We also believe that the new policy presents new opportunities for us. The more intense competition will likely force secondary and less efficient dealers in Beijing to exit, which will accelerate industry consolidation and create more opportunities for Lentuo, given our leading market position in the Beijing market. In addition, as consumers move towards higher-end automobile markets and related repair and maintenance expenses increase, we believe our dealerships will benefit from this trend as we offer a mix of popular mid-line and high-end brands and high quality after-market services. Moreover, we will continue to proactively execute our previously announced growth strategy in pursuing geographical expansion beyond Beijing and increasing the revenue contribution from the higher margin automobile repair and maintenance services. We believe such strategy will better position us in the more challenging new environment.
Lentuo’s management is currently closely monitoring this new regulatory development and evaluating the impact the new measures may have on our company’s business, financial condition, results of operations and prospects. We will keep our shareholders informed of any further developments in this regard and their potential impact on our business once more details become available. As a newly listed company on the New York Stock Exchange, Lentuo is fully committed to protecting its shareholders' interests and meeting all challenges in the market."
About Lentuo International Inc.
Lentuo is the largest non-state-owned automobile retailer in Beijing, China as measured by new vehicle sales revenues in 2009, according to the China Automobile Dealers Association (“CADA”). Lentuo operates six franchise dealerships, ten automobile showrooms, one automobile repair shop and one car leasing company in Beijing, the largest new passenger vehicle market among all cities in China. Three of Lentuo’s six dealerships are among the leading dealerships in China for their respective brands, as measured by the volume of new vehicle sales by individual dealership.