SOURCE: China Auto Logistics Inc.

China Auto Logistics Inc.

February 17, 2011 12:47 ET

China Auto Logistics Reports 35 City Expansion Goal for Its Popular Automobile Portal Was Achieved in 2010; Rapid Expansion to New Cities Continuing in Current Year

TIANJIN, CHINA--(Marketwire - February 17, 2011) - China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), owner and operator of one of China's leading automotive portals for car dealers and consumers of vehicle services and products, and also one of the top sellers of luxury imported automobiles in China, announced today the Company achieved a key goal in 2010 of expanding its www.cali.com.cn "auto living" portal to 35 cities throughout China, and the Company is continuing rapid expansion of the portal in the current year. 

The six newest cities added before year-end 2010 were Shijiazhuang, Shenzen, Changsha, Fuzhou, Xuzhou and Haikou, each with rapidly growing automobile sales and a combined population of nearly 49 million.

Mr. Tong Shiping, CEO and Chairman of the Company, stated, "Starting in January this year we initiated trial operations of www.cali.com.cn in six additional cities and, by the end of March, after incorporating feedback from local dealers (4S Shops) and consumers, expect these new sites to be added to our expanding portal." He noted further, "During the year we will continue to accelerate coverage of new cities to achieve our goal of having a truly national, highly popular portal reaching approximately 70% of China's car buying public."

Most Recent Cities Added to CALI Portal

The Company added these six cities to its www.cali.com.cn portal in 2010, bringing the total number of cities covered as of year-end to 35.

  • Shijiazhuang is the capital of the Hebei province with a population of approximately 9.9 million. The city has seen 20% growth annually in car sales and a penetration rate of nearly eight automobiles per one hundred residents. There have been approximately 70,000 automobiles sold annually to local residents, and the number of privately owned automobiles in the city is expected to grow to about 3 million within five years.
  • Shenzen, the first special economic zone in China and one of the most densely populated cities in the world, with about 14 million residents, has experienced very rapid growth. With reported GDP of 13.5% in 2010, the purchasing power of its local consumers is quite strong and reflected in the rapid growth of automobile sales.
  • Xuzhou, in Jiangsu province, has a population of approximately 9.4 million. Household purchased automobiles exceeded 90,000 in 2010 alone.
  • Changsha, the capital city of Hunan, with a population of about 6.8 million, does not currently have a large automobile market, but recently has seen auto sales growth of more than 20% year over year and is expected to see continuing strong growth in coming years.
  • Fuzhou, the capital of the Fujian province, has a population of nearly 6.8 million. The total number of autos in the city is approximately 447,100, of which 89,504 were purchased in 2010 alone.
  • The smallest new city added to the site was Haikou, the capital of Hainan province, with a population of 1.8 million. However, GDP per capita in the city exceeds $4000 and, in 2010, more than 200 cars on average were sold there each day.

About China Auto Logistics Inc. (CALI)

China Auto Logistics Inc. operates www.cali.com.cn, 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 www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com 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. Recently, the Company completed the acquisition of www.goodcar.cn, 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 www.chinaautologisticsinc.com.

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