SORL Auto Parts Provides Business Update
January 13 2009 - 8:30AM
PR Newswire (US)
ZHEJIANG, China, Jan. 13 /PRNewswire-Asia-FirstCall/ -- SORL Auto
Parts, Inc. (NASDAQ:SORL), a leading manufacturer and distributor
of commercial vehicle air brake valves and other auto parts in
China, today provided a business update and commented on the
outlook for 2009. Worldwide economic conditions have caused a
slowdown in the automotive industry. While the weakness in global
automotive production has negatively impacted SORL's OEM business,
the impact on its domestic and international aftermarket segments
has remained limited due to the relatively stable demand for
aftermarket products. Historically, the fiscal third quarter has
been SORL's strongest quarter. However, as discussed last year,
SORL's sales grew at a slower pace in the third quarter of 2008
than in the two prior quarters, as a result of shifts in production
schedules at its OEM customers. Growth in SORL's domestic and
international aftermarket segments remains healthy. In the fourth
quarter of 2008, the UAE remained the Company's top export market,
followed by the U.S. The Company expects that in 2009, the U.S. and
the UAE will remain its top export markets for aftermarket
products. Though the Company believes that uncertainty in the auto
industry will continue into the second quarter of 2009, SORL also
believes that it will be able to achieve stable overall growth in
2009. The Company continues to focus closely on its cash
management. It adopted higher standards for accepting customers and
has cut back on customers that pose greater credit risk, to help
assure a healthy cash flow. In addition, the Company believes it
has sufficient liquidity including internally- generated cash flow
and an untapped credit line of more than RMB150 million to maintain
its growth. Xiaoping Zhang, SORL Auto Parts' CEO and Chairman,
said, "Despite tumultuous economic conditions, SORL remains strong
financially and operationally. Amid an overall slowdown of vehicle
consumption, our stable and diversified customer base, of which
one-third is in the domestic OEM market and the remaining in the
domestic and international aftermarket segments, allows us to
continue to increase sales in difficult market conditions." Mr.
Zhang continued, "In 2009, we will focus on managing risk and
enhancing our profitability. We believe that beginning in the
second quarter of 2009, we will see a gradual recovery in the
commercial vehicle market partly resulting from the Chinese
government's RMB 4 trillion fiscal stimulus package to boost the
economy and enhance domestic demand." 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
1000 different specifications. The Company has four authorized
international sales centers in Australia, United Arab Emirates,
India, 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 may include certain statements that are not descriptions of
historical facts, but are forward-looking statements. Forward-
looking statements can be identified by the use of forward-looking
terminology such as "will", "believes", "expects" or similar
expressions. These forward- looking statements may also include
statements about our proposed discussions related to our business
or growth strategy, which is subject to change. Such information is
based upon expectations of our management that were reasonable when
made but may prove to be incorrect. All of such assumptions are
inherently subject to uncertainties and contingencies beyond our
control and upon assumptions with respect to future business
decisions, which are subject to change. We do not undertake to
update the forward-looking statements contained in this press
release. For a description of the risks and uncertainties that may
cause actual results to differ from the forward-looking statements
contained in this press release, see our most recent Annual Report
filed with the Securities and Exchange Commission (SEC) on Form
10-K, and our subsequent SEC filings. Copies of filings made with
the SEC are available through the SEC's electronic data gathering
analysis retrieval system (EDGAR) at http://www.sec.gov/ .
DATASOURCE: SORL Auto Parts, Inc. CONTACT: At SORL Auto Parts,
Inc., Ben Chen, Director of Investor Relations, +86-577-6581-7721,
or ; Or ICR, Inc. for SORL Auto Parts, Inc., In China, Wei-Jung
Yang, +86-10-8523-3088, or ; Or In U.S., Brian M. Prenoveau, CFA,
+1-203-682-8200, or Web site: http://www.sorl.cn/
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