SORL Auto Parts (SORL) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 14, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	SORL Auto Parts Inc
Entity Central Index Key	0000714284
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity File Number	000-11991
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
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 ($)	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 16,485,401	$ 73,588,229
Accounts receivable, net, including $310,143 and $261,889 from related parties as of September 30, 2019 and December 31, 2018, respectively	158,188,600	150,047,797
Bank acceptance notes from customers	65,007,965	62,052,225
Inventories, net	191,178,724	204,285,427
Prepayments, current, including $3,283,579 and $3,670,573 to related party at September 30, 2019 and December 31, 2018, respectively	16,258,454	7,776,591
Restricted cash, current	13,780,187	19,307,003
Advances to related party	24,433,792	79,739,417
Deposits on loan agreements, current	4,948,465
Other current assets, net	13,610,953	15,697,448
Total Current Assets	503,892,541	612,494,137
Property, plant and equipment, net	119,103,291	96,053,386
Land use rights, net	36,213,965	21,124,455
Intangible assets, net		220,232
Deposits on loan agreements, non-current	6,362,312	10,199,324
Prepayments, non-current	15,253,670	31,575,238
Other assets, non-current	1,463,985	563,542
Restricted cash, non-current	16,683,397	18,067,374
Deferred tax assets	3,578,925	4,073,838
Total Non-current Assets	198,659,545	181,877,389
Total Assets	702,552,086	794,371,526
Current Liabilities
Accounts payable and bank acceptance notes to vendors, including $16,438,264 and $23,805,200 due to related parties at September 30, 2019 and December 31, 2018, respectively	159,184,839	236,433,718
Deposits received from customers	47,433,293	51,529,795
Short term bank loans	201,749,179	217,940,471
Current portion of long term loans, net of unamortized debt issuance costs	22,199,252	21,141,029
Income tax payable, current	3,132,430	3,421,486
Accrued expenses	23,085,329	24,045,902
Due to related party	8,083,574	5,959,752
Deferred income	745,200	1,453,282
Other current liabilities	4,041,457	3,288,344
Total Current Liabilities	469,654,553	565,213,779
Long term loans, less current portion and net of unamortized debt issuance costs	4,630,198	14,429,404
Operating lease liabilities, non-current	628,873
Income tax payable, non-current	8,377,468	9,259,307
Total Non-current Liabilities	13,636,539	23,688,711
Total Liabilities	483,291,092	588,902,490
Equity
Preferred stock - no par value; 1,000,000 authorized; none issued and outstanding as of September 30, 2019 and December 31, 2018
Common stock - $0.002 par value; 50,000,000 authorized, 19,304,921 issued and outstanding as of September 30, 2019 and December 31, 2018	38,609	38,609
Additional paid-in capital	(28,582,654)	(28,582,654)
Reserves	21,902,103	20,007,007
Accumulated other comprehensive income	259,271	6,655,803
Retained earnings	195,433,836	178,535,378
Total SORL Auto Parts, Inc. Stockholders' Equity	189,051,165	176,654,143
Noncontrolling Interest In Subsidiaries	30,209,829	28,814,893
Total Equity	219,260,994	205,469,036
Total Liabilities and Equity	$ 702,552,086	$ 794,371,526

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, net, related parties	$ 310,143	$ 261,889
Prepayments, related party	3,283,579	3,670,573
Accounts payable and bank acceptance notes to vendors, related parties	$ 16,438,264	$ 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 (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Sales	$ 112,227,452	$ 108,584,331	$ 387,820,858	$ 344,815,965
Include: sales to related parties	6,859,689	9,333,959	25,478,367	22,997,540
Cost of sales	81,294,783	82,249,456	284,098,257	253,851,334
Gross profit	30,932,669	26,334,875	103,722,601	90,964,631
Expenses:
Selling and distribution expenses	13,850,387	13,160,875	43,198,784	37,154,745
General and administrative expenses	8,207,550	5,051,684	24,803,869	17,519,873
Research and development expenses	5,001,354	4,478,298	16,934,141	13,400,656
Total operating expenses	27,059,291	22,690,857	84,936,794	68,075,274
Other operating income, net	2,840,617	2,959,269	7,798,787	7,535,820
Income from operations	6,713,995	6,603,287	26,584,594	30,425,177
Interest income	966,855	547,455	4,183,471	2,847,299
Government grants	70,785	2,239,250	3,570,630	2,982,775
Other income	35,884	229,520	130,913	432,213
Interest expenses	(3,010,304)	(3,331,554)	(10,155,849)	(10,214,681)
Exchange differences	773,420	906,538	250,290	1,396,460
Other expenses	(508,302)	(55,835)	(1,076,993)	(1,200,920)
Income before income taxes provision	5,042,333	7,138,661	23,487,056	26,668,323
Provision for income taxes	389,109	12,130,789	2,587,840	14,974,982
Net income (loss)	4,653,224	(4,992,128)	20,899,216	11,693,341
Net income attributable to noncontrolling interest in subsidiaries	468,322	613,086	2,105,662	2,281,633
Net income (loss) attributable to common stockholders	4,184,902	(5,605,214)	18,793,554	9,411,708
Comprehensive income (loss):
Net income (loss)	4,653,224	(4,992,128)	20,899,216	11,693,341
Foreign currency translation adjustments	(6,586,436)	(8,307,355)	(7,107,258)	(11,275,895)
Comprehensive income (loss)	(1,933,212)	(13,299,483)	13,791,958	417,446
Comprehensive income (loss) attributable to noncontrolling interest in subsidiaries	(190,322)	(217,650)	1,394,936	1,154,043
Comprehensive income (loss) attributable to common stockholders	$ (1,933,212)	$ (13,299,483)	$ 13,791,958	$ 417,446
Weighted average common share - basic	19,304,921	19,304,921	19,304,921	19,304,921
Weighted average common share - diluted	19,304,921	19,304,921	19,304,921	19,304,921
EPS - basic	$ 0.22	$ (0.29)	$ 0.97	$ 0.49
EPS - diluted	$ 0.22	$ (0.29)	$ 0.97	$ 0.49

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities
Net income	$ 20,899,216	$ 11,693,341
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Allowance for doubtful accounts	2,365,714	179,744
Depreciation and amortization	10,528,373	8,926,695
Deferred income tax	368,700	966,547
Gain on disposal of property and equipment	(30,562)	(73,809)
Amortization of debt issuance costs	441,236	520,741
Changes in assets and liabilities:
Accounts receivable	(15,844,424)	(38,780,246)
Bank acceptance notes from customers	1,258,843	68,016,837
Inventories, net	7,669,607	(9,983,968)
Prepayments	(9,348,404)	(52,611,953)
Other current assets, net	(699,009)	(19,823,567)
Accounts payable and bank acceptance notes to vendors	(72,638,392)	86,724,938
Deposits received from customers	(2,393,750)	7,432,808
Income tax payable	(1,125,335)	24,058,536
Deferred income	(683,529)	(382,627)
Other current liabilities and accrued expenses	301,057	(5,671,820)
Net Cash Flows Provided By (Used in) Operating Activities	(58,930,659)	81,192,197
Cash Flows From Investing Activities
Acquisition of property, equipment, plant and land use rights	(36,495,784)	(40,142,267)
Acquisition of intangible assets		(367,931)
Advances to related parties		(214,800,362)
Repayment of advances to related parties	57,010,144	222,337,244
Proceeds from disposal of property and equipment	42,451
Net Cash Flows Provided By (Used In) Investing Activities	20,556,811	(32,973,316)
Cash Flows From Financing Activities
Proceeds from short term bank loans	238,649,409	353,441,949
Repayment of short term bank loans	(248,358,539)	(325,651,416)
Proceeds from related parties	1,843,951	311,692,664
Repayments to related parties		(328,624,110)
Repayments of long term loans	(16,998,572)	(18,957,775)
Payment of debt issuance costs	(108,222)
Net Cash Flows Used In Financing Activities	(24,971,973)	(8,098,688)
Effects on changes in foreign exchange rate	(667,800)	(4,557,219)
Net change in cash, cash equivalents and restricted cash	(64,013,621)	35,562,974
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	46,948,985	40,161,150
Supplemental Cash Flow Disclosures:
Interest paid	8,655,097	7,849,753
Income taxes paid	3,339,144	5,157,755
Non-cash Investing and Financing Transactions
Loans from related party in the form of bank acceptance notes		5,846,083
Repayments to related party in the form of bank acceptance notes		33,721,267
Repayments from related party in the form of bank acceptance notes		26,771,056
Liabilities assumed in connection with acquisition of property, plant and equipment	1,274,693
Property, plant and equipment and land use rights transferred from prepayments	19,995,442
Proceeds from long term loans in the form of bank acceptance notes	7,169,692
Deposits on loan agreements deducted from proceeds from long term loans	$ 1,433,938

