Cost of goods sold increased by 45.3% to RMB3.0 billion ($453.9 million) in the full year of 2010 from RMB2.1 billion in 2009, primarily as a result of increased sales of new vehicles, as well as automobile repair and maintenance services. As a percentage of revenues, cost of goods sold increased to 89.1% in the full year of 2010 from 88.1% in 2009.Gross profit in all of 2010 increased by 31.8% to RMB368.1 million ($55.8 million) from RMB279.3 million in 2009. The increase in gross profit was primarily due to the increase in revenues both from new vehicles sales and automobile repair and maintenance services. Gross margin for the full year of 2010 decreased to 10.9% from 11.9% in 2009. Despite this reduction, encouragingly repair and maintenance gross margin conversely increased to 59.7% in 2010 from 57.4% in 2009. The slight decline in gross margin overall is attributable to new vehicle sales, of which certain models had lower gross margins. New vehicle sales as a portion of total revenues rose to 91.4% in 2010 from 91.0% in 2009. Selling, marketing and distribution expenses increased by 34.6% to RMB52.2 million ($7.9 million) in the full year of 2010 from RMB38.8 million in 2009, primarily as a result of the increased performance-related bonuses paid to the Company’s salespersons in line with increased revenues, increased employees social welfare expenses, and increased advertisement expenses. As a percentage of revenues, selling, marketing, and distribution expenses minimally decreased to 1.6% for the full year of 2010 from 1.7% in 2009. General and administrative expenses increased by 18.8% to RMB37.8 million ($5.7 million) in the full year of 2010 from RMB31.9 million in 2009, primarily due to increased depreciation expenses, increased office maintenance expenses, and increased employees social welfare. As a percentage of the revenues, general and administrative expenses decreased to 1.1% in 2010 from 1.4% in 2009. Operating income for the full year 2010 increased by 33.2% to RMB278.1 million ($42.1 million) from RMB208.7 million in 2009. Operating margin in the full year of 2010 was 8.3%, compared to 8.9% over 2009. The decrease of the operating margin was mainly attributable to the decrease in gross margin as well as the increased selling, marketing and distribution expenses discussed above. Income tax expenses in the full year of 2010 were RMB63.1 million ($9.6 million), representing an effective tax rate of 28.1%, increasing from 27.9% in 2009. Net income attributable to ordinary shareholders and comprehensive income in 2010 was RMB161.4 million ($24.5 million), an increase of 25.4% from RMB128.7 million in 2009. Diluted earnings per ordinary share was RMB3.77 ($0.57) in the full year of 2010 compared to RMB3.236.44 in 2009. Initial Public Offering On December 10, 2010, Lentuo’s ADSs began trading on the New York Stock Exchange under the ticker symbol “LAS.” Lentuo issued 6,500,000 ADSs, each representing two ordinary shares, at a price of $8.00 per ADS and received total proceeds of US$52.0 million.