AndhraNews.net
Home » Business News » 2011 » February » February 22, 2011

China Auto Logistics Says Strong Growth in China's World Leading Auto Market Will Underlie Company's Growth in 2011


February 22, 2011 - Tianjin, China

China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), which recently announced the Company had achieved a key goal in 2010 of extending coverage of its popular automobile portal www.cali.com.cn to 35 cities in China, added today it anticipates reporting another year of solid growth for its luxury imported auto sales segment in 2010. Further, the Company believes double digit growth in China's world leading auto market, which has continued into January of this year, will fuel continuing company-wide growth of its websites, imported luxury auto sales and auto related services and logistics businesses.

The Company said it continues to anticipate reporting record results for 2010 when full year results are published on or about March 31, 2011.

Mr. Tong Shiping, CEO and Chairman of CALI, stated, "CALI very fortunately is a key participant in the right industry at the right time, and we fully anticipate this will drive the Company's continuing growth for the foreseeable future."

China Maintains Number One Position In Auto Sales

The Company reported that in 2010, according to The China Association of Automobile Manufacturers ("CAAM"), China's automobile production and sales grew to 18.26 million and 18.06 units respectively, representing year over year gains of 32.44% and 32.37%, making it once again the number one market for auto sales in the world. Further, according to CAAM, double digit advances have continued this year, with January gains in auto sales of 13.81% to 1.89 million units, and automobile production increasing 11.33% to 1.79 million units.

In the luxury imported auto segment, where CALI is a leader, according to CAMM, China's 2010 sales in units grew 93% year over year to 813,000 vehicles. At the same time, the value of imported luxury cars sold in 2010 grew even more, reaching $30.7 billion, up approximately 99% over sales in 2009. Mr. Tong noted, "The biggest winners in this category according to CAAM, were Japan and Germany, with the former generating import sales of 254,800 vehicles, up 75.45% over the prior year, and the latter growing 140% year over year to 239,300 vehicles. In the current year, we believe sales of imports will grow to more than one million vehicles."

China's Double Digit GDP Growth Likely To Continue To Support CALI Growth

"While there was much speculation about whether the 'China Miracle' could continue in 2010 given world economic conditions, " Mr. Tong said, "as confirmed by China's National Bureau of Statistics, China's GDP growth for the year was 10.3% which catapulted its $5882 billion economy into the number two spot in the world ahead of Japan ($5440 billion). Further, it is anticipated by the Chinese Academy of Science that GDP growth in 2011 will continue at around the 10% level."

"With these anticipated levels of growth," Mr. Tong said, "and building on our significant accomplishments in 2010, we see another strong year for CALI in 2011."

"In particular," Mr. Tong concluded, "we will continue on the path to expanding our www.cali.com.cn portal to 60 cities before year end, providing our advertisers with penetration of 70% or more of China's auto-buying public. Anticipated achievement of this goal is boosted by our completion during 2010 of the acquisition of www.goodcar.com which has made our portal a 'one stop' site for China's auto-related population. We also envision significant progress during the year on meeting the growing needs of the Chinese auto buying public for convenient online services, such as online financing and online insurance, which we believe will bring consumers and providers closer together, and generate even stronger enthusiasm for our sites."

About China Auto Logistics Inc. (CALI)
China Auto Logistics Inc. operates www.cali.com.cn, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of www.goodcar.cn, a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com.

Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

Contacts:
US Investors
Focus Asia Partners
Robert Agriogianis
bob@focusasiapartners.com
Tel: 973-520-8741

Press
Ken Donenfeld
kdonenfeld@dgiir.com
Tel: 212-425-5700
Fax: 646-381-9727

MarketWire

Comment on this story

Share