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$ 16,485,401	$ 17,609,594
Restricted cash, current	13,780,187	19,062,778
Restricted cash, non-current	16,683,397	3,488,778
Total cash, cash equivalents, and restricted cash	$ 46,948,985	$ 40,161,150

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
Net income				6,743,420		6,743,420	749,269	7,492,689
Foreign currency translation adjustment					(9,911,767)	(9,911,767)	(1,101,307)	(11,013,074)
Transfer to reserve			674,342	(674,342)
Balance at Jun. 30, 2018	$ 38,609	(28,582,654)	19,064,049	181,759,559	13,231,502	185,511,065	28,497,795	214,008,860
Balance, shares at Jun. 30, 2018	19,304,921
Net income				(5,605,214)		(5,605,214)	613,086	(4,992,128)
Foreign currency translation adjustment					(7,476,619)	(7,476,619)	(830,736)	(8,307,355)
Transfer to reserve			674,342	(674,342)
Balance at Sep. 30, 2018	$ 38,609	(28,582,654)	19,738,391	175,480,003	5,754,883	172,429,232	28,280,145	200,709,377
Balance, shares at Sep. 30, 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
Net income				5,638,125		5,638,125	632,013	6,270,138
Foreign currency translation adjustment					(4,329,039)	(4,329,039)	(481,004)	(4,810,043)
Transfer to reserve			568,812	(568,812)
Balance at Jun. 30, 2019	$ 38,609	(28,582,654)	21,480,613	191,670,424	6,187,063	190,794,055	30,400,151	221,194,206
Balance, shares at Jun. 30, 2019	19,304,921
Net income				4,184,902		4,184,902	468,322	4,653,224
Foreign currency translation adjustment					(5,927,792)	(5,927,792)	(658,644)	(6,586,436)
Transfer to reserve			421,490	(421,490)
Balance at Sep. 30, 2019	$ 38,609	$ (28,582,654)	$ 21,902,103	$ 195,433,836	$ 259,271	$ 189,051,165	$ 30,209,829	$ 219,260,994
Balance, shares at Sep. 30, 2019	19,304,921

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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 period. Management makes its best estimate of the outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates. c. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company's financial instruments, including cash and cash equivalents, current restricted cash, accounts receivable, bank acceptance notes from customers, inventories, current prepayments, current deposits on loan agreements, other current assets, accounts payable and bank acceptance notes to vendors, short term bank loans, deposits received from customers, current portion of long term loans, deferred income, income tax payable, accrued expenses 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, and deposits for obtaining letters of credit from a local bank. 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 FROM CUSTOMERS Bank acceptance notes from customers, generally due within six months and with specific payment terms and definitive due dates, are comprised of the notes issued by some customers to pay certain outstanding receivable balances to the Company, and the notes issued by the customers of related parties and transferred to the Company as loans from related parties or repayments from related parties. Bank acceptance notes do not bear interest. As of September 30, 2019 and December 31, 2018, bank acceptance notes receivable in the amount of $58,985,401 and $58,458,890, respectively, were pledged to banks to issue either short term bank loans or bank acceptance notes to vendors. The banks charge discount fees if the Company chooses to discount the bank acceptance notes for cash before the maturity of the notes and such discount fees are included in interest expenses in the accompanying consolidated statements of income (loss) and comprehensive income (loss). g. FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC. The Company's functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company's reporting currency, United States dollars ("US$"). 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 Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE C - RECENTLY ISSUED 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 September 30, 2019. See Note N for further discussion.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE D - RELATED PARTY TRANSACTIONS Related parties with whom the Company conducted business consist of the following: Name of Related Party Nature of Relationship Xiao Ping Zhang Principal shareholder, Chairman of the Board and Chief Executive Officer Shu Ping Chi Shareholder, member of the Board, wife of Xiao Ping Zhang Xiao Feng Zhang Shareholder, member of the Board, brother of Xiao Ping Zhang Ruili Group Co., Ltd. ("Ruili Group") 10% shareholder of Joint Venture and is collectively controlled by Xiao Ping Zhang, Shu Ping Chi, and Xiao Feng Zhang Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. ("Guangzhou Kormee") Controlled by Ruili Group Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. ("Ruian Kormee" and formerly known as "Ruian Kormee Automobile Braking Co., Ltd.") Wholly controlled by Guangzhou Kormee Changchun Kormee Auto Electric Co., Ltd. ("Changchun Kormee") Wholly controlled by Guangzhou Kormee Shanghai Dachao Electric Technology Co., Ltd. ("Shanghai Dachao") Ruili Group holds 66% of the equity interests in Shanghai Dachao Ruili MeiLian Air Management Systems (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. SHNS Precision Die Casting (Yangzhou) Co. Ltd. ("SHNS Precision") 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, 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, Shanghai Tabouk, Ruian Kormee, Changchun Kormee and Ruili Meilian. The following related party transactions occurred during the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended 2019 2018 2019 2018 PURCHASES FROM: Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 3,221,199 $ 598,920 $ 8,614,356 $ 2,343,015 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 756,976 582,998 2,507,101 1,996,094 Shanghai Dachao Electric Technology Co., Ltd. 186,044 489,695 500,278 866,382 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 566,208 812,202 1,355,626 5,786,608 Ruili Group Co., Ltd. 2,190,415 2,024,487 10,418,878 5,991,237 Hangzhou Hangcheng Friction Material Co., Ltd. 95,925 - 216,163 - Ningbo Ruili Equipment Co., Ltd. 3,045,923 2,044,168 4,410,119 2,044,168 Wenzhou Lichuang Automobile Parts Co., Ltd. 3,518,565 3,706,795 10,754,558 11,251,687 Total purchases $ 13,581,255 $ 10,259,265 $ 38,777,079 $ 30,279,191 SALES TO: Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 29,965 $ 8,641 $ 93,233 $ 63,112 Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 2,227,504 2,271,413 9,085,261 8,086,219 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 92,965 204,192 1,085,084 1,048,005 Ruili Group Co., Ltd. 4,193,754 6,494,382 14,235,539 12,570,554 Changchun Kormee Auto Electric Co., Ltd. - - 35,943 - Shanghai Tabouk Auto Components Co., Ltd. 315,501 355,331 943,307 1,229,651 Total sales $ 6,859,689 $ 9,333,959 $ 25,478,367 $ 22,997,541 As of As of ADVANCES TO RELATED PARTIES Ruili Group Co., Ltd. $ 24,433,792 $ 79,739,417 Total $ 24,433,792 $ 79,739,417 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 310,143 $ 261,889 Total $ 310,143 $ 261,889 PREPAYMENTS TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 3,283,579 $ 3,670,573 Total $ 3,283,579 $ 3,670,573 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 6,207,669 $ 7,877,485 Shanghai Dachao Electric Technology Co., Ltd. 266,285 56,883 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 1,518,494 5,628,155 Wenzhou Lichuang Auto Parts Co., Ltd. 8,258,279 9,898,777 Changchun Kormee Auto Electric Co., Ltd. - 9,206 Hangzhou Hangcheng Friction Material Co., Ltd. 187,537 334,694 Total $ 16,438,264 $ 23,805,200 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 8,083,574 $ 5,959,752 Total $ 8,083,574 $ 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 are unsecured and due on demand, and the Company charged them an interest of 5.22% per annum on the average balance advanced to them. The Company recorded interests of $3,117,705 during the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the Company obtained net proceeds of $1,843,951 from a related party. In the same period, Ruili Group repaid the Company net amount of $57,010,144. 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 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 was 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 RMB71,000,000 (approximately $10,345,029) for the period from February 12, 2019 to January 16, 2020. The Company provided a guarantee for the credit line granted to Ruili Group and SHNS Precision by Minsheng Bank in a maximum amount of RMB500,000,000 (approximately $72,730,446) for the period from June 6, 2019 to June 6, 2020. 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	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	NOTE E - ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: September 30, December 31, 2019 2018 Accounts receivable $ 173,817,824 $ 163,903,305 Less: allowance for doubtful accounts (15,629,224 ) (13,855,508 ) Accounts receivable, net $ 158,188,600 $ 150,047,797 No customer individually accounted for more than 10% of our revenues or accounts receivable for the nine months ended September 30, 2019 and 2018. The changes in the allowance for doubtful accounts on September 30, 2019 and December 31, 2018 are summarized as follows: September 30, December 31, 2019 2018 Beginning balance $ 13,855,508 $ 13,927,156 Add: Increase to allowance 2,215,553 610,610 Effects on changes in foreign exchange rate (441,837 ) (682,258 ) Ending balance $ 15,629,224 $ 13,855,508

