--------------------------------------------------------------------------------

                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

--------------------------------------------------------------------------------
                                   FORM 10-QSB

(Mark One)

|X|   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

                  For the quarterly period ended March 31, 2005

                                       or

|_|   Transition Report Pursuant to Section 13 of 15(d) of the Securities
      Exchange Act of 1934

       For the Transition Period From ______________ to __________________

                        Commission File number 000-11991

                               ---------------------

                              SORL AUTO PARTS, INC.
        (Exact name of small business issuer as specified in its charter)


              DELAWARE                            30-0091294
  (State or other jurisdiction of      (IRS Employer Identification No.)
   incorporation or organization)

                              No. 1169 Yumeng Road
                       Ruian Economic Development District
                          Ruian City, Zhejiang Province
                           People's Republic Of China

                    (Address of principal executive offices)

                                 86-21-6440-1678

                           (Issuer's telephone number)

                              ---------------------

Check whether the Registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the Securities  Exchange Act of 1934 during the preceding
12 months (or for such shorter  period that the  Registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.
                                 Yes |_| No |X|

   As of May 11, 2005 there were 13,285,867shares of Common Stock outstanding.

                  Transitional Small Business Disclosure Format



<PAGE>

                                Yes |_|      No |X|

--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

                                      INDEX


PART I. FINANCIAL INFORMATION (unaudited)

Item 1. Financial Statements:

          Consolidated Balance Sheets

          Consolidated Statements of Operations for

          Consolidated Statements of Cash Flows for

          Notes to the Condensed Financial Statements

Item 2. Management's Discussion and Analysis or Plan of Operations

Item 3. Controls and Procedures

PART II. OTHER INFORMATION

Item 1. Legal Proceeding

Item 2. Changes in Securities and Small Business Issuer Purchases of Equity
         Securities

Item 3. Defaults Upon Senior Securities

Item 4. Submission Of Maters To a vote of Security Holders

Item 5. Other Information

Item 6. Exhibits


SIGNATURES


<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

Item 1. Financial Statements.

The information required by this Item 1 is set forth at the end hereof.

Item 2. Management's Discussion And Analysis or Plan of Operation.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

      The  following  is   management's   discussion  and  analysis  of  certain
significant  factors that have  affected our  financial  position and  operating
results during the periods included in the accompanying  consolidated  financial
statements,  as  well  as  information  relating  to the  plans  of our  current
management.  This report includes  forward-looking  statements.  Generally,  the
words "believes,"  "anticipates,"  "may," "will," "should,"  "expect," "intend,"
"estimate,"  "continue,"  and similar  expressions  or the  negative  thereof or
comparable terminology are intended to identify forward-looking statements. Such
statements are subject to certain risks and uncertainties, including the matters
set  forth in this  report  or  other  reports  or  documents  we file  with the
Securities and Exchange  Commission from time to time,  which could cause actual
results or outcomes to differ  materially from those  projected.  Undue reliance
should not be place on these  forward-looking  statements  that speak only as of
the date  hereof.  We undertake no  obligation  to update these  forward-looking
statements.

      The following  discussion and analysis should be read in conjunction  with
our  consolidated  financial  statements and the related notes thereto and other
financial information contained elsewhere in this Form 10-Q.

OVERVIEW

      On May 10,  2004,  we acquired  all of the issued and  outstanding  equity
interests of Fairford Holdings Limited,  a Hong Kong limited liability  company.
Until we acquired  Fairford,  we had only  nominal  assets and  liabilities  and
limited  business   operations.   Although   Fairford  became  our  wholly-owned
subsidiary  following the  acquisition,  because the  acquisition  resulted in a
change of control,  the acquisition  was recorded as a "reverse  merger" whereby
Fairford is considered to be the  accounting  acquirer.  As such,  the following
results of operations are those of Fairford.

      Fairford  was  organized  in Hong Kong as a limited  liability  company on
November 3, 2003.  Fairford owns 90% of the equity interest of Ruili Group Ruian
Auto Parts Co.,  Ltd.,  a  Sino-foreign  joint  venture  (the  "Joint  Venture")
established  pursuant to the laws of the  People's  Republic of China  ("PRC" or
"China").  The Joint Venture is a joint venture between Fairford and Ruili Group
Co., Ltd. (the "Ruili Group").

      The Ruili Group was  incorporated  in the PRC in 1987 to specialize 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 with more than 1400 auto
parts  manufacturing  companies.  Its major product lines include valves for air
brake systems, auto metering products,  auto electric products,  anti-lock brake
systems  and   retarders.   Some  of  those  products  were  developed  and  are
manufactured  through  affiliated  companies of Ruili Group.  Due to its leading
position in the industry,  the Chairman of the Ruili Group, Mr. Xiao Ping Zhang,
has been elected as the Chairman of Wenzhou Auto Parts  Association,  one of the
leading auto parts trade  associations in China.  Mr. Zhang is also Chairman and
Chief Executive Officer of the Company. The Joint Venture was established in the
PRC on March 4,  2004 as a  Sino-foreign  joint  venture  company  with  limited
liability by the Ruili Group and Fairford.  Fairford and Ruili Group contributed
90% and 10%,  respectively,  of the paid-in  capital in the aggregate  amount of
US$7,100,000.


