Lentuo International Inc. Ameri (NYSE:LAS)

BEIJING, January 28, 2015 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has begun a strategic expansion into the electric vehicle ("EV") and plug-in hybrid EV ("PEV") value-added services as an extension of its after sales business strategy. The Company aims to become an early mover into a new sector that is poised for substantial growth with strong support from the Chinese government.

This strategic expansion will help the Company accelerate growth, improve profitability and further strengthen its brand by leveraging its extensive industry experience to cooperate with internationally respected EV and PEV industry players.

Due to increasing environmental concerns over CO2 emissions, the Chinese government has made it a priority to support the EV industry by enacting several subsidies and incentives. China's General Office of the State Council issued Guidance on Speeding up the Popularization and Application of New Energy Vehicles in 2014 which encouraged private investment in charging stations, removed the 10% purchase tax, and mandated government and party offices across the nation to purchase EVs and PEVs. This along with the government's mandate of 78 EV standards has increased confidence in the industry's future. According to statistics compiled by the Ministry of Industry and Information Technology, over 83,900 EVs and PEVs were produced in China in 2014, nearly four times the amount produced in 2013. EV and PEV production in December 2014 alone exceeded 27,200, a new global monthly production record as China's EV industry enters an explosive stage of growth.

The Company is in active discussions with a German company, that is a highly experienced developer and manufacturer of automobile roof-integrated solar systems, leveraging specialized curved roof surface technology, that are used in a number of models manufactured by a few world-class OEMs. Meanwhile, this company is already integrating its roof systems in smart EV charging stations in China, a market with great growth potential. The German company's controlling shareholder is a market leader and the largest non-state-owned manufacturer and operator of EV and PEV charging stations in China and has already constructed, and is currently managing, charging station networks in some of China's largest urban areas.

Lentuo believes that these discussions will lead to a strategic partnership agreement to enter the EV industry. And, the Company will provide progress updates by way of press releases as appropriate.

BEIJING, January 22, 2015 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that members of its senior management team, including its Chairman Mr. Hetong Guo and Chief Executive Officer Mr. Jing Yang, will use their personal funds to purchase the Company's American Depositary Shares on the open market for an aggregate amount up to a maximum of US$1.0 million as soon as possible within one month.

Mr. Guo commented, "This share purchase demonstrates our management team's confidence in the long-term prospects of Lentuo's business. We believe we are implementing sound strategies in building our relationship with BMW and other premium brands, cooperating with Bitauto and Youxinpai to expand our online-to-offline platform for high-end pre-owned car business, and enhancing our high-margin after-sales services. We are steadfastly moving our business model towards an emphasis on margins as much as market share. We hope that you, our shareholders, will share our confidence."

BEIJING, January 20, 2015 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, announced today that on January 16, 2015, it received notice from the New York Stock Exchange, Inc. ("NYSE") that the Company is no longer in compliance with the NYSE's continued listing standards because the average per share closing price of the Company's American depositary shares ("ADS") for the consecutive 30 trading-day period ended on January 9, 2015 has fallen below the NYSE's share price requirements. The NYSE requires the average closing share price of a listed company to be no less than US$1.00 per share over a consecutive 30 trading-day period.

Subject to the NYSE's rules, the Company has six months from the date of its receipt of the NYSE notice to regain compliance with the minimum share price rule. The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the six-month cure period the Company's ADSs have a closing share price of at least US$1.00 and an average closing share price of at least US$1.00 over the consecutive 30 trading-day period ending on the last trading day of that month. The Company can also regain compliance if at the expiration of the six-month cure period both a US$1.00 closing share price on the last trading day of the cure period and a US$1.00 average closing share price over the consecutive 30 trading-day period ending on the last trading day of the cure period are attained.

The Company expects to notify the NYSE that it will take steps to cure this deficiency within the prescribed timeframe. Until then, the Company's ADSs will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The Company is currently in compliance with all other NYSE continued listing standards. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements.

BEIJING, January 13, 2015 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that its joint venture with Bitauto Holdings Limited ("Bitauto") (NYSE: BITA) and Youxinpai (Beijing) Information Technology Co., Ltd. ("UXIN") announced on August 15, 2014 has been officially registered with the Beijing Municipal Administration of Industry and Commerce.

With operational planning having already begun, the JV will begin developing what is expected to be the largest Online-to-Offline platform exclusively dedicated to certified premium pre-owned cars in China.

The JV is expected to contribute significantly to the premium cars and pre-owned cars businesses of the Company, two of its four strategic pillars. It will initially be centered on Beijing, where sales of pre-owned cars, and particularly premium pre-owned cars, are growing much faster than sales of new cars, and it will gradually expand to other cities. With respect to the expansion outside Beijing, the recently announced BMW dealership in Gaobedian while contributing to geographic diversification, another strategic pillar of the Company, will eventually add to the volume of premium pre-owned cars for sale.

Mr. Hetong Guo, Founder and Chairman of Lentuo International, commented, "The official registration is another step towards establishing the JV and bringing it into full operational mode. Growth in the pre-owned car market in China continues to accelerate, as we expected. According to the most recently published data from the China Automobile Dealers Association, 4.9million pre-owned cars were sold in the first 10 months of 2014, a 16.78% increase compared to the same period in 2013for a total value of 294.4 billion RMB, up 27.08% compared to the same period of 2013. Such strong momentum bodes well for the future of this joint venture and we are looking confidently ahead to see it become fully operational and contribute to further growth and increased shareholder value."

BEIJING, Jan. 7, 2015 /PRNewswire/ --

Dear Shareholders,

As we reported last year, China's love affair with the road is just beginning. It is also fair to say that it is changing, and that those changes are quickly bringing it into line with the paradigm of well-developed markets in North America, Europe, and Asia. At Lentuo, we see ourselves as first movers, taking advantage of market evolution, whether that market is shaped by the need for cleaner skies, or by more demanding customers, or by the rapid expansion of China's car culture outside its first tier cities.

What are the major factors driving change in China's market today? Recent regulatory changes have created a level playing field, particularly for auto dealers who now have more control over costs and an increasingly stronger say in their cooperation with auto manufacturers. The single biggest factor however, is the Chinese car buyer. 10 years ago, in 2004, when the total number of new cars sold was just 2.2 million, most of the buyers - excluding the government market - were taking to their own wheels for the first time. 10 years later, with new car sales of 22 million in 2013, and likely to be close to the same number in 2014, the auto consumer is maturing. The original buyer may want a second car; the first-time buyer may look to a pre-owned car if he or she can find the quality they need.

These changes in mindset are adding up to a major opportunity in pre-owned cars. In the first 11 months of 2014, new car sales were up just 4.6 percent while used sedan sales grew by 16 percent through October 2014 and used SUV volume was up by 21 percent. In the United States, one in five cars sold are new cars while the other four are pre-owned.

Margins on pre-owned vehicles were between 10 percent and 15 percent in 2013, much higher than those from sales of new vehicles. The China Automobile Dealers Association expects that pre-owned car sales will grow from about 3 million in 2013 to 10 million cars in 2015, 20 million by 2020,and 36 million by 2023. With the national expansion of our premium car business growing rapidly, we are ideally positioned to benefit from the massive growth in China's pre-owned car market.

At Lentuo, we are basing our strategy going forward on four pillars. We are expanding beyond our base in Beijing, a natural development as new markets emerge in second and third tier cities. We are bringing our premium brand strategy to this expanded geographic footprint, with our new BMW dealership in Gaobeidian, a high-growth city south of Beijing, and other initiatives. We are laying the foundation for our pre-owned car business through strategic partnerships - both with financial partners and strong operational partners for our new Online-to-Offline business. Finally, we are building up our after-sales services, which enjoys higher margins than automobile sales and is vital for brand building in both the new car and pre-owned car business.

Strategies for a new age

Let me begin a more detailed discussion of these strategic pillars with an appropriate reference to their impact, which has already been substantial. Our financial results through the third quarter speak for themselves. Net income was up by 31.8 percent compared to the first nine months of 2013, to RMB 40.8 million ($6.6 million) on revenues of RMB 2.4 billion ($323 million), a 0.5 percent increase compared to the first nine months of 2013. While we might wish to see higher revenues, we have been focusing on boosting margin and average unit prices, both for car sales and repair and maintenance services. By these metrics, we have had a spectacular year through September 30. Average new vehicle unit prices increased by 5.7 percent to RMB 175,289 ($28,558), the average unit price for repair and maintenance services increased by 18 percent, to RMB 2,321 ($378) and gross margin for repair and maintenance services was 42.2 percent, up from 38.9 percent. Our present outlook through the end of the year maintains this trajectory.

First pillar: Building our relationship with premium brands

Lentuo's national reputation is based on its high-end, concierge-like customer service as well as its association with premium brands, including China's top-grossing foreign brand, FAW-Volkswagen Audi.  

In 2014, we have made the strengthening of our high-end brand portfolio a strategic priority, as part of our focus on increasing margin and profitability, demonstrated by the increase in average unit price in car sales through the third quarter. Our strategy to strengthen our high-end brand portfolio was based on our decades-long relationship with FAW-Volkswagen Audi and our joint venture with Itochu Corp., the parent company of the legendary Japanese dealership Yanase. Itochu's confidence in Lentuo's future resulted in a RMB 300 million investment in the joint venture giving it a 40% equity stake in Beijing Lentuo Aotong Automobile Trading Co., Ltd., which we are leveraging to expand our high-end car sales and service network nationwide.

