Welcome!

Web 2.0 Authors: Carmen Gonzalez, Liz McMillan, Pat Romanski, Rick Delgado, Elizabeth White

News Feed Item

Luxury Auto Sales Propel 78.3% Increase in China Auto Logistics 2012 Third Quarter Revenues

Investor Conference Call Scheduled for Thursday, November 15th at 8:00am ET

TIANJIN, CHINA -- (Marketwire) -- 11/14/12 -- China Auto Logistics Inc. (the "Company") (NASDAQ: CALI), a top seller in China of luxury imported automobiles, a leading provider of auto-related services and developer and operator of one of China's leading automobile portals and three major auto-related websites, today reported it achieved substantial year over year revenue gains in the three-month and nine-month periods ended September 30, 2012.

Financial Highlights

  • 2012 third quarter revenues grew 78.3% to $170,456,821 led by an 83.4% increase in Automobile Sales revenues to $168,360,743 and a 22% increase in Financing Services sales to $1,491,170.
  • Net income attributable to shareholders in the 2012 third quarter was $1,517,549, or $0.41 per share on 3,693,912 diluted shares outstanding (reflecting the Company's recent 1 for 6 reverse split). This compared with net income attributable to shareholders in the prior year period of $2,477,747 or $0.68 per share on 3,661,296 diluted shares outstanding. The decline is primarily attributable to a planned decrease in higher margin web-based advertising revenue which was not offset by gains achieved in the Company's other high margin services businesses, or its lower margin automobile sales.
  • In the nine months ended September 30, 2012, revenues grew to $427,950,375, up 41% from the prior year period, led by a 43.2 % year over year increase in Automobile Sales revenues.
  • Net income attributable to shareholders in the first nine months of 2012 was $4,748,487or $1.29 per share on 3,693,912 diluted shares outstanding. This compared with $6,841,081 or $2.04 per share a year earlier on 3,351,414 diluted shares outstanding.

Growth Strategy

Mr. Tong Shiping, CEO and Chairman of the Company, stated, "We believe our growth strategy will have increasingly clear benefits over time. In essence, we are sacrificing our web-based advertising revenue and higher profits it might generate in the near term in order to create the opportunities that develop from being a much bigger company and the clear leader in China in luxury auto sales and auto related services. While focusing on the growth of our luxury auto sales we are also exploring opportunities for higher bottom line growth with new services as well as our existing auto-related services. The sharp jump in Auto Sales revenues in this year's third quarter reflects well on our decision, as does the growth, in particular, of our Financing Services."

Segment Review

The largest contributor in the third quarter to the Company's revenues and profits was its luxury auto sales business. During the quarter the Company sold 2,004 automobiles, up 130% from 871 vehicles in the third quarter of 2011. The average unit price per sale was $84,012 in the 2012 quarter, down from $105,411 per unit in the third quarter last year. The Company continued to price its vehicles very competitively to expand its market share and maintain its leadership position in the industry. The contribution to operating income from Automobile Sales in the 2012 third quarter was $1,124,528 and was $3,777,411 through the first nine months of the year.

Revenues from Financing Services increased 22% year over year in the 2012 third quarter to $1,491,170. In order to provide financing to its customers, on which it earns a service fee, the Company utilizes bank facility lines of credit, provided by some of the leading commercial banks in China. As of September 30, 2012, the Company had approximately $60 million drawn on aggregate lines of approximately $119 million. The contribution to operating income from Financial Services in the quarter was $771,255, up from $426,417 in the same period last year.

As per the Company's strategic decision, the contribution to operating income from web-based advertising services in the 2012 third quarter was reduced to $109,551 from $1,194,991 a year earlier. Other services businesses which contributed to profits in the quarter were Automobile Value Added Services and Auto Mall Management Services.

Outlook

Mr. Tong commented further, "Looking ahead we remain confident that we will maintain our leadership position in the luxury auto sales industry, with continued anticipated support from our automobile portal and websites which are now established in 50 cities throughout China and we intend to extend to 60 cities. Our aim is to capitalize on this leadership position with an expansion of our current high margin services and the addition of new ones. Underlying our growth strategy is our belief that growth rates for the high-end automobile market in China will continue to exceed those of the mainstream auto market, a view that is shared by several market forecasters."

Conference Call Invitation

The company will discuss 2012 third quarter and nine month results during a live conference call and webcast on Thursday, November 15, at 8:00am ET.

To participate in the call, interested participants should call 1-877-941-8418 when calling within the United States or 1-480-629-9809 when calling internationally. Please ask for the China Auto Logistics 2012 Third Quarter Earnings Conference Call, Conference ID: 4575617. There will be a playback available until 11/22/12. 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: 4575617.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://public.viavid.com/index.php?id=102530 or at ViaVid's website at http://viavid.com.

About China Auto Logistics Inc.

China Auto Logistics Inc. is one of China's top sellers of imported luxury vehicles, and also manages China's largest imported auto mall in Tianjin. Additionally, it operates www.cali.com.cn, one of the leading automobile portals in China, as well as three major websites serving China's auto dealers and their customers. The Company also provides a growing variety of "one stop" automobile related services such as short term dealer financing. Additional information about the Company is available at 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.

                          CHINA AUTO LOGISTICS INC.
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

                           Three Months Ended          Nine Months Ended
                              September 30,              September 30,
                       -------------------------- --------------------------
                           2012          2011         2012          2011
                       ------------  ------------ ------------  ------------

Net revenue            $170,456,821  $ 95,613,591 $427,950,375  $303,998,137
Cost of revenue         167,673,580    91,356,637  418,587,823   291,609,816
                       ------------  ------------ ------------  ------------
    Gross profit          2,783,241     4,256,954    9,362,552    12,388,321
                       ------------  ------------ ------------  ------------

Operating expenses:
  Selling and marketing     287,372       364,738      715,762     1,103,381
  General and
   administrative           343,749       519,739    1,583,544     1,869,573
                       ------------  ------------ ------------  ------------
    Total operating
     expenses               631,121       884,477    2,299,306     2,972,954
                       ------------  ------------ ------------  ------------

Income from operations    2,152,120     3,372,477    7,063,246     9,415,367

Other income (expenses)
  Interest income           128,167        15,855      156,839        43,537
  Interest expense         (154,883)            -     (381,527)            -
  Loss on disposal of
   property and
   equipment                (12,719)            -      (84,793)            -
  Miscellaneous                   -        22,043         (114)       11,466
                       ------------  ------------ ------------  ------------
    Total other income
     (expenses)             (39,435)       37,898     (309,595)       55,003
                       ------------  ------------ ------------  ------------

Income before income
 taxes                    2,112,685     3,410,375    6,753,651     9,470,370

Income taxes                591,893       901,453    1,991,566     2,543,573
                       ------------  ------------ ------------  ------------

Net income                1,520,792     2,508,922    4,762,085     6,926,797

Less: Net income
 attributable to
 noncontrolling
 interests                    3,243        31,175       13,598        85,716
                       ------------  ------------ ------------  ------------

Net income attributable
 to shareholders of
China Auto Logistics
 Inc.                  $  1,517,549  $  2,477,747 $  4,748,487  $  6,841,081
                       ------------  ------------ ------------  ------------

Earnings per share
 attributable
 toshareholders of
 China Auto Logistics
 Inc.
  - basic and diluted  $       0.41  $       0.68 $       1.29  $       2.04
                       ------------  ------------ ------------  ------------

Weighted average number
 of common shares
 outstanding
  - basic and diluted     3,693,912     3,661,296    3,693,912     3,351,414
                       ------------  ------------ ------------  ------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.