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 unaudited financial results for the first quarter ended March 31, 2011.
First Quarter 2011 Financial Highlights
- Revenues for the first quarter of 2011 increased 2.9% year-over-year to RMB 598.2 million ($91.3 million).
- The average unit price for new vehicle sales in the first quarter of 2011 increased 24.4% year-over-year to RMB 209,048 ($31,924).
- Net income was RMB 29.9 million ($4.6 million), an increase of 4.2% from RMB 28.7 million for the same period in 2010. Diluted earnings per American depositary share (“ADS”) were $0.16.
Mr. Hetong Guo, Founder and Chairman of Lentuo, stated: “Despite the challenges posed by Beijing’s new traffic control measures, we grew revenues and substantially improved our profitability in the first quarter. These positive results underscore our operational expertise and the strength of our brand name. In the months ahead, we will focus on increasing service-driven revenues as a percentage of total sales, broadening our product portfolio to align with market trends, and expanding our dealership network through accretive acquisitions and new dealership openings. We recently opened a new FAW-Volkswagen dealership in eastern Beijing and expect to complete another one of our key expansion projects, the acquisition of a controlling interest in a Honda dealership in Tianjin, during the second quarter of 2011.”
“Our first quarter financial results exceeded our previously issued guidance,” added Ms. Ping Yu, Chief Financial Officer of Lentuo. “The impact of Beijing’s new licensing system on our new vehicle sales was offset by a 35% year-over-year increase in repair and maintenance revenues, which drove margin improvements across the board. China’s rising automobile demand continues to present a tremendous market opportunity for Lentuo, and we remain confident that our current expansion efforts will result in continued sales growth and enhanced shareholder value.”