In an effort to replicate our long-standing relationship with FAW-Volkswagen Audi, we are in discussions with a number of other high-end brands. I am very pleased to report that BMW, China's second-grossing foreign brand, granted approval in October to become an authorized BMW dealer. This will be our first BMW dealership, located in Gaobeidian, just south of Beijing in the Beijing-Tianjin-Hebei economic triangle. This new dealership actually represents two pillars of our strategy - expanding our high-end brand portfolio and expanding geographically outside Beijing. Gaobeidian is a development and reform pilot city and an ideal location to attract customers from nearby cities, with a growing population and rapid economic growth.

Second pillar: Building brand visibility beyond Beijing

Although Beijing remains our operational hub, vehicle sales outside Beijing continued to grow at a faster pace, increasing 33.5 percent to RMB 430 million during the first nine months of 2014. With nine of our 12 dealerships located in Beijing, we are actively developing locations beyond the city to increase our brand visibility and recognition geographically. We currently have dealerships in Jiangsu, Zhejiang and Guangdong provinces and are exploring opportunities in other traditionally underserved markets in southwest China such as Yunnan, Guizhou and Sichuan provinces as well as wealthy cities in southeastern coastal areas. The BMW dealership in Gaobeidian represents the kind of opportunities we are seeking as it straddles two of our strategic pillars. In addition to being located outside Beijing, the 14,000 square meter facility also diversifies our high-end brand portfolio.

Third pillar: Certified pre-owned car business

In August, we signed a joint venture with Bitauto Holdings Limited and Youxinpai (Beijing) Information Technology, to build China's largest O2O platform exclusively focused on high-end pre-owned cars. Bitauto, one of China's foremost providers of Internet content and marketing services for China's automotive industry will build a dedicated portal listing pre-owned cars available for sale by the joint venture, linked to its huge data base of online sales and purchase leads. Youxinpai, a leading professional auto auction service provider, will provide its expertise in online auctions. Lentuo will contribute its state of the art offline resources in the pre-owned car business, including its physical facilities and experienced technicians and certification professionals.

Many of you will be aware that fragmentation and lack of credibility have been among the key weaknesses of the pre-owned car business in China. In April, we launched our own certification program based on a complete technical inspection and analysis of every pre-owned car offered for sale. We guarantee that they have no significant frame or internal damage, are in excellent working order and meet or exceed generally accepted standards for a particular make or model.

These cars, labeled Lentuo Certified Quality Cars, will be sold through our O2O platform initially from our pre-owned flagship store in Beijing, but moving beyond Beijing as we expand the geographic footprint of our pre-owned car dealership network. Our emphasis on quality and certification has made it possible to attract a significant financial partner, China Orient Tiantong Capital Management, a subsidiary of China Orient Asset Management Corp., a major state-owned financial asset management company. The strategic partnership with China Orient will help Lentuo provide adequate funding to our pre-owned car customers.

How can we make the pre-owned car business even more robust and sustainable? Beyond our in-house achievements, we are looking to join hands across company lines to work on a new pre-owned quality certification standard for all of China. This effort has been spearheaded by the Xing Certified Pre-Owned Car Alliance of the China Automobile Dealers Association (CADA). Lentuo, which joined the Xing Alliance in June 2014, is so far the only publicly listed company to do so. The Xing Alliance will oversee the nationwide rollout of CADA's pre-owned car technical inspection and analysis procedures.

Cars that successfully pass the tests in the Lentuo system will receive the Xing Alliance Certification in addition to the Lentuo Certified Quality Car Certification. The Xing Alliance represents a critical step in moving towards a unified and highly fungible market for pre-owned cars in China, where customers can feel confident in pre-owned car dealers and their products if that is what they choose to buy.

Fourth pillar: High-margin after-sales services

Our fourth pillar is very much a reflection of our increasing tilt toward premium cars. In the first nine months of 2014, we serviced 144,850 vehicles, essentially the same number as in the same period of 2013. Our revenues, however, increased by 17 percent to RMB 336.2 million ($54.8 million) from RMB 287.3 million in 2013, with the average unit price for repair and maintenance services increasing by 18.1 percent, to RMB 2,321 ($378).

Looking ahead

While our full-year results are still a few months away from release, I can tell you that I am confident we will sustain the momentum of the first three quarters through the end of the year. Last May, when we announced a share purchase plan for senior management, I described it as a sign of confidence in our long-term prospects. I am even more confident today. We made the right choices in moving our business model towards an emphasis on margins as much as market share. We hope that you, our shareholders, will share our confidence, and thank you for your loyalty and the trust you have placed in us.

Third Quarter 2014 Financial Results

• Revenues for the three months ended September 30, 2014 decreased 14.2% to RMB817.6 million ($133.2million) from RMB953.1 million in the third quarter of 2013.
• Basic and diluted earnings per ordinary share were RMB0.28 ($0.04) compared to basic and diluted earnings per ordinary share of RMB0.27 for the third quarter of 2013. This translates into basic and diluted earnings per ADS of RMB0.56 ($0.09).

"We are extremely pleased to have delivered net profits of RMB40.8 million for the first nine months of this year compared to RMB30.9 million a year ago as recent adjustments to our strategy are paying off. Average unit prices for new cars sold increased as we continued to shift our focus to high-end cars. After sales services revenues grew nicely both in absolute terms and as a percentage of total revenues with higher gross margins due primarily to a higher proportion of high-end cars serviced," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International.

"Our high-end car expansion strategy received a strong vote of confidence from BMW in recognition of our twenty years of industry knowledge and leading customer service experience. Our first BMW dealership will be located in affluent Gaobeidian, a city in the heart of the Beijing-Tianjin-Hebei economic triangle. It represents another critical step in our development, not only because of the diversification and expansion upmarket but also because we continue to grow outside Beijing and increase our brand visibility and recognition geographically. Meanwhile we continue our discussions with other high-end brands and believe we will see more positive developments in the future," added Mr. Guo.

BEIJING, October 14, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that its BMW dealership ("the dealership") in Gaobeidian, Hebei Province has been officially registered with the Gaobeidian Administration for Industry and Commerce.

This will be the first premium dealership in Gaobeidian, allowing customers to purchase premium cars, and get them serviced, in Gaobeidian rather than travel to surrounding cities such as Baoding, Beijing and Shijiazhuang as they previously had to. Gaobeidian is a small but economically prosperous city located just south of Beijing in the Beijing-Tianjin-Hebei economic triangle. Marketing research by both BMW and the Company indicates substantial demand for premium cars in and around the city.

The dealership, which should officially open during the third quarter of 2015, is expected to sell 250 new premium cars and contribute about RMB125 million in revenue in 2015. The Company believes that the dealership will break-even by the end of 2015. Once stabilized, the dealership is expected to sell about 900 new premium cars and contribute over RMB400 million in revenue annually.

"We are extremely excited to begin building a long and fruitful relationship with BMW as we work to quickly develop Gaobeidian's first premium-car dealership," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "Lentuo's new BMW dealership will allow customers to locally purchase and repair premium cars rather than travel long distances to surrounding cities. Its location within the Beijing-Tianjin-Hebei economic triangle will also allow us to increase the brand visibility of our premium-car business and build upon the reputation for quality we have built in Beijing."

BEIJING, Oct. 3, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has been granted approval to become a BMW authorized dealer. The Company's first BMW dealership will be built in Gaobeidian, Hebei Province, China.

The Company's first BWM dealership in Gaobeidian is another major step in the Company's strategy to expand sales and services of premium cars in China while continuing to diversify its business away from Beijing. This will be the first and only BWM dealership in Gaobeidian, a small, economically prosperous city located just south of Beijing in the Beijing-Tianjin-Hebei economic triangle. Gaobeidian is one of the first development and reform pilot cities designated by the National Development and Reform Commission in the 12th Five-Year Plan.

The BWM dealership will offer the full suite of Lentuo value-added after sales services, including vehicle financing, auto insurance, car leasing, auto accessories and spare parts, and will be adjacent to a high-volume office complex and upscale residential area. The dealership will cover an area of 14,000 square meters which includes a 12-car showroom and a repair and maintenance service center with 50 separate workstations.

"We are extremely excited to add a second high-end brand to our portfolio. Thanks to our solid brand recognition and reputation for high technical quality, we are confident that we will build a long and fruitful relationship with BMW. We continue our discussions with other high-end brands and believe we will see more positive developments in the future," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "The construction of our first BMW dealership is another critical step in our development, not only because of the diversification and expansion in our high-end portfolio but also because we continue our expansion outside Beijing. Sitting at the heart of the Beijing-Tianjin-Hebei economic triangle, Gaobeidian is an ideal location with its ability to attract customers from nearby cities, growing population and rapid economic growth. By expanding into new territories outside Beijing, we will be able to increase the brand visibility for our premium car business and fully leverage the 20 years of industry knowledge and leading customer service experience we have accumulated."  

