This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Lentuo International Refutes GeoInvesting Allegations

BEIJING, June 6, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today responded to another article issued by GeoInvesting (the "Article") on June 5, 2014. The Company stated that the Article distorted the Company's previous response and repeatedly fabricated misleading allegations. The Company further stated that all of the allegations are based on incorrect information that has been issued by third-parties over which the Company has no control.

The Company and Mr. Hetong Guo ("Mr. Guo"), the Chairman of the Company who also controls Lentuo Electromechanical ("LE"), which is not part of the Company, further clarified the following:

(a) The RMB150 million trust loan was incurred by LE in January 2014. None of the revenues of the Company were ever nor are they currently pledged as collateral for the trust loan. The trust loan is primarily secured by the real estate assets of an independent third party with a value exceeding two times the amount of the loan. The loan is also personally guaranteed by the borrower's controlling shareholder, Mr. Guo, which is typically required by banks in China. Mr. Guo believes that, in light of the assets that back the loan, any risk of triggering his personal guarantee of this particular loan is remote. The Company believes that Mr. Guo's handling of his personal wealth and affairs poses no particular risk to the Company and thus does not warrant disclosure.

(b) Among all of the loans incurred by LE, there is not a trust loan in the amount of RMB100 million. Furthermore, neither the Company nor LE has any dealership in Beijing Yayuncun area or in the City of Changchun nor do they currently plan to establish dealerships in these places.

(c) The new Audi dealership in Beijing is under construction, owned by the Company and was consolidated in the Company's financial statements for the fiscal year ended December 31, 2013. Once it is completed, it will be operated by the Company and not LE. No proceeds from the RMB150 million trust loan have been used by the Company. If in the future the Company receives financing from LE, Mr. Guo or any other related party, such transaction will be disclosed in accordance with the rules and regulations under the U.S. securities law. LE is not carrying out any business that competes with the Company's business and does not operate any automobile dealerships. All of the automobile dealerships legally owned by LE are variable interest entities of the Company, controlled and operated by the Company through contractual arrangements, as clearly disclosed in the Company's annual report.

1 of 3

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!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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