SOURCE: AutoChina International Ltd.

AutoChina International Ltd.

May 21, 2015 08:30 ET

AutoChina International Provides 2015 First Quarter Business Update, Announces Share Purchase by Its Chairman and Chief Executive Officer

SHIJIAZHUANG, CHINA--(Marketwired - May 21, 2015) - AutoChina International Limited ("AutoChina" or the "Company") (OTCQB: AUTCF), a leading provider of innovative financing solutions for China's transportation industry, today provided an operational update on the 2015 first quarter and announced that Honest Best International Ltd. ("Honest Best"), an entity owned by Mr. Yong Hui Li, AutoChina's founder, Chairman, and Chief Executive Officer, recently purchased shares of the Company.

First Quarter 2015 Business Update
The Company announced that it recorded 1,180 new leases of commercial vehicles (primarily Class 8 heavy trucks) as part of the Company's sales-type leasing program in the first quarter of 2015, compared to 2,802 vehicles leased in the first quarter of 2014, as a result of the Company's increasing emphasis on the development of its new Internet-based financing businesses. At March 31, 2015, the Company had 23,069 leased vehicles under its sales-type leasing program. Since launching its commercial vehicle sales and leasing business in March 2008, the Company has leased over 66,000 trucks.

As of March 31, 2015, the number of AutoChina's commercial vehicle financing and service centers remained unchanged at 555 centers in 26 provinces, municipalities, and autonomous regions.

The Company launched its electronic payment platform K-Pay (https://www.dianfubao.com/) and its peer-to-peer lending platform K-Lend (https://www.qingyidai.com/) at the end of 2014. K-Pay is currently generating over RMB450 million in transactions per month. K-Pay was developed to provide a convenient method for customers to make electronic payments and for the Company to make credit advances to its customers, allowing customers to pay for their everyday truck-operating needs at participating merchants within the K-Pay network. AutoChina earns transaction fees through its K-Pay platform. As of March 31, 2015, the K-Pay network had over 30,000 registered users (individuals and merchants), and the Company continues to actively market K-Pay to potential customers and merchants in the transportation industry in an effort to increase the user base.

K-Lend has originated over RMB600 million in loans since its initial launch in November 2014. AutoChina created K-Lend to be an online lending marketplace that provides short-term operating capital for small- to medium-sized businesses in the transportation industry. K-Lend is a platform through which AutoChina can originate loans and then sell the loans to the public. Currently, individuals may invest on the K-Lend platform and earn an annual interest rate of 6.5% to 8.5%. AutoChina earns origination fees on K-Lend loans.

Share Purchase by AutoChina's Chairman and Chief Executive Officer
AutoChina also announced that Honest Best, an entity owned by Mr. Yong Hui Li, AutoChina's founder, Chairman and Chief Executive Officer, recently purchased 19,090 of Autochina's ordinary shares from the spouse of Lei Chen, AutoChina's Senior Vice President, in a privately negotiated transaction for approximately $439,070. Honest Best also recently purchased 8,300 of AutoChina's ordinary shares on the open market for approximately $185,900.

Because it is a foreign private issuer, AutoChina's officers and directors are not required to file insider trading reports with the Securities and Exchange Commission. However, in accordance with its commitment to maintaining a policy of transparency with its shareholders, AutoChina's own policy is that any trading of the Company's securities totaling $250,000 or more conducted by officers or directors during any consecutive five trading days must be disclosed by the Company within 48 hours via a press release.

About AutoChina International Limited:
AutoChina International Limited (OTCQB: AUTCF) focuses on providing innovative financing solutions for China's transportation industry. Founded in 2005, we are China's largest commercial vehicle sales, servicing, leasing, and support network. As of March 31, 2015, the Company owned and operated 555 commercial vehicle financing centers in 26 provinces, municipalities, and autonomous regions across China. We provide Internet-based financing solutions such as an electronic payments service and short-term business loans, as well as sales-type leasing and support services for local customers. The Company's website is http://www.autochinaintl.com. AutoChina trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. OTCQB companies are current in their reporting and undergo an annual verification and management certification process.

Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

  • Continued compliance with government regulations;
  • Changing legislation or regulatory environments;
  • Requirements or changes affecting the businesses in which the Company is engaged;
  • Industry trends, including factors affecting supply and demand;
  • Labor and personnel relations;
  • Credit risks affecting the Company's revenue and profitability;
  • Changes in the commercial vehicle industry;
  • The Company's ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
  • Changing interpretations of generally accepted accounting principles;
  • General economic conditions; and
  • Other relevant risks detailed in the Company's filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release. 

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