Inventories

Inventories	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	NOTE F - INVENTORIES On September 30, 2019 and December 31, 2018, inventories were consisted of the following: September 30, December 31, 2019 2018 Raw Materials $ 35,404,809 $ 53,821,973 Work in process 80,909,871 89,516,949 Finished Goods 77,506,223 62,674,252 Less: Write-down of inventories (2,642,179 ) (1,727,747 ) Total Inventory $ 191,178,724 $ 204,285,427 The write-down of inventories amounted to $965,656 and $nil for the nine months ended September 30, 2019 and 2018, respectively.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE G - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment were consisted of the following on September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Machinery $ 143,807,189 $ 130,912,861 Molds 1,236,935 1,274,729 Office equipment 4,520,246 3,566,772 Vehicles 6,220,692 5,956,822 Buildings 19,999,080 20,610,137 Construction in progress 25,305,496 8,641,271 Leasehold improvements 449,754 463,497 Sub-Total 201,539,392 171,426,089 Less: Accumulated depreciation (82,436,101 ) (75,372,703 ) Property, plant and equipment, net $ 119,103,291 $ 96,053,386 Depreciation expense charged to operations was $9,738,142 and $8,399,291 for the nine months ended September 30, 2019 and 2018, respectively.

Land Use Rights, Net

Land Use Rights, Net	9 Months Ended
	Sep. 30, 2019
Land Use Rights [Abstract]
LAND USE RIGHTS, NET	NOTE H - LAND USE RIGHTS, NET The balances for land use rights, net as of September 30, 2019 and December 31, 2018 are as the following: September 30, December 31, 2019 2018 Cost $ 37,891,449 $ 22,283,776 Less: Accumulated amortization (1,677,484 ) (1,159,321 ) Land use rights, net $ 36,213,965 $ 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 and the payments were included in prepayments, non-current in the consolidated balance sheets. During the nine months ended September 30, 2019, the Company paid related deed tax of RMB 2.33 million (approximately $330,000). The Company obtained the title to the land use rights in September 2019. The total prepayments of RMB 74.35 million (approximately $11.46 million) were transferred to the land use right during the nine months ended September 30, 2019. 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 38.67 million (approximately $5.85 million) and refundable deposit of RMB 3.87 million (approximately $585,000) were made during the year ended December 31, 2018. During the nine months ended September 30, 2019, the Company paid related deed tax of RMB 2.04 million (approximately $296,000). The Company obtained the title to the land use rights in July 2019. The prepayments in total of RMB 40.72 million (approximately $6.15 million) was transferred to the land use right during the nine months ended September 30, 2019. The refundable deposit of RMB 3.87 million (approximately $585,000) was included in other assets, non-current on the accompanying consolidated balance sheet as of September 30, 2019. Amortization expenses were $568,978 and $458,179 for the nine months ended September 30, 2019 and 2018, respectively.

Deferred Tax Assets

Deferred Tax Assets	9 Months Ended
	Sep. 30, 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 September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Deferred tax assets - current Allowance for doubtful accounts $ 2,528,387 $ 2,205,048 Revenue (net of cost) 133,305 308,046 Unpaid accrued expenses (58,026 ) 501,276 Warranty 975,259 1,059,468 Deferred tax assets 3,578,925 4,073,838 Valuation allowance ― ― Net deferred tax assets - current $ 3,578,925 $ 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	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
SHORT-TERM BANK LOANS	NOTE J - SHORT-TERM BANK LOANS Bank loans represented the following as of September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Secured $ 201,749,179 $ 217,940,471 Total short-term bank loan $ 201,749,179 $ 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 equipment acquisition. Interest rate for the loans outstanding during the nine months ended September 30, 2019 ranged from 1.35% to 5.44% per annum. The maturity dates of the loans existing as of September 30, 2019 ranged from October 11, 2019 to July 23, 2020. The interest expenses for short term bank loans, including discount fees, were $8,796,523 and $7,428,780 for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, corporate or personal guarantees provided for those bank loans were as follows: $ 5,436,493 Guaranteed by Ruili Group, a related party $ 3,534,618 Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders $ 5,301,927 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 $ 12,724,625 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 $ 26,863,097 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 $ 8,483,083 Pledged by the Company with its property; 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 $ 29,690,792 Pledged by Ruili Group, a related party, with its plant and land use rights $ 59,381,583 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 $ 35,346,180 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; Guaranteed by Shanghai Ruili, a related party $ 5,584,697 Pledged by the Company with its bank acceptance notes $ 7,069,236 Pledged by the Company with a bank deposit of $7,069,236, which was included in restricted cash on the accompanying consolidated balance sheets. Also see Note B "RESTRICTED CASH" section. $ 2,332,848 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

Long Term Loans

Long Term Loans	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
LONG TERM LOANS	NOTE K - LONG TERM LOANS September 30, December 31, 2019 2018 Aggregate outstanding principal balance $ 27,086,528 $ 36,165,550 Less: unamortized debt issuance costs (257,078 ) (595,117 ) Less: current portion (22,199,252 ) (21,141,029 ) Non-current portion $ 4,630,198 $ 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 $7,364,365 and $7,522,125 for the nine months ended September 30, 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 RMB 7,320,000 (approximately $1,025,248). The repayments of principal totaled $8,824,792 and $11,435,650 for the nine months ended September 30, 2019 and 2018, respectively. In July 2019, the Company entered into a loan agreement with COSCO Shipping Leasing Co., Ltd. ("COSCO") for a term of 36 months with an effective interest rate of 4.57% per annum, payable monthly in arrears. The total long term obligations under the agreement amounted to RMB 60,000,000 (approximately $8,483,083), pledged by the Company's equipment in the original cost of RMB 62,298,653 (approximately $8,808,078). The Company received RMB 50,000,000 (approximately $7,069,236), after deducting deposits of RMB 10,000,000 (approximately $1,413,847) required to maintain by COSCO, in the form of bank acceptance notes. The Company paid debt issuance costs in cash of RMB 754,717 (approximately $108,222). The repayments of principal totaled $809,415 for the nine months ended September 30, 2019. The interest expenses for long term loans, including the amortization of debt issuance costs, were $1,359,326 and $2,785,901 for the nine months ended September 30, 2019 and 2018, respectively.

Revenues from Contracts with Cu

Revenues from Contracts with Customers	9 Months Ended
	Sep. 30, 2019
Revenues from Contracts with Customers [Abstract]
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 September 30, 2019 and December 31, 2018, the Company recorded a deferred revenue liability of $47,433,293 and $51,529,795, respectively, which was presented as "Deposits received from customers" on the accompanying consolidated balance sheets. During the nine months ended September 30, 2019, the Company recognized $20,597,161 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 (loss) and comprehensive income (loss).