• Revenue growth momentum continued with revenues increasing 8.5% to RMB825.1 million ($133.0 million), from RMB760.3 millionin the second quarter 2013.
• Basic and diluted earnings per ordinary share were RMB0.21 ($0.03) for the second quarter of 2014 compared to basic and diluted earnings per ordinary share of RMB0.36 for the second quarter of 2013. This translates into basic and diluted earnings per ADS ofRMB0.42 ($0.07) in the second quarter of 2014. Each ADS represents two ordinary shares. 

"With two consecutive profitable quarters this year, we believe that we have rebuilt our growth momentum in both our top and bottom lines," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "The optimization of our product mix towards high-end brands and higher-priced goods resulted in a 7.1% and 14.6% increase in revenues from new automobile sales and repair and maintenance services, respectively. We believe we have made the right strategic choice by expanding upmarket and will continue to focus on this segment. We are currently in active discussions with several high-end brands in an effort to strengthen our high-end portfolio and build upon our accelerating growth momentum."

"Our other top priority is our expansion into China's rapidly growing  pre-owned car market.  Growth in sales of pre-owned cars in China, which enjoy markedly higher margins, has overtaken that of new cars. CADA predicts that pre-owned car sales will grow from 9 million cars in 2014 to 20 million in 2020, demonstrating the enormous potential this market has. In particular for Beijing, a market where we have competitive advantages, the ratio of pre-owned car sales to new cars sales increased to 1.36:1 with transaction volumes for FAW-VW Audi, BMW, and Porsche accounting for 10.4% of all transactions. With this in mind, we recently entered into a joint-venture agreement with Bitauto and UXIN to integrate the resources of each partner to build the largest online-to-offline ("O2O") platform exclusively focused on high-end pre-owned cars in China. As the platform comes together, we are increasingly confident that the experience and reputation for quality we have developed over the past 20 years coupled with the extensive online resources and demonstrated business success of Bitauto and UXIN will lead to great success. We are working rapidly to establish this first mover advantage and expect operations to begin in December 2014."

Mr. Hetong Guo concluded, "China's pre-owned car market remains highly fragmented and I am certain that we have put the right strategy in place to take full advantage of our operational expertise and strengths. With growth in our core business regaining momentum, we will continue to focus on generating new revenues streams and eagerly look forward to leveraging future opportunities and generate increasing value for our shareholders."

BEIJING, Sept. 16, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today provided an update on its strategy to expand its sales and service network in the high-end car segment in China.

Over the past decade, Lentuo has made the strengthening of its high-end brand portfolio one of its strategic priorities. Since the opening of its first Audi dealership, the Company has continuously focused on expanding the number of its high-end dealerships and brands in an effort to accelerate growth in China's vast auto market, improve profitability and further strengthen its brand.

The Company has been and continues to be in active discussions with several high-end brands and believes that some of these discussions will lead to agreements to open additional dealerships and strengthen its high-end portfolio in the near future.

BEIJING, September 10, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today provided an update on its strategy for the rapid and comprehensive expansion of its pre-owned car business.

According to the China Automobile Dealers Association ("CADA"), Beijing is poised for rapid growth with transaction volumes for pre-owned cars having already surpassed those of new cars. During the first half of 2014, pre-owned car transaction volumes in Beijing exceeded 345,400 vehicles, an increase of 8.7% year-over-year. The ratio of pre-owned car sales to new cars sales increased to 1.36:1. Specifically, the transaction volume for FAW-VW Audi, BMW, and Porsche accounted for 10.4% of all transactions, demonstrating the strong growth potential of high-end pre-owned cars in Beijing.

The joint venture with Bitauto and UXIN, which will originally be centered on Beijing and gradually expand to other cities as the market develops, is currently awaiting official registration approval from the State Administration for Industry & Commerce which it expects will be completed by the end of September 2014 with operations beginning before the end of December 2014. The JV will integrate the resources of each partner to build the largest online-to-offline ("O2O") platform exclusively focused on high-end pre-owned cars in China.

Lentuo is currently in talks with major Chinese financial institutions to cooperate in adding a number of financial value-added after services which will include inventory financing, extended warranties, personal loans and will eventually expand into rentals, logistics and trade-in financing. These new financial instruments will not only provide strong financial support for the rapid expansion of Lentuo's pre-owned car business, but will also enhance the Company's profitability with a new high-margin revenue driver.

The Company is also well positioned to capitalize on this market opportunity as it emerges outside of Beijing. Recent statistics from the CADA show that during the first half of 2014, pre-owned car transaction volumes increased 12.77% year-over-year to 2.8 million vehicles with monthly transaction volumes exceeding 500,000 vehicles. The Company expects to see substantial growth in pre-owned car sales based on CADA data predicting pre-owned car sales growing from 9 million cars in 2014 to 20 million in 2020.

"China's pre-owned car market is set to enter an explosive stage of growth which we are ideally positioned to benefit from," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "New car sales in China surpassed 13.6 million vehicles in 2009 to become the largest car market in the world. With Chinese drivers buying new cars every five years on average, 2014 is a critical year in the development of the pre-owned car market. We are confident that we fully understand the market and have correctly assessed its potential and current weaknesses. We are moving quickly to develop a first-mover advantage in this new and exciting market where profit margins are much higher than new car sales. We are confident that Lentuo's 20 years of experience, solid reputation for quality and reliability, technical expertise, and range of value-add services and products will attract customers and provide significant and stable growth momentum going forward. We remain committed to achieving our strategic goal of developing a nationwide pre-owned car business."

BEIJING, August 28, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, Bitauto Holdings Limited ("Bitauto") (NYSE: BITA), a leading provider of Internet content and marketing services for China's fast-growing automotive industry, and Youxinpai (Beijing) Information Technology Co., Ltd. ("UXIN"), a leading professional auto auction service provider in China, today announced that senior management attended a ceremony in Beijing marking the signing of the joint venture ("JV") agreement.

The ceremony was presided over by Mr. William Bin Li, Chairman and Chief Executive Officer of Bitauto, Mr. Chris Kun Dai, Chairman and Chief Executive Officer of UXIN, and Mr. Hetong Guo, Founder and Chairman of Lentuo International. Mr. Lei Luo, Vice-General Secretary of CADA was also in attendance and delivered congratulatory remarks.

The establishment of the JV is moving rapidly and smoothly. The partners expect the JV to be officially registered by the end of September 2014 and are cooperating actively to begin operations before the end of December 2014.

The joint venture, which will originally be centered on Beijing and gradually expand to other cities, will integrate the resources of each partner to build the largest Online-to-Offline platform exclusively focused on high-end pre-owned cars in China. Lentuo will own 60% of the joint venture with Bitauto and UXIN each holding 20%.

BEIJING, Aug. 15, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, and Bitauto Holdings Limited ("Bitauto") (NYSE: BITA), a leading provider of Internet content and marketing services for China's fast-growing automotive industry, today announced that they, together with Youxinpai (Beijing) Information Technology Co., Ltd. ("UXIN"), a leading professional auto auction service provider in China, have entered into a joint venture ("JV") agreement. The joint venture, which will originally be centered on Beijing and gradually expand to other cities, will integrate the resources of each partner to build the largest Online-to-Offline platform exclusively focused on high-end pre-owned cars in China. Lentuo will own 60% of the joint venture with Bitauto and UXIN each holding 20%.

The power of the joint venture is in the combination of (i) Bitauto's online database, substantial nationwide user base, extensive technological know-how and big data analysis, (ii) the leading expertise of UXIN in quickly and efficiently disposing of unsold inventories through its sophisticated online auctions, and (iii) Lentuo's substantial offline diversified resources in the pre-owned car market. This is happening at a time when the growth in sales of pre-owned cars in China has overtaken that of new cars and margins are markedly higher.

Bitauto will leverage its technological know-how and resources to build a dedicated "one-stop shopping" portal which will list pre-owned cars available for sale for the joint venture. As a fully engaged partner in the JV, Bitauto is committed to directing its vast database of online sales and purchases leads and its related online resources of high-end pre-owned cars in priority to the JV portal. Any of the pre-owned cars not sold within 45 days of being placed on the portal will automatically enter into UXIN's auction system � integrated into the portal � where the cars will be available for purchase to the highest bidder. This will further facilitate the timely disposal of car inventories.

Lentuo will contribute its extensive state-of-the-art offline resources in pre-owned car business. These include its physical facilities and highly experienced technicians and certification professionals that provide all the critical offline services required to build a credible and successful pre-owned car business, such as inspection, refurbishing, and certification which are all necessary elements to increase buyer confidence and facilitate financing. Additionally, Lentuo has extensive expertise, acquired over more than twenty years in operations, in providing highly reliable repair and maintenance services that bring extra comfort to buyers of pre-owned cars.

The JV will also offer a full suite of value-added after sales services, including vehicle financing,auto insurance, and car leasing.

"China's used car market is set for rapid growth in order to meet the growing needs of customers in China. We are pleased to cooperate with Lentuo and are confident that the combination of Bitauto's established and growing online presence, technological know-how and analytical capabilities together with Lentuo's diversified and high quality offline resources will make this joint venture a success." said Mr. William Bin Li, Chairman and Chief Executive Officer of Bitauto.

Mr. Chris Kun Dai, Chairman and Chief Executive Officer of UXIN added, "We are excited to be a part of this joint-venture. Our leading online auction platform and strong expertise in auctioning pre-owned cars, and the quality of Lentuo's extensive and rigorous certification process will maximize the value of car inventories and build a leading business that will contribute to a healthier pre-owned car market in China."

