BEIJING, November 4, 2011 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), the largest non-state-owned domestic automobile retailer in Beijing as measured by its 2010 new vehicle sales revenue, today announced that it has completed the acquisition of the 50% controlling interest of a Toyota dealership, in Zhejiang Province, People's Republic of China. The title of the 50% controlling interest was transferred to Lentuo and officially registered in October 2011.
Lentuo acquired a 50% controlling interest in the dealership for a purchase price of RMB 28.5 million (US $4.4 million) in cash. The dealership sold 1,036 vehicles, serviced 14,182 vehicles, and generated RMB 203 million (US $31.4 million) in revenues during fiscal 2010. The Company expects the dealership to contribute RMB 32 million to 38 million (US $5.0 to $5.9 million) in revenues to Lentuo for the fiscal year ending December 31, 2011.
"The completion of this acquisition brings the Lentuo brand to yet another province," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "This dealership is our third to be opened outside of Beijing this year, joining our already completed acquisitions of a Honda dealership in Tianjin and an FAW-Volkswagen dealership in Guangdong Province. We are confident that our continued focus on geographic expansion will offset the impact we've experienced from the Beijing government traffic control measures established in December 2010."
About Lentuo International Inc.
Lentuo is the largest non-state-owned domestic automobile retailer in Beijing, China as measured by its 2010 new vehicle sales revenue. Lentuo operates eleven franchise dealerships, ten automobile showrooms, one automobile repair shop and one car leasing company. Three of Lentuo's eleven dealerships are among the leading dealerships in China for their respective brands.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Contact:
Jiangyu Luo
Lentuo International Inc.
Investor Relations Department
Email: luojiangyu@lentuo.net
Web: http://www.lentuo.net
Dave Gentry, U.S.
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 104
Email: info@redchip.com
Web: http://www.redchip.com