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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 $137,415 in the nine months ended September 30, 2019. The Company elected to pay the one-time transition tax over eight years commencing in 2018. The first installment payment of $881,839 was made during the nine months ended September 30, 2019. 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 September 30, 2019, $2,588,913 was included in income tax payable, current 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 US and the PRC for the nine months ended September 30, 2019 and 2018 is as follows: Nine Months Ended Nine 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 -5.08 % -3.43 % Effects of expenses not deductible for tax purposes 1.62 % 2.18 % Other items -0.52 % 0.81 % Effective tax rate 11.02 % 14.56 % 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 nine months ended September 30, 2019 and 2018, respectively, are summarized as follows: Nine Months Ended Nine Months Ended Current $ 2,219,140 $ 14,454,243 Deferred 368,700 520,739 Total $ 2,587,840 $ 14,974,982

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 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: September 30, Operating lease right-of-use assets 1 $ 917,151 Operating lease liabilities, current 2 $ 481,167 Operating lease liabilities, non-current 628,873 Total operating lease liabilities $ 1,110,040 1 Operating lease right-of-use assets are recorded in other assets, non-current on the accompanying consolidated balance sheet. 2 The current portion of operating lease liabilities is recorded in other current liabilities on the accompanying consolidated balance sheet. For the nine months ended September 30, 2019, the Company had operating lease costs of $428,605 and the reduction in operating lease right-of-use assets was $378,674. Cash paid for amounts included in the measurement of operating lease liabilities was $1,025,421 during the nine months ended September 30, 2019. The weighted-average remaining lease term and the weighted-average discount rate of our leases are as follows: September 30, 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 September 30, 2019: 2019 (remaining) $ 299,264 2020 296,908 2021 296,908 2022 296,908 2023 and thereafter - Total lease payment 1,189,988 Less imputed interest (79,948 ) Total lease liabilities $ 1,110,040

Warranty Claims

Warranty Claims	9 Months Ended
	Sep. 30, 2019
Warranty Claims [Abstract]
WARRANTY CLAIMS	NOTE O - WARRANTY CLAIMS Warranty claims were $2,889,608 and $2,507,487 for the nine months ended September 30, 2019 and 2018, respectively. Warranty claims are included in selling and distribution expenses on the accompanying consolidated statements of income (loss) and comprehensive income (loss). 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 nine months ended September 30, 2019 was as follows: Beginning balance at January 1, 2019 $ 7,063,122 Aggregate increase for new warranties issued during current period 2,889,608 Aggregate reduction for payments made and effect of exchange rate fluctuation (3,451,002 ) Ending balance at September 30, 2019 $ 6,501,728

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE P - SEGMENT INFORMATION The Company produces brake systems and other related components for different types of commercial vehicles ("Commercial Vehicles Brake Systems"). On August 31, 2010, the Company through Ruian, executed an Asset Purchase Agreement to acquire a segment of the passenger vehicles auto parts business ("Passenger Vehicles Auto Parts", formerly known as "Passenger Vehicles Brake System") of Ruili Group. As a result of this acquisition, the Company's product offerings were expanded to both commercial and passenger vehicles' brake systems and other key safety-related auto parts. The Company has two operating segments: Commercial Vehicle Brake Systems and Passenger Auto Parts. 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. Nine Months Ended 2019 2018 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 319,516,542 $ 276,593,442 Passenger vehicles auto parts 68,304,316 68,222,523 Net sales $ 387,820,858 $ 344,815,965 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles auto parts — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 82,320,762 $ 61,974,537 Passenger vehicles auto parts 21,401,839 28,990,094 Gross profit $ 103,722,601 $ 90,964,631 Selling and distribution expenses 43,198,784 37,154,745 General and administrative expenses 24,803,869 17,519,873 Research and development expenses 16,934,141 13,400,656 Other operating income, net 7,798,787 7,535,820 Income from operations 26,584,594 30,425,177 Interest income 4,183,471 2,847,299 Government grants 3,570,630 2,982,775 Other income 130,913 432,213 Interest expenses (10,155,849 ) (10,214,681 ) Exchange differences 250,290 1,396,460 Other expenses (1,076,993 ) (1,200,920 ) Income before income tax expense $ 23,487,056 $ 26,668,323 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 30,864,485 $ 32,788,350 Passenger vehicles auto parts 5,631,299 7,721,848 Total $ 36,495,784 $ 40,510,198 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 8,903,845 $ 7,187,308 Passenger vehicles auto parts 1,624,528 1,739,387 Total $ 10,528,373 $ 8,926,695 September 30, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 594,148,299 $ 655,435,946 Passenger vehicles auto parts 108,403,787 138,935,580 Total $ 702,552,086 $ 794,371,526 September 30, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 168,006,377 $ 150,067,034 Passenger vehicles auto parts 30,653,168 31,810,355 Total $ 198,659,545 $ 181,877,389

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE R - SUBSEQUENT EVENTS During the subsequent period, the Company obtained short-term loans in a total amount of approximately $12.30 million from Industrial Bank, Agricultural Bank, China Construction Bank and China Zheshang Bank. Interest rate for these loans ranges from 4.35% to 4.5675% per annum. The maturity dates of these loans existing as of the filing date range from April 13, 2020 to October 24, 2020. The Company pledged with its bank acceptance notes to obtain loans from Industrial Bank and China Zheshang Bank, its accounts receivable from customers to obtain the loan from China Construction Bank, and its property to obtain the loan from Agricultural Bank. In the same period, the Company repaid loan principals and interest expenses in the total amount of approximately $13.58 million to Agricultural Bank, China Construction Bank, Industrial Bank, and China Zheshang Bank.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	(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.
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 period. Management makes its best estimate of the outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates.
FAIR VALUE OF FINANCIAL INSTRUMENTS	c. FAIR VALUE OF FINANCIAL INSTRUMENTS For certain of the Company's financial instruments, including cash and cash equivalents, current restricted cash, accounts receivable, bank acceptance notes from customers, inventories, current prepayments, current deposits on loan agreements, other current assets, accounts payable and bank acceptance notes to vendors, short term bank loans, deposits received from customers, current portion of long term loans, deferred income, income tax payable, accrued expenses 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, and deposits for obtaining letters of credit from a local bank. 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 FROM CUSTOMERS	f. BANK ACCEPTANCE NOTES FROM CUSTOMERS Bank acceptance notes from customers, generally due within six months and with specific payment terms and definitive due dates, are comprised of the notes issued by some customers to pay certain outstanding receivable balances to the Company, and the notes issued by the customers of related parties and transferred to the Company as loans from related parties or repayments from related parties. Bank acceptance notes do not bear interest. As of September 30, 2019 and December 31, 2018, bank acceptance notes receivable in the amount of $58,985,401 and $58,458,890, respectively, were pledged to banks to issue either short term bank loans or bank acceptance notes to vendors. The banks charge discount fees if the Company chooses to discount the bank acceptance notes for cash before the maturity of the notes and such discount fees are included in interest expenses in the accompanying consolidated statements of income (loss) and comprehensive income (loss).
FOREIGN CURRENCY TRANSLATION	g. FOREIGN CURRENCY TRANSLATION The Company maintains its books and accounting records in RMB, the currency of the PRC. The Company's functional currency is also RMB. The Company has adopted FASB ASC 830-30 in translating financial statement amounts from RMB to the Company's reporting currency, United States dollars ("US$"). 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)	9 Months Ended
	Sep. 30, 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") Wholly controlled by Guangzhou Kormee Shanghai Dachao Electric Technology Co., Ltd. ("Shanghai Dachao") Ruili Group holds 66% of the equity interests in Shanghai Dachao Ruili MeiLian Air Management Systems (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. SHNS Precision Die Casting (Yangzhou) Co. Ltd. ("SHNS Precision") Controlled by Ruili Group
Schedule of related party transactions	Three Months Ended Nine Months Ended 2019 2018 2019 2018 PURCHASES FROM: Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 3,221,199 $ 598,920 $ 8,614,356 $ 2,343,015 Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. 756,976 582,998 2,507,101 1,996,094 Shanghai Dachao Electric Technology Co., Ltd. 186,044 489,695 500,278 866,382 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 566,208 812,202 1,355,626 5,786,608 Ruili Group Co., Ltd. 2,190,415 2,024,487 10,418,878 5,991,237 Hangzhou Hangcheng Friction Material Co., Ltd. 95,925 - 216,163 - Ningbo Ruili Equipment Co., Ltd. 3,045,923 2,044,168 4,410,119 2,044,168 Wenzhou Lichuang Automobile Parts Co., Ltd. 3,518,565 3,706,795 10,754,558 11,251,687 Total purchases $ 13,581,255 $ 10,259,265 $ 38,777,079 $ 30,279,191 SALES TO: Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 29,965 $ 8,641 $ 93,233 $ 63,112 Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. 2,227,504 2,271,413 9,085,261 8,086,219 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 92,965 204,192 1,085,084 1,048,005 Ruili Group Co., Ltd. 4,193,754 6,494,382 14,235,539 12,570,554 Changchun Kormee Auto Electric Co., Ltd. - - 35,943 - Shanghai Tabouk Auto Components Co., Ltd. 315,501 355,331 943,307 1,229,651 Total sales $ 6,859,689 $ 9,333,959 $ 25,478,367 $ 22,997,541 As of As of ADVANCES TO RELATED PARTIES Ruili Group Co., Ltd. $ 24,433,792 $ 79,739,417 Total $ 24,433,792 $ 79,739,417 ACCOUNTS RECEIVABLE FROM RELATED PARTY Shanghai Tabouk Auto Components Co., Ltd $ 310,143 $ 261,889 Total $ 310,143 $ 261,889 PREPAYMENTS TO RELATED PARTY Ningbo Ruili Equipment Co., Ltd. $ 3,283,579 $ 3,670,573 Total $ 3,283,579 $ 3,670,573 ACCOUNTS PAYABLE TO RELATED PARTIES Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. $ 6,207,669 $ 7,877,485 Shanghai Dachao Electric Technology Co., Ltd. 266,285 56,883 Ruili MeiLian Air Management System (LangFang) Co., Ltd. 1,518,494 5,628,155 Wenzhou Lichuang Auto Parts Co., Ltd. 8,258,279 9,898,777 Changchun Kormee Auto Electric Co., Ltd. - 9,206 Hangzhou Hangcheng Friction Material Co., Ltd. 187,537 334,694 Total $ 16,438,264 $ 23,805,200 DUE TO RELATED PARTY Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. $ 8,083,574 $ 5,959,752 Total $ 8,083,574 $ 5,959,752