<PAGE>

      In connection  with its  formation,  effective  January 19, 2004 the Joint
Venture acquired the business of the Ruili Group relating to the manufacture and
Sale of  various  kinds of valves  for  automotive  brake  systems  and  related
operations (the "Transferred  Business").  This was accomplished by the transfer
from the Ruili Group to Fairford of the relevant  assets and  liabilities of the
Transferred  Business  including  trade  receivables,   inventories,  plant  and
machinery,  and  the  assumption  of  short  and  long  term  borrowings,  at  a
consideration of US$6,390,000.  The consideration was based on a valuation by an
independent  PRC  valuation  firm.  Fairford  then  injected  these  assets  and
liabilities as a capital contribution for its 90% interest in the Joint Venture.
The Ruili Group also transferred  inventory as its capital  contribution for its
10% interest in the Joint Venture. The assets and liabilities transferred to the
Joint  Venture by Fairford  and the Ruili  Group  represented  all the  relevant
assets  and  liabilities  of  the  Transferred   Business.   Certain  historical
information  of the  Transferred  Business  is  based on the  operation  of such
Business when it was owned by the Ruili Group.

      Pursuant to the formation of the Joint  Venture,  on January 17, 2004, the
Ruili Group and  Fairford  signed a binding  Joint  Venture  agreement  (the "JV
Agreement").  Pursuant to the JV Agreement,  the Board of Directors  consists of
three  directors;  Fairford has the right to designate  two members of the board
and the Ruili Group has the right to designate  one member.  The majority of the
Board has decision  making  authority  with respect to operating  matters.  As a
result, Fairford maintains operating control over the Joint Venture.

      As a result of the foregoing, through Fairford's 90% interest in the Joint
Venture,  the Company  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.  There are
thirty-six   categories   of  valves   with   over   eight   hundred   different
specifications.  Management  believes  that it is the  largest  manufacturer  of
automotive brake valves in China.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

      Below is a description of accounting policies,  which we consider critical
to the preparation and understanding of our financial  statements.  In addition,
certain  amounts  included in or affecting our financial  statements and related
disclosure must be estimated, which requires us to make assumptions with respect
to values or  conditions  which  cannot be known with  certainty at the time the
financial  statements  are  prepared.  Actual  results  may  differ  from  these
estimates under different  assumptions or conditions.  The selection of critical
accounting  policies,  the  judgments  and  other  uncertainties  affecting  the
application of those policies and the sensitivity of reported results to changes
in conditions and  assumptions  are factors to be considered  when reviewing our
consolidated  financial  statements.  We  believe  that the  following  critical
accounting  policies set forth below involve the most significant  judgments and
estimates used in the preparation of our consolidated  financial statements.  We
evaluate these policies on an ongoing basis,  based upon historical  results and
experience,  consultation  with  experts,  trends and other  methods we consider
reasonable in the particular  circumstances,  as well as our forecasts as to how
these might change in the future.

 ACCOUNTING METHOD

      The  Company  uses the  accrual  method  of  accounting  which  recognizes
revenues when earned and expenses when incurred.

TRADE RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

      The Company  presents  trade  receivables,  net of allowances for doubtful
accounts.  The allowances are calculated based on review of individual  customer
accounts.

INVENTORIES


<PAGE>

      Inventories are stated at the lower of cost or net realizable  value. Cost
is  calculated on the  weighted-average  basis and includes all costs to acquire
and other costs incurred in bringing the  inventories to their present  location
and condition. The Company evaluates the net realizable value of its inventories
on a regular  basis and  records a  provision  for loss to reduce  the  computed
moving-average cost if it exceeds the net realizable value.

INCOME TAXES

      Taxes are  calculated in accordance  with  taxation  principles  currently
effective in the PRC. The Company  accounts for income taxes using the liability
method.  Deferred tax assets and  liabilities  are recognized for the future tax
consequences   attributable  to  differences  between  the  financial  statement
carrying  amounts of existing assets and  liabilities  and their  respective tax
bases.  Deferred tax assets and liabilities are measured using enacted tax rates
expected  to apply to  taxable  income  in the  years in which  those  temporary
differences are expected to be recovered or settled.  The effect on deferred tax
assets and  liabilities  of a change in tax rates is recognized as income in the
period that includes the enactment  date. A valuation  allowance is provided for
the amount of deferred tax assets that,  based on  available  evidence,  are not
expected to be realized.

REVENUE RECOGNITION

      In accordance  with the provisions of Staff  Accounting  Bulletin No. 103,
revenue  is  recognized  when  merchandise  is shipped  and title  passes to the
customer and  collectibility  is  reasonably  assured.  Revenues  consist of the
invoice value of the sale of goods and services net of value added tax,  rebates
and  discounts.  The  Company is subject to the  following  surtaxes,  which are
recorded as deductions from gross sales: Education Tax.

      The  Company  does not  receive  revenue  for  shipping  and  handling  to
customers.  Shipping  and  handling  expenses  incurred  by the  Company for the
quarters ended March 31, 2005 and 2004  respectively are included in selling and
administrative expenses in the accompanying consolidated statements of income.

CONCENTRATION OF CREDIT RISK

      Financial  instruments that potentially subject the Company to significant
concentrations  of credit risk consist  primarily of trade accounts  receivable.
The Company  performs  ongoing credit  evaluations with respect to the financial
condition  of its  creditors,  but  does  not  require  collateral.  In order to
determine the value of the Company's accounts receivable,  the Company records a
provision for doubtful  accounts to cover  probable  credit  losses.  Management
reviews and adjusts this allowance  periodically based on historical  experience
and its evaluation of the collectibility of outstanding accounts receivable.

RESULTS OF OPERATIONS

      Quarter ended March 31, 2005 compared to quarter ended March 31, 2004:

SALES

      Sales for the quarter ended March 31, 2005  increased by US$5.4 million or
60% to US$14.5  million,  primarily as a result of the increase in the volume of
our  products  shipped.  The total units of valves we shipped  increased by 12%,
from 846,000 units to 951,900 units between these two periods.  The average unit
price of our products increased modestly from US$11 to US$12, increased by 8%.

COST OF SALES

      Cost of sales for the quarter  ended March 31,  2005  increased  to $11.3M
from $6.8M for the quarter ended March 31, 2004,  or 66% increase.  The increase
in cost of sales resulted from a corresponding  increase in sales volume as well


<PAGE>

as more products being  purchased from outside  vendors which carry higher costs
than the products manufactured internally.

GROSS PROFIT

      Gross profit for the quarter ended March 31, 2005 increased by $1M or 83 %
to US$3.2M from US$2.2M for the quarter ended March 31, 2004.  This  improvement
in gross profit was  primarily  due to the increase in the sales volume  created
both in the  domestic and  international  market.  The gross profit  margin as a
percentage  of  sales  decreased  by 3% from  25% in  2004 Q1 to 22% in  current
quarter. This decrease was due to the fact that 10% of the Company's gross sales
were from  products  that were  purchased  from  outside  vendors  as opposed to
products  manufactured  internally,  which  carry  lower cost and higher  profit
margins.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

      Selling,  general and administrative  expenses for the quarter ended March
31, 2005 was $1.5M or 10.2% of sales compared to $1.2M or 13.2% of sales for the
quarter   ended  March  31,  2004.   The   decrease  in  selling,   general  and
administrative  expenses  as a  percentage  of sales  was due  primarily  to the
economies of scale resulting from the increase in sales.

DEPRECIATION AND AMORTIZATION

      Depreciation  and  amortization  expense  increased  to $192k  during  the
quarter  ended  March 31,  2005,  as compared  to  approximately  50k during the
quarter  ended March 31, 2004.  The increase was primarily  attributable  to the
acquisition of equipment of  approximately  $600k during the second half of 2004
and the first quarter of 2005.

INTEREST EXPENSE

      Interest expense for the quarter ended March 31, 2005 decreased by $20k to
$60k from $80k for the quarter  ended March 31,  2004.  The decrease in interest
expense is due to the lower debt  balance over the year,  although  current loan
balance was higher, it was incurred at the end of the quarter.

INCOME TAX

      There was no income tax for both the  quarters  ended  March 31,  2005 and
2004. As a result of the Joint Venture (i.e.  Ruili Group Auto Parts Co.,  Ltd.)
obtaining  its foreign  joint-venture  status in 2004,  it is exempted  from PRC
income tax.

MINORITY INTEREST

      Minority  Interest  represents  a  10%  non-controlling  interest  in  the
company. Minority Interest in income amounted to US$167k and US$-0- for quarters
ended March 31, 2005 and 2004, respectively.

NET INCOME

      The net income for the quarter ended March 31, 2005 increased by $0.7M, or
74% to a net income of US$1.7M from a net income of US$1M for the quarter  ended
March 31, 2004 due to the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

      Historically,  the Company has funded  capital  requirements  through cash


<PAGE>

flow from operations.  As of March 31, 2005 we had a cash balance of $610k and a
working capital surplus of  approximately  $7.7M.  Management  believes that the
Company's working capital is sufficient to cover capital requirements during the
next 12 months.

      In addition,  from time to time we may attempt to raise financing  through
some  combination of commercial bank borrowings or the private or public sale of
equity  or debt  securities,  in an  effort  to  ensure  that we have  access to
sufficient  funds to meet our needs.  However,  future equity or debt financings
may not be  available to us at all,  or, if  available,  may not be on favorable
terms.  We cannot assure you that these efforts,  together with items  described
above,  will be sufficient to fund our growth,  or that external funding will be
available  to us at  favorable  interest  rates or at all.  If we are  unable to
obtain  financing in the future,  we will  continue to develop our business on a
reduced scale based on our existing capital resources.



                                     PART II
                                OTHER INFORMATION


Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities and Small Business Issuer Purchases of Equity
        Securities

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None.

Item 6.Exhibits.

      (a)Exhibits:

      31.1  Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002

      31.2  Certification  pursuant to Section 302 of the  Sarbanes-Oxley Act of
            2002 S

      32.1  Certification  pursuant to Section 906 of the  Sarbanes-Oxley Act of
            2002

      32.2  Certification  pursuant to Section 906 of the  Sarbanes-Oxley Act of
            2002


<PAGE>

                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                               SORL AUTO PARTS, INC.


Dated: May 16, 2005            /s/ Xiao Ping Zhang
                               -----------------------------------
                               Name: Xiao Ping Zhang
                               Title: Chief Executive Officer


<PAGE>





                              SORL AUTO PARTS, INC.
                          Ruian City, Zhejiang Province
                           People's Republic of China

                           --------------------------
                                FINANCIAL REPORTS
                                       AT
                                 MARCH 31, 2005
                           --------------------------


<PAGE>

SORL AUTO PARTS, INC.
Ruian City, Zhejiang Province
People's Republic of China


TABLE OF CONTENTS
--------------------------------------------------------------------------------

Consolidated Balance Sheets at March 31, 2005 (Unaudited) and
  December 31, 2004                                                        1 - 2

Consolidated Statements of Income (Unaudited) for the Three Months
  Ended March 31, 2005 and 2004                                                3

Consolidated Statements of Cash Flows (Unaudited) for the Three
  Months Ended March 31, 2005 and 2004                                         4

Notes to Consolidated Financial Statements (Unaudited)                    5 - 10


<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China


CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                          (Unaudited)
                                                                           March 31,    December 31,
                                                                              2005          2004
                                                                          -----------   ------------
<S>                                                                       <C>           <C>

ASSETS

Current Assets
Cash and Cash Equivalents                                                 $   610,067   $    729,875
Trade Receivables, Net of Provisions $68,384 as of 3/31/05 and 12/31/04    17,211,496     12,595,905
Notes Receivable                                                              764,447        129,675
Inventory                                                                   1,764,440      1,875,300
Prepayments                                                                 2,059,329      1,404,710
Other Receivables                                                              29,835        393,300
                                                                          -----------   ------------

Total Current Assets                                                       22,439,614     17,128,765

Other Assets
Intangible Assets                                                              36,940         38,720

Property, Plant and Equipment, Net                                          5,449,132      5,352,654
                                                                          -----------   ------------

Total Assets                                                              $27,925,686   $ 22,520,139
                                                                          ===========   ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                      -1-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China


CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                          (Unaudited)
                                                                           March 31,    December 31,
                                                                              2005          2004
                                                                          -----------   ------------
<S>                                                                       <C>           <C>

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts Payable                                                          $ 4,444,562   $  4,717,655
Deposit Received from Customers                                             1,793,401        861,624
Bank Loans                                                                  7,246,377      4,830,918
Accrued Expenses and Other                                                  1,288,428        625,769
                                                                          -----------   ------------

Total Current Liabilities                                                  14,772,768     11,035,966
                                                                          -----------   ------------

Minority Interest                                                           1,315,293      1,148,418
                                                                          -----------   ------------

Shareholders' Equity
Convertible Preferred Stock - $1 Par Value; 5,000,000 Authorized,
                              0 Issued and Outstanding                             --             --
Common Stock - $.002 Par Value; 50,000,000 Authorized,
               13,285,867 and 332,147 Issued and Outstanding
               at March 31, 2005 and 2004, Respectively                        26,572         26,572
Additional Paid-in Capital                                                  4,082,239      4,082,239
Retained Earnings                                                           7,728,814      6,226,944
                                                                          -----------   ------------

Total Shareholders' Equity                                                 11,837,625     10,335,755
                                                                          -----------   ------------

Total Liabilities and Shareholders' Equity                                $27,925,686   $ 22,520,139
                                                                          ===========   ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                      -2-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China


CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                          (Unaudited)
Three Months Ended March 31,                                                  2005            2004
                                                                          ------------    ------------
<S>                                                                       <C>             <C>

Sales                                                                     $ 14,515,866    $  9,091,352

Cost of Sales                                                               11,296,173       6,855,767
                                                                          ------------    ------------

Gross Profit                                                                 3,219,693       2,235,585

Selling and Distribution Expenses                                              927,089         626,648

General and Administrative Expenses                                            554,254         570,279

Finance Costs                                                                   60,452          80,101
                                                                          ------------    ------------

Income from Operations                                                       1,677,898         958,557

Other Expenses                                                                   9,153              --
                                                                          ------------    ------------

Income from Continuing Operations Before Income Taxes                        1,668,745         958,557

Income Taxes - Current                                                              --              --
                                                                          ------------    ------------

Net Income Before Minority Interest                                          1,668,745         958,557

Minority Interest                                                             (166,875)             --
                                                                          ------------    ------------

Net Income Attributable to Shareholders                                   $  1,501,870    $    958,557
                                                                          ============    ============

Net Income Per Share - Basic                                                       .11             .19
                                                                          ============    ============

Net Income Per Share - Diluted                                                     .11             .19
                                                                          ============    ============

Weighted Average Common Shares Outstanding - Basic                          13,285,867       4,928,000
                                                                          ============    ============

Weighted Average Common Shares Outstanding - Diluted                        13,285,867       4,928,000
                                                                          ============    ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                      -3-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China


CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                          (Unaudited)
Three Months Ended March 31,                                                  2005           2004
                                                                          -----------    ------------
<S>                                                                       <C>            <C>

Cash Flows from Operating Activities

Net Income for the Period                                                 $ 1,501,870    $    958,557

Adjustments to Reconcile Net Income to Net Cash
  Provided by Operating Activities
  Depreciation and Amortization                                               192,005          49,571
  Minority Interest                                                           166,875
(Increase) Decrease in Assets:
  Inventory                                                                   110,860        (904,911)
  Trade Receivables, Net of Provisions                                     (4,615,591)     (1,834,927)
  Prepayments, Deposits, and Other Current Assets                            (291,154)      2,602,000
Increase (Decrease) in Liabilities:
  Trade Payables                                                             (273,093)         (6,013)
  Other Payables and Accrued Expenses                                         662,659        (829,819)
  Deposit Received from Customers                                             931,777              --
                                                                          -----------    ------------

Net Cash Provided By (Used in) Operating Activities                        (1,613,792)         34,458
                                                                          -----------    ------------

Cash Flows from Investing Activities
Acquisition of Property, Plant and Equipment                                 (286,703)          2,023
Notes Receivable                                                             (634,772)             --
Intangible Assets                                                                  --         (33,822)
                                                                          -----------    ------------

Net Cash Used in Investing Activities                                        (921,475)        (31,799)
                                                                          -----------    ------------

Cash Flows from Financing Activities
Proceeds from (Repayment of) Bank Loans                                     2,415,459          (1,899)
                                                                          -----------    ------------

Net Cash (Used in) Provided by Financing Activities                         2,415,459          (1,899)
                                                                          -----------    ------------

Net Change in Cash and Cash Equivalents                                      (119,808)            760

Cash and Cash Equivalents - Beginning of Period                               729,875              --
                                                                          -----------    ------------

Cash and Cash Equivalents - End of Period                                 $   610,067    $        760
                                                                          ===========    ============

SUPPLEMENTARY CASH FLOWS DISCLOSURES
Interest Paid                                                             $    60,452    $     80,101
Taxes Paid                                                                $        --    $         --
                                                                          ===========    ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                      -4-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 1-ORGANIZATION / SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying  unaudited  financial  statements  include all adjustments of a
normal and recurring nature which, in the opinion of Company's  management,  are
necessary to present  fairly the  Company's  financial  position as of March 31,
2005 and the results of its operations and cash flows for the three months ended
March 31, 2005 and 2004.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been omitted  pursuant to the rules and  regulations  of the Securities and
Exchange  Commission.  These condensed  financial  statements  should be read in
conjunction  with the financial  statements  and related notes  contained in the
Company's  annual report on Form 10-K to the Securities and Exchange  Commission
for the year ended December 31, 2004.

Description  of  Business  SORL  Auto  Parts  is  principally   engaged  in  the
manufacture and  distribution of automotive air brake valves and hydraulic brake
valves for  vehicles  weighing  more than three tons,  such as trucks,  vans and
buses, through its 90% ownership of Ruili Group Ruian Auto Parts Company Limited
(Ruian)  in the PRC.  The  subsidiary  distributes  products  both in China  and
internationally  under SORL Auto Parts  trademarks.  The Company's product range
includes 36 categories  of brake valves with over 800 different  specifications.
The Company is rated as one of the top 100 auto component suppliers in China.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting  method - The  Company  uses the  accrual  method of  accounting  for
financial statement and tax return purposes.

Principles of Consolidation The consolidated  financial  statements  include the
accounts of SORL Auto Parts,  Inc.  and its  majority  owned  subsidiaries.  All
significant  intercompany  balances and transactions have been eliminated in the
consolidation.

Use of estimates - The  preparation of financial  statements in conformity  with
U.S.  generally  accepted  accounting  principles  requires  management  to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period.  Management makes its best estimate of the ultimate
outcome  for these  items  based on  historical  trends  and  other  information
available when the financial  statements are prepared.  Changes in estimates are
recognized in accordance  with the accounting  rules for the estimate,  which is
typically in the period when new  information  becomes  available to management.
Actual results could differ from those estimates.

Fair value of financial  instruments  - For certain of the  Company's  financial
instruments,   including  cash  and  cash  equivalents,  trade  receivables  and
payables,  prepaid expenses,  deposits and other current assets, short-term bank
borrowings,  and other payables and accruals,  the carrying amounts  approximate
fair values due to their short maturities.

Related party  transactions  - A related  party is generally  defined as (i) any
person that holds 10% or more of the Company's  securities  and their  immediate
families,  (ii)  the  Company's  management,  (iii)  someone  that  directly  or
indirectly  controls,  is  controlled  by or is under  common  control  with the
Company,  or (iv)  anyone who can  significantly  influence  the  financial  and
operating  decisions of the Company. A transaction is considered to be a related
party  transaction when there is a transfer of resources or obligations  between
related parties.


                                      -5-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 1-ORGANIZATION / SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Financial risk factors and financial risk management - continued
(i) Credit  risks - The  Company  has  policies in place to ensure that sales of
products are made to customers with an appropriate  credit history.  The Company
had one customer that  accounted for more than 10% of its revenues  representing
approximately  16% of its  total  revenues  for  2004.  The  Company  also has a
concentration  of  credit  risk due to  geographic  sales as a  majority  of its
products are marketed and sold in the PRC.

(ii) Liquidity  risks - Prudent  liquidity risk management  implies  maintaining
sufficient  cash,  the  availability  of funding  through an adequate  amount of
committed credit facilities and ability to close out market positions.

(iii)  Interest  rate  risk - The  interest  rate  and  terms of  repayments  of
short-term and long-term bank  borrowings are  approximately  5% per annum.  The
Company's  income and cash  flows are  substantially  independent  of changes in
market interest rates. The Company has no significant  interest-bearing  assets.
The  Company's  policy  is to  maintain  all of its  borrowings  in  fixed  rate
instruments.

Cash and cash equivalents - The Company considers all highly liquid  instruments
purchased  with  an  original  maturity  of  three  months  or  less  to be cash
equivalents.

Inventories  -  Inventories  are  stated at the lower of cost or net  realizable
value, with cost computed on a  weighted-average  basis. Cost includes all costs
of  purchase,  cost of  conversion  and other costs  incurred  in  bringing  the
inventories to their present location and condition. Net realizable value is the
estimated  selling  price in the ordinary  course of business less the estimated
costs of completion and the estimated costs necessary to make the sale. .

Property, plant and equipment - Property, plant and equipment are stated at cost
less  accumulated  depreciation and impairment  losses.  The initial cost of the
asset  comprises  its  purchase  price and any  directly  attributable  costs of
bringing the asset to its working  condition  and location for its intended use.
Depreciation  is  provided  using  the  straight-line  method  over  the  assets
estimated  useful life for periods  ranging from five to ten years.  Significant
improvements  and  betterments  are  capitalized  where it is probable  that the
expenditure  resulted in an increase in the future economic benefits expected to
be obtained form the use of the asset beyond its originally assessed standard of
performance.  Routine repairs and maintenance are expensed when incurred.  Gains
and losses on disposal of fixed assets are  recognized  in the income  statement
based on the net disposal proceeds less the carrying amount of the assets.

Impairment of long-lived assets - Long-lived assets, such as property, plant and
equipment  and  other  non-current  assets,  including  intangible  assets,  are
reviewed for impairment  whenever  events or changes in  circumstances  indicate
that the carrying value of an asset may not be  recoverable.  An impairment loss
is recognized  when the estimated  undiscounted  cash flows  associated with the
asset or group of  assets is less  than  their  carrying  value.  If  impairment
exists,  an adjustment is made to write the asset down to its fair value,  and a
loss is recorded as the  difference  between the carrying  value and fair value.
Fair values are determined based on quoted market values,  discounted cash flows
or internal and external appraisals, as applicable. Assets to be disposed of are
carried at the lower of carrying value or estimated net realizable value.

Intangible assets - Intangible assets represent technology know-how.  Intangible
assets are measured initially at cost. Intangible assets are recognized if it is
probable that the future  economic  benefits that are  attributable to the asset
will flow to the enterprise and the cost of the asset can be measured  reliably.
After  initial  recognition,  intangible  assets are  measured  at cost less any
impairment losses. Intangible assets with definite useful lives are amortized on
a straight-line basis over their useful lives.


                                      -6-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 1-ORGANIZATION / SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Trade  receivables and allowance for bad debts - The Company presents trade, net
of allowances for doubtful accounts and returns,  to ensure accounts  receivable
are not overstated due to  uncollectibility.  Trade  receivables  generated from
credit  sales  have  general  credit  terms  of 6  months.  The  allowances  are
calculated  based on detailed review of certain  individual  customer  accounts,
historical rates and an estimation of the overall economic conditions  affecting
the Company's  customer  base. The Company  reviews a customer's  credit history
before  extending  credit.  If the financial  condition of its customers were to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional allowances may be required.

Revenue  recognition - Revenues  from the sale of goods is  recognized  when the
risks and  rewards  of  ownership  of the goods have  transferred  to the buyer.
Revenues  consist of the invoice value for the sale of goods and services net of
value-added  tax ("VAT"),  rebates and discounts.  The Company is subject to the
following surtaxes, which are recorded as deductions from gross sales: Education
Supplementary Tax (levied at 4% of net VAT payable).

Shipping  and  handling  fees - Shipping and  handling  fees are  classified  as
selling expenses.

Research  and  development   expenses  -  Research  and  development  costs  are
classified as general and administrative expenses and are expensed as incurred.

Advertising  costs  -  Advertising  costs  are  expensed  as  incurred  and  are
classified as selling expenses.

Warranty  claims - The Company offers product  warranties for certain  products.
The specific  terms and  conditions  of such  warranties  vary  depending on the
product  or  customer  contract   requirements.   Warranty  claims  amounted  to
approximately $101,533 and $26,079 for the three months ended March 31, 2005 and
2004,  respectively.  The Company does not accrue the costs of unsettled product
warranty claims because, historically, the amounts have been immaterial to total
revenues.

Income  taxes - The Company  accounts  for income  taxes under the  provision of
Statement of Financial  Accounting  Standards ("SFAS" No. 109),  "Accounting for
Income Taxes,"  whereby  deferred income tax assets and liabilities are computed
for  differences  between the financial  statements  and tax bases of assets and
liabilities  that will  result in taxable or  deductible  amounts in the future,
based on  enacted  tax laws and rates  applicable  to the  periods  in which the
differences  are expected to affect  taxable  income.  Valuation  allowances are
established  when necessary;  to reduce deferred income tax assets to the amount
expected to be realized.

