SORL Auto Parts said second quarter sales rose 10.8% year on year to a quarterly record of US$61.1m, aftermarket sales rose 84.1%, gross profit increased to $16.6m from $16.4m a year ago and gross margin was 27.1%, compared with 29.7%.
Operating income was $6.2m compared with $6.6m a year ago.
Net income was $5.0m, or $0.26 per share, compared with $5.6m, or $0.31.
OEM sales reflected slower new vehicle sales in China’s auto market while the larger number of aging vehicles operating in the country requiring replacement parts is generating stronger aftermarket sales.
Net sales for the first six months of 2011 increased 20.6% to $113.1m. OEM sales rose 12.2% to $64.6m and aftermarket sales were up 59% to $21.3m.
Gross profit rose 11.4% to $31.2m and ross margin was 27.6% in 2011 compared with 29.8% for 2010.
Income from operations increased 10.9% to $12.3m and operating margin was 10.9% versus 11.9% a year ago.
Net income was $9.8m.