-- Three New Overseas OEM and Aftermarket Contracts Expected to Total Approximately $7 Million in Sales for 2007-2008 --
RUIAN CITY, China, Nov. 27 /Xinhua-PRNewswire-FirstCall/ -- SORL Auto Parts, Inc. (NasdaqGM: SORL) ("SORL" or the "Company"), a leading manufacturer and distributor of commercial automotive air brake valves and related components in China, today announced that it has signed a product sales contract with a major Original Equipment Manufacturer (OEM) in India. According to the contract, SORL will supply air brake systems including relay valves, hand brake valves, four circuit protection valves and spring brake chambers, all of which have passed the 60,000-kilometer (or 37,282 mile) durability test for the abovementioned Indian OEM’s trucks. This new contract marks the third overseas OEM customer win for SORL.
Since June 2007, SORL has expanded aggressively in the overseas OEM market as well as in the aftermarket. In addition to the Indian OEM announced today, SORL signed a contract with a major trailer OEM in South Africa and established aftermarket supply relations with a major auto parts distributor in the United States (including spring brake chambers, clutch boosters and air dryers). During the last 4 months, the cumulative sales to these three new customers totaled approximately US$2 million. SORL is expecting to generate approximately US$5 million in revenue from these three overseas customers next year.
Xiaoping Zhang, CEO of SORL, commented, "I am very pleased with the success of our overseas marketing initiatives. We continue to market our brand and products to major overseas OEMs and aftermarket distributors to enhance our global position in the auto parts industry. We expect overseas growth to continue to boost our top and bottom lines going forward."
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
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, those concerning our estimated sales and expected expansion of our production capacity as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2006 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For further information, please contact:
Richard (Weihai) Cai
Investor Relations Manager
Tel: +86-577-6581-7721
Email: richardcai@sorl.com.cn
Kevin Theiss
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacy Dimakakos
Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com