Earnings Per Share - Basic  earnings  per share are computed by dividing  income
available to common shareholders by the weighted-average number of common shares
outstanding during the period. Diluted earnings per share is computed similar to
basic earnings per share except that the denominator is increased to include the
number of  additional  common  shares  that would have been  outstanding  if the
potential common shares had been issued and if the additional common shares were
dilutive.

Basic weighted average common shares  outstanding have been presented to reflect
the common shares outstanding as if the  recapitalization had taken place on the
first day of the earliest period presented.  Weighted average common shares used
in the  computation  of fully  diluted  earnings  per share are the same for the
three months ended March 31, 2005 and 2004

Foreign  currency  translation - The  reporting  currency of the Company is U.S.
dollars and the financial  records are maintained  and the financial  statements
are  prepared  in  Renminbi  ("RMB").   Transactions  in  other  currencies  are
translated  into the reporting  currencies at exchange  rates  prevailing at the
time of the transactions.  Monetary assets and liabilities  denominated in other
currencies at the balance sheet date are re-translated at exchange rates


                                      -7-
<PAGE>

SORL AUTO PARTS,  INC.  (Formerly  Known as The Enchanted  Village,  Inc.) Ruian
City, Zhejiang Province, People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 1-ORGANIZATION / SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Foreign currency translation -- continued

prevailing at that date. Non-monetary assets and liabilities in other currencies
are translated at historical rates.  Exchanges differences are recognized in the
income statement in the period in which they arise.

Recently Issued Accounting  Standards - Interpretation  No. 46 "Consolidation of
Variable  Interest  Entities,  an Interpretation of ARB No. 51" (FIN 46). FIN 46
requires  certain variable  interest  entities to be consolidated by the primary
beneficiary of the entity if the equity  investors in the entity do not have the
characteristics  of a controlling  financial  interest or do not have sufficient
equity at risk for the  entity to  finance  its  activities  without  additional
subordinated  financial support from other parties.  FIN 46 is effective for all
new variable  interest  entities created or acquired after January 31, 2003. For
variable  interest  entities  created or acquired prior to February 1, 2003, the
provisions  of FIN 46 must be applied  for the first  interim  or annual  period
beginning  after June 15, 2003. FIN 46 does not have any impact on the financial
position or results of operations of the Company.

In April  2003,  the FASB  issued SFAS No. 149,  "Accounting  for  Amendment  of
statement 133 on Derivative  Instruments and Hedging  Activities,"  which amends
and clarifies  financial  accounting and reporting for  derivative  instruments,
including  certain  derivative  instruments  embedded in other contracts and for
hedging  activities  under FASB  Statement No. 133,  accounting  for  Derivative
Instruments and Hedging  Activities.  This Statement is generally  effective for
contracts  entered  into or modified  after June 30,  2003,  and all  provisions
should be applied prospectively. This statement does not affect the Company.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments  with   Characteristics  of  both  Liabilities  and  Equity,"  which
establishes  standards  for  how  an  issuer  classifies  and  measures  certain
financial  instruments with  characteristics  of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or an asset in some circumstances).  This Statement is effective
for  financial  instruments  entered into or modified  after May 31,  2003,  and
otherwise is effective at the  beginning of the first interim  period  beginning
after June 15, 2003. It is to be implemented by reporting the cumulative  effect
of a change in an accounting principle for financial  instruments created before
the issuance date of the  Statement  and still  existing at the beginning of the
interim period of adoption.  Restatement  is not permitted.  This statement does
not affect the Company.

In November  2004, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standard ("SFAS") No. 151 "Inventory Costs -
an amendment of ARB No. 43, Chapter 4" ("SFAS 151").  This statement  amends the
guidance  in ARB  No.  43,  Chapter  4,  "Inventory  Pricing,"  to  clarify  the
accounting  for abnormal  amounts of idle facility  expense,  freight,  handling
costs,  and wasted  material  (spoilage).  SFAS 151 requires that those items be
recognized as current-period  charges. In addition, this Statement requires that
allocation  of fixed  production  overheads to costs of conversion be based upon
the normal capacity of the production facilities. The provisions of SFAS 151 are
effective for fiscal years  beginning  after June 15, 2005. As such, the Company
is required to adopt these  provisions at the beginning of the fiscal year ended
December 31, 2006. The Company is currently evaluating the impact of SFAS 151 on
its consolidated financial statements.

In December 2004, the FASB issued SFAS No. 123R,  "Share-Based  Payment"  ("SFAS
123R").  SFAS 123R revises FASB Statement No. 123  "Accounting  for  Stock-Based
Compensation"  and supersedes APB Opinion No. 25 "Accounting for Stock Issued to
Employees".  SFAS 123R requires all public and  non-public  companies to measure
and recognize  compensation  expense for all  stock-based  payments for services
received at the grant-date fair value, with the cost recognized over the vesting
period (or the  requisite  service  period).  SFAS 123R is  effective  for small
business  issuers for all interim periods  beginning after December 15, 2005. As
such, the Company is required to adopt these  provisions at the beginning of the
fiscal  quarter  ended  September  30,  2005.  Retroactive  application  of  the
provisions  of SFAS 123R to the  beginning of the fiscal year that  includes the
effective date is


                                      -8-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 1-ORGANIZATION / SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

permitted,  but not required.  The Company is currently evaluating the impact of
SFAS 123R on its consolidated financial statements.

