzhou Lichuang Automobile Parts Co., Ltd. 2,096,145 1,781,716 Total purchases $ 8,601,365 $ 6,470,858 SALES TO: Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 25,136 $ - Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 2,757,243 2,353,028 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 638,902 529,873 Ruili Group Co., Ltd. 6,842,914 4,411,287 Changchun Kormee Auto Electric Co., Ltd. 35,943 - Shanghai Tabouk Auto Components Co., Ltd. 346,608 406,866 Total sales $ 10,646,746 $ 7,701,054 As of March 31, 2019 As of December 31, 2018 ADVANCES TO RELATED PARTY Ruili Group Co., Ltd. $ 98,136,035 $ 79,739,417 Total $ 98,136,035 $ 79,739,417 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 341,110 $ 261,889 Total $ 341,110 $ 261,889 PREPAYMENT TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 5,129,110 $ 3,670,573 Total $ 5,129,110 $ 3,670,573 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 24,562,350 7,877,485 Shanghai Dachao Electric Technology Co., Ltd. 28,958 56,883 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 622,908 5,628,155 Wenzhou Lichuang Auto Parts Co., Ltd. 4,953,700 9,898,777 Changchun Kormee Auto Electric Co., Ltd. - 9,206 Hangzhou HangCheng Friction Material Co., Ltd. - 334,694 Total $ 30,167,916 $ 23,805,200 As of March 31, 2019 As of December 31, 2018 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 6,820,963 $ 5,959,752 $ 6,820,963 $ 5,959,752

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Accounts Receivable, Net [Abstract]
Schedule of accounts receivable	March 31, December 31, 2019 2018 Accounts receivable $ 192,913,727 $ 163,903,305 Less: allowance for doubtful accounts (14,042,200 ) (13,855,508 ) Accounts receivable, net $ 178,871,527 $ 150,047,797
Schedule of allowance for doubtful accounts	March 31, December 31, 2019 2018 Beginning balance $ 13,855,508 $ 13,927,156 Add: Increase (Decrease) to allowance (79,426 ) 610,610 Effects on changes in foreign exchange rate 266,118 (682,258 ) Ending balance $ 14,042,200 $ 13,855,508

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	March 31, December 31, 2019 2018 Raw Materials $ 43,083,794 $ 53,821,973 Work in process 78,087,090 89,516,949 Finished Goods 68,229,467 62,674,252 Less: Write-down of inventories (2,016,212 ) (1,727,747 ) Total Inventory $ 187,384,139 $ 204,285,427

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	March 31, December 31, 2019 2018 Machinery $ 138,421,155 $ 130,912,861 Molds 1,299,283 1,274,729 Office equipment 4,013,170 3,566,772 Vehicles 6,322,725 5,956,822 Buildings 21,007,127 20,610,137 Construction in progress 15,458,570 8,641,271 Leasehold improvements 472,424 463,497 Sub-Total 186,994,454 171,426,089 Less: Accumulated depreciation (79,931,250 ) (75,372,703 ) Property, plant and equipment, net $ 107,063,204 $ 96,053,386

Land Use Rights, Net (Tables)

Land Use Rights, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Land Use Rights [Abstract]
Schedule of land rights	March 31, December 31, 2019 2018 Cost $ 22,713,004 $ 22,283,776 Less: Accumulated amortization (1,357,013 ) (1,159,321 ) Land use rights, net $ 21,355,991 $ 21,124,455

Deferred Tax Assets (Tables)

Deferred Tax Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Components of Deferred Tax Assets and Liabilities [Abstract]
Schedule of deferred tax assets	March 31, December 31, 2019 2018 Deferred tax assets Allowance for doubtful accounts $ 2,235,493 $ 2,205,048 Revenue (net of cost) 331,492 308,046 Unpaid accrued expenses (87,797 ) 501,276 Warranty 1,087,357 1,059,468 Deferred tax assets 3,566,545 4,073,838 Valuation allowance - - Net deferred tax assets $ 3,566,545 $ 4,073,838

Short Term Bank Loans (Tables)