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Schedule of accounts receivable	September 30, December 31, 2019 2018 Accounts receivable $ 173,817,824 $ 163,903,305 Less: allowance for doubtful accounts (15,629,224 ) (13,855,508 ) Accounts receivable, net $ 158,188,600 $ 150,047,797
Schedule of allowance for doubtful accounts	September 30, December 31, 2019 2018 Beginning balance $ 13,855,508 $ 13,927,156 Add: Increase to allowance 2,215,553 610,610 Effects on changes in foreign exchange rate (441,837 ) (682,258 ) Ending balance $ 15,629,224 $ 13,855,508

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, December 31, 2019 2018 Raw Materials $ 35,404,809 $ 53,821,973 Work in process 80,909,871 89,516,949 Finished Goods 77,506,223 62,674,252 Less: Write-down of inventories (2,642,179 ) (1,727,747 ) Total Inventory $ 191,178,724 $ 204,285,427

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	September 30, December 31, 2019 2018 Machinery $ 143,807,189 $ 130,912,861 Molds 1,236,935 1,274,729 Office equipment 4,520,246 3,566,772 Vehicles 6,220,692 5,956,822 Buildings 19,999,080 20,610,137 Construction in progress 25,305,496 8,641,271 Leasehold improvements 449,754 463,497 Sub-Total 201,539,392 171,426,089 Less: Accumulated depreciation (82,436,101 ) (75,372,703 ) Property, plant and equipment, net $ 119,103,291 $ 96,053,386

Land Use Rights, Net (Tables)

Land Use Rights, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Land Use Rights [Abstract]
Schedule of land use rights, net	September 30, December 31, 2019 2018 Cost $ 37,891,449 $ 22,283,776 Less: Accumulated amortization (1,677,484 ) (1,159,321 ) Land use rights, net $ 36,213,965 $ 21,124,455

Deferred Tax Assets (Tables)

Deferred Tax Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Components of Deferred Tax Assets and Liabilities [Abstract]
Schedule of deferred tax assets	September 30, December 31, 2019 2018 Deferred tax assets - current Allowance for doubtful accounts $ 2,528,387 $ 2,205,048 Revenue (net of cost) 133,305 308,046 Unpaid accrued expenses (58,026 ) 501,276 Warranty 975,259 1,059,468 Deferred tax assets 3,578,925 4,073,838 Valuation allowance ― ― Net deferred tax assets - current $ 3,578,925 $ 4,073,838

Short-Term Bank Loans (Tables)

Short-Term Bank Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of bank loans	September 30, December 31, 2019 2018 Secured $ 201,749,179 $ 217,940,471 Total short-term bank loan $ 201,749,179 $ 217,940,471
Schedule of personal or corporate guarantees	$ 5,436,493 Guaranteed by Ruili Group, a related party $ 3,534,618 Guaranteed by Ruili Group, a related party; Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi, both the Company's principal stockholders $ 5,301,927 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 $ 12,724,625 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 $ 26,863,097 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 $ 8,483,083 Pledged by the Company with its property; 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 $ 29,690,792 Pledged by Ruili Group, a related party, with its plant and land use rights $ 59,381,583 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 $ 35,346,180 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; Guaranteed by Shanghai Ruili, a related party $ 5,584,697 Pledged by the Company with its bank acceptance notes $ 7,069,236 Pledged by the Company with a bank deposit of $7,069,236, which was included in restricted cash on the accompanying consolidated balance sheets. Also see Note B "RESTRICTED CASH" section. $ 2,332,848 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

Long Term Loans (Tables)

Long Term Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of long term loan	September 30, December 31, 2019 2018 Aggregate outstanding principal balance $ 27,086,528 $ 36,165,550 Less: unamortized debt issuance costs (257,078 ) (595,117 ) Less: current portion (22,199,252 ) (21,141,029 ) Non-current portion $ 4,630,198 $ 14,429,404

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of reconciliation effective income tax rate	Nine Months Ended Nine 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 -5.08 % -3.43 % Effects of expenses not deductible for tax purposes 1.62 % 2.18 % Other items -0.52 % 0.81 % Effective tax rate 11.02 % 14.56 %
Schedule of provisions for income taxes	Nine Months Ended Nine Months Ended Current $ 2,219,140 $ 14,454,243 Deferred 368,700 520,739 Total $ 2,587,840 $ 14,974,982

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases, Operating [Abstract]
Schedule of Balance sheet information related to operating leases	September 30, Operating lease right-of-use assets 1 $ 917,151 Operating lease liabilities, current 2 $ 481,167 Operating lease liabilities, non-current 628,873 Total operating lease liabilities $ 1,110,040 1 Operating lease right-of-use assets are recorded in other assets, non-current on the accompanying consolidated balance sheet. 2 The current portion of operating lease liabilities is recorded in other current liabilities on the accompanying consolidated balance sheet.
Schedule of operating lease of weighted-average	September 30, Weighted-average remaining lease term 3 years Weighted-average discount rate 5.24%
Schedule of maturity of our operating lease liabilities	2019 (remaining) $ 299,264 2020 296,908 2021 296,908 2022 296,908 2023 and thereafter - Total lease payment 1,189,988 Less imputed interest (79,948 ) Total lease liabilities $ 1,110,040

Warranty Claims (Tables)

Warranty Claims (Tables)	9 Months Ended
	Sep. 30, 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 2,889,608 Aggregate reduction for payments made and effect of exchange rate fluctuation (3,451,002 ) Ending balance at September 30, 2019 $ 6,501,728

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of segment Information, by segment	Nine Months Ended 2019 2018 NET SALES TO EXTERNAL CUSTOMERS Commercial vehicles brake systems $ 319,516,542 $ 276,593,442 Passenger vehicles auto parts 68,304,316 68,222,523 Net sales $ 387,820,858 $ 344,815,965 INTERSEGMENT SALES Commercial vehicles brake systems $ — $ — Passenger vehicles auto parts — — Intersegment sales $ — $ — GROSS PROFIT Commercial vehicles brake systems $ 82,320,762 $ 61,974,537 Passenger vehicles auto parts 21,401,839 28,990,094 Gross profit $ 103,722,601 $ 90,964,631 Selling and distribution expenses 43,198,784 37,154,745 General and administrative expenses 24,803,869 17,519,873 Research and development expenses 16,934,141 13,400,656 Other operating income, net 7,798,787 7,535,820 Income from operations 26,584,594 30,425,177 Interest income 4,183,471 2,847,299 Government grants 3,570,630 2,982,775 Other income 130,913 432,213 Interest expenses (10,155,849 ) (10,214,681 ) Exchange differences 250,290 1,396,460 Other expenses (1,076,993 ) (1,200,920 ) Income before income tax expense $ 23,487,056 $ 26,668,323 CAPITAL EXPENDITURE Commercial vehicles brake systems $ 30,864,485 $ 32,788,350 Passenger vehicles auto parts 5,631,299 7,721,848 Total $ 36,495,784 $ 40,510,198 DEPRECIATION AND AMORTIZATION Commercial vehicles brake systems $ 8,903,845 $ 7,187,308 Passenger vehicles auto parts 1,624,528 1,739,387 Total $ 10,528,373 $ 8,926,695 September 30, December 31, TOTAL ASSETS Commercial vehicles brake systems $ 594,148,299 $ 655,435,946 Passenger vehicles auto parts 108,403,787 138,935,580 Total $ 702,552,086 $ 794,371,526 September 30, December 31, LONG LIVED ASSETS Commercial vehicles brake systems $ 168,006,377 $ 150,067,034 Passenger vehicles auto parts 30,653,168 31,810,355 Total $ 198,659,545 $ 181,877,389

Description of Business (Detail

Description of Business (Details)	Sep. 30, 2019	Sep. 30, 2018	Nov. 11, 2009	Jan. 17, 2004
Description Of Business [Line Items]
Ownership percentage	10.00%	10.00%
Investor [Member]
Description Of Business [Line Items]
Ownership percentage			10.00%
MGR Hong Kong Limited [Member]
Description Of Business [Line Items]
Ownership percentage			30.00%
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%
Joint Venture [Member]
Description Of Business [Line Items]
Ownership percentage	90.00%

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Basis of Presentation and Significant Accounting Policies (Textual)
Notes receivable amount	$ 59,985,401	$ 58,458,890
Interest rate of long term loans	10.00%

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Details) - USD ($)	Sep. 30, 2019	Jan. 31, 2019
Recently Issued Accounting Pronouncements (Textual)
Operating lease liabilities	$ 1,025,421	$ 1,600,000

Related Party Transactions (Det

Related Party Transactions (Details)	9 Months Ended
	Sep. 30, 2019
Xiao Ping Zhang [Member]
Nature of Relationship	Principal shareholder, Chairman of the Board and Chief Executive Officer
Shu Ping Chi [Member]
Nature of Relationship	Shareholder, member of the Board, wife of Xiao Ping Zhang
Xiao Feng Zhang [Member]
Nature of Relationship	Shareholder, member of the Board, brother of Xiao Ping Zhang
Ruili Group [Member]
Nature of Relationship	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 Relationship	Controlled by Ruili Group
Ruian Kormee [Member]
Nature of Relationship	Wholly controlled by Guangzhou Kormee
Shanghai Dachao Electric Technology Co., Ltd [Member]
Nature of Relationship	Ruili Group holds 49% of the equity interests in Shanghai Dachao
Ruili MeiLian Air Management Systems (LangFang) Co., Ltd. (“Ruili Meilian”) [Member]
Nature of Relationship	Controlled by Ruili Group
Wenzhou Lichuang [Member]
Nature of Relationship	Controlled by Ruili Group
Ningbo Ruili Equipment Co., Ltd. [Member]
Nature of Relationship	Controlled by Ruili Group
Shanghai Ruili Real Estate Development Co., Ltd. [Member]
Nature of Relationship	Wholly owned by Ruili Group
Kunshan Yuetu Real Estate Development Co., Ltd. [Member]
Nature of Relationship	Collectively owned by Ruili Group and Shu Ping Chi
Shanghai Tabouk Auto Components Co., Ltd [Member]
Nature of Relationship	Collectively owned by Xiao Feng Zhang and Xiao Ping Zhang
Hangzhou Ruili [Member]
Nature of Relationship	Collectively owned by Ruili Group and Xiao Ping Zhang
Changchun Kormee Auto Electric Co., Ltd [Member]
Nature of Relationship	Wholly controlled by Guangzhou Kormee
Hangzhou Hangcheng [Member]
Nature of Relationship	Controlled by Ruili Group
Hangzhou Ruili Binkang Real Estate Development Co. Ltd [Member]
Nature of Relationship	Controlled by Hangzhou Ruili Property Development Co., Ltd.
SHNS Precision Die Casting (Yangzhou) Co. Ltd. [Member]
Nature of Relationship	Controlled by Ruili Group

Related Party Transactions (D_2

Related Party Transactions (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Related Party Transaction [Line Items]
PURCHASES FROM	$ 13,581,255	$ 10,259,265	$ 38,777,079	$ 30,279,191
SALES TO:	6,859,689	9,333,959	25,478,367	22,997,541
Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	3,221,199	598,920	8,614,356	2,343,015
SALES TO:	2,227,504	2,271,413	9,085,261	8,086,219
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	756,976	582,998	2,507,101	1,996,094
SALES TO:	29,965	8,641	93,233	63,112
Shanghai Dachao Electric Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	186,044	489,695	500,278	866,382
Ruili MeiLian Air Management System (LangFang) Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	566,208	812,202	1,355,626	5,786,608
SALES TO:	92,965	204,192	1,085,084	1,048,005
Ruili Group Co., Ltd.
Related Party Transaction [Line Items]
PURCHASES FROM	2,190,415	2,024,487	10,418,878	5,991,237
SALES TO:	4,193,754	6,494,382	14,235,539	12,570,554
Hangzhou Hangcheng Friction Material Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	95,925		216,163
Ningbo Ruili Equipment Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	3,045,923	2,044,168	4,410,119	2,044,168
Wenzhou Lichuang Automobile Parts Co., Ltd. [Member]
Related Party Transaction [Line Items]
PURCHASES FROM	3,518,565	3,706,795	10,754,558	11,251,687
Shanghai Tabouk Auto Components Co Ltd [Member]
Related Party Transaction [Line Items]
SALES TO:	315,501	355,331	943,307	1,229,651
Changchun Kormee Auto Electric Co Ltd [Member]
Related Party Transaction [Line Items]
PURCHASES FROM
SALES TO:			$ 35,943

Related Party Transactions (D_3

Related Party Transactions (Details 2) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
ADVANCES TO RELATED PARTIES	$ 24,433,792	$ 79,739,417
Ruili Group Co., Ltd. [Member]
ADVANCES TO RELATED PARTIES	$ 24,433,792	$ 79,739,417

Related Party Transactions (D_4

Related Party Transactions (Details 3) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 310,143	$ 261,889
Shanghai Tabouk Auto Components Co., Ltd [Member]
ACCOUNTS RECEIVABLE FROM RELATED PARTY	$ 310,143	$ 261,889

Related Party Transactions (D_5

Related Party Transactions (Details 4) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
PREPAYMENTS TO RELATED PARTY	$ 3,283,579	$ 3,670,573
Ningbo Ruili Equipment Co., Ltd. [Member]
PREPAYMENTS TO RELATED PARTY	$ 3,283,579	$ 3,670,573

