omniture

SORL Increases Capital Investment in Operating Subsidiary

2006-12-14 18:59 1971


ZHEJIANG, China, Dec. 14 /Xinhua-PRNewswire/ -- SORL Auto Parts, Inc.

(Nasdaq: SORL), a leading manufacturer and distributor of commercial vehicle

air brake valves as well as other auto parts in China, today announced that

it has invested a further USD$25.92 million in its operating subsidiary Ruili

Group Ruian Auto Parts, Inc.

To maintain its 10% shareholding in Ruili Group Ruian Auto Parts, Inc.,

the Ruili Group has increased its capital investment by USD$2.88 million.

SORL Auto Parts, Inc. continues to hold a 90% controlling interest in the

operating subsidiary.

As a result of the increased investment made by both SORL Auto Parts,

Inc. and the Ruili Group, the total registered capital of Ruili Group Ruian

Auto Parts, Inc. will increase from USD$7.1 million to USD$35.9 million.

The capital investments will be used to fund capital expenditures,

including the construction of a new plant, equipment purchases, research and

development efforts, the further development of the company’s international

sales network and for working capital and other general corporate purposes

including possible strategic alliances.

Mr. Xiaoping Zhang, Chairman and CEO of Ruili Group Ruian Auto Parts,

Inc, commented, “The arrival of this new capital will allow us to broaden

our product offerings and expand our production capacity. Our goal is to

strengthen the fundamentals of the company and further enhance shareholder

value. With the 2008 Beijing Olympics ahead and an accelerating global

purchasing trend, we are upbeat about the future outlook for our business.”

About SORL Auto Parts, Inc.

As China’s leading manufacturer and distributor of automotive air brake

valves, SORL Auto Parts, Inc. ranks first in market share in the segment for

commercial vehicles weighing more than three tons, such as trucks and buses.

The Company distributes products both within China and internationally under

the SORL trademark. SORL ranks among the top 100 auto component suppliers in

China, with a product range that includes 40 types of air brake valves and

over 800 different specifications. The Company has three authorized

international sales centers in Australia, United Arab Emirates, and the

United States, with additional offices slated to open in other locations in

the near future. For more information, please visit http://www.sorl.cn .

Safe Harbor Statement

Statements made in this press release that are not historical fact are

“forward-looking statements,” which are based on current expectations that

include a number of risks and uncertainties. Additional factors that could

potentially affect the Company’s financial results may be found on the

Company’s filings with the Securities and Exchange Commission (

http://www.sec.gov ).

For more information, please contact:

David Ming He

SORL Auto Parts, Inc.

Tel: +86-577-6581-7720

Email: davidhe@sorl.com.cn

Christopher Chu

The Global Consulting Group

Tel: +1-646-284-9426

Email: cchu@hfgcg.com

Source: SORL Auto Parts, Inc.
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Keywords: Auto
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