Short Term Bank Loans (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of bank loans	March 31, December 31, 2019 2018 Secured $ 212,363,818 $ 217,940,471 Total short term bank loan $ 212,363,818 $ 217,940,471
Schedule of Personal or Corporate Guarantees	$ 32,672,459 Pledged by Ruili Group, a related party, with its land use rights and properties. $ 66,830,027 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. $ 7,201,307 Guaranteed by Ruili Group, a related party, Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders. $ 5,710,518 Guaranteed by Ruili Group, a related party. $ 38,612,906 Pledged by Hangzhou Ruili Property Development Ltd., a related party, with its properties. Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders. $ 37,127,794 Pledged by Shanghai Ruili, a related party, with its properties. Guaranteed by Shanghai Ruili, a related party. Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders. $ 7,425,559 Pledged by the Company with bank deposits. $ 4,455,335 Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party, with its properties; Guaranteed by Hangzhou Ruili Property Development Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders. $ 2,451,920 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. $ 2,450,434 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. $ 7,425,559 Pledged by the Company; Guaranteed by Hangzhou Ruili Property Development Ltd., a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders.

Long Term Loans (Tables)

Long Term Loans (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of long term loan	March 31, December 31, 2019 2018 Aggregate outstanding principal balance $ 30,936,398 $ 36,165,550 Less: unamortized debt issuance costs, non-current portion (423,500 ) (595,117 ) Less: current portion, net of unamortized debt issuance costs (25,086,705 ) (21,141,029 ) Non-current portion $ 5,426,193 $ 14,429,404

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of reconciliation effective income tax rate	Three Months Ended Three Months Ended US statutory income tax rate 21.00 % 21.00 % Valuation allowance recognized with respect to the loss in the US company -21.00 % -21.00 % 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 -1.79 % -2.51 % Effects of expenses not deductible for tax purposes 1.91 % 0.52 % Other items 0.65 % 1.86 % Effective tax rate 15.78 % 14.87 %
Schedule of provisions for income taxes	Three Months Ended Three Months Ended Current $ 1,288,596 $ 704,603 Deferred 580,171 900,838 Total $ 1,868,767 $ 1,605,441

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases, Operating [Abstract]
Schedule of Balance sheet information related to operating leases	March 31, Operating lease right of use assets $ 1,222,064 Operating lease liabilities, current $ 492,494 Operating lease liabilities, non-current 797,107 Total operating lease liabilities $ 1,289,601
Schedule of operating lease of weighted average	March 31, Weighted-average remaining lease term 3 years Weighted-average discount rate 5.24 %
Schedule of maturity of our operating lease liabilities	2019 (remaining) $ 470,285 2020 311,873 2021 311,873 2022 311,873 2023 and thereafter - Total lease payment 1,405,904 Less imputed interest (116,303 ) Total lease liabilities $ 1,289,601

Warranty Claims (Tables)

Warranty Claims (Tables)	3 Months Ended
	Mar. 31, 2019
Warranty Claims [Abstract]
Schedule of accrued warranty expenses	Beginning balance at January 1, 2019 $ 7,063,122 Aggregate increase for new warranties issued during current period 1,008,084 Aggregate reduction for payments made and effect of exchange rate fluctuation 822,156 Ending balance at March 31, 2019 $ 7,249,050

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of segment Information, by segment	Three Months Ended Three Months Ended NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 108,381,809 $ 91,615,325 Passenger vehicles brake systems 27,838,115 16,111,357 Net sales $ 136,219,924 $ 107,726,682 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles brake systems — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 31,419,163 $ 25,769,805 Passenger vehicles brake systems 5,101,407 4,429,681 Gross profit $ 36,520,570 $ 30,199,486 Selling and distribution expenses 12,884,567 10,037,861 General and administrative expenses 7,374,893 4,773,778 Research and development expenses 4,951,536 3,590,402 Other operating income, net 2,462,602 2,197,324 Income from operations 13,772,176 13,994,769 Interest income 1,736,775 1,488,264 Government grants 1,792,412 133,933 Other income 54,680 27,066 Interest expenses (3,972,498 ) (3,353,711 ) Exchange differences (1,061,005 ) (601,286 ) Other expenses (477,919 ) (890,814 ) Income before income tax expense $ 11,844,621 $ 10,798,221 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 10,543,989 $ 16,738,232 Passenger vehicles brake systems 2,708,888 2,944,543 Total $ 13,252,877 $ 19,682,775 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 2,691,220 $ 2,421,346 Passenger vehicles brake systems 691,409 425,957 Total $ 3,382,629 $ 2,847,303 March 31, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 626,405,556 $ 492,348,129 Passenger vehicles brake systems 160,931,744 89,967,813 Total $ 787,337,300 $ 582,315,942 March 31, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 151,639,513 $ 106,779,681 Passenger vehicles brake systems 38,958,165 19,512,076 Total $ 190,597,678 $ 126,291,757

Description of Business (Detail

Description of Business (Details)	Mar. 31, 2019	Mar. 31, 2018	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%

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Basis of Presentation and Significant Accounting Policies (Textual)
Notes receivable amount	$ 65,408,481		$ 58,458,890
Research and development expenses	$ 4,951,536	$ 3,590,402

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Recently Issued Accounting Pronouncements (Textual)
Total right-of-use assets	$ 1,222,064
Operating lease liabilities	$ 1,059,701

Related Party Transactions (Det

Related Party Transactions (Details)	3 Months Ended
	Mar. 31, 2019
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
Changchun Kormee Auto Electric Co., Ltd. [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 ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Related Party Transaction [Line Items]
PURCHASES FROM	$ 8,601,365	$ 6,470,858
SALES TO	10,646,746	7,701,054
Guangzhou Ruili Kormee Automative Eletronic Control Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	3,087,121
SALES TO	2,757,243	2,353,028
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	662,454	355,493
SALES TO	25,136
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	235,170	145,618
Ruili MeiLian Air Management System (LangFang) Co., Ltd [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	76,802	2,471,243
SALES TO	638,902	529,873
Ruili Group Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	1,855,637	1,716,788
SALES TO	6,842,914	4,411,287
Changchun Kormee Auto Electric Co., Ltd. [Member]
Related Party Transaction [Line Items]
SALES TO	35,943
Ningbo Ruili Equipment Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	537,301
Hangzhou HangCheng Friction Material Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	14,792
Wenzhou Lichuang Auto Parts Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	2,096,145	1,781,716
Shanghai Tabouk Auto Components Co., Ltd. [Member]
Related Party Transaction [Line Items]
SALES TO	$ 346,608	$ 406,866

Related Party Transactions (D_3

Related Party Transactions (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
ADVANCES TO RELATED PARTIES	$ 98,136,035	$ 79,739,417
Ruili Group Co., Ltd. [Member]
ADVANCES TO RELATED PARTIES	$ 98,136,035	$ 79,739,417

Related Party Transactions (D_4

Related Party Transactions (Details 3) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 341,110	$ 261,889
Shanghai Tabouk Auto Components Co Ltd [Member]
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 341,110	$ 261,889

Related Party Transactions (D_5

Related Party Transactions (Details 4) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
PREPAYMENT TO RELATED PARTY	$ 5,129,110	$ 3,670,573
Ningbo Ruili Equipment Co., Ltd. [Member]
PREPAYMENT TO RELATED PARTY	$ 5,129,110	$ 3,670,573

Related Party Transactions (D_6

Related Party Transactions (Details 5) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
ACCOUNTS PAYABLE TO RELATED PARTIES	$ 30,167,916	$ 23,805,200
Guangzhou Ruili Kormee Automotive Electronic Control Technology Co.,Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	24,562,350	7,877,485
Shanghai Dachao Electric Technology Co Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	28,958	56,883
Ruili MeiLian Air Management System LangFang Co., Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	622,908	5,628,155
Wenzhou Lichuang Auto Parts Co Ltd [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	4,953,700	9,898,777
Changchun 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 ($)	Mar. 31, 2019	Dec. 31, 2018
DUE TO RELATED PARTY	$ 6,820,963	$ 5,959,752
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
DUE TO RELATED PARTY	$ 6,820,963	$ 5,959,752

Related Party Transactions (D_8

Related Party Transactions (Details Textual)	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019CNY (¥)
Related Party Transactions (Textual)
Repayments of related party debt		$ 256,883,171
Proceeds from related party debt	739,289	$ 264,565,400
Repayments in cash	256,883,171
Repayments in bank acceptance notes to related parties	$ 5,846,083
Interest rate	6.33%
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)
Collected cash repayment from related parties	15,305,460
Interests received from related parties	1,394,267
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] | China Guangfa Bank [Member]
Related Party Transactions (Textual)
Guarantee amount	10,345,029
Ruili Group Co., Ltd. [Member] | Credit Line by Bank of Ningbo [Member]
Related Party Transactions (Textual)
Guarantee amount	30,597,972
Ruili Group Co., Ltd. [Member] | RMB [Member] | Credit Line by China Merchants Bank [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			¥ 40,000,000
Ruili Group Co., Ltd. [Member] | RMB [Member] | China Guangfa Bank [Member]
Related Party Transactions (Textual)
Guarantee amount	$ 71,000,000
Ruili Group Co., Ltd. [Member] | RMB [Member] | Credit Line by Bank of Ningbo [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			¥ 210,000,000

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable, Net [Abstract]
Accounts receivable	$ 192,913,727	$ 163,903,305
Less: allowance for doubtful accounts	(14,042,200)	(13,855,508)
Accounts receivable, net	$ 178,871,527	$ 150,047,797

Accounts Receivable, Net (Det_2

Accounts Receivable, Net (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable, Net [Abstract]
Beginning balance	$ 13,855,508	$ 13,927,156
Add: Increase (Decrease) to allowance	(79,426)	610,610
Effects on changes in foreign exchange rate	266,118	(682,258)
Ending balance	$ 14,042,200	$ 13,855,508

Accounts Receivable, Net (Det_3

Accounts Receivable, Net (Details Textual)	Mar. 31, 2019	Mar. 31, 2018
Accounts Receivable, Net [Abstract]
Ownership percentage	10.00%	10.00%

Inventories, Net (Details)

Inventories, Net (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 43,083,794	$ 53,821,973
Work in process	78,087,090	89,516,949
Finished goods	68,229,467	62,674,252
Less: Write-down of inventories	(2,016,212)	(1,727,747)
Total Inventory	$ 187,384,139	$ 204,285,427

Inventories, Net (Details Textu

Inventories, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Inventories (Textual)
Write-down of potentially obsolete or slow-moving inventories	$ 691,570

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Sub-Total	$ 186,994,454	$ 171,426,089
Less: Accumulated depreciation	(79,931,250)	(75,372,703)
Property, plant and equipment, net	107,063,204	96,053,386
Machinery [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	138,421,155	130,912,861
Molds [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	1,299,283	1,274,729
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	4,013,170	3,566,772
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	6,322,725	5,956,822
Buildings [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	21,007,127	20,610,137
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	15,458,570	8,641,271
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	$ 472,424	$ 463,497

Property, Plant and Equipment_4

Property, Plant and Equipment, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation	$ 3,117,643	$ 2,711,374

Land Use Rights, Net (Details)

Land Use Rights, Net (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Land Use Rights [Abstract]
Cost	$ 22,713,004		$ 22,283,776
Less: Accumulated amortization	(1,357,013)		(1,159,321)
Land use rights, net	$ 21,355,991	$ 21,124,455	$ 21,124,455

Land Use Rights, Net (Details T

Land Use Rights, Net (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Land Use Rights [Line Items]
Amortization expense, land use rights	$ 173,687	$ 132,523
Use Rights [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			$ 11,130,000
Use Rights [Member] | RMB [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			72,020,000
Intersection Tengda Road [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets			$ 6,430,000

Deferred Tax Assets (Details)

Deferred Tax Assets (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Deferred tax assets
Allowance for doubtful accounts	$ 2,235,493	$ 2,205,048
Revenue (net of cost)	331,492	308,046
Unpaid accrued expenses	(87,797)	501,276
Warranty	1,087,357	1,059,468
Deferred tax assets	3,566,545	4,073,838
Valuation allowance
Net deferred tax assets	$ 3,566,545	$ 4,073,838

Short Term Bank Loans (Details)

Short Term Bank Loans (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total short term bank loan	$ 212,363,818	$ 217,940,471
Secured [Member]
Total short term bank loan	$ 212,363,818	$ 217,940,471

Short Term Bank Loans (Details

Short Term Bank Loans (Details 1)	Mar. 31, 2019USD ($)
Ruili Group Co Ltd And Related Parties And Shareholders Two [Member]
Corporate or personal guarantees	$ 32,672,459
Shanghai Ruili Real Estate Development Co., Ltd. [Member]
Corporate or personal guarantees	66,830,027
Ruili Group Co Ltd And Related Parties And Shareholders Three [Member]
Corporate or personal guarantees	7,201,307
Ruili Group Co Ltd And Related Party [Member]
Corporate or personal guarantees	5,710,518
Hangzhou Ruili [Member]
Corporate or personal guarantees	38,612,906
Shanghai Ruili Real Estate Development Co., Ltd. and Related Party[Member]
Corporate or personal guarantees	37,127,794
Related Party[Member]
Corporate or personal guarantees	7,425,559
Hangzhou Ruili Related party [Member]
Corporate or personal guarantees	4,455,335
Ruili Group Co Ltd And Related Parties And Shareholders Four [Member]
Corporate or personal guarantees	2,451,920
Mr. Xiao Ping Zhang [Member]
Corporate or personal guarantees	2,450,434
Hangzhou Ruili Related party One [Member]
Corporate or personal guarantees	$ 7,425,559

Short Term Bank Loans (Detail_2

Short Term Bank Loans (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Accounts receivable pledged as collateral
Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	1.35%
Maximum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	5.44%
Pledged by Ruili Group, a related party, with its land use rights and properties [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	$ 32,672,459
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	66,830,029
Guaranteed by Ruili Group, a related party, 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	7,201,307
Guaranteed by Ruili Group, a related party [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	5,710,518
Pledged by Hangzhou Ruili Property Development Ltd., a related party under common control of Ruili Group, 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	38,612,906
Pledged by Shanghai Ruili, a related party, with its properties. Guaranteed by Shanghai Ruili, 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	37,127,794
Pledged bank deposits [Member]
Short-term Debt [Line Items]
Restricted cash	3,022,471
Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party, 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	4,455,335
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	2,451,920
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	2,450,434
Pledged by Ruili Group Rui'an Auto Parts with its property; Guaranteed by Hangzhou Ruili Property 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	7,425,559
Pledged by a fixed term deposit [Member]
Short-term Debt [Line Items]
Corporate or personal guarantees	7,425,559
Short Term Loans [Member]
Short-term Debt [Line Items]
Interest expenses	$ 3,435,416	$ 2,294,328
Maturity dates of loans	The maturity dates of the loans existing as of March 31, 2019 ranged from June 6, 2019 to March 20, 2020.
Short Term Loans [Member] | Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	1.35%
Short Term Loans [Member] | Maximum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage			5.44%

Long Term Loans (Details)

Long Term Loans (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Aggregate outstanding principal balance	$ 30,936,398	$ 36,165,550
Less: unamortized debt issuance costs, non-current portion	(423,500)	(595,117)
Less: current portion, net of unamortized debt issuance costs	(25,086,705)	(21,141,029)
Non-current portion	$ 5,426,193	$ 14,429,404

Long Term Loans (Details Textua

Long Term Loans (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2017	Mar. 31, 2019	Mar. 31, 2018	Nov. 15, 2017
Long Term Loans (Textual)
Amortization of debt issuance costs		$ 181,333	$ 372,025
COSCO Shipping Leasing Co., Ltd [Member]
Long Term Loans (Textual)
Debt instrument term	36 months
Debt instrument interest rate percentage	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	3,401,673	3,932,820
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
Far Eastern Horizon Co., Ltd [Member]
Long Term Loans (Textual)
Debt instrument term	36 months
Debt instrument interest rate percentage	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	$ 2,467,526	$ 2,593,828
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

Revenues from Contracts With _2

Revenues from Contracts With Customers (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Revenues from Contracts with Customers (Textual)
Deferred revenue liability	$ 53,150,261	$ 51,529,795
Deferred revenue of deposits received from customers	$ 12,667,148

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
US statutory income tax rate	21.00%	21.00%
Valuation allowance recognized with respect to the loss in the US company	(21.00%)	(21.00%)
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	(1.76%)	(2.51%)
Effects of expenses not deductible for tax purposes	1.91%	0.52%
Other items	0.65%	1.86%
Effective tax rate	15.78%	14.87%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Current	$ 1,288,596	$ 704,603
Deferred	580,171	900,838
Total	$ 1,868,767	$ 1,605,441

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
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
Recognized additional interest and penalty		$ 77,415
Company recognized a one-time transition tax				$ 11,022,985
Taxes payable as current liability		$ 2,451,498
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.

