This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Lentuo International Inc. Reports Third Quarter 2010 Financial Results

Lentuo International Inc. (NYSE: LAS) (“Lentuo” or the “Company”), the largest non-state-owned automobile retailer in Beijing, China as measured by new vehicle sales revenues in 2009, today announced its unaudited financial results for the third quarter of 2010.

Third Quarter 2010 Financial Highlights

  • Revenues in the third quarter of 2010 increased 56.0% year-over-year to RMB945.9 million ($141.4 million).
  • The number of vehicles sold in the third quarter of 2010 increased 29.5% year-over-year to 4,871 units.
  • The average unit price for the third quarter 2010 increased 23% year-over-year to RMB176,000.
  • Net income was RMB45.0 million ($6.7 million), an increase of 2.5% from RMB43.9 million in the comparable period of 2009. Diluted earnings per American depositary share (“ADS”) were RMB1.06 ($0.16). Each ADS represents two ordinary shares of the Company.

Mr. Hetong Guo, Founder and Chairman of Lentuo, commented, “We are pleased with our third quarter financial results and our first quarter reporting as a public company. Our rapid revenue growth in the third quarter of 2010 again demonstrates our unique competitive position. Driven by our strong brand, proven business model, and experienced management team, we are very proud that we have grown to become the #1 non-state-owned dealership group in Beijing. Although new traffic control measures in Beijing may negatively impact certain aspects of Lentuo’s business, they may create new opportunities for us as well. We intend to broaden our portfolio of luxury brands, increase the relative contribution of maintenance services to our total revenues, and leverage our leading brand in the Beijing market, stronger financial position and operational scale to acquire smaller dealerships at attractive prices.”

Ms. Ping Yu, Chief Financial Officer of Lentuo, added, “We are delighted to have delivered record revenues in the third quarter. Despite Beijing’s new quota system for new licenses, we remain optimistic about the automobile market potential in Beijing. According to the Provisional Regulations, the quota for new vehicle license plates for 2011 is 240,000. In addition, purchasers of automobiles to replace old vehicles may continue to use the previous license plates and are not subject to the quota. Recent statistics indicate that the number of new vehicles purchased to replace old automobiles, or upgrades, has been approximately 250,000 to 300,000 per year in recent years in Beijing. Therefore, assuming this trend of upgrading continues, and taking into account the 240,000 new licenses to be granted, we believe it is reasonable to estimate the total number of new vehicle purchases in Beijing in 2011 to range from 490,000 to 540,000 units. This range would be similar to the 2009 sales level of 520,000 units, and considerably higher than the 2008 level of 350,000 units. We believe Lentuo is well-positioned to execute on our expansion plans, deliver sustainable financial results and create more value for our shareholders.”

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs