Welcome!

Agile Computing Authors: Rishi Bhargava, Pat Romanski, Liz McMillan, Carmen Gonzalez, ManageEngine IT Matters

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
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.