Earnings: 10Q ~ http://ih.advfn.com/p.php?pid=nmona&cb=1211225670&article=26303686&symbol=N%5ESORL
1Q profit rose 68%
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No 1169 Yumeng Road
Ruian Economic Development Zone
China - Map
Phone: 86 577 6581 7720
Fax: 86 577 6581 7733
Web Site: http://www.sorl.cn
Index Membership: N/A
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Full Time Employees: 2,005
SORL Auto Parts, Inc. (the ¡°Registrant¡± or the ¡°Company¡±) is engaged in the business of manufacturing and distributing automotive air brake valves and related components for commercial vehicles weighing more than three tons, such as trucks and buses. The Company distributes products both in China and internationally under the SORL trademarks. The Company¡¯s product range includes 40 categories of brake valves with over 800 different specifications. According to an announcement of National Bureau of Statistics of China and China Association of Automobile Manufacturers (¡°CAAM¡±) in June 2006, the Company ranks among the top 100 automotive component suppliers in China.
SORL Auto Parts, Inc. is the largest commercial vehicle air brake system manufacturer in China. The Company distributes products both in China and internationally under the SORL trademarks. In general, customers are divided into three groups: OEM in China, aftermarket distributors in China, and international customers, accounting for approximately 32%, 28% and 40%, respectively, of the Company¡¯s annual sales for 2006.
For OEM market in China, SORL Auto Parts, sells its products to thirty-nine (39) vehicle manufacturers. The Company has established long term business relationships with most of the major automobile manufacturers in China, such as FAW Qingdao Automobile Works, First Auto Group Purchase Dept. Dongfeng Axle Co.,Ltd., Beiqi Foton Motor Co., Ltd., Zhucheng Automobile Works, Liuzhou Special Auto Manufacturing Co.Ltd.
For the After Market in China, Sorl Auto Parts, Inc. has established a sales networks of twenty-eight authorized distributors covering the following seven regions nationwide. The 28 distributors sell only ¡°SORL¡± products and in turn channel the products through over 800 sub-distributors.
For International Market SORL Auto Parts, Inc. has signed agreements with three distributors in UAE, Australia and the US. It also actively participates in international trade shows at Paris, Frankfurt, Dubai and Las Vegas, to update its knowledge on automobile technology and local market trends and to acquire new customers and new orders. The Joint Venture has sold products to over seventy-two (72) countries. Total Export sales in 2006 increased by 45% compared to that in 2005.
The Company obtained ISO9001/QS9000/VDA6.1 System Certifications in 2001. In 2004, the Joint Venture passed the ISO/TS 16949 System Certification conducted by the TUV CERT Certification Body of TUV Industrie Service GmbH, and passed the annual review in 2005. The ISO/TS 16949 system, a higher standard compared to and the replacement for ISO9001/QS9000/VDA6.1 System, was enacted by the International Automotive Task Force and is recognized by the world¡¯s main automobile makers and ISO 14001/OHSAS18001 Environment/Safety Administration system.
XIAO PING ZHANG - CHAIRMAN OF THE BOARD OF DIRECTORS AND CEO
Xiao Ping Zhang has served as Chief Executive Officer and chairman of the board since our inception. He founded the Ruili Group, a company specializing in a variety of automotive parts and components, in 1987, and has served as chairman of the Ruili Group since then. In 2003, he was elected the President of the Wenzhou Auto Parts Association the largest automotive parts trade association in China with more than 1000 members, and Vice-President of the China Federation of Industry and Commerce Auto and Motorbike Parts Chamber of Commerce. Mr. Zhang is also a member of the Standing Committee of the People¡¯s Congress in Rui¡¯an City, Zhejiang, China. Mr. Zhang graduated from Zhejiang Radio and TV University in 1986 with a major in Industrial Management. He is the brother of Xiao Feng Zhang.
XIAO FENG ZHANG - CHIEF OPERATING OFFICER AND DIRECTOR
Xiao Feng Zhang has served as Chief Operating Officer and a member of the board of directors since our inception. He is responsible for sales and marketing. Mr. Zhang co-founded the Ruili Group with his brother, Mr. Xiao Ping Zhang, in 1987, and served as the General Manager of the Ruili Group until March 2004. Mr. Zhang received his diploma in economics from Shanghai Fudan University in 1994. He is the brother of Xiao Ping Zhang.
SORL Auto Parts Reports 36% Revenue and 40% Net Income Growth for 2007 http://www.sorl.cn/disnews.asp?id=Mjc3
In March 2007, SORL announced that it entered into a new sales agreement with India's largest commercial vehicle manufacturer, TATA Motors, to supply air brake valves and related products. In addition, SORL also announced that the Company opened a sales center in India to focus on OEMs and the aftermarket in the Indian market.
In October 2007, SORL announced the purchase of land rights, a manufacturing plant and an office building with a total floor area of 66,177.91 square meters, or 712,333 square feet, from Ruili Group Co. Ltd., for US$20 million. The appraisal of the assets was conducted by the leading independent appraiser, DTZ Debenham Tie Leung Ltd., and total asset value was appraised at US$20.3 million. As a result of this transaction, the acquired capacity expansion is expected to meet the Company's growth demands for the next 2 to 3 years. In addition, SORL purchased approximately US$7 million of advanced equipment to both add capacity and efficiency to its production capabilities.
In October 2007, SORL was also 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. Additionally, the city of 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. Due to their almost nonstop operation, municipal buses require frequent maintenance and the replacement of their brake systems.
In October 2007, SORL announced that it has entered into a technology development agreement with China's second largest heavy-truck maker, Baotou North- Benz Heavy Duty Truck Co. Ltd. With this new agreement, SORL became a major long-term supplier of air brake products to North-Benz.