SOURCE: China Auto Logistics Inc.

China Auto Logistics Inc.

February 04, 2010 08:30 ET

China Auto Logistics Enters 2010 With an Expanded Line of Credit

Believes Lending Environment in China Remains Very Supportive for Strong Companies

TIANJIN, CHINA--(Marketwire - February 4, 2010) - China Auto Logistics Inc. ("CALI") (NASDAQ: CALI), one of China's leading developers of websites for buyers and sellers of imported and domestic automobiles, a top seller in China of imported luxury cars, and a leading provider of auto-related services, reported today that entering 2010, the Company has expanded its line of credit by approximately 23% from RMB 212 million, or $31 million at year-end 2008, to RMB 265 million, or $38 million, as of December 31, 2009.

Banks providing the line of credit are Agricultural Bank of China, China Merchants Bank and, most recently, Pudong Development Bank, with a new, RMB 60 million, or $8.75 million line. According to the Company, the expanded line is available to support its financing services as well as working capital needs.

Mr.Tong Shiping, CEO and Chairman of the Company, commented, "We are very pleased with the excellent cooperation we have developed with our banks, which is continuing in 2010 and supports our growth strategy focused on rapid expansion of our domestic automobile related websites and related services, including auto dealer financing."

He noted further, "In 2009, we successfully established websites in 15 cities which are accessible through our national website, Additionally, while continuing to provide financing services to dealers in imported cars, we initiated financing services for domestic auto dealers. In 2010, our continuing goal is to add websites in 20 more cities and to further develop web based services. The banking support we are receiving clearly enhances our ability to succeed."

Confident of Continuing Support For Growth Plans

Mr. Tong added that, in his view, the recent widely publicized decision by the Central Bank of China to increase required reserve ratios (to 16% for the five major commercial banks in China and 14% for smaller and medium sized banks) will improve the overall quality and control of loan issuance and "clearly is good news for companies such as CALI that have developed strong cooperation with banks with their own high standards and built long-term credibility."

"The fact also is," Mr. Tong continued, "following the Central Bank announcement on January 15th of a reserve ratio increase--its first such announcement in 19 months--it was reported that new loan issuances in the month of January were more than RMB 1200 billion, or US $175 billion. This is far from a 'tight money' environment and one in which we firmly believe China Auto Logistics can confidently pursue its growth plans and continue to expand its banking facilities as needed."

Description of China Auto Logistics Inc.

With 2008 sales of approximately $190 million, China Auto Logistics Inc. is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. It is also China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide. The Company has made the strategic decision to de-emphasize imported auto unit sales in favor of expanding its new, highly profitable domestic auto websites which are accessible through its national website,, launched in May 2009. Its subscription and advertising based is the number one site for imported car dealers and consumers. Already contributing significantly to profits, the Company believes further expansion of its websites, including the addition of new web-based auto-related services, will drive future growth. For additional information:

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

Contact Information

  • Contacts:
    China Auto Logistics Inc.
    US Investors
    Focus Asia Partners
    Robert Agriogianis
    Tel: 973-845-6642
    Ken Donenfeld
    Tel: 212-425-5700
    Fax: 646-381-9727