Mr. Hetong Guo, Founder and Chairman of Lentuo International commented, "We are extremely excited that major and well established companies in the Chinese pre-owned car market such as Bitauto and UXIN have decided to partner with us. The experience we have accumulated over the past few years, the range of our services and products and the demonstrated quality of our technical resources and processes, coupled with the extensive online resources and demonstrated business success of Bitauto and UXIN constitute the best possible combination of talent and track record in the pre-owned car market in China. We have no doubt that this JV will realize its objectives and achieve great success."

First Quarter 2014 Financial Results

• Building upon its return to profitability for the year 2013, net income was RMB9.0 million ($1.5 million), compared to net loss of RMB8.1 million in the first quarter of 2013.

• Basic and diluted earnings per ordinary share were RMB0.14 ($0.02) for the first quarter of 2014 compared to basic and diluted loss per ordinary share of RMB0.14 for the first quarter of 2013. This translates into basic and diluted earnings per ADS of RMB0.28 ($0.05) in the first quarter of 2014

"I am extremely pleased to report a profitable start to 2014, as we build upon the momentum we gained last year," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "Our turnaround to profitability in the first quarter was the result of three main factors. First, we succeeded in raising the average selling price of our new vehicles by nearly 13%, which helped us achieve a nearly 12% increase in quarterly revenue. Second, we were able to increase our revenue from repair and maintenance services by about 33%. And third, we were able to significantly increase our gross margins on automobile sales as well as gross margins on repair and maintenance services compared to the first quarter in 2013.''

"The increase in gross margin for automobile sales", explained Mr. Guo, "was due in part to the company's introduction of more higher-priced models into its product mix and more favorable rebate policies by auto manufacturers. Gross margins on automobile repair and maintenance services increased due to the optimization of the Company's service offering mix within repair and maintenance services towards higher-margin products."

"Looking to the future," continued Mr. Guo, "we believe our new pre-owned car business will yield sustainable long-term growth. Margins on pre-owned cars in China are currently about double those on new cars, and we also anticipate achieving additional high-margin revenues on such after-sales products as financing and insurance."

"Plus, government and industry studies indicate that China's pre-owned car industry is fairly fragmented and will grow at least five-fold in the next decade, so we feel even more confident that our pre-owned car business will participate strongly in this growth."

"In addition, membership in China Automobile Dealers Association's newly launched Xing Alliance is expected to increase our 2014 pre-owned sales by about 800 cars."

Mr. Guo concluded, "With our lean corporate structure and solid operational expertise, we are confident in our ability to seize future opportunities and deliver additional growth to our shareholders."

BEIJING, June 19, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has joined the China Automobile DealersAssociation's ("CADA") newly launched Xing Certified Pre-Owned Car Alliance ("Xing Alliance").

This move, said Lentuo, is projected to generate incremental 2014 company revenue of approximately US$40 million.

This new revenue, said LAS chairman and CEO Mr. Hetong Guo, is expected to arise as a result of the Xing Alliance increasing the level of confidence in pre-owned cars, which, in turn, will enhance growth of Lentuo's recently formed certified pre-owned car business and increase its 2014 pre-owned sales by about 800 cars.

Lentuo is the only publicly listed company among the first nine to join the Xing Alliance, which is expected to provide the first pre-owned quality certification standard in China. The Xing Alliance will oversee the nationwide rollout of CADA's pre-owned cartechnical inspection and analysis procedures. All Xing Alliance pre-owned cars will receive a complete technical inspection and analysis to ensure they have no significant frame or internal damage, are in excellent working order and meet or exceed CADA standards for a particular make and model. Only those cars which successfully pass these standards will receive Xing Alliance Certification.

"We are honored to be among the first nine companies invited to join the Xing Alliance," added Mr. Guo. "We believe our membership will help us to further leverage our solid reputation for quality and reliability in the pre-owned auto market. As this market develops, we expect our association with the Xing Alliance to produce accelerating revenue for our own pre-owned car business."

According to recent data from CADA, pre-owned car sales in China are expected to grow from 10 million cars in 2015 to 20 million in 2020.

BEIJING, June 12, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it is acquiring a new FAW-VW dealership in Xuzhou, Jiangsu Province.

This transaction represents another prudent step in Lentuo's strategy to diversify its business away from Beijing and it further deepens the Company's strategic partnership with FAW-VW. This will be the first Lentuo dealership in the province which had the highest provincial GDP per capita in China in 2013. Located in Xuzhou, an economically prosperous transportation and manufacturing hub with a population of approximately 8.6 million, the Xuzhou Dealership will offer the full suite of Lentuo value-added after sales services, including vehicle financing, auto insurance, car leasing, auto accessories, spare parts as well as a pre-owned car business. It will cover an area of 8,000 square meters which includes a 1,500 square meter showroom. The 2,200 square meter repair and maintenance service center has 30 separate workstations that are able to service up to 150 vehicles per day.

The final purchase price will be determined once the expert valuation work has been completed by a third-party evaluation company. The transaction, which has been approved by the board of directors of the Company, is expected to close during the third quarter of 2014.

"This acquisition achieves three important objectives for us. First, it positions us in one of the wealthiest provinces of the nation. Second, it helps us grow our business outside Beijing where sales of new cars continue to be limited. And third, it further expands our strategic partnership with FAW-VW," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "With this addition, we now operate five FAW-VW dealerships including our FAW-VW flagship store in Beijing which is the largest of its kind in China. We have come a long way since we began selling FAW-VW cars in 1997 and are committed to deepening this partnership even further in the years to come. Sitting at the heart of a major manufacturing and transportation hub, Xuzhou is an ideal location with its growing middle-class, fragmented market and rapid economic growth. Expanding into new geographies strengthens our brand and allows us to leverage the synergies between our different business units across China."

BEIJING, June 7, 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.

(d) None of Mr. Guo's equity interest in the Company or the revenues of the Company were ever nor are currently pledged as collateral for any other trust loan incurred by LE.

The Company's independent registered public accounting firm has issued a non-qualified audit opinion in connection with the Company's annual report on Form 20-F for the fiscal year ended December 31, 2013.The Company is fully committed to providing full and accurate disclosure to investors and is confident that Mr. Guo's ownership in the Company will remain unaffected by his other business interests.

The Company is considering the necessary and appropriate course of actions in response to the false allegations made by GeoInvesting or other parties, including but not limited to taking legal actions against any party who makes misleading and unsubstantiated statements or distributes untruthful information about the Company.

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.

BEIJING, May 27, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or "the Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that members of its senior management team, including its Chairman Mr. Hetong Guo and Chief Executive Officer Mr. Jing Yang, have informed the Company of their intention to use their personal funds to purchase the Company's American Depositary Shares on the open market for an aggregate amount up to a maximum of $1.0 million within the next 12 months, in accordance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Mr. Guo commented, "This share purchase plan demonstrates our management team's confidence in the long-term prospects of Lentuo's business. We believe China's automobile market is poised to further expand. In 2013, we saw double-digit growth in car sales in China, rising 14% to 22 million vehicles, according to the China Association of Automobile Manufacturers. For Lentuo, our gross margin in both auto sales and repair and maintenance services increased in 2013. We expect 2014 to be another strong year. In particular, we will take full advantage of the huge opportunities presented by the emerging pre-owned car market through our innovative "online to offline" model and the launch of Lentuo Pre-Owned Car Quality Certification Program."

BEIJING, May 22, 2014 /PRNewswire/ --

Dear Shareholders,

China, as a nation, is only beginning its love affair with the road. In 2013, we saw double-digit growth in car sales, rising 14% to 22 million vehicles, according to the China Association of Automobile Manufacturers, after two years of relatively weak, single-digit growth in the world's largest auto market.

This is part of a process, as car ownership spreads from the sophisticated urban base of China's capital, Beijing, and its coastal cities, to the fast-growing second and third-tier cities of China's interior. We expect 2014 to be another strong year. A range of factors is boosting demand � rapid urbanization, economic stimulus measures, and falling car prices. The last phenomenon is an effect of higher levels of local content in cars produced by joint manufacturing ventures under international brands, making car ownership more affordable for China's aspirational middle-class consumers. Based on estimates by the consulting firm McKinsey & Company, by 2022 China's middle class will increase by 100 million people to 357 million, and 54% of Chinese households will have disposable annual income of between RMB 106,000 and RMB 229,000 (US$17,191 to US$37,141).

Fourth Quarter 2013 Financial Results

• Revenues for the three months ended December 31, 2013 decreased by 2.1% to RMB858.8 million ($141.9 million) from RMB877.1 million in the fourth quarter of 2012.
• Basic and diluted loss per ordinary share were RMB0.11 ($0.02) for the fourth quarter of 2013, compared with basic and diluted loss per ordinary share of RMB0.41for the fourth quarter of 2012. This translates into basic and diluted loss per ADS of RMB0.22 ($0.04) in the fourth quarter of 2013.

"I am extremely pleased to report Lentuo's return to profitability for the year 2013 as the positive effects of our strategy continue to gain momentum and our margins are once again growing," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International. "Our large customer base continued to expand with the sale of 17,561 vehicles throughout the year, a 3.9% increase year-over-year. By offering the very best customer service experience, we have managed to grow our historical base to over 200,000 customers; a significant platform from which we intent to build upon as we capitalize on the positive long-term fundamentals of China's auto industry."

