Lentuo International Inc. (NYSE: LAS) (“Lentuo” or the “Company”), the largest non-state-owned automobile retailer in Beijing as measured by new vehicle sales revenue, today announced that its Founder and Chairman, Hetong Guo, and its Chief Financial Officer, Ping Yu, were interviewed on camera by Dave Gentry, President of RedChip Companies, Inc., at the Company’s headquarters in Beijing.
During the interview, Mr. Guo and Ms. Yu discussed Lentuo’s recent financial performance, competitive advantages, growth strategy, and business outlook. Lentuo has a 16-year operating history and a 3% market share by volume in Beijing’s passenger vehicle market. The Company has won numerous awards for the quality of its customer service and is the only auto dealership in Beijing to be accredited as a “Credible Enterprise” by the Beijing Administration of Industry and Commerce. Lentuo plans to add 10 dealerships to its operations in 2011, bringing its total number of dealerships to 16.
China is currently the world’s largest automobile market. Vehicle sales in China increased 32% year-over-year to over 18 million vehicles in 2010, and J.D. Power and Associates forecasts that China’s automobile market will maintain double-digit annual growth in 2011. Additionally, industry experts project that China will account for half of all new cars sold worldwide by 2020.
Lentuo’s independent auditor is Ernst & Young Global Limited, a Big Four accounting and professional services firm. The Company completed an initial public offering of 6.5 million American Depositary Shares (ADS), each representing two common shares of the Company, in December 2010. Cowen and Company, LLC and HSBC Securities (USA) Inc. acted as joint book-runners and Macquarie Capital (USA) Inc. acted as the co-manager for the offering.
For the fiscal year ended December 31, 2010, Lentuo’s revenues increased 43.7% year-over-year to $509.6 million. The Company sold 18,176 vehicles in 2010, up 20.8% from 2009. Net income increased 25.4% year-over-year to $24.5 million, or $1.14 per ADS.