Through its 90% ownership of the Ruili Group Ruian Auto Parts Co., Ltd., a Sino-foreign joint venture, SORL Auto Parts, Inc. develops, manufactures and distributes automotive brake systems and other key safety related auto parts to automotive original equipment manufacturers, or OEMs, and the related aftermarket both in China and internationally. The Company’s products are principally used in different types of commercial vehicles, such as trucks and buses. Automotive brake systems and other key safety related auto parts are critical components that ensure driving safety.

The Company is the largest commercial vehicle air brake system manufacturer in China. In general, our customers are divided into three groups: OEMs in China, aftermarket distributors in China, and international customers, accounting for approximately 58.9%, 16.8 % and 24.3%, respectively, of the Company’s annual sales for 2010.

The Company has established long-term business relationships with most of the major vehicle manufacturers in China. It sells products to 69 vehicle manufacturers, including all of the key truck manufacturers in China. In addition to heavy-duty trucks, the products are also widely used in brake systems for buses. Typically, bus manufacturers purchase a chassis from truck chassis manufacturers which already have incorporated the Company’s brake systems.

The Joint Venture has established sales networks of 28 authorized distributors covering the 7 regions nationwide. The 28 authorized distributors sell only “SORL” products and in turn channel the products through over 1200 sub-distributors.

Focus on both overseas aftermarket and OEM customers at the same time. The Company is selling its products into 104 countries and regions, and has begun to supply products to OEMs in India. The Company also actively participates in international trade shows including more than ten international exhibitions as Automechanika in Frankfort Equip Auto in Pairs, Automotive Aftermarket Products Expo in Las Vegas, Automechanika Middle East in Dubai and China Import and Export Fair in Guangzhou, to acquire new customers and new orders. A new joint venture was established in Hong Kong in 2009, focus on expanding SORL’s international sales network in the Asia-Pacific region and creating a larger footprint in Europe, the Middle East and Africa with a target to create a truly global distribution network. SORL presently has three international sales centers. These are located in UAE, USA and India. They carry out localization strategies to meet the different market demands and to strengthen service support.