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SORL Auto Parts, Inc. NASDAQ: SORL

SORL Auto Parts, Inc. NASDAQ: SORL. Roth China Comes to Vegas Conference November 2008. Safe Harbor Statement.

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SORL Auto Parts, Inc. NASDAQ: SORL

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  1. SORL Auto Parts, Inc.NASDAQ: SORL Roth China Comes to Vegas Conference November 2008

  2. Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

  3. Business Description Market Position • Established in 1987; over 20 years of history • The largest air brake system supplier for commercial vehicles in China • Rapid growth • Air brake system used in commercial vehicles larger than 3 tons • Penetrating Bus and Agricultural Vehicle Market Since 2007 Main Business • Total floor area of over 700,000 square feet • Located in Ruian (China’s biggest region for automotive parts production) • Enjoy the benefits of logistics, outsourcing and professional labor force • World Class Manufacture Facilities Facilities • OEM: Sales to top 50 domestic OEM customers • Aftermarket: 28 authorized distributors and over 800 sub-distributors • Exports: 3 distributors in UAE, Australia, USA; • exports to over 81 countries and regions worldwide Sales Network

  4. Capital Markets Summary

  5. Investment Highlights • Commercial vehicle market has grown at a CAGR of 14% since 2002 • Chinese is the second vehicle market at present, will be No 1 in 2010 • Market Driver (GDP of China; Fundamental Structure; Logistic; Development of highway, government policy etc.) • Our niche market High Growth Market • Sales: $47 million in 2004 to $116 million in 2007; 35% CAGR • Net income: $4.8 million in 2004 to $10.7 million in 2007; 31% CAGR • TTM revenue (as of September 30, 2008): 138 million • TTM net income (as of September 30, 2008): 13.0 million Proven Record of Organic Growth • 51 OEMs customers in China • Nationwide network of 28 distributors and 800 sub-distributors • Unmatched in China Leading Market Position in China • ISO/TS16949 Quality Management System • OHSAS18001 System • ISO14001 Environmental Management System; • Lean manufacturing implemented World-Class Manufacturing Ability

  6. Investment Highlights • Moving from components to systems (enhances margins) • Electronics initiative is expected to further distance SORL from competitors Product Development and R&D Advantage • Brand recognition • Scale and scope efficiency • Sophisticated management • Competitive quality • Strong R&D capabilities Competitive Value (Domestic) • Low-cost supply network • Local cost structure • Cheap labor force • China-based R&D efforts, closer to the end market • Sales network Competitive Value (Abroad) Management Team • Experienced Management Team

  7. Products • Air Brakes • Use compressed air to provide the force used for service and park brakes • Found in all large commercial vehicles • 40 categories sold by SORL • Over 1000 specifications • Key components include Spring Brake Chamber, Clutch Servo, Air Dryer, Relay Valves, and Hand Brake Valves • Focus on air brake systems vs components • Eg, air preparation units vs. air dryers • Higher margins • Required technical ability serves as barrier to entry

  8. Advanced R&D Capabilities • SORL currently owns 12 patents • 6 pending patent application in China • 3 additional in US • 68 technical staff, including 43 engineers or senior engineers • Partnerships for new automobile technology research: • Leading Universities • Research groups of OEM customers • Helping to further product development and management • Budget expanded to develop new products that will generate future global growth and increase profit margins: • SORL is closing the gap with foreign suppliers by constantly improving products • SORL launched electronic part development program two years ago

  9. Markets and Customers Sales channels include Chinese OEMs, the aftermarket in China, and exports to the aftermarket in 81 countries around the world.

