Lentuo International - LAS - Strong sequential and year-over-year revenue growth
9/25/2012 9:26:43 AM
Lentuo International Inc. (NYSE: LAS), a leading non-state-owned automobile retailer headquartered in Beijing, today reported its financial results for the second quarter ended June 30, 2012.
LAS - Second Quarter 2012 Financial Highlights
- Revenues increased 21.2% to RMB792.5 million ($124.7 million) in the second quarter 2012 from RMB653.8 million in the second quarter 2011.
- Vehicles sold increased 54.5% to 4,301 vehicles in the second quarter 2012 from 2,784 vehicles in the second quarter 2011.
- Vehicles serviced increased 31.7% to 45,843 vehicles in the second quarter 2012 from 34,818 vehicles in the second quarter 2011.
- Net income decreased 28.4% to RMB8.4 million ($1.3 million) in the second quarter 2012 from RMB11.8 million in the second quarter 2011.
"The successful implementation of our expansion and diversification strategy continued with strong sequential and year-over-year revenue growth during the second quarter of 2012," said Mr. Hetong Guo, Founder and Chairman of Lentuo. "The new green field Audi dealership and the FAW-Volkswagen flagship store in Beijing following the five new dealerships added in the second half of 2011 will be significant steps in our expansion strategy and will provide increased momentum. Our recent partnerships with First Automobile Finance and its two subsidiaries represent a strong vote of confidence that validates and further supports our growth strategy. Among other benefits, it will help us finance dealership expansions, improve our competitive position, provide insurance services and strengthen our brand recognition in the luxury car market. We are very proud to be the first automobile retailer in China to sign such an agreement with FAW Auto Finance.
"Leveraging the strong relationships we have built with industry players in an increasingly competitive environment, we remain confident that these initiatives will lead to sustained sales growth and improved shareholder value."
LAS - Second Quarter 2012 Financial Performance
Revenues for the three months ended June 30, 2012 increased 21.2% to RMB792.5 million ($124.7 million) from RMB653.8 million in the second quarter of 2011.
Revenues from automobile sales increased 24.3% to RMB709.9 million ($111.7 million) compared to RMB571.1 million during the same period in 2011. The increase was primarily due to higher vehicle sales resulting from the addition of five new dealerships in the second half of 2011. The five new dealerships contributed RMB231.5 million in revenues.
During the second quarter of 2012, the Company sold 4,301 vehicles, representing a 54.5% increase from 2,784 vehicles in the second quarter of 2011. The Company's five new dealerships added a combined 1,808 vehicles during the second quarter of 2012.
About Lentuo International Inc. - LAS
Lentuo (LAS) is a leading non-state-owned automobile retailer headquartered in Beijing. Lentuo operates 11 franchise dealerships, 10 automobile showrooms, one automobile repair shop, and one car leasing company.