"We have been focused on our new pre-owned car business venture which we believe will develop into a strong and sustainable high-margin revenue driver. With China's pre-owned car market set to enter an explosive growth stage, we are confident that we have the required management depth and market knowledge to fully leverage our strengths as we begin the rapid and comprehensive nationwide expansion of our pre-owned car business. We intend to build a first-mover advantage by rolling out a fully-integrated online-to-offline platform leveraging our newly established certification program which will extend the high-quality customer service and extensive technical know-how that Lentuo is known for into the fast growing Chinese e-commerce world."

Mr. Hetong Guo concluded, "With a highly fragmented pre-owned car market in China, we are eager to fully assert ourselves in this new and rapidly developing market. Meanwhile, we have been making good progress in our joint venture with Itochu and are working on securing distribution agreements with foreign high-end brands. We eagerly look forward to the opportunities that lie ahead as we build upon the solid progress we have made so far and deliver growth to our shareholders."

BEIJING, April 17, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced it has launched a quality certification program to support its growing Certified pre-owned car business and improve confidence and transparency in the pre-owned car industry.

Effective today all of the Company's mid- to high-end pre-owned cars will receive a complete technical inspection and analysis to ensure they have no significant frame or internal damage, are in excellent working order and meet or exceed generally accepted standards for a particular make and model. Only those cars that successfully pass this inspection will be offered for sale. This will provide much needed price transparency, increase buyer confidence and make financial institutions more comfortable in financing purchases and managing credit risk.

These cars, labeled Lentuo Certified Quality will be sold through the O2O platform announced by the Company on March 3, 2014, which will incorporate the Company's flagship showroom in Beijing and additional pre-owned dealerships to be opened as the Company expands geographically.

Lentuo expects various substantial synergistic effects resulting from the build–up of this dedicated pre-owned car business. Among others, revenues from repair and maintenance should expand as the Company will offer discounts to buyers of its certified pre-owned cars.

Financing for pre-owned cars in China has been constrained by the lack of pricing transparency and quality standards, somewhat slowing down the expansion of this much needed market. With its reputation for quality, advanced technological equipment and the launch of this rigorous certification program, Lentuo has gained the strategic support of China Orient Tiantong Capital Management Ltd., a subsidiary of China Orient Asset Management Corp, a major state-owned financial asset management company. China Orient Tiantong will leverage its institutional power and substantial funding capabilities to help Lentuo provide adequate financing to the certified pre-owned car buyers.

"With the launch of this program, the O2O platform, and the strategic financial support of China Orient Tiantong, we now have in place the key elements necessary to build a robust pre-owned car business that we expect to grow beyond Beijing over time," said Lentuo founder and chairman, Mr. Hetong Guo.

Mr. Guo continued: "Our program, with its certified expert inspection and industry-leading warranties, will help, we believe, to greatly increase the level of confidence in our pre-owned cars and make the pricing of these cars far more transparent. This should help us drive our sales of pre-owned cars to a higher level, especially once the O2O platform is operational.  We also expect additional benefits as a result of the synergistic effect with our after-sale services."

BEIJING, March 12, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has signed a strategic agreement with China Orient Tiantong Capital Management Ltd. ("Orient Tiantong"), a subsidiary of China Orient Asset Management Corporation, a major state-owned financial asset management company.

Orient Tiantong's experienced management team will leverage the vast financial resources of China Orient Asset Management Corporation, its branches in 26 cities across China, and its extensive local market knowledge, to help Lentuo build and geographically expand its pre-owned car business throughout China.

As a first step, Orient Tiantong will finance the conversion of an existing new car showroom in South Beijing into a fully integrated pre-owned car flagship store for mid-to-high end cars that was announced on February 18, 2014, and provide ongoing working capital for its operations.

Subsequently, as the business expands to capitalize on the rapid growth in the pre-owned car market, Orient Tiantong will finance the building of pre-owned car flagship stores in cities across China. Priority will initially be given to cities where Orient Tiantong already has a presence and will be able to contribute in an additional way by providing strong local connections and market knowledge.

Mr. Hetong Guo, Founder and Chairman of Lentuo International commented, "We are extremely pleased to have found such a strong financial partner who believes in our long-term strategy for the pre-owned car market in China. By combining Orient Tiantong's robust financial capabilities, local market knowledge and contacts with our operational expertise, advanced equipment, and solid reputation, we believe we are strongly positioned to build a highly professional and successful pre-owned car business."

BEIJING, March 3, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has signed an agreement ("the Agreement") with Sohu Auto, a leading online auto information provider in China and a business unit of Sohu.com Inc. (NASDAQ: SOHU), to create a fully integrated online-to-offline ("O2O") platform for pre-owned cars in China. Sohu Auto will act as online marketing partner for this platform. The platform will greatly expand Lentuo's ability to reach a larger group of car buyers and allow it to meet the growing demand from younger Chinese who increasingly shop for cars on the internet.

Under the terms of the Agreement, Lentuo will act as the exclusive after-sales service provider for pre-owned cars certified by Sohu as long as Lentuo meets Sohu's quality standards.

On the physical side of the platform, and as a first step, Lentuo announced on February 18, 2014 that it will convert an existing new car showroom in South Beijing into a fully integrated pre-owned flagship store for mid-to-high end cars that will privilege customer experience, reliability and extensive choice. The flagship store will employ state-of-the-art technological equipment and rely on Sohu's IT systems to ensure the highest level of service quality and productivity.

The online side of the platform will leverage Sohu Auto's technological know-how and extensive IT resources to continuously enhance the O2O platform and build big data analytical tools which will allow a comprehensive and highly focused leverage of its expansive user base. The two parties plan to expand the platform to the rest of the country in the future.

Mr. Hetong Guo, Founder and Chairman of Lentuo International commented, "We are excited to team up with Sohu Auto to build a fully integrated online-to-offline platform for pre-owned cars in China."

"While sales of pre-owned cars in China have been growing faster than sales of new cars over the recent years, the market is extremely fragmented, suffers from a lack of professional and ethical standards, and makes scant use of advanced technological equipment."

"This new platform will provide a one-stop shop and high quality customer experience in a hassle-free and highly professional environment. In addition to a streamlined information gathering and transacting process, customers will benefit from reliable certification as well as modern technical facilities and services, financing, and insurance."

"Our efforts to build a pre-owned car business over the past two years have taught us a lot. We know the demand is there and will continue to grow rapidly. We understand customer behavior in this segment and we have become fully aware of the trend towards greater use of the internet to obtain information and conduct transactions. The proven quality of our technical services, relying on sophisticated equipment, our experience in providing financing,our loyal customer base, and our investment in a state-of-the-art dedicated center will provide a strong physical foundation for this platform."

"Sohu's strong track record in building online businesses, its established presence in the automobile online sector, its substantial user base, and its nationwide reach and recognized brand will ensure the technological success of the platform, attract an online audience of potential buyers and sellers, and gradually contribute to the scalability of this business."

Mr. Guo concluded: "With the market still in its very early stages and a solid partnership with Sohu Auto, we are confident in our ability to substantially expand our pre-owned car business and advance our overall strategy."

BEIJING, Feb. 18, 2014 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced its strategy for a rapid and comprehensive expansion of its pre-owned car business.

After extensive analysis of the pre-owned car market in China, the Company strongly believes that the time has come for a substantial overhaul of current practices at a time when this market is growing faster than sales of new cars and that the car ownership aspirations of a large number of Chinese consumers require the rapid development of a strong and healthy pre-owned car market nationwide.

The Company intends to quickly build a first-mover advantage through the roll-out of an online-to-offline ("O2O") platform that it intends to implement in the near future, leveraging its extensive technical know-how, loyal customer base, sophisticated equipment, and experienced management team.

Lentuo has held discussions with potential partners for the development and implementation of the O2O platform and its rapid geographical expansion. The Company will make partnership announcements in due time.

On the physical side of the platform, and as a first step, Lentuo announced today that it will convert an existing new car showroom in South Beijing into a fully integrated pre-owned flagship store for mid-to-high end cars that will privilege customer experience, reliability and extensive choice.    

Customers will be able to buy certified pre-owned mid-to-high end cars from Lentuo and a number of high-quality third party dealers and transfer ownership title on the spot because of the strategic location of the store in the Beijing Economic and Technological Development Area ("BDA") which has already developed as a center for car sales. Other services will include trade-ins, financing and repair and maintenance services. The flagship store will be at the center of the BDA, a state-level development zone that includes a large, heavily trafficked office complex with a number of foreign and domestic Fortune 500 companies and an exclusive housing community. The store will benefit from a concentrated high-income population and favorable government policies for firms located within the BDA.

China's current pre-owned car market remains highly fragmented and suffers from quality and reliability issues as well as complex and confusing evaluations and trade-in programs. With a pool of 137 million cars in China, including over 5 million in Beijing, as ofDecember 2013, the Company expects substantial growth in the number of cars available for the pre-owned car market. The Company is well positioned to capitalize on this market opportunity.

Mr. Hetong Guo, Founder and Chairman of Lentuo International commented, "We are very excited about this new business venture that we believe will develop into a strong and sustainable high-margin revenue driver. We are confident that we fully understand the pre-owned car market, that we have correctly assessed its potential and current weaknesses, that we have the required management depth, and that we will attract strong partners that will contribute substantial value and expertise to help us quickly develop a first-mover advantage."

