SOURCE: SORL Auto Parts, Inc.

August 18, 2005 11:25 ET

SORL Auto Parts, Inc. Reports Correction to Previous Press Release Reporting Earnings

ZHEJIANG, CHINA -- (MARKET WIRE) -- August 18, 2005 -- SORL Auto Parts, Inc. (OTC BB: SAUP) is correcting its press release issued August 15, 2005 as to the prior year's earnings per share (EPS) for the three and six months ended June 30, 2004. The correct EPS for the three and six months ended June 30, 2004 were $0.16 and $0.52, respectively.

The EPS for the three and six months ended June 30, 2005 were $0.11 and $0.22, respectively. The table below summarizes the corrected EPS information.

Year    Three Months   Six Months
           Ended         Ended
          June 30       June 30
2004       $0.16         $0.52
2005       $0.11         $0.22
As previously reported, net income for the second quarter ended June 30, 2005 increased by 19 percent year-on-year. For the first six months of 2005, net income increased by 35 percent year-on-year. The decrease in EPS for 2005 is attributable to new shares of the common stock issued in mid-July 2004 in connection with the Company's completion of its reverse merger transaction.

About SORL Auto Parts, Inc.

SORL Auto Parts, Inc. is engaged in the manufacture and distribution of automotive air brake valves and hydraulic break valves primarily for the commercial vehicle market for vehicles weighting more than three tons, such as trucks, vans and buses in the People's Republic of China. The Company distributes products both in China and internationally under SORL trademarks. The Company's product range includes 36 types of brake valves with over 800 different specifications. The Company is rated as one of the top 100 auto component suppliers in China. The Company has two international sales centers in Australia and UAE, with additional new offices slated for opening in the U.S. and other locations in the near future.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.

Contact Information

  • CONTACTS:

    David He
    SORL Auto Parts, Inc.
    Phone: +86 (577) 6581-7720
    Email Contact

    Pamela A. Solly
    Keating After Market Support, LLC
    Greenwood Village, CO
    Email Contact
    (720) 489-5876