This Day On The Street
Continue to site
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

Lentuo International Inc. Announces Fourth Quarter And Fiscal Year 2010 Financial Results

Strategic Acquisition and Expansion

Lentuo has entered into an agreement with a Honda dealership in Tianjin to acquire 60% of the interest of the dealer. This acquisition demonstrates the Company’s proactive response to strong demand for automobiles in China and is in line with Lentuo’s business development strategy to expand its 4S dealership network into surrounding areas of Beijing. We believe that the acquisition will enhance Lentuo’s targeted market positioning. Pending completion of the acquisition, we expect not only to have a controlling interest in the Tianjin dealership but to gain a powerful strategic ally who will serve as the junior partner in this joint venture. The junior partner will be committed to helping Lentuo expand into Tianjin, a major metropolitan market, in a rapid and cost-effective manner. We expect to close this transaction within the second quarter of 2011.

The Company believes acquisitions will be a significant source to grow our business in the future. We plan to continue to purchase franchises that enrich our business portfolio and generate attractive returns for the Company and its shareholders. We will continue to seek good acquisition targets and are pursuing other acquisition opportunities in geographies other than Tianjin as well. We remain confident that we are on the right track to fulfill our mid-term expansion plan to add another 10 stores to our widening national operations.

Lentuo has initiated the construction of a FAW-VW dealership store in central area of eastern Beijing. We expect construction to be completed by June 2011. As we observe increasing demand for premium passenger vehicles to be a long-term trend among the growing number of China’s affluent households, we expect a limited impact on China's premium car segment due to Beijing’s new quota system. In addition, the prime location of the new Beijing store will be a key competitive advantage for us in this market--both in terms of repair and maintenance service and new car sales.

4 of 7

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
Only $9.95
14-Days Free
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!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs