SOURCE: AutoChina International Ltd.

AutoChina International Ltd.

February 10, 2015 16:05 ET

AutoChina International Reports 11.6% Increase in New Leases During 2014 Fourth Quarter

Company Provides Update on K-Pay and K-Lend Products

SHIJIAZHUANG, HEBEI PROVINCE, CHINA--(Marketwired - Feb 10, 2015) - AutoChina International Limited ("AutoChina" or the "Company") (OTCBB: AUTCF), a leading provider of innovative financing solutions for China's transportation industry, today announced that it recorded 4,787 new leases of commercial vehicles (primarily Class 8 heavy trucks) as part of the Company's sales-type leasing program in the fourth quarter of 2014, an increase of 11.6% from 4,290 vehicles leased in the fourth quarter of 2013. At December 31, 2014, the Company had 23,819 vehicles leased under its sales-type leasing program. In 2014, the Company recorded a total of 15,615 new leases, a 31.2% increase from 11,902 trucks leased in 2013. 

Since launching its commercial vehicle sales and leasing business in March 2008, the Company has leased over 64,000 trucks.

During the 2014 fourth quarter, the Company established one additional commercial vehicle financing and service center in Guangdong province. As of December 31, 2014, AutoChina operated 555 financing and service centers in 26 provinces. 

Update on New K-Pay and K-Lend Products
Following its initial announcement in April 2014, AutoChina has officially launched its electronic payment platform K-Pay (https://www.dianfubao.com/) throughout China and is currently generating over RMB200 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 is actively marketing K-Pay to both potential customers and merchants in an effort to increase the user base.

The Company also launched its peer-to-peer lending platform K-Lend (https://www.qingyidai.com/) nationwide, which has originated over RMB230 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%-8.5%.

Mr. Yong Hui Li, Chairman and CEO of AutoChina, stated, "2014 was a milestone year for AutoChina. In addition to leasing a record 15,615 heavy trucks, the Company worked hard on executing several new initiatives, such as K-Pay, K-Lend, and our new peer stores business. By working with a growing network of third-party commercial vehicle financing stores, we have expanded the Company's customer base beyond those we serve with our own store network. Our new K-Pay and K-Lend platforms marked the introduction of a suite of products that we believe are innovative and, more importantly, increase productivity and convenience for our customers. We are excited about the initial positive reception of these new products, which only recently launched nationwide, and we look forward to marketing and growing these businesses. We believe the heavy truck market in China will maintain steady growth in 2015 as the transportation industry continues to evolve and stricter emission and overloading regulations are implemented. We are confident that AutoChina is well positioned to take advantage of the growth in our industry and will continue to provide our customers with the quality support and service they have come to associate with the AutoChina brand name."

About AutoChina International Limited:
AutoChina International Limited 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 December 31, 2014, the Company owned and operated 555 commercial vehicle financing centers in 26 provinces across China, and primarily provides sales-type leasing and support services for local customers. The Company's website is http://www.autochinaintl.com.

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.

Contact Information