NOTE 2 - RELATED PARTY TRANSACTIONS

The following  related party  transactions  occurred for the quarter ended March
31, 2005:  the company  purchased  $2.6M finished  products and $0.6M  packaging
materials from Ruili Group; sold $1.4M products to Ruili Group. There was no any
related party transaction for the quarter ended on March 31, 2004.

NOTE 3 - ACCOUNTS RECEIVABLE
The  changes  in the  allowance  for  doubtful  accounts  at March 31,  2005 are
summarized as follows:

      Beginning balance                       68,384
      Add: provision for current quarter          --
      Less: Accounts written off                  --
      Ending balance                          68,384

The company has general  credit  terms of 6 months.  As of March 31,  2005,  the
collections  of accounts  receivable  have been 90 days.  Hence,  no  additional
allowance is provided for the 3 months then ended.

The company's accounts receivables are summarized as follows:

      Beginning balance                           17,279,880
      Less: Allowance for doubtful accounts          (68,384)
      Ending balance                              17,211,496

NOTE 4 - INVENTORIES
On March 31, 2005, inventories consist of the following:

      Raw Material           578,643
      Work in process        731,398
      Finished Goods         454,399
      Total Inventory      1,764,440

NOTE 5 - PROPERTY, PLANT AND EQUIPMENT
On March 31, 2005, Property, plant and equipment consisted of the following:

      Machinery                              6,970,380
      Mould                                    643,242
      Office equipment                          68,305
      Vehicle                                  122,572
        Less: Accumulated depreciation      (2,355,367)
      Fixed Assets, net                      5,449,132

Depreciation  expense  charged to operations  was $190,225 for the quarter ended
March 31, 2005.

NOTE 6 - BANK BORROWINGS

The  loans  were  borrowed  from the  banks and are  guaranteed  by Ruili  Group
Corporation,  in China, a related  party.  These bank  borrowings  were from the
local banks or  financial  institutions  and were for the  financing  of general
working capital. Interest was charged at approximately 5% per annum.


                                      -9-
<PAGE>

SORL AUTO PARTS, INC.
(Formerly Known as The Enchanted Village, Inc.)
Ruian City, Zhejiang Province,
People's Republic of China

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
--------------------------------------------------------------------------------


NOTE 7 - OTHER TAXES

Other taxes consisted of the following, on March 31, 2005:

      VAT Payable                805,299
      Education Surtax             3,221
      City Construction Tax           --

NOTE 8 - INCOME TAXES

The Company  registered  in the PRC is subject to state and local  income  taxes
within the PRC at the  applicable  tax rate on the taxable income as reported in
their PRC statutory financial  statements in accordance with relevant income tax
laws.  According to applicable  tax laws  regarding  Sino-Foreign  Joint Venture
Manufacturers,  the  Company is exempted  from  income  taxes in the PRC for the
quarters  ended  March 31,  2005.  Thereafter,  the Company is entitled to a tax
concession of 50% of the  applicable  income tax rate of 26.4% for the following
three years ending in 2008.

NOTE 9 - LEASES

The Company has a lease  agreement  with the Ruili  Group Co.,  Ltd.,  a related
party, for the rental of a manufacturing  plant. The lease is for an eleven year
term ending in February 2014. Rent expense for the quarters ended March 31, 2005
and 2004 was $109,752 and $109,752 respectively.

Future minimum rental payments as of each fiscal year end are as follows:

   2005        2006        2007        2008        2009     Thereafter
$ 439,009   $ 439,009   $ 439,009   $ 439,009   $ 439,009   $1,829,204

for a total of $4,024,249.

NOTE 10 - OTHER MATTERS

In January 2004, the Company underwent a corporate reorganization to restructure
its business (the "Reorganization"). Pursuant to the Reorganization, the Company
and Fairford Holdings Limited  ("Fairford"),  a company incorporated on November
3, 2003, in Hong Kong with limited liability, with identical shareholders as the
Company,  established  Ruili Group Ruian Auto Parts Co.,  Ltd.,  in the PRC as a
Sino-foreign  equity  joint  venture  company with  limited  liability  (the "JV
Company") on March 4, 2004.

As part of the  Reorganization,  the Company  transferred  to the JV Company the
business  of  manufacture  and sale of various  kinds of  automobile  valves and
related  operations  together  with the  relevant  assets and  liabilities  (the
"Transferred  Business")  effective from January 19, 2004. This was accomplished
by firstly  transferring  the relevant assets and liabilities of the Transferred
Business including trade receivables,  inventories,  plant and machineries,  and
short and long-term  borrowings  from the Company to Fairford at a consideration
of $6,406,780.  Fairford then injected these relevant  assets and liabilities as
capital  contribution  for 90%  interest of the JV Company.  The  remaining  10%
capital  contribution  resulted from the Company's additional  inventories.  The
assets and liabilities  injected into the JV Company by the Company and Fairford
represented all the relevant assets and liabilities of the Transferred Business.
The Company retained ownership of certain assets and liabilities  including land
use rights, buildings,  prepayment and deposits of real estate investments, bank
balances,  borrowings,  claims  and  contingent  liabilities  (collectively  the
"Non-transferred  Business").  The net assets of  discontinued  operations  were
transferred to stockholders at $22,160,876.


                                      -10-