Third Quarter 2013 Financial Results

• Revenues for the three months ended September 30, 2013 increased by 13.6% to RMB953.1 million ($155.7 million) fromRMB838.9 million in the third quarter of 2012.
• Basic and diluted earnings per ordinary share were RMB0.27 ($0.04) for the third quarter of 2013, compared with basic and diluted loss per ordinary share of RMB0.11 for the third quarter of 2012. This translates into basic and diluted earnings per ADS ofRMB0.54 ($0.08) in the third quarter of 2013. 

"We continue to see the positive results of our strategy to focus on higher margin models and expansion of our after sales services. Revenue and gross margins both increased, particularly in automobile sales, year-over-year, and revenue from higher margin after-sales services increased as a percentage of total revenues. These operational and financial developments demonstrate the strength of the positive long-term fundamentals of China's auto industry and our ability to capitalize on them," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International.

"Our FAW-Volkswagen flagship store in Beijing has started to contribute revenues since its official launch in mid-July 2013 selling 310 vehicles during the quarter. This store has also further reinforced our 16-year relationship with FAW-Volkswagen and exemplifies the kind of long-term relationships we intend to build with all of our partners. As we continue to optimize our product mix towards higher-margin vehicles and after-sales services, we look forward to developing equally deep relationships with Itochu Corporation and First Automobile Finance which have demonstrated their faith in our strategy with their substantial financial and managerial resources."

Mr. Hetong Guo concluded, "While I am pleased with the progress we have made so far, I realize we still have a way to go. We will continue to solidify our position as one of China's premier dealership brands by leveraging the knowledge and resources we have acquired from our multiple partnerships and experience. I look forward to the opportunities that will emerge as we seek to continue to deliver sustainable growth over the long-term."

Second Quarter 2013 Financial Results

• Net income increased 152.9% to RMB21.3 million ($3.5 million), from net income of RMB8.4 million in the second quarter of 2012.
• Basic and diluted earnings per ordinary share were RMB0.36 ($0.06) for the second quarter of 2013 compared to basic and diluted earnings per ordinary share of RMB0.14 for the second quarter of 2012. This translates into basic and diluted earnings per ADS of RMB0.72 ($0.12) in the second quarter of 2013. Each ADS represents two ordinary shares.

"I am pleased to report a significant increase in our profits year-over-year as we return to profitability after losses in the previous three quarters," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "This is the result of our continued strategic focus on the high-end car market and expansion of our after sales services. These results are indicative of our ability to capitalize on the long-term fundamentals of China's auto industry and our determination to see our strategy through."

"We expect to see our operational and financial performance continue to align with our solid fundamentals as exciting new projects grow to scale such as our recently opened and fully operational FAW-Volkswagen flagship store and pre-owned car center in Beijing. Our joint-venture project with Itochu Corporation has also begun operating and leveraging the substantial financial and managerial resources Itochu has to offer as it seeks to capitalize on the growing demand for premium cars in China. Additionally, we signed a letter of intent with Hailin government to jointly develop the Hailin City Auto Mall which also marks another important step in our growth strategy as we expand our presence outside Beijing and develop our brand equity."

Mr. Hetong Guo concluded, "In summary, we are excited about the opportunities that lie ahead. We have further solidified our position and ability to compete in this highly competitive market with the execution of our strategy and focus on greenfield expansion. The additional resources provided by our milestone agreements with Itochu and First Automobile Finance have assisted us in establishing and creating new revenue streams which we fully intend to capitalize on. I look forward to fully leveraging these initiatives as we seek to deliver sustainable growth over the long-term."

Expansion Strategy Update

Lentuo's new FAW-Volkswagen flagship store in Beijing officially opened in mid-July and is performing up to expectations.

Lentuo's centralized pre-owned car center housed within the FAW-Volkswagen flagship store has also officially opened and has begun selling used vehicles and providing other value-added services. The pre-owned car center will consolidate and centralize the pre-owned car business activities previously managed by individual dealerships and bring them under the management of Lentuo's headquarters. As the Company continues its dealership expansion outside Beijing, the pre-owned car business will span across various regions enabling low-end vehicles traded-in at Lentuo's Beijing dealerships to be sold in tier two and tier three cities in China.

Lentuo signed a letter of intent with the Hailin Economic and Technological Development Zone in Hailin City,Heilongjiang Province, China to jointly develop the Hailin-Lentuo Auto Mall. The Hailin-Lentuo Auto Mall will include numerous full-service 4S[1] dealerships from some of the world's leading brands with a large inventory of new and pre-owned cars, state-of-the-art showrooms, repair and maintenance service centers, vehicle insurance vendors, leasing services, auto parts, carwash services, etc.

The Company's joint venture agreement with Itochu, a Fortune Global 500 company, has received all necessary government approvals and has become operational. The joint-venture will focus on the expansion of Lentuo's high-end car dealerships across China, starting with the new Audi 4S dealership under construction in southern Beijing. The joint-venture will also scale up its higher margin repair and maintenance services.

BEIJING, July 24, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that its flagship FAW-Volkswagen ("FAW-VW") store in Beijing was officially opened during a ceremony held last week. The flagship store had been undergoing trial-operations since May, 2013.

Located in Wangsiying township near Beijing's East Fourth Ring Road, the flagship FAW-VW store is adjacent to a large, heavily trafficked shopping mall and entertainment center as well as an exclusive housing community which will increase Lentuo's visibility and attract new customers. The dealership offers customers the latest model FAW-VW vehicles and provides the highest standard in automobile repair and maintenance services. The flagship store will also offer a full suite of value-added after sales services, including vehicle financing, auto insurance, car leasing, auto accessories, spare parts as well as a pre-owned car business.

The flagship store covers an area of 14,000 square meters and contains a three-story building with a 7,000 square meter showroom able to showcase 22 cars. The repair and maintenance service center has 56 separate workstations that are able to service up to 200 vehicles per day. The flagship store is expected to sell more than 3,000 vehicles annually and contribute vehicle sales of approximately RMB500 million annually.

"The opening of this flagship store represents a major milestone for Lentuo and another momentous step forward in our longstanding relationship with FAW-VW. Lentuo began selling FAW-VW vehicles in 1997 and has since deepened its relationship with FAW-VW by opening 4 FAW-VW dealerships so far, including the flagship store which is the largest FAW-VW dealership in China. As we move forward, we will continue strengthen our relationship with FAW-VW as we leverage the financial resources and support provided by First Automobile Finance, a subsidiary of FAW Group, for our network expansion following the comprehensive cooperation agreement we signed in August 2012," commented Mr. Hetong Guo, Founder and Chairman of Lentuo International.

"We have grown steadily over the past few years, doubling the number of dealerships to 12 since we listed on the NYSE in 2010. With the Company operating more efficiently and growing steadily, we expect to regain profitability in the second quarter of 2013, and realize no less than $10 million in net income for the full year 2013. With the recent investment of RMB300 million from our JV partner, Itochu, we have ample cash flow, and we are confident in our ability to deliver on our growth strategy."

BEIJING, June 20, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has signed a letter of intent ("LOI") with the Hailin Economic and Technological Development Zone in Hailin City, Heilongjiang Province, China to jointly develop the Hailin-Lentuo Auto Mall.

Located in Heilongjiang Province, the Hailin Economic and Technological Development Zone was designated as a national level development zone by the State Council in 2010. It is one of the only three national level Economic and Technological Development Zones in Heilongjiang Province. Under the terms of the LOI, Hailin City has agreed to provide approximately 266,000 square meters for the auto mall. With the strong support of Hailin City's government and the benefit of its long experience in the car dealership business, the Company is in the process of selecting strategic investors for the project.

The Hailin-Lentuo Auto Mall will include numerous full-service 4S dealerships from some of the world's leading brands with a large inventory of new and pre-owned cars, state-of-the-art showrooms, repair and maintenance service centers, vehicle insurance vendors, leasing services, auto parts, carwash, etc.   

"This is another important step in our growth strategy as it will significantly expand our presence outside Beijing and will give us a leading role in one of the region's newest auto malls. I am thankful to the Hailin government for its trust in our ability to lead this project to success both for the city of Hailin and for Lentuo and its shareholders," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "Hailin City, with its growing middle class and lack of a dominant dealership, is an ideal example of a strategic city for our expansion program. The auto mall will further expand our geographic reach in China and support our brand with marketing campaigns focused on Northeast China.

"The concentration of a number of dealerships and ancillary operations, and the centralization of our internal resources in one specially designed and technologically up-to-date environment will allow us to capitalize on economies of scale and effective cost management," concluded Mr. Guo.

First Quarter 2013 Financial Results

• Revenues decreased 7.4% to RMB700.5 million ($112.8 million), from RMB756.8 million in the first quarter 2012.
• Net loss was RMB8.1 million ($1.3 million), compared to net income of RMB16.8 million in the first quarter of 2012.
• Basic and diluted loss per ordinary share were RMB0.14 ($0.02) for the first quarter of 2013 compared to basic and diluted earnings per ordinary share of RMB0.28 for the first quarter of 2012. This translates into basic and diluted loss per ADS of RMB0.28 ($0.04) in the first quarter of 2013. Each ADS represents two ordinary shares. Weighted average ordinary shares outstanding in the first quarter of 2013 remained unchanged from one year ago at 58,937,912.

"Despite significant challenges from a difficult market environment, we continued to move our business forward as our earlier decisions to focus on the high-end car market and expand outside Beijing begin to bear fruit," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "While disappointing, our performance during the quarter did yield solid growth in the number of vehicles sold and number of vehicles serviced. I believe these results validate our expansion strategy and represent the positive direction that our business is moving. As we implement our strategy, we expect that our top and bottom line will continue to improve and become more representative of the significant progress we have made both operationally and strategically in the past year."

"As our business gains momentum and builds to scale, we are increasingly focused on the sale of more high-end vehicles where we see enormous market potential. Our joint-venture project with Itochu Corporation received approval from the Beijing Government last month which marks an important step in the series of government approvals we must first obtain before operations can begin. This strategic partnership places Lentuo in a unique position and provides substantial financial and managerial resources to capitalize on the growing demand for premium cars in China. With the recent addition of Ms. Jennifer Chen, our previous chief financial officer, the joint-venture will certainly act as a significant growth driver for Lentuo."

Mr. Hetong Guo concluded, "Looking forward, I believe that our position and ability to compete in this market has further improved and that we are on the cusp of seeing the full benefits of our strategy. With the additional financial resources provided by our joint venture agreement with Itochu and the strategic agreements with First Automobile Finance, we have built a solid base to support the new revenue drivers we created with our new centralized pre-owned car center, the soon to be officially opened FAW-VW flagship store, and the upcoming Audi dealership in south Beijing. We are confident that all these initiatives will enable us to deliver further growth and benefits for our shareholders."

BEIJING, June 5, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading non-state-owned automobile retailer headquartered in Beijing, today announced that it has received approval from the Beijing government for its joint venture ("JV") with Itochu Corporation. The approval was granted by the Beijing Municipal Commission of Commerce ("BMCC") in May, 2013.

The BMCC, a department under the Beijing Municipal Government, handles all work related to foreign direct investment within Beijing. Its main duties include examining and approving the acquisition of domestic enterprises as well as the establishment of joint ventures involving foreign investors. Following the approval, the Company has begun filing for the JV's business registration.

The JV will focus on the expansion of Lentuo's high-end car dealerships across China, starting with the new Audi 4S dealership located in southern Beijing, the construction of which was announced by the Company in November, 2012. The JV will also scale up its higher margin repair and maintenance services.

Itochu will invest RMB300 million and take a 40% stake in the JV. Having successfully built its subsidiary Yanase into the largest Mercedes dealership in Japan, and with its extensive experience in operating and investing in high-end car dealerships across Asia, Itochu will also act as a strategic investor to help Lentuo strengthen its management and business operations over the long run.

"We are very pleased that the Beijing Municipal Commission of Commerce has approved the joint venture with Itochu," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "The approval marks the most critical step in the series of government approvals we must first obtain before operations can begin."

"As we expand our premium car business, we particularly value the extensive experience that Itochu will bring from decades of experience with Yanase in Japan. We believe that this strategic partnership places Lentuo in a unique position and provides substantial financial and managerial resources to capitalize on the growing demand for premium cars in China. We look forward to replicating this Sino-Foreign auto industrial alliance by seeking out new strategic partners from across the globe who can help us leverage our position in the world's largest auto market and build a solid foundation for long-term growth," concluded Mr. Guo.

BEIJING, May 17, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company") today announced that its Chief Financial Officer, Jianping Chen has been assigned to a leadership role in Lentuo's ongoing joint venture project with Itochu Corporation. She will play a major, multi-functional role in the establishment of the joint venture and the launch of its operations, and will assume a senior executive role at the joint venture after it is established. The project is currently in the final stages of government approval. As a result of her new position, Ms. Chen has resigned from her current position of Chief Financial Officer effective May 17, 2013.

"Ms. Chen is uniquely qualified to lead this highly strategic project for Lentuo by virtue of her international experience, outstanding ability to bridge cultures, and the critical role she has played so far in building this partnership with Itochu Corporation, a Global Fortune 500 company with an established track record in high-end car dealerships in Asia. With her active involvement, Lentuo's management team identified Itochu Corporation as the most valuable partner for the Company and she negotiated the major terms and conditions of the deal, and led our team working on the structural aspects of the partnership. As we embark on our first international cooperation project, I am confident that she will continue to bring substantial value to Lentuo and its shareholders," said Mr. Hetong Guo, Chairman of Lentuo.

"This joint venture will be a major growth driver for Lentuo as we expand further into the high-end car market in China. While we have acquired some expertise on our own through our Audi dealership, Itochu brings us decades of expertise and financial power that will allow us to move ahead confidently and at a substantially faster pace. I am confident that with the help of Ms. Chen and the rest of our management team, together with the support of Itochu's management, Lentuo will succeed in its aspirations to move up-market.

"Ms. Jiangyu Luo, Lentuo's financial controller, will serve as Acting Chief Financial Officer effective May 17, 2013, until the appointment of a new CFO is finalized. I am confident that with the support and advice of Ms. Chen, Ms. Luo and the other members of our finance team will ensure a smooth transition ahead of the appointment of a new CFO."

BEIJING, April 27, 2013 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company") is a leading non-state-owned automobile retailer headquartered in Beijing.

In view of the unusual market activity in the Company's ADS on Friday April 26, 2013, the New York Stock Exchange contacted the Company in accordance with its usual practice. The Company stated that its policy is not to comment on unusual market activity.

Fourth Quarter 2012 Financial Results

• Revenues decreased 15.4% to RMB877.1 million ($140.8 million), from RMB1.0 billion in the fourth quarter 2011.
• Basic and diluted loss per ordinary share were RMB0.41 ($0.07) for the fourth quarter of 2012 compared to basic and diluted earnings per ordinary share of RMB0.26 for the fourth quarter of 2011. This translates into basic and diluted loss per ADS ofRMB0.82 ($0.14) in the fourth quarter of 2012. Each ADS represents two ordinary shares. Weighted average ordinary shares outstanding in the fourth quarter of 2012 remained unchanged from one year ago at 58,937,912.
• Non-GAAP basic and diluted loss per ordinary share, excluding the impairment of intangibles, was RMB0.17 ($0.03) for the fourth quarter of 2012 compared to basic and diluted earnings per ordinary share of RMB0.26 for the fourth quarter of 2011. This translates into basic and diluted loss per ADS of RMB0.34 ($0.06) in the fourth quarter of 2012.

"Our business continued to face significant challenges during the fourth quarter of 2012 due to intense market competition and the strain in Sino-Japanese relations," commented Mr. Hetong Guo, Founder and Chairman of Lentuo. "While we are disappointed with our performance during the last quarter, we are quite pleased with the solid top line growth and the substantial increases in both the number of cars sold and the number of cars serviced during the year 2012. These results validate our earlier decision to expand outside Beijing and demonstrate our ability to adapt to increasingly intense competition. We expect that our bottom line will eventually benefit from the momentum of higher volume sales as a rebound in car sales inChina should lead to stronger prices, as well as from increased sales of more high-end cars and from our expansion into the pre-owned car segment."

"As we continued to assess the effectiveness of our expansion strategy, management decided to terminate our planned acquisition of an Audi dealership in Zhejiang Province. Our review of the terms and conditions of this deal in the light of evolving market conditions led us to conclude that the economic and financial case for the acquisition was not strong enough any longer to justify moving ahead. I am pleased to report that the termination was accomplished at no cost to our shareholders and that our deposit was received back in full."

Mr. Hetong Guo concluded, "Looking forward, I do believe that our ability to compete has further improved thanks to the joint venture agreement with Itochu, a Fortune Global 500 company, and the strategic agreements with First Automobile Finance. Chinese automobile sales continue to grow, and with the additional financial resources provided by these partners, we will be able to further expand into China's high-end car segment. I am also excited about the opportunities created by our new centralized pre-owned car center, the soon to be opened FAW-VW flagship store, and the upcoming Audi dealership in southBeijing, which will all provide new revenue streams. We are confident in our ability to effectively leverage these additional resources to deliver further sustainable, long-term growth and benefits to our shareholders."

BEIJING, October 22, 2012 /PRNewswire/ -- Lentuo International Inc. (NYSE: LAS, "Lentuo" or the "Company"), a leading non-state-owned automobile retailer in Beijing, China, today announced that it has signed a joint venture ("JV") agreement with a Fortune Global 500 company based in Asia (the "JV Partner"). The agreement will be effective upon government approval. Under the terms of the agreement, Lentuo and the JV Partner will jointly operate Beijing Lentuo Autong Automobile Trading Co. Ltd. ("AT") to expand sales and services in the high-end car segment in China.

The JV will focus on the expansion of AT's high-end 4S dealerships across China, starting with the new South Beijing Audi 4S dealership that the Company announced on July 23, 2012. The JV will scale up its higher margin repair and maintenance services.

The JV Partner will invest RMB300 million and take a 40% stake in the JV. With extensive experience in operating and investing in high-end car dealerships across Asia, the JV Partner will also act as a strategic investor to help strengthen AT's management and business operations over the long run.

