This Day On The Street
Continue to site
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

Lentuo International Responds To The GeoInvesting Report And Unusual Market Activity





BEIJING, May 29, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today responded to the allegations raised in a report issued by GeoInvesting (the "Report") on May 28, 2014. The Company firmly believes that the Report contains numerous misstatements and misleading speculations.

The Report falsely stated that: (i) Lentuo Electromechanical ("LE"), a PRC entity controlled by the Company's chairman Hetong Guo ("Mr. Guo"), incurred RMB250 million in debt with two trust funds; (ii) Mr. Guo's shareholding in the Company and the revenue of the Company were pledged as collateral to secure the debt; and (iii) the Company failed to include LE's RMB250 million debt in the Company's consolidated financial statements for the year ended December 31, 2013.

All of these statements are false and potentially misleading. As the Company's annual report clearly disclosed, while LE is controlled by Mr. Guo, LE is not part of the Company. Any loan incurred by LE that does not impose any obligations or liabilities on the Company or its assets is not required to be disclosed. Mr. Guo has confirmed that LE incurred one loan with one trust fund in the amount of RMB150 million in January 2014, and this loan does not impose any obligations or liabilities on the Company and its assets. Neither Mr. Guo's equity interest in the Company nor the revenue of the Company is pledged as collateral to secure this loan. Based on the above, the Company is not required to disclose this loan or include it in the consolidated financial statements for the year ended December 31, 2013. The Company believes that it has made full and accurate disclosure in its annual report on Form 20-F for the fiscal year ended December 31, 2013 in accordance with the rules and regulations under the U.S. securities law.

The Company also announced that in view of the recent unusual market activity in the Company's American depositary shares ("ADSs"), the New York Stock Exchange ("NYSE") has contacted the Company in accordance with the NYSE's usual practice. The Company confirmed to the NYSE that it is not aware of any material corporate developments beyond its most recently issued news releases and annual report that could account for the recent unusual trading activity in its ADSs.

1 of 2

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
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
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs