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                     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 June 30, 2004

                                       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 0-024828


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

                              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)

                                0086-577-6560-9855
                           (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 |X| No |_|

As of August 13, 2004 there were 13,282,253 shares of Common Stock  outstanding.
Transitional Small Business Disclosure Format

                                 Yes |_| No |X|


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<PAGE>

                                      INDEX


PART I.   FINANCIAL INFORMATION (unaudited)

Item 1.   Financial Statements: (unaudited)

          Balance Sheet as of June 30, 2004

          Statements of Income for the three-month  and six-month  periods ended
          June 30, 2004 and June 30, 2003

          Statements of Cash Flows for the six month periods ended June 30, 2004
          and June 30, 2003

          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

SIGNATURES


<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS.

                              SORL AUTO PARTS, INC.
                     (INCORPORATED IN THE STATE OF DELAWARE)
                 (FORMERLY KNOWN AS THE ENCHANTED VILLAGE, INC.)
                                  BALANCE SHEET

                                     ASSETS


                                                         JUNE 30,2004
                                                         ------------
CURRENT ASSETS
     Cash and cash equivalents                           $    207,531
     Trade receivables, net of provisions                  12,496,171
     Notes Receivable                                         301,337
     Inventory                                              1,778,159
     Prepayments                                              557,665
                                                         ------------
                                                           15,340,863
TOTAL CURRENT ASSETS                                     ------------

OTHER ASSETS

     Intangible Assets                                         42,468
                                                         ------------

PROPERTY, PLANT AND EQUIPMENT, NET                          5,163,691
                                                         ------------

TOTAL ASSETS                                              $20,547,022
                                                         ============


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



                                       1
<PAGE>


                              SORL AUTO PARTS, INC.
                     (INCORPORATED IN THE STATE OF DELAWARE)
                 (FORMERLY KNOWN AS THE ENCHANTED VILLAGE, INC.)
                                  BALANCE SHEET

                      LIABILITIES AND SHAREHOLDERS' EQUITY


                                                         JUNE 30,2004


CURRENT LIABILITIES
     Accounts payable                                    $  4,521,734
     Deposit received from customers                          610,060
     Bank loans                                             4,578,313
     Accrued Expenses                                       1,082,734
     Income Taxes Payable                                     150,505
                                                         ------------
                                                           10,943,346
TOTAL CURRENT LIABILITIES                                ------------

LONG-TERM LIABILITIES                                       1,204,819
                                                         ------------

TOTAL LIABILITIES                                          12,148,165
                                                         ------------

MINORITY INTEREST                                             839,885

SHAREHOLDERS' EQUITY
     Convertible Preferred Stock, 5,000,000
         Authorized $1 Par Value, 1,000,000
         Issued and Outstanding                             1,000,000
     Common Stock, 50,000,000 Authorized
         $.002 Par Value 4,928,000 Issued and Outstanding       9,856
     Additional paid-in capital                             5,366,257
     Retained Earnings                                      1,182,859
                                                         ------------


TOTAL SHAREHOLDERS' EQUITY                                  7,558,972
                                                         ------------


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY               $ 20,547,022
                                                         ============




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



                                       2
<PAGE>


                              SORL AUTO PARTS, INC.
                     (INCORPORATED IN THE STATE OF DELAWARE)
                 (FORMERLY KNOWN AS THE ENCHANTED VILLAGE, INC.)
                              STATEMENTS OF INCOME
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003

<TABLE>
<CAPTION>

                                     THREE MONTHS ENDED JUNE 30       SIX MONTHS ENDED JUNE 30
                                    ----------------------------    ----------------------------
                                        2004            2003           2004             2003
                                    ------------    ------------    ------------    ------------
<S>                                 <C>             <C>             <C>             <C>
SALES                               $ 11,340,173    $  7,986,136    $ 20,409,618    $ 14,209,385

COST OF SALES                          8,686,430       6,253,243      15,525,677      11,173,632
                                    ------------    ------------    ------------    ------------

GROSS PROFIT                           2,653,743       1,732,893       4,883,941       3,035,753

SELLING AND DISTRIBUTION
     EXPENSES                            387,736         413,295       1,012,874         938,241

GENERAL AND ADMINISTRATIVE
     EXPENSES                            839,266         251,487       1,408,171         447,461

FINANCE COSTS                             76,267         161,550         156,175         287,439
                                    ------------    ------------    ------------    ------------

INCOME FROM
     OPERATIONS                        1,350,474         906,561       2,306,721       1,362,612

OTHER INCOME                                  --         379,395              --         515,620

OTHER EXPENSES                            36,187              --          36,187              --
                                    ------------    ------------    ------------    ------------

INCOME BEFORE INCOME
     TAXES                             1,314,287       1,285,956       2,270,534       1,878,232

INCOME TAXES
     CURRENT                                  --         131,547              --         234,056
                                    ------------    ------------    ------------    ------------

NET INCOME BEFORE
     MINORITY INTEREST                 1,314,287       1,154,409       2,270,534       1,644,176

MINORITY INTEREST                       (131,428)       (115,441)       (227,053)       (164,418)
                                    ------------    ------------    ------------    ------------

NET INCOME ATTRIBUTABLE
     TO SHAREHOLDERS                $  1,182,859    $  1,038,968    $  2,043,481    $  1,479,758
                                    ============    ============    ============    ============
NET INCOME PER SHARE
     BASIC                          $       0.24    $       0.21    $      0.41     $       0.30
                                    ------------    ------------    ------------    ------------

NET INCOME PER SHARE
     DILUTED                        $       0.16    $       0.21    $      0.52     $       0.30
                                    ============    ============    ============    ============

WEIGHTED AVERAGE COMMON
     SHARES OUTSTANDING - BASIC        4,928,000       4,928,000       4,928,000       4,928,000
                                    ============    ============    ============    ============

WEIGHTED AVERAGE COMMON
     SHARES OUTSTANDING - DILUTED      7,588,334       4,928,000       3,958,422       4,928,000
                                    ============    ============    ============    ============

</TABLE>


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



                                       3
<PAGE>


                              SORL AUTO PARTS, INC.
                     (INCORPORATED IN THE STATE OF DELAWARE)
                 (FORMERLY KNOWN AS THE ENCHANTED VILLAGE, INC.)
                             STATEMENTS OF CASH FLOW
                 FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003


                                                   SIX MONTHS ENDED JUNE 30,
                                                 ----------------------------
                                                     2004            2003
                                                 ------------    ------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                     $  2,043,481    $  1,479,758

  Minority Interest                                   227,053         164,418
  Adjustments To Reconcile Net Income To Net
       Cash Provided By Operating Activities:
       Depreciation                                   125,437         229,460
      (Increase)/Decrease In Assets:
       Inventory                                       58,141        (870,211)
       Trade Receivables, Net Of Provisions           920,625       6,976,969
       Prepayments, Deposits, And Other
         Current Assets                            11,942,036              --
  Increase/(Decrease) In Liabilities :
       Trade Payables                             (11,369,266)     (3,376,000)
       Other Payables And Accrued Expenses         (8,952,732)     (3,456,000)
       Deposit Received From Customers                610,060              --
       Taxes Payable                                   28,505        (100,000)
                                                 ------------    ------------
Net Cash Provided By/(Used In) Operating
   Activities                                      (4,366,660)      1,048,394
                                                 ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES :
      Acquisition Of Property, Plant
         And Equipment                             (1,091,136)             --
      Notes Receivable                               (301,337)             --
      Intangible Assets                               (32,468)        (21,081)
                                                 ------------    ------------
Net Cash Used In Investing Activities              (1,424,941)        (21,081)
                                                 ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES :
      Proceeds From Bank Loans                      5,783,132      (3,732,133)
      Capital Contributions From Owner's                   --       1,361,071
      Proceeds From Shareholders' Loans                    --       1,317,749
                                                 ------------    ------------
Net Cash (Used In)/Provided By Financing
   Activities                                       5,783,132      (1,053,313)
                                                 ------------    ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                (8,469)        (26,000)
                                                 ------------    ------------
Cash and Cash Equivalents, Beginning Of Period        216,000          26,000
                                                 ------------    ------------

Cash and Cash Equivalents, End Of Period
                                                      207,531              --
                                                 ============    ============

SUPPLEMENTARY CASH FLOWS DISCLOSURES
      Interest Paid                              $    156,662    $    332,439
                                                 ============    ============
      Taxes Paid                                 $          0    $    334,056
                                                 ============    ============


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


                                       4
<PAGE>


SORL AUTO PARTS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

UNAUDITED
                                  JUNE 30, 2004
        ----------------------------------------------------------------


          NOTE 1 - BASIS OF PRESENTATION

The  unaudited  condensed  financial  statements  of SORL Auto Parts,  Inc. (the
Company) (formerly The Enchanted Village, Inc.) have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and pursuant to the requirements for reporting on Form 10-QSB and Item 310(b) of
Regulation  S-B.  Accordingly,  they  do not  include  all the  information  and
footnotes required by accounting  principles generally accepted in United States
of America for complete financial statements. However, such information reflects
all adjustments (consisting solely of normal recurring adjustments),  which are,
in the opinion of management,  necessary for a fair statement of results for the
interim  periods.   Results  shown  for  interim  periods  are  not  necessarily
indicative of the results to be obtained for a full fiscal year.


          NOTE 2 - NATURE OF COMPANY

On May 10, 2004 the Company acquired all of the issued and outstanding shares of
Fairford Holdings,  Limited,  a Hong Kong Limited Liability Company  (Fairford).
Fairford owns 90% of the outstanding  stock of Ruili Group Ruian Auto Parts Co.,
Limited.  The acquisition  was  accomplished by the Company with the issuance of
1,000,000  shares of Series A Convertible  Preferred Stock which are convertible
into  12,953,720  (after  giving  effect to a 1:15 stock split) shares of common
stock.  After the  transaction,  the  stockholders  of  Fairford  emerged as the
controlling shareholders of the company.

For accounting purposes,  the acquisition has been treated as a recapitalization
of Fairford  Holdings,  Inc. with Fairford as the accounting  acquirer  (reverse
acquisition).  Accordingly,  the accompanying financial statements represent the
historical  financial  statements of Fairford  Holdings  Limited for all periods
presented.

The company  specializes in the  development  and production and sale of various
kinds of auto  parts.  Its major  product  lines  include  valves  for air brake
systems,  auto metering  products,  auto electric  products and anti-lock  brake
systems and retarders.


          NOTE 3 - USE OF ESTIMATES

The preparation of financial  statements in conformity  with 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 revenue and expenses during the reporting period. Actual
results when ultimately realized could differ from those estimates.



                                       5
<PAGE>


          NOTE 4 - EARNING 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 on the first
day of the earliest period presented. Weighted average common shares used in the
computation  of fully  diluted  earnings per share give effect to the  1,000,000
shares  of Series A  convertible  preferred  shares  that are  convertible  into
12,953,720  (after  giving  effect  to the 1:15  stock  split)  as if they  were
converted on the date of issuance. Common shares outstanding at June 30, 2004 of
4,928,000 have also been presented after giving effect to the 1:15 stock split.


         NOTE 5 - FOREIGN CURRENCY CONVERSION

The  Company's  financial  information  is  presented  in US  dollars.  People's
Republic of China currency  (Reminbi dollars) has been converted into US dollars
at the exchange rate of 8.3 to 1.


          NOTE 6 - INCOME TAXES

Taxes are calculated in accordance  with taxation rates  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.

No  provision  for PRC profits tax has been made as SORL Auto Parts did not have
any  assessable  profits for the three and six months ended June 30, 2004.  SORL
Auto Parts  achieved  foreign joint venture  status in 2004 which entitled it to
exempt status


          NOTE 7 - SUBSEQUENT EVENTS

On July 15,  2004 the board of  directors  resolved  to  change  the name of the
Company from The Enchanted Village,  Inc. to SORL Auto Parts, Inc. Also, on July
15, 2004 the board of directors approved a 1 for 15 reverse stock split.

On July 16, 2004 all of the  1,000,000  shares of Series A preferred  stock were
converted into 12,953,720 of common shares.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The  following  discussion  should  be read in  conjunction  with the  Company's
financial statements and the notes thereto appearing elsewhere in this Quarterly
Report on Form 10-QSB.  Certain statements contained herein that are not related
to historical results, including,  without limitation,  statements regarding the


                                       6
<PAGE>


Company's  business  strategy  and  objectives,  future  financial  position and
estimated cost savings,  are  forward-looking  statements  within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and
section 21E of the  Securities  Exchange Act of 1934, as amended (the  "Exchange
Act"), and involve risks and  uncertainties.  Although the Company believes that
the  assumptions  on  which  these  forward-looking  statements  are  based  are
reasonable,  there can be no assurance  that such  assumptions  will prove to be
accurate and actual results could differ  materially from those discussed in the
forward-looking  statements.  Factors  that could  cause or  contribute  to such
differences include, but are not limited to, risks and uncertainties  associated
with the ability to obtain  adequate  working  capital on terms favorable to the
Company  and  compliance  with  regulatory  requirements.   All  forward-looking
statements  contained in the  Quarterly  Report on Form 10-QSB are  qualified in
their entirety by this statement.


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.

         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


                                       7
<PAGE>


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.
Trade receivables from credit sales have general credit terms ranging from 45-60
days.  The  allowances  are  calculated  based on review of individual  customer
accounts.



INVENTORIES

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.




                                       8
<PAGE>


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: City Development Tax and Education Tax.

The  Company  does not always  receive  revenue  for  shipping  and  handling to
customers.  Shipping and handling expenses incurred by the Company for the three
and six months ended June 30, 2004 and 2003 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

THREE MONTHS ENDED JUNE 30, 2004 COMPARED TO THREE MONTHS ENDED JUNE 30, 2003.


SALES

Sales for the three months ended June 30, 2004 increased by  US$3,354,037 or 42%
to  US$11,340,173  from  US$7,986,136  for the three months ended June 30, 2003,
primarily as a result of the increase in the volume of our products shipped. The
total  number of units of valves we shipped  increased  by 38.51%,  from 805,000
units to 1,115,000  units  between  these two periods.  The average price of our
products per unit increased modestly from US$9.95 per unit to US$10.21 per unit.
Two factors  contribute to the increase in the sales:  (1) There was an increase
in export sales by 48.21% from US$1,580,965 to US$2,343,176  between two periods
and (2)  There  was an  increase  in  domestic  auto  sales in China  due to the
increase  in demand  from the repair  market and from OEM  manufacturers.  Total
sales from domestic market increased by 48.38% from US$6,405,171 to US$8,996,997
between these two periods.


                                       9
<PAGE>


COST OF SALES

Cost of sales for the three months ended June 30, 2004 increased to US$8,686,430
from US$6,253,243 for the three months ended June 30, 2003. The increase in cost
of sales was due to the increase in sales.  Material  costs for the three months
ended June 30, 2004 was US$5,836,134 or 51.28% of sales compared to US$3,903,741
or 48.7% of sales for the three  months  ended June 30,  2003.  The  increase in
material costs was due to the increase in sales.  The increase in material costs
as a  percentage  of sales  occurred  because  the  pricing  for the  major  raw
materials,  such as  steel  and  aluminum,  increased  by more  than  20% at the
year-end of 2003. We have  successfully  implemented  several measures to reduce
cost,  such as  strengthening  internal  management,  optimizing  the production
process and improving product structural design. The price of major raw material
has fallen and is expected to decrease  further this year as a result of the PRC
government  tightening new credit creation starting April, 2004 to cool down the
economy.  (For  example,  the price of steel and iron fell 10% as compared  with
early 2004).

GROSS PROFIT

Gross profit for the three  months ended June 30, 2004  increased by $920,850 or
53.14 % to US$2,653,743  from  US$1,732,893  for the three months ended June 30,
2003. This  improvement in gross profit was primarily due to the increase in the
sales both in the  domestic and  international  market.  Gross  margin  improved
slightly  from 21.7% for the three  months ended June 30, 2003 to 23.48% for the
three months ended June 30, 2004. The  improvement in the gross margin,  despite
the  increase in the raw  material  pricing,  was due to modest  increase in the
selling price, and better cost management, such as optimizing production process
and better structural design of our products.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses for the three months ended June 30,
2004 was  US$1,227,002  or 10.82% of sales  compared to  US$664,782  or 8.32% of
sales for the three months ended June 30, 2003. The increase in selling, general
and administrative  expenses as a percentage of sales occurred primarily because
of legal,  accounting,  investor  relations  fees,  and other  related  expenses
incurred in connection with the reverse  acquisition.  The total cost associated
with the reverse acquisition was approximately US$700,000.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense decreased by US$72,691 to US$38,897 during
the three  months  ended June 30, 2004 from  $111,588 for the three months ended
June 30, 2003. The decrease was primarily  attributable  to the fact that during
2003, the Company incurred  depreciation expense in connection with the building
owned by the Company's predessor. Starting in 2004, SORL Auto Parts, Inc. signed
a rental  agreement  with Ruili Group to rent a total of 25,443 square meters of
factory  and  warehouse  from  Ruili  Group for 15 years at an annual  rental of
US$439,000, resulting in rental expenses amounting to less than the depreciation
expense.

INTEREST EXPENSE

Interest expense for the three months ended June 30, 2004 decreased by US$85,283
to US$76,267  from  US$161,550  for the three  months  ended June 30, 2003.  The
decrease in interest expense is due to the decrease in total debt.


                                       10
<PAGE>


OTHER INCOME

There was no other income for the three month ended June 30, 2004. For the three
months ended June 30, 2003, the other income was US$379,395.  This was primarily
due to the tax rebate and interest  expense subsidy from the local government to
SORL Auto Parts, Inc. for its investments in upgrading its technology.

INCOME TAX

There was no income tax for the three months ended June 30, 2004  compared  with
income tax of  US$131,547  for the three months ended June 30, 2003. As a result
of SORL Auto Parts, Inc. obtaining its foreign  joint-venture status in 2004, it
is exempted from income tax.

MINORITY INTEREST

Minority  Interest  represents  a 10%  non-controlling  interest in the company.
Minority  Interest in income  amounted to US$131,428  and  US$115,441  for three
months ended June 30, 2004 and 2003, respectively.

NET INCOME

The net income for the three months ended June 30, 2004 increased by US$143,891,
or 14% to a net income of  US$1,182,859  from a net income of US$  1,038,968 for
the three months  ended June 30, 2003 due to the factors  discussed  above.  The
reason for the slower growth of net income compared with more than 40% of growth
in sales is mainly  due to two  reasons:  1) There  was a  one-time  expense  of
approximately US$700,000 incurred in connection with the reverse acquisition for
the three months ended June 30,  2004;  and 2) There is a one-time  subsidy from
the local  government of around  US$400,000  for the three months ended June 30,
2003.


SIX MONTHS ENDED JUNE 30, 2004 COMPARED TO SIX MONTHS ENDED JUNE 30, 2003.


SALES

Sales for the six months ended June 30, 2004 increased by US$6,200,233 or 43.63%
to  US$20,409,618  from  US$14,209,385  for the six months  ended June 30, 2003,
primarily as a result of the increase in the volume of our products shipped. The
total  number of units of valves  we  shipped  increased  by  38.62%,  from 1.45
million units to 2.01 million units between these two periods. The average price
of our products per unit  increased  modestly  from US$9.83 per unit to US$10.19
per unit.
Two factors  contribute to the increase in the sales:  (1) There was an increase
in export  sales by  118.25%  from  US$2,451,839  to  US$5,351,081  between  two
periods, and (2) There was an increase in domestic auto parts sales in China due
to an increase in the demand for auto parts from the repair  market and from OEM
manufacturers.  Total sales from the domestic market  increased by 28.08%,  from
US$11,757,546 to US$15,058,537 between these two periods.

COST OF SALES

Cost of sales for the six months ended June 30, 2004 increased to  US$15,525,677
from  US$11,173,632 for the six months ended June 30, 2003. The increase in cost
of sales was due to the  increase  in sales.  Material  costs for the six months
ended June 30, 2004 was US$10,712,951 or 52.3% of sales compared to US$7,030,639
or 49.3% of sales for the six  months  ended  June 30,  2003.  The  increase  in
material costs was due to the increase in sales.  The increase in material costs
as a  percentage  of sales  occurred  because  the  pricing  for the  major  raw
materials,  such as  steel  and  aluminum,  increased  by more  than  20% at the
year-end of 2003. We have  successfully  implemented  several measures to reduce
cost,  such as  strengthening  internal  management,  optimizing  the production
process and improving product  structural  design.  Also, the price of major raw
material has fallen since the second quarter of 2004 and is expected to decrease
further  this  year as a result  of the PRC  government  tightening  new  credit
creation starting April, 2004 to cool down the economy.  (For example, the price
of steel and iron fell 10% as compared with early 2004).


                                       11
<PAGE>


GROSS PROFIT

Gross profit for the six months ended June 30, 2004  increased by  $1,848,188 or
60.88% to US$4,883,941 from US$3,035,753 for the six months ended June 30, 2003.
This  improvement in gross profit was primarily due to the increase in the sales
both in the domestic and  international  market.  Gross margin improved slightly
from 21.36% for the six months  ended June 30, 2003 to 23.93% for the six months
ended June 30, 2004. The  improvement in the gross margin,  despite the increase
in the raw material  pricing,  was due to modest  increase in the selling price,
and better cost  management,  such as optimizing  production  process and better
structural design of our products.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling,  general and administrative  expenses for the six months ended June 30,
2004 was  US$2,421,045  or 11.86% of sales compared to  US$1,385,702 or 9.75% of
sales for the six months ended June 30, 2003.  The increase in selling,  general
and administrative  expenses as a percentage of sales, occurred primarily due to
legal,  accounting  and investor  relations  fees,  and other  related  expenses
incurred in connection with the reverse  acquisition.  The total cost associated
with the reverse acquisition was approximately US$700,000.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization  expense during the six months ended June 30, 2004
decreased by  US$104,023  to US$125,437  from  US$229,460  during the six months
ended June 30, 2003.  The decrease was primarily  attributable  to the fact that
during 2003,  the Company  incurred  depreciation  expense in connection  with a
building owned by the Company's predecessor.  Starting in 2004, SORL Auto Parts,
Inc. signed a rental agreement with Ruili Group to rent a total of 25,443 square
meters of factory and warehouse from Ruili Group for 15 years at a annual rental
of US$439,000,  resulting in rental expenses amounting to less then depreciation
expense.

INTEREST EXPENSE

Interest expense  decreased by US$131,264 from $287,439 for the six months ended
June 30, 2003 to US$156,175 for the six months ended June 30, 2004. The decrease
in interest expense is due to the decrease in total debt.

OTHER INCOME

There is no other  income for the six months  ended June 30,  2004.  For the six
months ended June 30, 2003, the other income was US$515,620.  This was primarily
due to the tax rebate and interest  expense subsidy from the local government to
SORL Auto Parts, Inc. for its investments in upgrading its technology.

INCOME TAX

There was no income tax for the six months  ended June 30,  2004  compared  with
income tax of US$234,056  for the six months ended June 30, 2003. As a result of
SORL Auto Parts, Inc. obtaining its foreign  joint-venture status in 2004, it is
exempted from income tax.

MINORITY INTEREST

Minority  Interest  represents  a 10%  non-controlling  interest in the company.
Minority Interest in income amounted to US$227,053 and US$164,418 for six months
ended June 30, 2004 and 2003, respectively.


                                       12
<PAGE>


NET INCOME

The net income for the six months ended June 30, 2004  increased by  US$626,358,
or 42% to US$  2,043,481  from a net income of US$  1,479,758 for the six months
ended June 30, 2003 due to the factors  discussed  above. The company would have
enjoyed a much higher growth in the net income if the following two factors were
excluded:  1) There was a one-time expense of approximately  US$700,000 incurred
in  connection  with the reverse  acquisition  for the six months ended June 30,
2004;  and 2) There is a one-time  subsidy from the local  government  of around
US$400,000 for the six months ended June 30, 2003.


LIQUIDITY AND CAPITAL RESOURCES

Historically, the Company has funded capital requirements through cash flow from
operations.  As of June 30, 2004 we had a cash balance of approximately $207,500
and a working capital surplus of approximately  $4,397,500.  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


ITEM 3.  CONTROLS AND PROCEDURES

         (a)      Evaluation of Disclosure Controls and Procedures.

         Our  chief  executive  officer  and  chief  financial  officer,   after
evaluating our  disclosure  controls and procedures (as defined in the rules and
regulation of the Securities and Exchange  Commission  under the Exchange Act as
of the end of the period covered by this Quarterly  Report on Form 10-QSB,  have
concluded  that as of such date, our  disclosure  controls and  procedures  were
effective to ensure that information we are required to disclose in reports that
we file or submit under the Exchange Act is recorded, processed,  summarized and
reported within the time periods specified in Securities and Exchange Commission
rules and forms.

         (b)      Changes in Internal Controls.

         During the period covered by the Quarterly Report on Form 10-QSB, there
were no significant changes in our internal controls over financial reporting or
in other factors that have  materially  affected,  or are  reasonably  likely to
materially affect, our internal controls over financial reporting.


                                     PART II
                                OTHER INFORMATION


ITEM 1.   LEGAL PROCEEDINGS.

         None.


                                       13
<PAGE>


ITEM 2.  CHANGES  IN  SECURITIES  AND  SMALL BUSINESS ISSUER PURCHASES OF EQUITY
         SECURITIES.

         On May  10,  2004,  the  Registrant  acquired  all of  the  issued  and
outstanding  equity interests of Fairford Holdings Limited,  a Hong Kong limited
liability company ("Fairford"). As consideration for the shares of Fairford, the
Registrant  issued 1,000,000 shares of its Series A Convertible  Preferred Stock
("Series  A  Preferred")  which  were  convertible  into  an  aggregate  of  the
194,305,800 shares of the common stock of the Registrant. The shares were issued
pursuant to an exemption provided by Section 4(2) of the Securities Act of 1933,
as  amended.  A report on Form 8-K  related  to this  matter  was filed with the
Securities and Exchange Commission on May 24, 2004.

         On  July  15,  2004,  pursuant  to  the  terms  of the  Certificate  of
Designations  for the Series A Preferred,  the conversion  ratio on the Series A
Preferred  was reduced as a result of a one (1) for fifteen (15)  reverse  stock
split. As a result the number of shares issuable upon conversion of the Series A
Preferred was 12,953,720.

         On July 16, 2004, all of the issued and outstanding  shares of Series A
Preferred were  converted  into  12,953,720  shares of the  Registrant's  common
stock.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF  SECURITY HOLDERS.

         On May 15, 2004, the Registrant's  authorized voting stock consisted of
4,928,000  shares of common stock and  1,000,000  shares of Series A Convertible
Preferred Stock entitled to vote on the matters  discussed below.  Each share of
common stock was entitled to one vote and each share of Series A Preferred Stock
was  entitled to one hundred  ninety-four  votes per share.  The majority of the
stockholders representing 74.9% of the issued and outstanding shares of Series A
Convertible Preferred Stock,  consented in writing to, (i) amend the Certificate
of Incorporation to effect a one (1) for fifteen (15) reverse stock split of the
Company's  outstanding shares of common stock; and (ii) Amend the Certificate of
Incorporation,  to change the name of the Company  from The  Enchanted  Village,
Inc. to SORL Auto Parts, Inc.

         The name change and the reverse  stock split were  effected on July 15,
2004. A Definitive  Information Statement on Schedule 14C related to this matter
was filed with the Securities and Exchange Commission on June 21, 2004.

ITEM 5.  OTHER INFORMATION.

None.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)   Exhibits:

               31.1 ertification of the Chief Executive  pursuant to Section 302
                    of the  Carbanes-Oxley  Act of 2002


                                       14
<PAGE>


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

               32.1 ertification of the Chief Executive under Section 906 of the
                    Sarbanes-Oxley Act Cf 2002 o 32.2 Certification of the Chief
                    Financial  Officer under  Section 906 of the  Sarbanes-Oxley
                    Act of 2002

         (b)   Reports on Form 8-K

               April  4,  2004 - Item 4
               April 8,  2004 - Items 5 and 7
               May 24,  2004 - Items 1, 2, 5, 7 and 8


                                   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: August 16, 2004

                                                 /s/ Xiao Ping Zhang
                                                 -------------------------------
                                                 Name:  Xiao Ping Zhang
                                                 Title: Chief Executive Officer


                                       15