net sales for henglong were $ 164.1 million for the year ended december 31 , 2019 , compared with $ 250.5 million for the year ended december 31 , 2018 , representing a decrease of $ 86.4 million , or 34.5 % , which was mainly due to soft demand in the china domestic brand automobile market in 2019 and the shift of production capacity to henglong kyb after its establishment . a decrease in sales volume led to a sales decrease of $ 59.9 million , a decrease in selling price led to a sales decrease of $ 15.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 11.3 million . — jiulong mainly engages in providing commercial vehicle steering systems . net sales for jiulong were $ 88.5 million for the year ended december 31 , 2019 , compared with $ 103.0 million for the year ended december 31 , 2018 , representing a decrease of $ 14.5 million , or 14.1 % . a decrease in sales volume led to a sales decrease of $ 10.3 million , an increase in selling price led to a sales increase of $ 0.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 4.4 million . — shenyang mainly engages in providing vehicle steering systems to shenyang brilliance jinbei automobile co. , ltd. , “ jinbei ” , one of the major automotive manufacturers in china . net sales for shenyang were $ 20.2 million for the year ended december 31 , 2019 , compared with $ 25.9 million for the year ended december 31 , 2018 , representing a decrease of $ 5.7 million , or 22.0 % . a decrease in sales volume led to a sales decrease of $ 2.6 million , a decrease in selling price led to a sales decrease of $ 2.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 0.9 million . — wuhu mainly engages in providing vehicle steering systems to chery automobile co. , ltd. , “ chery ” , one of the major automotive manufacturers in china . net sales for wuhu were $ 20.4 million for the year ended december 31 , 2019 , compared with $ 30.4 million for the year ended december 31 , 2018 , representing a decrease of $ 10.0 million , or 32.9 % . a decrease in sales volume led to a sales decrease of $ 8.0 million , a decrease in selling price led to a sales decrease of $ 0.6 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 1.4 million . — hubei henglong mainly engages in providing vehicle steering systems to chrysler and ford . net sales for hubei henglong were $ 121.7 million for the year ended december 31 , 2019 , compared with $ 123.2 million for the year ended december 31 , 2018 , representing a decrease of $ 1.5 million , or 1.2 % . a decrease in sales volume led to a sales decrease of $ 7.5 million , an increase in selling price led to a sales increase of $ 11.1 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 5.1 million . — henglong kyb mainly engages in providing passenger eps products . net sales for henglong kyb were $ 71.0 million for the year ended december 31 , 2019 , compared with $ 23.4 million for the year ended december 31 , 2018 , representing an increase of $ 47.6 million . an increase in sales volume led to a sales increase of $ 50.1 million , a decrease in selling price led to a sales decrease of $ 1.7 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 0.8 million . — net sales for other entities were $ 64.6 million for the year ended december 31 , 2019 , compared with $ 72.4 million for the year ended december 31 , 2018 , representing a decrease of $ 7.8 million , or 10.8 % , mainly contributed by jielong , which manufactures automobile steering columns for both hydraulic power steering ( “ hps ” ) and eps . 32 | page cost of products sold for the year ended december 31 , 2019 , the cost of sales was $ 368.1 million , compared with $ 430.7 million for the year ended december 31 , 2018 , representing a decrease of $ 62.6 million , or 14.5 % . the decrease in cost of sales was mainly due to the effect of the following major factors : ( i ) the change in product mix , i.e . the increase in high margin products as a portion of our sales ; ( ii ) the decrease in sales volumes with a cost of sales decrease of $ 31.7 million ; ( iii ) the decrease in unit cost with a cost of sales decrease of $ 9.6 million ; and ( iv ) the depreciation of the rmb against the u.s. dollar with a cost of sales decrease of $ 21.3 million . further analysis is as follows : — cost of sales for henglong was $ 155.7 million for the year ended december 31 , 2019 , compared to $ 235.9 million for the year ended december 31 , 2018 , representing a decrease of $ 80.2 million , or 34.0 % . story_separator_special_tag cas h requirements the following table summarizes the company 's expected cash outflows resulting from financial contracts and commitments . the company has not included information on its recurring purchases of materials for use in its manufacturing operations . these amounts are generally consistent from year to year , closely reflecting the company 's levels of production , and are not long-term in nature ( being less than three months in length ) . 38 | page replace_table_token_9_th ( 1 ) notes payable do not bear interest . ( 2 ) in november 2019 , hubei henglong entered into an agreement with other parties and committed to purchase 70 % of the shares of hefei senye light plastic technology co. , ltd. for total consideration of rmb 33.6 million , equivalent to approximately $ 4.8 million . as of december 31 , 2019 , hubei henglong has paid the amount of rmb 18 million , equivalent to approximately $ 2.6 million . according to the agreement , the remaining consideration of rmb 15.6 million , equivalent to approximately $ 2.2 million , will be paid in 2020 and 2021. in april 2019 , hubei henglong entered into an agreement with other parties and committed to contribute rmb 5.0 million , equivalent to approximately $ 0.7 million , to jiangsu intelligent networking automotive innovation center co. ltd. , “ jiangsu intelligent ” , for 19.2 % of the shares of jiangsu intelligent . as of december 31 , 2019 , hubei henglong has completed a capital contribution of rmb 3.0 million , equivalent to approximately $ 0.4 million . according to the agreement , the remaining capital commitment of rmb 2.0 million , equivalent to approximately $ 0.3 million , will be paid upon capital calls . in march 2018 , hubei henglong entered into an agreement with other parties to establish a venture capital fund , the “ hubei venture fund ” . hubei henglong has committed to make an investment of rmb 76.0 million , equivalent to approximately $ 10.9 million , in the hubei venture fund in three installments , representing 27.1 % of the hubei venture fund 's shares . as of december 31 , 2019 , hubei henglong has completed a capital contribution of rmb 60.8 million , equivalent to approximately $ 8.7 million . according to the agreement , the remaining capital commitment of rmb 15.2 million , equivalent to approximately $ 2.2 million , will be paid upon capital calls received from the hubei venture fund . short-term and long-term loans the following table summarizes the contract information of short-term and long-term borrowings between the banks , government and the company as of december 31 , 2019 ( figures are in thousands of usd ) . replace_table_token_10_th 39 | page replace_table_token_11_th ( 1 ) these bank loan s were repaid between january and april 2020 when they became due . the company must use the loans for the purpose described and repay the principal outstanding on the specified date in the table . if it fails to do so , it will be charged additional 30 % to 100 % penalty interest . 40 | page the company had complied with such financial covenants as of december 31 , 2019 , and management believes it will continue to comply with them . notes payable the following table summarizes the contract information of issuing notes payable between the banks and the company as of december 31 , 2019 ( figures are in thousands of usd ) : replace_table_token_12_th ( 1 ) the notes payable were repaid in full on their respective due dates . the company must use notes payable for the purpose described in the table . if it fails to do so , the banks will no longer issue the notes payable , and it may have an adverse effect on the company 's liquidity and capital resources . the company has to deposit a sufficient amount of cash on the due date of notes payable for payment to the suppliers . if the bank has advanced payment for the company , it will be charged an additional 50 % penalty interest . the company complied with such financial covenants as of december 31 , 2019 , and management believes it will continue to comply with them . story_separator_special_tag field : /sequence > | page recent accounting pronouncements information regarding new accounting pronouncements is included in note 2 to the consolidated financial statements . significant accounting policies and critical accounting estimates the company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting periods . management periodically evaluates the estimates and judgments made . management bases its estimates and judgments on historical experience and on various factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates as a result of different assumptions or conditions . the following critical accounting policies affect the more significant judgments and estimates used in the preparation of the company 's consolidated financial statements . the company considers an accounting estimate to be critical if : · it requires the company to make assumptions about matters that were uncertain at the time it was making the estimate ; and · changes in the estimate or different estimates that the company could have selected would have had a material impact on the company 's financial condition or results of operations . the table below presents information about the nature and rationale for the company critical accounting estimates : critical balance sheet estimate assumptions/approaches caption item nature of estimates required used key factors accrued liabilities and

cash flows ( a ) operating activities net cash provided by operating activities for the year ended december 31 , 2019 was $ 30.3 million , compared with $ 12.5 million for the year ended december 31 , 2018 , representing an increase of $ 17.8 million , which was mainly due to ( 1 ) the increase in net income excluding non-cash items by $ 3.8 million and ( 2 ) the increase in cash inflows from movements of operating assets and liabilities by $ 14.0 million . ( b ) investing activities the company had net cash of $ 27.3 million used in investing activities for the year ended december 31 , 2019 , compared with net cash provided of $ 2.5 million in 2018 , representing an increase in cash outflow of $ 29.8 million , which was mainly due to the net effect of ( 1 ) a decrease in cash inflows due to the repayment of the loan to a related party by $ 20.4 million , ( 2 ) an increase in payments to acquire property , plant and equipment and land use rights by $ 8.6 million , and ( 3 ) a combination of other factors contributed an increase of cash outflows by $ 0.8 million , including an increase in cash prepaid for acquisition of a subsidiary by $ 2.6 million , offset by the increase in cash received from disposal of property , plant and equipment , government subsidies , and the exit from an investment . 41 | page ( c ) financing activities during the year ended december 31 , 2019 , the company had net cash of $ 10.7 million used in financing activities , compared to net cash of $ 10.1 million provided by financing activities for 2018 , representing an increase in outflow of $ 20.8


