SOURCE: China Auto Logistics Inc.

China Auto Logistics Inc.

March 31, 2011 08:00 ET

China Auto Logistics 2010 Net Income Grew 44% Led by 72% Year-Over-Year Growth in Automobile-Related Website Sales and Increased Contributions From All Services Businesses

Investor Conference Call to Be Held Monday, April 4, at 8:00am EDT

TIANJIN, CHINA--(Marketwire - March 31, 2011) - China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), announced today a sharp increase in 2010 net income and EPS compared with a year earlier, as year-over-year revenues also advanced in double digits.

  • 2010 net income attributable to shareholders grew to $8,006,640, or $0.44 per share, a 44.11% gain over $5,548,686, or $0.31 per share, in 2009.
  • The key contributor to the year over year increase in 2010 net income was the $5,097,853 in net operating income generated in 2010 by web-based advertising sales, which surpassed the $4,262,990 contribution to 2010 net operating income from sales of automobiles.
  • Revenues in 2010 grew 19.75% to $257,681,456 compared with $215,188,081 a year earlier. Approximately 96.24% of 2010 revenues, or $247.9 million, came from automobile sales which grew 18.17% compared to 2009. While unit sales of 2,778 imported autos in 2010 was about flat with prior year results, average unit prices grew to $89,272, up 16.74% from 2009, reflecting the Company's increased focus on sales of imported high-end luxury vehicles. Luxury imports in China are growing faster than overall auto market sales growth and also represent an opportunity to achieve higher margins. 
  • Web-based advertising revenues grew 72.37% year over year in 2010 to $5,962,493 and contributed 2.31% of total revenues, up from 1.61% in 2009. Increased contributions to revenues and net operating income were achieved by all of the Company's auto-related services businesses.

Another Outstanding Year of Growth and Expansion

"2010 was another outstanding year for CALI," stated Mr. Tong Shiping, CEO and Chairman of the Company, "as we plainly saw the bottom-line benefits once again of our strategic decision to rapidly expand our auto related web-based services. In pursuit of this strategy, we greatly broadened the potential audience for our websites with the introduction of our portal at the Beijing Auto Show in April 2010. We included on the portal both our foreign and domestic auto sites and our new site aimed at China's rapidly growing automobile driver population. In November we completed this acquisition and consequently added approximately $480,000 to 2010 revenues from the site. During the year, we also added over $800,000 in sales from our new auto mall management services managing the Tianjin Mall as of March 1. Most significantly, by year end 2010 we greatly expanded the cities covered by our new portal from 15 to 35 on our way to planned coverage of 60 cities by the end of this year, which we estimate will permit us to reach 70% of China's auto buying population."

Mr. Tong continued, "I am particularly pleased by the further improvement in gross margin we achieved in 2010. We are realizing significant momentum in all of our web-based services, led by our advertising sales. We have continued to grow our ad customer and subscriber base and envision further rapid growth in ad sales with our ongoing geographical expansion. Additionally, through arrangements being made with China's leading gas retailers for expansion of our discounted gas card program, we expect further expansion of our popular site in 2011.

"I also am pleased to report the approximately $15 million expansion to $51 million during 2010 of our facility lines of credit with several of China's leading banks. This helped generate a 46% increase in automobile dealer financing revenues," Mr. Tong added.

Very Positive Growth Outlook

Mr. Tong concluded, "We continue to execute on our plan to become China's destination auto portal and are moving ahead with expansion plans on several fronts. In particular, we are aiming to expand existing high margin web-based services and add new ones, as well as to build on-line advertising revenues from national advertisers as our portal increasingly becomes national in scope. Despite the arrival of an expected slowdown in China's auto sales thus far in 2011, we are well positioned to capitalize on what we envision as a very positive growth climate, with anticipated 8%-10% full year growth in China's auto sales likely continuing to lead the world, and luxury import sales growing at a significantly faster pace."

Conference Call Invitation

The Company will discuss year end results during a live conference call and webcast on Monday, April 4, 2011, at 8:00am EDT.

To participate in the call, interested participants should call 1-877-941-4778 when calling within the United States or 1-480-629-9763 when calling internationally. Please ask for the China Auto Logistics 2010 Full Year Conference Call, Conference ID: 4430110. There will be a playback available until April 11. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4430110.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link or at ViaVid's website at


About China Auto Logistics Inc. (CALI)

China Auto Logistics Inc. operates, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also 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. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based is the number one site for imported car dealers and consumers. Its site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of, a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit

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.

    Year Ended December 31,
    2010     2009
Net revenue   $ 257,681,456   $ 215,188,081
Cost of revenue     243,621,911     204,953,584
    Gross profit     14,059,545     10,234,497
Operating expenses:            
  Selling and marketing     1,117,202     630,021
  General and administrative     1,721,711     1,353,198
    Total operating expenses     2,838,913     1,983,219
Income from operations     11,220,632     8,251,278
Other income (expenses):            
  Interest income     58,714     10,776
  Interest expenses     (144,440)     (198,306)
  Miscellaneous     (8,079)     -
    Total other expenses     (93,805)     (187,530)
Income before income taxes     11,126,827     8,063,748
Income taxes     3,002,557     2,145,073
Net income     8,124,270     5,918,675
Less: Net income attributable to noncontrolling interests     117,630     369,989
Net income attributable to shareholders of China Auto Logistics Inc.   $ 8,006,640   $ 5,548,686
Earnings per share attributable to shareholders of China Auto Logistics Inc.            
  - basic and diluted   $ 0.44   $ 0.31
Weighted average number of common share outstanding            
  - basic and diluted     18,277,723     18,100,000

Contact Information