SOURCE: China Auto Logistics Inc.

China Auto Logistics Inc.

November 14, 2011 16:47 ET

China Auto Logistics 2011 Third Quarter Revenues Climbed 41% Led by Growth in Luxury Auto Sales and Higher Margin Auto Related Services Businesses; Net Income Grew 11.4% in the Quarter and 21.9% Through First Nine Months

Investor Conference Call Scheduled for Wednesday, November 16th at 8:00am ET

TIANJIN, CHINA--(Marketwire - Nov 14, 2011) - China Auto Logistics Inc. (the "Company") (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, today announced that China's continuing strong appetite for luxury vehicles pushed CALI's imported luxury auto sales up sharply in the 2011 third quarter which was the key contributor to the 41% sales gain in the quarter and the 72% gain in revenues through the first nine months of the year. At the same time, strong gains in CALI's newer high margin auto related services businesses were key contributors to double digit gains in net income, up 11.4% in the quarter and 21.9% through the first nine months compared with prior year results.

Financial Results for the Periods Ended September 31, 2011

  • Third quarter revenues grew 41.25% to $95,613,591 compared with $67,690,151 a year earlier.
  • Net income attributable to shareholders increased 11.44% in the quarter to $2,477,747 from $2,223,418 in the 2010 third quarter.
  • 2011 third quarter EPS was $0.11 on 21,967,775 diluted weighted average shares outstanding. In the third quarter of 2010, as reported, EPS was $0.12 on 18,100.000 diluted weighted average shares, or $0.10 per share utilizing the increased number of shares in the 2011 quarter.
  • Revenues in the first nine months of 2011 increased 71.84% to $303,998,137, compared with $176,905,748 in the same period in 2010
  • Net income attributable to shareholders grew 21.88% to $6,841,081 in the first nine months this year compared with $5,613,070 in the comparable period in 2010.
  • EPS in the first nine months of 2011 was $0.34, on 20,108,482 diluted weighted average shares outstanding compared with $0.31 per share on 18,100,000 diluted weighted average shares, as reported, or $0.28 per share on the increased shares in the 2011 nine month period.

Reaping Growth Strategy Rewards

The Company reported that while sales of imported luxury vehicles of $91.8 million were the largest contributor to revenues in the third quarter, more than half of the Company's operating profits came from its auto related services, led by Web-Based Advertising, followed by Automobile Value Added Services, Financing Services and Auto Mall Management Services.

"While we recognize that Auto Sales is our lowest margin business, the strong demand for luxury vehicles in China led it become the top contributor to gross profits in the period," stated Mr. Tong Shiping, CEO and Chairman of the Company. He added, "At the same time, we took the opportunity in this quarter -- as we continued to integrate our exciting Goodcar acquisition -- to greatly enhance our Web-based Advertising Services, a project we completed in September. During the quarter, revenues from this key growth segment therefore were roughly flat compared with the same quarter last year. Going forward, we see a continuation of the substantial growth in this segment as we expand our coverage from 35 cities this year to 60 in 2012. This is in line with our announced strategy and our goal of becoming the leading automobile portal in China."

During the quarter, in line with the increase in auto sales, Automobile Value Added Services grew 226%, while Financing Services increased 81% as the Company continued to successfully increase bank lines. There was also a solid contribution in the quarter from the renewal of the Tianjin auto mall management agreement.

Strong Growth Ahead

"Looking ahead," Mr. Tong continued, "we see more opportunities than ever for continuing strong growth. The lower growth we are seeing in China auto sales is healthier growth, and should allow for much success with our announced plans to soon expand into China's domestic auto market with the acquisition of what we anticipate will be Tianjin's largest domestic auto mall. Among other things, this will be a hub for expanding our web based services for domestic auto buyers, drivers and dealers. This will move us toward our goal of an equal contribution to web-based profits from advertising and online services."

He concluded, "When we first went public in the U.S. just three years ago, our total sales were under $100 million, and now we are approaching sales of $100 million per quarter while successfully implementing our auto related and web based services growth strategy. We believe investors should see this as a strong base for future success. While disappointed this has not been the case, as reflected in the inexplicably low valuation of our shares in the U.S., we will continue to work hard and transparently to achieve growth goals we firmly believe are attainable."

Conference Call Invitation

The Company will discuss third quarter results during a live conference call and webcast
on Wednesday, November 16th, at 8:00am ET.

To participate in the call, interested participants should call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally. Please ask for the China Auto Logistics 2011 Third Quarter Investor Conference Call, Conference ID: 4486178. There will be a playback available until 11/23/11. 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: 4486178.

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.

China Auto Logistics Inc. operates, one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services in China. Additionally, it is one of China's top sellers of luxury imported cars and a leading developer of websites for buyers and sellers of imported and domestic automobiles. These include, China's only site for imported car dealers and consumers;, focused on domestic auto sales, and, a highly popular internet destination for auto drivers attracted by discount cards for a variety of automotive products and services. 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.

Three Months Ended September 30, Nine Months Ended
September 30,
2011 2010 2011 2010
(Restated) (Restated)
Net revenue $ 95,613,591 $ 67,690,151 $ 303,998,137 $ 176,905,748
Cost of revenue 91,356,637 63,945,250 291,609,816 167,390,948
Gross profit 4,256,954 3,744,901 12,388,321 9,514,800
Operating expenses:
Selling and marketing 364,738 236,707 1,103,381 622,234
General and administrative 519,739 389,487 1,869,573 1,074,159
Total operating expenses 884,477 626,194 2,972,954 1,696,393
Income from operations 3,372,477 3,118,707 9,415,367 7,818,407
Other income (expenses)
Interest income 15,855 5,279 43,537 43,446
Interest expenses - (64,787 ) - (132,529 )
Other income (expenses) 22,043 (7,151 ) 11,466 (1,223 )
Total other income (expenses) 37,898 (66,659 ) 55,003 (90,306 )
Income before income taxes 3,410,375 3,052,048 9,470,370 7,728,101
Income taxes 901,453 794,136 2,543,573 2,029,386
Net income 2,508,922 2,257,912 6,926,797 5,698,715
Less: Net income attributable to
noncontrolling interests




Net income attributable to shareholders of China Auto Logistics Inc. $ 2,477,747 $ 2,223,418 $ 6,841,081 $ 5,613,070
Earnings per share attributable to shareholders of China Auto Logistics Inc. - basic and diluted $ 0.11 $ 0.12 $ 0.34 $ 0.31
Weighted average number of common
share outstanding
- basic and diluted





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