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows ( a ) operating activities net cash provided by operating activities for the year ended december 31 , 2019 was $ 30.3 million , compared with $ 12.5 million for the year ended december 31 , 2018 , representing an increase of $ 17.8 million , which was mainly due to ( 1 ) the increase in net income excluding non-cash items by $ 3.8 million and ( 2 ) the increase in cash inflows from movements of operating assets and liabilities by $ 14.0 million . ( b ) investing activities the company had net cash of $ 27.3 million used in investing activities for the year ended december 31 , 2019 , compared with net cash provided of $ 2.5 million in 2018 , representing an increase in cash outflow of $ 29.8 million , which was mainly due to the net effect of ( 1 ) a decrease in cash inflows due to the repayment of the loan to a related party by $ 20.4 million , ( 2 ) an increase in payments to acquire property , plant and equipment and land use rights by $ 8.6 million , and ( 3 ) a combination of other factors contributed an increase of cash outflows by $ 0.8 million , including an increase in cash prepaid for acquisition of a subsidiary by $ 2.6 million , offset by the increase in cash received from disposal of property , plant and equipment , government subsidies , and the exit from an investment . 41 | page ( c ) financing activities during the year ended december 31 , 2019 , the company had net cash of $ 10.7 million used in financing activities , compared to net cash of $ 10.1 million provided by financing activities for 2018 , representing an increase in outflow of $ 20.8
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 Suspicious Activity Report : net sales for henglong were $ 164.1 million for the year ended december 31 , 2019 , compared with $ 250.5 million for the year ended december 31 , 2018 , representing a decrease of $ 86.4 million , or 34.5 % , which was mainly due to soft demand in the china domestic brand automobile market in 2019 and the shift of production capacity to henglong kyb after its establishment . a decrease in sales volume led to a sales decrease of $ 59.9 million , a decrease in selling price led to a sales decrease of $ 15.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 11.3 million . — jiulong mainly engages in providing commercial vehicle steering systems . net sales for jiulong were $ 88.5 million for the year ended december 31 , 2019 , compared with $ 103.0 million for the year ended december 31 , 2018 , representing a decrease of $ 14.5 million , or 14.1 % . a decrease in sales volume led to a sales decrease of $ 10.3 million , an increase in selling price led to a sales increase of $ 0.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 4.4 million . — shenyang mainly engages in providing vehicle steering systems to shenyang brilliance jinbei automobile co. , ltd. , “ jinbei ” , one of the major automotive manufacturers in china . net sales for shenyang were $ 20.2 million for the year ended december 31 , 2019 , compared with $ 25.9 million for the year ended december 31 , 2018 , representing a decrease of $ 5.7 million , or 22.0 % . a decrease in sales volume led to a sales decrease of $ 2.6 million , a decrease in selling price led to a sales decrease of $ 2.2 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 0.9 million . — wuhu mainly engages in providing vehicle steering systems to chery automobile co. , ltd. , “ chery ” , one of the major automotive manufacturers in china . net sales for wuhu were $ 20.4 million for the year ended december 31 , 2019 , compared with $ 30.4 million for the year ended december 31 , 2018 , representing a decrease of $ 10.0 million , or 32.9 % . a decrease in sales volume led to a sales decrease of $ 8.0 million , a decrease in selling price led to a sales decrease of $ 0.6 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 1.4 million . — hubei henglong mainly engages in providing vehicle steering systems to chrysler and ford . net sales for hubei henglong were $ 121.7 million for the year ended december 31 , 2019 , compared with $ 123.2 million for the year ended december 31 , 2018 , representing a decrease of $ 1.5 million , or 1.2 % . a decrease in sales volume led to a sales decrease of $ 7.5 million , an increase in selling price led to a sales increase of $ 11.1 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 5.1 million . — henglong kyb mainly engages in providing passenger eps products . net sales for henglong kyb were $ 71.0 million for the year ended december 31 , 2019 , compared with $ 23.4 million for the year ended december 31 , 2018 , representing an increase of $ 47.6 million . an increase in sales volume led to a sales increase of $ 50.1 million , a decrease in selling price led to a sales decrease of $ 1.7 million , and the effect of foreign currency translation of the rmb against the u.s. dollar led to a sales decrease of $ 0.8 million . — net sales for other entities were $ 64.6 million for the year ended december 31 , 2019 , compared with $ 72.4 million for the year ended december 31 , 2018 , representing a decrease of $ 7.8 million , or 10.8 % , mainly contributed by jielong , which manufactures automobile steering columns for both hydraulic power steering ( “ hps ” ) and eps . 32 | page cost of products sold for the year ended december 31 , 2019 , the cost of sales was $ 368.1 million , compared with $ 430.7 million for the year ended december 31 , 2018 , representing a decrease of $ 62.6 million , or 14.5 % . the decrease in cost of sales was mainly due to the effect of the following major factors : ( i ) the change in product mix , i.e . the increase in high margin products as a portion of our sales ; ( ii ) the decrease in sales volumes with a cost of sales decrease of $ 31.7 million ; ( iii ) the decrease in unit cost with a cost of sales decrease of $ 9.6 million ; and ( iv ) the depreciation of the rmb against the u.s. dollar with a cost of sales decrease of $ 21.3 million . further analysis is as follows : — cost of sales for henglong was $ 155.7 million for the year ended december 31 , 2019 , compared to $ 235.9 million for the year ended december 31 , 2018 , representing a decrease of $ 80.2 million , or 34.0 % . story_separator_special_tag cas h requirements the following table summarizes the company 's expected cash outflows resulting from financial contracts and commitments . the company has not included information on its recurring purchases of materials for use in its manufacturing operations . these amounts are generally consistent from year to year , closely reflecting the company 's levels of production , and are not long-term in nature ( being less than three months in length ) . 38 | page replace_table_token_9_th ( 1 ) notes payable do not bear interest . ( 2 ) in november 2019 , hubei henglong entered into an agreement with other parties and committed to purchase 70 % of the shares of hefei senye light plastic technology co. , ltd. for total consideration of rmb 33.6 million , equivalent to approximately $ 4.8 million . as of december 31 , 2019 , hubei henglong has paid the amount of rmb 18 million , equivalent to approximately $ 2.6 million . according to the agreement , the remaining consideration of rmb 15.6 million , equivalent to approximately $ 2.2 million , will be paid in 2020 and 2021. in april 2019 , hubei henglong entered into an agreement with other parties and committed to contribute rmb 5.0 million , equivalent to approximately $ 0.7 million , to jiangsu intelligent networking automotive innovation center co. ltd. , “ jiangsu intelligent ” , for 19.2 % of the shares of jiangsu intelligent . as of december 31 , 2019 , hubei henglong has completed a capital contribution of rmb 3.0 million , equivalent to approximately $ 0.4 million . according to the agreement , the remaining capital commitment of rmb 2.0 million , equivalent to approximately $ 0.3 million , will be paid upon capital calls . in march 2018 , hubei henglong entered into an agreement with other parties to establish a venture capital fund , the “ hubei venture fund ” . hubei henglong has committed to make an investment of rmb 76.0 million , equivalent to approximately $ 10.9 million , in the hubei venture fund in three installments , representing 27.1 % of the hubei venture fund 's shares . as of december 31 , 2019 , hubei henglong has completed a capital contribution of rmb 60.8 million , equivalent to approximately $ 8.7 million . according to the agreement , the remaining capital commitment of rmb 15.2 million , equivalent to approximately $ 2.2 million , will be paid upon capital calls received from the hubei venture fund . short-term and long-term loans the following table summarizes the contract information of short-term and long-term borrowings between the banks , government and the company as of december 31 , 2019 ( figures are in thousands of usd ) . replace_table_token_10_th 39 | page replace_table_token_11_th ( 1 ) these bank loan s were repaid between january and april 2020 when they became due . the company must use the loans for the purpose described and repay the principal outstanding on the specified date in the table . if it fails to do so , it will be charged additional 30 % to 100 % penalty interest . 40 | page the company had complied with such financial covenants as of december 31 , 2019 , and management believes it will continue to comply with them . notes payable the following table summarizes the contract information of issuing notes payable between the banks and the company as of december 31 , 2019 ( figures are in thousands of usd ) : replace_table_token_12_th ( 1 ) the notes payable were repaid in full on their respective due dates . the company must use notes payable for the purpose described in the table . if it fails to do so , the banks will no longer issue the notes payable , and it may have an adverse effect on the company 's liquidity and capital resources . the company has to deposit a sufficient amount of cash on the due date of notes payable for payment to the suppliers . if the bank has advanced payment for the company , it will be charged an additional 50 % penalty interest . the company complied with such financial covenants as of december 31 , 2019 , and management believes it will continue to comply with them . story_separator_special_tag field : /sequence > | page recent accounting pronouncements information regarding new accounting pronouncements is included in note 2 to the consolidated financial statements . significant accounting policies and critical accounting estimates the company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting periods . management periodically evaluates the estimates and judgments made . management bases its estimates and judgments on historical experience and on various factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates as a result of different assumptions or conditions . the following critical accounting policies affect the more significant judgments and estimates used in the preparation of the company 's consolidated financial statements . the company considers an accounting estimate to be critical if : · it requires the company to make assumptions about matters that were uncertain at the time it was making the estimate ; and · changes in the estimate or different estimates that the company could have selected would have had a material impact on the company 's financial condition or results of operations . the table below presents information about the nature and rationale for the company critical accounting estimates : critical balance sheet estimate assumptions/approaches caption item nature of estimates required used key factors accrued liabilities and

