Thu, Jun 24 - Business Wire
Press Release Source: SORL Auto Parts, Inc.
Enchanted Village Completes Acquisition of Fairford Holdings Limited
Thursday June 24, 12:54 pm ET
Reverse Stock Split and Name Change to Become Effective by July 30, 2004
Revenues for 2003 Up 37%

NEW YORK--(BUSINESS WIRE)--June 24, 2004--Enchanted Village, Inc., a Delaware Corporation (OTCBB:ECVL - News), today announced that it has submitted a filing with the SEC to change its name to SORL Auto Parts, Inc. This marks the completion of its previously announced acquisition of Fairford Holdings Limited, a limited liability holding company based in Hong Kong that owns 90% equity of Ruili Group Ruian Auto Parts Co. Ltd, the largest automotive brake valve manufacturer in China.
SORL also filed a reverse stock split with the SEC, after which, when effective, the Company will have 13,285,867 shares of common stock issued and outstanding. Both the name change and reverse split have been approved by the shareholders and SEC, and are expected to become effective on or before July 30 after complying with SEC notice requirements.

Full Year 2003 Results

For the year ended December 31, 2003, net revenues increased 37% to $33.1 million, as compared to net revenues of $24.3 million for the prior year.

Gross profit for the year was $6.8 million compared to $5.2 million in 2002. Net income for 2003 increased 182% to $3.0 million, as compared to a net income of $1.6 million for year-end 2002.
Welcome [Sign In] To track stocks & more, Register
Financial News
Enter symbol(s) BasicPerformanceReal-time MktDetailedChartResearchOptionsOrder Book Symbol Lookup

Press Release Source: SORL Auto Parts, Inc.

Enchanted Village Completes Acquisition of Fairford Holdings Limited
Thursday June 24, 12:54 pm ET
Reverse Stock Split and Name Change to Become Effective by July 30, 2004
Revenues for 2003 Up 37%

NEW YORK--(BUSINESS WIRE)--June 24, 2004--Enchanted Village, Inc., a Delaware Corporation (OTCBB:ECVL - News), today announced that it has submitted a filing with the SEC to change its name to SORL Auto Parts, Inc. This marks the completion of its previously announced acquisition of Fairford Holdings Limited, a limited liability holding company based in Hong Kong that owns 90% equity of Ruili Group Ruian Auto Parts Co. Ltd, the largest automotive brake valve manufacturer in China.
SORL also filed a reverse stock split with the SEC, after which, when effective, the Company will have 13,285,867 shares of common stock issued and outstanding. Both the name change and reverse split have been approved by the shareholders and SEC, and are expected to become effective on or before July 30 after complying with SEC notice requirements.

Full Year 2003 Results

For the year ended December 31, 2003, net revenues increased 37% to $33.1 million, as compared to net revenues of $24.3 million for the prior year.

Gross profit for the year was $6.8 million compared to $5.2 million in 2002. Net income for 2003 increased 182% to $3.0 million, as compared to a net income of $1.6 million for year-end 2002.

Condensed Pro Forma Income Statement of SORL Auto Parts, Inc.
(in thousand US dollars)

2003 2002 2001
------------ ------------ ------------

Net revenues $33,121 $24,250 $14,284
Costs of revenues (26,263) (19,040) (11,317)
------------ ------------ ------------
Gross profit 6,858 5,210 2,967
Operating expenses (3,449) (3,670) (2,221)
------------ ------------ ------------
Operating earnings 3,409 1,540 746
Other income (expense) 435 267 (30)
------------ ------------ ------------
Net earnings before taxes and
minority interest 3,844 1,807 716
Provision for income taxes (546) - -
Minority interest (330) (181) (72)
------------ ------------ ------------
Net earnings $2,968 $1,626 $644
============ ============ ============

Mr. Xiao Ping Zhang, CEO & Chairman of SORL Auto Parts, stated, "Today's announcement is another crucial step in our progress towards becoming a publicly traded company. Our market is strong and, as is evident in our results, our company continues to leverage its strong relationships with customers who place great value on our high quality products. We expect 40% top-line growth in 2004."

Strategy

The Company's strategy is to maintain its domestic industry leadership position by focusing on quality control and cost reduction. SORL products offer higher quality and more competitive pricing compared with key competitors. As such, it has been able to grow at more than 30% per year in sales for the past three years.

SORL also plans to invest in next generation valve technology such as anti-lock brake systems and electric brakes, for which there is great market potential in China. The Company also plans

to expand production facilities, acquire new facilities and procure new equipment in order to meet further demand.

Approximately 18% of 2003 sales were generated from customers outside China, as SORL's products are highly competitive in the international market. To capitalize on this opportunity, the Company plans to set up additional sales centers internationally, particularly in the United States. It also plans to actively seek strategic partnerships with international distributors or manufacturers.

Finally, SORL plans to expand through strategic alliances and acquisitions with other automotive parts manufacturers.

About SORL Auto Parts

SORL Auto Parts, through its sino-foreign venture incorporated in the People's Republic of China, specializes in the development, production and sale of various kinds of automotive parts. Its headquarters are located in the Ruian District of Wenzhou City, one of the leading automotive parts manufacturing centers of China. It manufactures and distributes automotive air brake valves and hydraulic brake valves in China and internationally for use primarily in vehicles weighing over three tons, such as trucks, vans and buses.

SORL sells its products to forty-two vehicle manufacturers, including all of the truck manufacturers in China, which are divided into three groups: OEMS or automobile manufacturers in China, aftermarket distributors, and international customers, accounting for approximately 56%, 26% and 18% of annual sales, respectively. The Company maintains long-term relationships with its OEM customers, among them, First Auto Group, which accounts for 34.3% of SORL's total revenue and Dongfeng Auto Corporation at 10.5%. Both are among the five largest automobile manufacturers in China.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All readers are encouraged to review the 8-K to be filed in connection with the acquisition discussed above, which outlines risk factors including debt obligations, deal terms and other relevant items. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
--------------------------------------------------------------------------------
Contact:
Adam Friedman Associates
Investor Relations:
Adam Friedman, 212-981-2529 x18
adam@adam-friedman.com