Related Party Transactions (D_6

Related Party Transactions (Details 5) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
ACCOUNTS PAYABLE TO RELATED PARTIES	$ 16,438,264	$ 23,805,200
Guangzhou Ruili Kormee Automotive Electronic Control Technology Co., Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	6,207,669	7,877,485
Shanghai Dachao Electric Technology Co., Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	266,285	56,883
Ruili MeiLian Air Management System (LangFang) Co., Ltd. [Member]
ACCOUNTS PAYABLE TO RELATED PARTIES	1,518,494	5,628,155
Wenzhou Lichuang Auto Parts Co., Ltd.
ACCOUNTS PAYABLE TO RELATED PARTIES	8,258,279	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	$ 187,537	$ 334,694

Related Party Transactions (D_7

Related Party Transactions (Details 6) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
DUE TO RELATED PARTY	$ 8,083,574	$ 5,959,752
Wenzhou Ruili Kormee Automotive Electronics Co., Ltd. [Member]
DUE TO RELATED PARTY	$ 8,083,574	$ 5,959,752

Related Party Transactions (D_8

Related Party Transactions (Details Textual)	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019CNY (¥)
Related Party Transactions (Textual)
Repayments of related party debt		$ 328,624,110
Bank acceptance notes	1,843,951
Repayments in cash	57,010,144
Interests received from related parties	$ 3,117,705
Interest rate	5.22%
Wenzhou Lichuang [Member]
Related Party Transactions (Textual)
Bank deposits	$ 72,730,446
Wenzhou Lichuang [Member] | RMB [Member]
Related Party Transactions (Textual)
Bank deposits | ¥			¥ 500,000,000
China Guangfa Bank [Member] | Ruili Group Co., Ltd. [Member]
Related Party Transactions (Textual)
Guarantee amount	10,345,029
China Guangfa Bank [Member] | Ruili Group Co., Ltd. [Member] | RMB [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			71,000,000
China Merchants Bank [Member] | Ruili Group Co., Ltd. [Member]
Related Party Transactions (Textual)
Guarantee amount	5,828,185
Credit line granted	$ 30,597,972
China Merchants Bank [Member] | Ruili Group Co., Ltd. [Member] | RMB [Member]
Related Party Transactions (Textual)
Guarantee amount | ¥			40,000,000
Credit line granted | ¥			¥ 210,000,000

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable	$ 173,817,824	$ 163,903,305
Less: allowance for doubtful accounts	(15,629,224)	(13,855,508)
Accounts receivable, net	$ 158,188,600	$ 150,047,797

Accounts Receivable, Net (Det_2

Accounts Receivable, Net (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Beginning balance	$ 13,855,508	$ 13,927,156
Add: Increase to allowance	2,215,553	610,610
Effects on changes in foreign exchange rate	(441,837)	(682,258)
Ending balance	$ 15,629,224	$ 13,855,508

Accounts Receivable, Net (Det_3

Accounts Receivable, Net (Details Textual)	Sep. 30, 2019	Sep. 30, 2018
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Ownership percentage	10.00%	10.00%

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 35,404,809	$ 53,821,973
Work in process	80,909,871	89,516,949
Finished goods	77,506,223	62,674,252
Less: Write-down of inventories	(2,642,179)	(1,727,747)
Total Inventory	$ 191,178,724	$ 204,285,427

Inventories (Details Textual)

Inventories (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Inventories (Textual)
Write-down of inventories	$ 965,656

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Sub-Total	$ 201,539,392	$ 171,426,089
Less: Accumulated depreciation	(82,436,101)	(75,372,703)
Property, plant and equipment, net	119,103,291	96,053,386
Machinery [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	143,807,189	130,912,861
Molds [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	1,236,935	1,274,729
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	4,520,246	3,566,772
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	6,220,692	5,956,822
Buildings [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	19,999,080	20,610,137
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	25,305,496	8,641,271
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Sub-Total	$ 449,754	$ 463,497

Property, Plant and Equipment_4

Property, Plant and Equipment, Net (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation	$ 9,738,142	$ 8,399,291

Land Use Rights, Net (Details)

Land Use Rights, Net (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Land Use Rights [Abstract]
Cost	$ 37,891,449	$ 22,283,776
Less: Accumulated amortization	(1,677,484)	(1,159,321)
Land use rights, net	$ 36,213,965	$ 21,124,455

Land Use Rights, Net (Details T

Land Use Rights, Net (Details Textual)	9 Months Ended			12 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019CNY (¥)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)
Land Use Rights [Line Items]
Amortization expense, land use rights	$ 568,978		$ 458,179
Payments to acquire intangible assets			$ 367,931
Intersection Tengda Road [Member]
Land Use Rights [Line Items]
Purchase price of land use rights				$ 5,850,000
RMB [Member] | Intersection Tengda Road [Member]
Land Use Rights [Line Items]
Purchase price of land use rights | ¥					¥ 38,670,000
Use Rights [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets				11,130,000
Purchase price of land use rights	296,000
Refundable deposit	58,000			58,000
Related deed tax	330,000
Prepayments to intangible assets	11,460,000
Use Rights [Member] | RMB [Member]
Land Use Rights [Line Items]
Payments to acquire intangible assets | ¥		¥ 72,020,000
Purchase price of land use rights | ¥		¥ 20,400,000
Refundable deposit	38,700,000			$ 38,700,000
Related deed tax	23,300,000
Prepayments to intangible assets	$ 74,350,000

Deferred Tax Assets (Details)

Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Deferred tax assets
Allowance for doubtful accounts	$ 2,528,387	$ 2,205,048
Revenue (net of cost)	133,305	308,046
Unpaid accrued expenses	(58,026)	501,276
Warranty	975,259	1,059,468
Deferred tax assets	3,578,925	4,073,838
Valuation allowance
Net deferred tax assets	$ 3,578,925	$ 4,073,838

Short-Term Bank Loans (Details)

Short-Term Bank Loans (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Total short term bank loan	$ 201,749,179	$ 217,940,471
Secured [Member]
Total short term bank loan	$ 201,749,179	$ 217,940,471

Short-Term Bank Loans (Details

Short-Term Bank Loans (Details 1)	Sep. 30, 2019USD ($)
Guaranteed by Ruili Group, a related party [Member]
Corporate or personal guarantees	$ 5,436,493
Guaranteed by Ruili Group, a related party one [Member]
Corporate or personal guarantees	3,534,618
Guaranteed by Ruili Group, a related party two [Member]
Corporate or personal guarantees	5,301,927
Pledged by Hangzhou Ruili Binkang Real Estate Development Co. Ltd., a related party [Member]
Corporate or personal guarantees	12,724,625
ledged by Hangzhou Ruili Property Development Ltd., a related party [Member]
Corporate or personal guarantees	26,863,097
Guaranteed by Hangzhou Ruili Property Development Ltd., a related party [Member]
Corporate or personal guarantees	8,483,083
Pledged by Ruili Group, a related party [Member]
Corporate or personal guarantees	29,690,792
Pledged by Shanghai Ruili, a related party [Member]
Corporate or personal guarantees	59,381,583
Pledged by Shanghai Ruili, a related party one [Member]
Corporate or personal guarantees	35,346,180
Pledged by the Company with its bank acceptance notes [Member]
Corporate or personal guarantees	5,584,697
Pledged by the Company with a bank deposit [Member]
Corporate or personal guarantees	7,069,236
Guaranteed by Mr. Xiao Ping Zhang and Ms. Shu Ping Chi [Member]
Corporate or personal guarantees	$ 2,332,848

Short-Term Bank Loans (Detail_2

Short-Term Bank Loans (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Short-term Debt [Line Items]
Bank deposits	$ 7,069,236
Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	4.35%
Maximum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	4.5675%
Notes Payable to Banks [Member]
Short-term Debt [Line Items]
Interest expenses	$ 8,796,523	$ 7,428,780
Maturity dates of loans	The maturity dates of the loans existing as of September 30, 2019 ranged from October 11, 2019 to July 23, 2020.
Notes Payable to Banks [Member] | Minimum [Member]
Short-term Debt [Line Items]
Interest rate for the loans outstanding percentage	1.35%
Notes Payable to Banks [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 ($)	Sep. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Aggregate outstanding principal balance	$ 27,086,528	$ 36,165,550
Less: unamortized debt issuance costs	(257,078)	(595,117)
Less: current portion	(22,199,252)	(21,141,029)
Non-current portion	$ 4,630,198	$ 14,429,404

