-- SORL Named Exclusive Air Brake Supplier for New Municipal Buses in the City of Tianjin
-- SORL Also Supplying Brake Parts to Beijing's Municipal Buses
RUIAN CITY, China, Oct. 15 /Xinhua-PRNewswire/ -- SORL Auto Parts, Inc. (Nasdaq: SORL) ("SORL" or the "Company"), a leading manufacturer and distributor of automotive air brake valves and related components in China, today announced that it has been designated as the exclusive air brake parts supplier for the estimated 2,400 new municipal buses the City of Tianjin is purchasing. These new buses are being acquired to both help solve the transport needs of the city's residents and to accommodate the expected larger transportation demands of the nearby Beijing 2008 Olympics. Tianjin is a major economic hub for northern China with a population of approximately 10 million people and is located only 63 miles away from Beijing.
Additionally, the nation's capital, Beijing, has also chosen SORL as a designated air brake parts supplier for its municipal bus fleet. Nationally, it is estimated China had over 341,000 municipal buses at the end of June 2007, according to the Public Safety Bureau of China. Municipal buses, due to their almost nonstop operation, require frequent maintenance and replacement of brake systems. The Chinese government is investing greater resources in mass transportation systems to improve the living conditions of the growing number of urban residents. The municipal bus market is positioned to benefit from this increased investment and possesses the potential for strong growth.
Through a focused marketing plan, SORL has begun to increase its penetration of the large domestic OEM and aftermarket for municipal buses. These two aftermarket awards follow other long-term municipal bus OEM contracts won this year with: Zhengzhou Yutong Group Co. Ltd., Zhongtong Bus Holding Co. Ltd., Dandong Huanghai Automobile Co. Ltd., Xiamen King Long United Automotive Industry Co. Ltd., Xiamen Golden Dragon Bus Co. Ltd., King Long United Automotive Industry (Suzhou) Co. Ltd., Jianghuai Hefei Coach Factory, Jinhua Youth Auto Manufacturing Co. Ltd., CIMC Auto Co. Ltd., Anhui Ankai Automobile Co. Ltd., Chongqing Hengtong Coach Co. Ltd. and Beijing North Neoplan Bus Co. Ltd.
Xiaoping Zhang, CEO of SORL, commented, "These two awards provide further evidence of SORL's reputation for high-quality critical brake parts. We estimate that we have won a 25% market share in the Beijing and Tianjin aftermarket for bus brake parts for 2007. Our increasing national brand recognition combined with a growing list of important OEMs and aftermarket customers, solidifies our leading market position and testifies to our products' quality.”
"We applaud municipal governments' decisions and continuous efforts to improve mass transit for both transportation efficiency and pollution control. We believe that we are well positioned to capture the Chinese market opportunity of a growing urban population, increasing mass transit requirements, and rising bus usage," Mr. Zhang concluded.
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