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Leases, Operating [Abstract]
Operating lease right of use assets	$ 1,222,064
Operating lease liabilities, current	492,494
Operating lease liabilities, non-current	797,107
Total Operating lease liabilities	$ 1,289,601

Operating Leases (Details 1)

Operating Leases (Details 1)	Mar. 31, 2019
Leases, Operating [Abstract]
Weighted-average remaining lease term	3 years
Weighted-average discount rate	5.24%

Operating Leases (Details 2)

Operating Leases (Details 2)	Mar. 31, 2019USD ($)
Leases, Operating [Abstract]
2019 (remaining)	$ 470,285
2020	311,873
2021	311,873
2022	311,873
2023 and thereafter
Total lease payment	1,405,904
Less imputed interest	(116,303)
Total lease liabilities	$ 1,289,601

Operating Leases (Details Textu

Operating Leases (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2006	Dec. 31, 2018
Operating Leased Assets [Line Items]
operating lease liabilities	$ 1,059,701
Operating lease ROU assets	1,222,064
Ruian [Member]
Operating Leased Assets [Line Items]
operating lease costs	144,117
Reduction in operating lease right of use assets	125,799
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. The annual lease expense is RMB 2,100,000 (approximately $305,980).
Building [Member] | Ruian [Member] | RMB [Member]
Operating Leased Assets [Line Items]
Annual lease expense		$ 2,100,000
Weighted Average [Member]
Operating Leased Assets [Line Items]
operating lease liabilities	$ 344,794

Warranty Claims (Details)

Warranty Claims (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Warranty Claims [Abstract]
Beginning balance at January 1, 2019	$ 7,063,122
Aggregate increase for new warranties issued during current period	1,008,084
Aggregate reduction for payments made and effect of exchange rate fluctuation	822,156
Ending balance at March 31, 2019	$ 7,249,050

Warranty Claims (Details Textua

Warranty Claims (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Warranty Claims [Abstract]
Warranty claims are included in selling and distribution expenses	$ 1,008,084	$ 833,684

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
NET SALES TO EXTERNAL CUSTOMERS
Net sales	$ 136,219,924	$ 107,726,682
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	36,520,570	30,199,486
Selling and distribution expenses	12,884,567	10,037,861
General and administrative expenses	7,374,893	4,773,778
Research and development expenses	4,951,536	3,590,402
Other operating income, net	2,462,602	2,197,324
Income from operations	13,772,176	13,994,769
Interest income	1,736,775	1,488,264
Government grants	1,792,412	133,933
Other income	54,680	27,066
Interest expenses	(3,972,498)	(3,353,711)
Exchange differences	(1,061,005)	(601,286)
Other expenses	(477,919)	(890,814)
Income before income tax expense	11,844,621	10,798,221
CAPITAL EXPENDITURE
Total	13,252,877	19,682,775
DEPRECIATION AND AMORTIZATION
Total	3,382,629	2,847,303
TOTAL ASSETS
Total assets	787,337,300		$ 794,371,526
LONG LIVED ASSETS
Long lived assets	190,597,678		126,291,757
Commercial Vehicles Brake Systems [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales	108,381,809	91,615,325
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	31,419,163	25,769,805
CAPITAL EXPENDITURE
Total	10,543,989	16,738,232
DEPRECIATION AND AMORTIZATION
Total	2,691,220	2,421,346
TOTAL ASSETS
Total assets	626,405,556		492,348,129
LONG LIVED ASSETS
Long lived assets	151,639,513		106,779,681
Passenger Vehicles Brake Systems [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales	27,838,115	16,111,357
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	5,101,407	4,429,681
CAPITAL EXPENDITURE
Total	2,708,888	2,944,543
DEPRECIATION AND AMORTIZATION
Total	691,409	425,957
TOTAL ASSETS
Total assets	160,931,744		89,967,813
LONG LIVED ASSETS
Long lived assets	$ 38,958,165	$ 19,512,076	$ 19,512,076

Contingencies (Details)

Contingencies (Details)	Mar. 31, 2019USD ($)
Development Zone Facility [Member]
Relevant tax amount reserved	$ 2,300,205
Tax rate, land use right	3.00%
Development Zone Facility [Member] | RMB [Member]
Relevant tax amount reserved	$ 15,030,000
Dongshan Facility [Member]
Relevant tax amount reserved	$ 745,220
Tax rate, land use right	3.00%
Dongshan Facility [Member] | RMB [Member]
Relevant tax amount reserved	$ 4,560,000

Subsequent Events (Details)

Subsequent Events (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Subsequent Event [Line Items]
Short term loans total amount	$ 14,300,000
Maturity dates, description	The maturity date of the loans existing as of the filing date is April 17, 2020.
Repaid loan principals and interest expenses	$ 7,300,000
Minimum [Member]
Subsequent Event [Line Items]
Interest rates	1.35%
Maximum [Member]
Subsequent Event [Line Items]
Interest rates	5.44%