  10. Markets: Chinese OEMs 51 OEM customers in China, including all major truck manufacturers SORL is the leading supplier to the dominant truck manufacturers in China The big 5 continue to dominate the market, accounting for 91% of Chinese total heavy duty truck output in Q1 2008. Major customers are all increasing their business with SORL

  11. Markets: Chinese Aftermarket Leading Distribution Network Throughout China • Nationwide: • 28 distributors and over 800 sub-distributors, covering 7 regions nationwide • Aftermarket/OEM Synergy: • OEM business feeds aftermarket business as owners generally prefer to replace original parts with the same brand • Competition:No other company in China, including foreign competitors, has an aftermarket distribution network comparable to SORL’s • Barrier to Entry:Serves as a barrier to entry and an asset which can be leveraged to support additional parts that may be developed or acquired

  12. Cost advantage vs. foreign brands presents significant export opportunity Exports to 81 countries in 2007; will continue to add dealerships overseas Strategic goal of acquiring distributors in the US: Accelerate growth Replicate distribution advantage already established in China Markets: Export Aftermarket

  13. Certifications:ISO/TS16949 Quality Management System, OHSAS18001 System, and ISO14001 Environmental Management System Lean manufacturing:Reorganized production lines from traditional straight-line layout to U-shape track, shortening total cycle time and enabling quick adjustments to production. Other lean practices continue to be implemented. Increased Efficiency:Output per person has increased 30% last years Quality Audit:Never failed a quality audit by a supplier, which is crucial in developing OEM business Manufacturing

  14. Competition: Domestic SORL has a leadership position that will be difficult to challenge • Auto parts is a highly fragmented market with many smaller players • Chinese OEM requirements relative to quality, delivery, inventory, and technical support are not easy to meet • SORL’s aftermarket distribution network is difficult to duplicate • In terms of manufacturing, quality, distribution, product development, and technical support, it will be difficult for others to catch up with SORL

  15. Competition: Foreign Foreign companies have limited themselves to the high end of the market in China • Do not have an aftermarket distribution network like SORL • Have not been able to develop the technical support levels that SORL has As a result, foreign companies are losing market share in China as SORL’s quality improves • Foreign share of air brakes estimated to be 10%, down from 25% 2 years ago Overseas, SORL’s cost advantage and constantly improving quality will drive future export growth

  16. Global LeaderWe aim to be a leading global supplier of air brake valves and related products Capacity ExpansionExpand production capacity to meet the growing demand in China market and support the future international expansion plan New ProductsDevelop scalable product technologies and capacities, focusing on electronics and controls; establish position as a integrated system provider in China New SectorsAccelerate growth into public transportation segment Overseas AcquisitionEnhance export potential by acquiring US distributors or parts makers STRATEGIC VISION

  17. Xiaoping Zhang, Chairman and CEO • Co-founder of Ruili Group • President of the Ruian Auto Parts Association in Wenzhou, Zhejiang Province • Vice President of China Federation of Industry and Commerce Auto & Motorbike Parts Chamber of Commerce Xiaofeng Zhang, COO • Co-founder of Ruili Group – General Manager • Spearheads SORL’s sales and marketing effort Zongyun Zhou, CFO • Certified Public Accountant in China • Chief Financial Officer of Shanghai Huhao Auto Parts Manufacturing Company Limited, a joint venture between the Ruili Group and Shanghai Auto Group, 2002 - 2004 Management Team

  18. FINANCIAL HIGHLIGHTS • Steady Revenue Growth ($, millions) • Improved Profitability

  19. Summary Income Statement 12/31/2005 64.2 14.3 5.5 4.9 37.1% 3.0% 22.3% 8.6% 7.7% 12/31/2007 115.8 27.0 12.0 10.7 36.4% 39.6% 23.3% 10.4% 9.3% Q307 29.7 6.6 2.7 2.1 39.5% 19.6 22.3% 9.0% 7.1% Q308 33.0 8.4 2.9 2.3 11% 10.9% 25.5% 8.8% 7.1% ($MM) Revenue Gross Profit Operating Profit Net Income Revenue Growth Net Income Growth Gross Margin Operating Margin Net Margin 12/31/2006 84.9 19.3 9.9 7.7 32.3% 55.5% 22.7% 11.6% 9.1%

  20. Summary Balance Sheet

  21. Ben Chen Senior Manager, Investor Relation Phone: +86 (577) 6581 7720 Fax: +86 (577) 6581 7733 Email: ben@sorl.com.cn Web: www.sorl.cn SORL AUTO PARTS, INC.NASDAQ: SORL

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