Long Term Loans (Details Textua

Long Term Loans (Details Textual)	1 Months Ended		9 Months Ended
	Jul. 19, 2019USD ($)	Nov. 30, 2017USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Jul. 31, 2019USD ($)	Jul. 31, 2019CNY (¥)	Nov. 15, 2017
Long Term Loans (Textual)
Interest expense			$ 1,359,326	$ 2,785,901
Payment of debt issuance costs			108,222
Amortization of debt issuance costs			441,236	520,741
COSCO Shipping Leasing Co Ltd [Member]
Long Term Loans (Textual)
Debt instrument term	36 months	36 months
Debt instrument interest rate percentage	4.57%	8.50%					4.31%
Total long term obligations	$ 8,483,083	$ 35,964,617			$ 1,413,847
Pledged by the Company's equipment in the original cost	8,808,078	36,474,800
Payment of debt issuance costs	108,222	1,025,248	8,824,792	$ 11,435,650
Deducted loan agreement					$ 7,069,236
COSCO Shipping Leasing Co Ltd [Member] | RMB [Member]
Long Term Loans (Textual)
Total long term obligations	60,000,000	235,000,000				¥ 10,000,000
Pledged by the Company's equipment in the original cost	62,298,653	238,333,639
Payment of debt issuance costs	$ 754,717	$ 7,320,000
Deducted loan agreement | ¥						¥ 50,000,000
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
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
COSCO Shipping Leasing Co Ltd one [Member]
Long Term Loans (Textual)
Payment of debt issuance costs			$ 809,415

Revenues from Contracts with _2

Revenues from Contracts with Customers (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Revenues from Contracts with Customers (Textual)
Deferred revenue liability	$ 47,433,293	$ 51,529,795
Deferred revenue	$ 20,597,161

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 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	(5.08%)	(3.43%)
Effects of expenses not deductible for tax purposes	1.62%	2.18%
Other items	0.52%	0.81%
Effective tax rate	11.02%	14.56%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Current			$ 2,219,140	$ 14,454,243
Deferred			368,700	520,739
Total	$ 389,109	$ 12,130,789	$ 2,587,840	$ 14,974,982

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 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		$ 137,415
Company recognized a one-time transition tax				$ 11,022,985
Taxes payable as current liability		2,588,913
Installment payment		$ 881,839

Operating Leases (Details)

Operating Leases (Details) - USD ($)		Sep. 30, 2019	Dec. 31, 2018
Leases, Operating [Abstract]
Operating lease right of use assets	[1]	$ 917,151
Operating lease liabilities, current	[2]	481,167
Operating lease liabilities, non-current		628,873
Total operating lease liabilities		$ 1,110,040
[1]	Operating lease right-of-use assets are recorded in other assets, non-current on the accompanying consolidated balance sheet.
[2]	The current portion of operating lease liabilities is recorded in other current liabilities in the accompanying consolidated balance sheet.

Operating Leases (Details 1)

Operating Leases (Details 1)	Sep. 30, 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)	Sep. 30, 2019USD ($)
Leases, Operating [Abstract]
2019 (remaining)	$ 299,264
2020	296,908
2021	296,908
2022	296,908
2023 and thereafter
Total lease payment	1,189,988
Less imputed interest	(79,948)
Total lease liabilities	$ 1,110,040

Operating Leases (Details Textu

Operating Leases (Details Textual) - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2019	Dec. 31, 2006	Jan. 31, 2019
Operating Leased Assets [Line Items]
Operating lease costs		$ 428,605
Operating lease right of use assets	[1]	917,151
Operating lease liabilities		$ 1,025,421		$ 1,600,000
Building [Member] | Ruian [Member]
Operating Leased Assets [Line Items]
Annual lease expense			$ 305,980
Building [Member] | Ruian [Member] | RMB [Member]
Operating Leased Assets [Line Items]
Annual lease expense			$ 2,100,000
[1]	Operating lease right-of-use assets are recorded in other assets, non-current on the accompanying consolidated balance sheet.

Warranty Claims (Details)

Warranty Claims (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Warranty Claims [Abstract]
Beginning balance at January 1, 2019	$ 7,063,122
Aggregate increase for new warranties issued during current period	2,889,608
Aggregate reduction for payments made and effect of exchange rate fluctuation	(3,451,002)
Ending balance at June 30, 2019	$ 6,501,728

Warranty Claims (Details Textua

Warranty Claims (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Warranty Claims [Abstract]
Warranty claims are included in selling and distribution expenses	$ 2,889,608	$ 2,507,487

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
NET SALES TO EXTERNAL CUSTOMERS
Net sales	$ 112,227,452	$ 108,584,331	$ 387,820,858	$ 344,815,965
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit	30,932,669	26,334,875	103,722,601	90,964,631
Selling and distribution expenses	13,850,387	13,160,875	43,198,784	37,154,745
General and administrative expenses	8,207,550	5,051,684	24,803,869	17,519,873
Research and development expenses	5,001,354	4,478,298	16,934,141	13,400,656
Other operating income, net	2,840,617	2,959,269	7,798,787	7,535,820
Income from operations	6,713,995	6,603,287	26,584,594	30,425,177
Interest income	966,855	547,455	4,183,471	2,847,299
Government grants	70,785	2,239,250	3,570,630	2,982,775
Other income	35,884	229,520	130,913	432,213
Interest expenses	(3,010,304)	(3,331,554)	(10,155,849)	(10,214,681)
Exchange differences	(773,420)	(906,538)	(250,290)	(1,396,460)
Other expenses	(508,302)	(55,835)	(1,076,993)	(1,200,920)
Income before income tax expense	5,042,333	$ 7,138,661	23,487,056	26,668,323
CAPITAL EXPENDITURE
Total			36,495,784	40,510,198
DEPRECIATION AND AMORTIZATION
Total			10,528,373	8,926,695
TOTAL ASSETS
Total assets	702,552,086		702,552,086		$ 794,371,526
LONG LIVED ASSETS
Long lived assets	198,659,545		198,659,545		181,877,389
Commercial vehicles brake systems [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales			319,516,542	279,593,442
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit			82,320,762	61,974,537
CAPITAL EXPENDITURE
Total			30,864,485	32,788,350
DEPRECIATION AND AMORTIZATION
Total				4,650,734
TOTAL ASSETS
Total assets	594,148,299		594,148,299		655,435,946
LONG LIVED ASSETS
Long lived assets	168,006,377		168,006,377		150,067,034
Passenger vehicles auto parts [Member]
NET SALES TO EXTERNAL CUSTOMERS
Net sales			68,304,316	68,222,523
INTERSEGMENT SALES
Intersegment sales
GROSS PROFIT
Gross profit			21,401,839	28,990,094
CAPITAL EXPENDITURE
Total			5,631,299	7,721,848
DEPRECIATION AND AMORTIZATION
Total				$ 1,181,824
TOTAL ASSETS
Total assets	108,403,787		108,403,787		138,935,580
LONG LIVED ASSETS
Long lived assets	$ 30,653,168		$ 30,653,168		$ 31,810,355

Contingencies (Details)

Contingencies (Details)	Sep. 30, 2019USD ($)
Development Zone Facility [Member]
Relevant tax amount reserved	$ 2,300,205
Tax rate, land use right	3.00%
Development Zone Facility [Member] | Commercial Vehicles Brake Systems [Member] [Default Label]
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] | Commercial Vehicles Brake Systems [Member] [Default Label]
Relevant tax amount reserved	$ 4,560,000

Subsequent Events (Details)

Subsequent Events (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Repaid loan principals and interest expenses	$ 13,580,000
Short term loans total amount	$ 12,300,000
Maturity dates, description	The maturity dates of these loans existing as of the filing date range from April 13, 2020 to October 24, 2020.
Minimum [Member]
Interest rate	4.35%
Maximum [Member]
Interest rate	4.5675%