"We are very pleased and honored that a company with such a global know-how, recognition and reputation has agreed to partner with Lentuo in the China auto market," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "As we expand our premium car business, we particularly value the extensive experience that they have acquired in this field over several decades of highly successful operations in Asia. We welcome the opportunity to leverage their strategic and operational knowledge to seize future opportunities for sustainable, long-term growth in order to increase shareholder value."

"We believe that this strategic partnership, together with the recently announced strategic agreements with First Automobile Finance and its two subsidiaries, places Lentuo in a unique position and provides ample financial resources to capitalize on the growing demand for premium cars as standards of living continue to rise in the largest auto market in the world," concluded Mr. Guo.

Second Quarter 2012 Results

• Revenues increased 21.2% to RMB79increased 54.5%2.5 million ($124.7 million) in the second quarter 2012 from RMB653.8 million in the second quarter 2011.
  
• Vehicles sold  to 4,301 vehicles in the second quarter 2012 from 2,784 vehicles in the second quarter 2011.
  
• Vehicles serviced increased 31.7% to 45,843 vehicles in the second quarter 2012 from 34,818 vehicles in the second quarter 2011.
  
• Net income decreased 28.4% to RMB8.4 million ($1.3 million) in the second quarter 2012 from RMB11.8 million in the second quarter 2011.
• Basic and diluted earnings per ADS of $0.04 vs $0.06 in prior year.

"The successful implementation of our expansion and diversification strategy continued with strong sequential and year-over-year revenue growth during the second quarter of 2012," said Mr. Hetong Guo, Founder and Chairman of Lentuo. "The new green field Audi dealership and the FAW-Volkswagen flagship store in Beijing following the five new dealerships added in the second half of 2011 will be significant steps in our expansion strategy and will provide increased momentum. Our recent partnerships with First Automobile Finance and its two subsidiaries represent a strong vote of confidence that validates and further supports our growth strategy. Among other benefits, it will help us finance dealership expansions, improve our competitive position, provide insurance services and strengthen our brand recognition in the luxury car market. We are very proud to be the first automobile retailer in China to sign such an agreement with FAW Auto Finance.

"Leveraging the strong relationships we have built with industry players in an increasingly competitive environment, we remain confident that these initiatives will lead to sustained sales growth and improved shareholder value."

BEIJING, August 23, 2012 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS, "Lentuo" or the "Company"), a leading non-state-owned automobile retailer in Beijing, today announced that the Company has signed a general framework agreement with First Automobile Finance Co., Ltd. ("FAF"), a subsidiary of FAW Group. Under this agreement, FAF and Lentuo will share resources and cooperate in providing customer financing, auto insurance as well as other financial services. The company also signed two comprehensive cooperation agreements with FAW Auto Finance Co., Ltd. ("FAW-AF"), a wholly owned subsidiary of FAF, and Saneguard Auto Insurance Co., Ltd. ("Sanegard"), a subsidiary of FAF. These agreements cover a range of services which will enable Lentuo to expand its service offering, improve its competitive position and strengthen its brand. Lentuo is the first automobile retailer in China to sign such an agreement with FAW-AF.

FAW-AF will help finance Lentuo's 4S dealership network expansion in China. FAW-AF will also provide corporate credit to support Lentuo's vehicle purchasing and consumer credit and lease financing to Lentuo's customers.

Sanegard and Lentuo will cooperate in offering auto insurance, auto warranties and extended warranties to Lentuo's customers. Sanegard will provide Lentuo with highly professional insurance services on underwriting, claims payment and processing, and risk control.

"We are extremely pleased with this vote of confidence from FAW Group that results from years of working together on many projects," said Mr. Hetong Guo, Founder and Chairman of Lentuo International. "These agreements deepen our strategic partnership with FAW Group and validate our development strategy in Beijing and a growing number of other cities. Forging strategic relationships with industry leaders like FAW-AF and Sanegard shows our commitment to further diversifying our business, increasing customer loyalty, and strengthening our brand. FAW-AF's credit will provide strong financial support to our dealership expansion as we enter new markets while capital markets remain uncertain. Our auto insurance, extended warranty and other after-sales services will greatly benefit from Sanegard's extensive experience and highly professional insurance services. By leveraging these strong relationships and building upon our expansion strategy, we are positioning the Company for continued growth well into the future."

First Quarter 2012 Financial Highlights

• Revenues increased 26.5% to RMB 756.8 million ($120.2 million) in the first quarter 2012 from RMB 598.2 million in the first quarter 2011.
  
• Vehicles sold increased 46.4% to 3,655 vehicles in the first quarter 2012 from 2,496 vehicles in the first quarter 2011.
  
• Vehicles serviced increased 27.6% to 39,487 vehicles in the first quarter 2012 from 30,958 vehicles in the first quarter 2011.
  
• Net income decreased 43.8% to RMB 16.8 million ($2.7 million) in the first quarter 2012 from RMB 29.9 million in the first quarter 2011.

"We are pleased with our strong revenue performance during the first quarter thanks to the successful execution of our expansion strategy in 2011," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "The five new dealerships added in the second half of 2011 contributed roughly 28% of our revenue for the quarter, adding strong momentum for the rest of the year. Our geographic expansion has also begun to pay off with the three new dealerships located outside Beijing accounting for almost one fifth of our revenues. We have also made encouraging progress in our efforts to control cost more effectively as a percentage of revenues and we will continue to work hard to further reduce cost."

Mr. Guo concluded, "Going forward, we will continue to look for growth opportunities with a priority on organic expansion. While we may selectively consider potential acquisitions, these will be analyzed with a strict focus on market conditions, price, funding availability and cost, and overall value for our shareholders."

Expansion Strategy Update

The Company remains focused on three regions that it believes offer the best economic returns currently: Northeast, Southeast and Southwest China. These regions present numerous opportunities for expansion in second and third-tier cities where a growing number of middle class Chinese enjoy a higher standard of living. As acquisitions are expected to become more expensive, the Company has shifted its focus to organic growth and will concentrate on opening greenfield dealerships.

The Company is still in the process of completing its acquisition of an Audi dealership in Zhejiang Province and expects to close the deal in the second half of 2012.

The opening of the new flagship store in Beijing is scheduled for the third quarter of 2012.

Fourth Quarter 2011 Results

• The Company reported revenues of RMB 1.0 billion ($164.7 million) for the fourth quarter of 2011, an increase of 38.6% from the third quarter of 2011.
• The Company sold 5,140 vehicles during the fourth quarter of 2011, representing a 62.6% sequential increase over 3,162 vehicles sold in the third quarter of 2011.
• The Company serviced 49,695 vehicles during the fourth quarter of 2011, representing a 31.1% increase over 37,894 vehicles in the third quarter of 2011.
• The Company reported net income of RMB 15.4 million ($2.5 million) for the fourth quarter of 2011, an increase of 43.0% from the third quarter of 2011.
• Diluted earning per ADS were RMB 0.52 ($0.08) for the fourth quarter of 2011 compared to RMB 2.02 for the fourth quarter of 2010, decreasing 74.3%.

"2011 was a very challenging year for us. In December 2010, the Beijing government introduced traffic control measures that severely limit the availability of new license plates through a lottery system in order to reduce traffic jams and limit environmental problems. This particularly affected us because of our historical sales concentration in Beijing," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "As the year went by, we progressively executed our planned strategic diversification with the acquisition of three dealerships outside Beijing while also opening one new dealership and acquiring another one in Beijing. Three of these new dealerships contributed to revenues for the first time in the fourth quarter. Similarly, our efforts to increase revenues from repair and maintenance paid off with revenue growth in the fourth quarter of 68 percent year over year.

"These diversification measures enabled us to grow revenues by 38.6 percent compared to the third quarter of 2011 and limit the decrease in annual revenues to just under ten percent. However, diversification also required increased spending, at least initially, in advertisement, additional staff, acquisition expenses and brand building. This inevitably had a substantial impact on net income for the year.

"We plan to continue to grow through dealership acquisitions, new dealership openings, expansion of repair and maintenance services and the addition of other high-end brands. We believe that these strategic moves will improve our performance and enhance shareholder value."

BEIJING, April 20, 2012 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), the largest non-state-owned automobile retailer in Beijing as measured by new vehicle sales revenue in 2010, has entered a strategic partnership with a consortium of automobile manufacturers, dealerships, and insurance brokers to form Saneguard Automobile Insurance Co., Ltd. ("Saneguard"), an insurance provider in the People's Republic of China.

Saneguard will be established by FAW Finance Co., Ltd.; FAW Car Co., Ltd.; Changchun FAW Fuwei Automobile Components Co., Ltd.; Tianjin FAW Xiali Automobile Co. Ltd.; FAWER Automotive Parts Limited Co.; Jilin Yian Insurance Brokers Ltd.; and four automobile dealership groups, including Lentuo. Approval for the formation of Saneguard was issued by the China Insurance Regulatory Commission ("CIRC"). CIRC is expected to provide final approval for Saneguard to commence operations in the second half of 2012. Lentuo has contributed RMB 11.25 million ($1.8 million) of the total registered capital of RMB 500 million ($79.4 million) for a 2.25% stake in Saneguard.

Saneguard is well positioned to benefit from the strength of its strategic partners and aims to rapidly gain market share in the automobile insurance market. Lentuo's involvement further expands the Company's higher-margin aftermarket service offerings.

"We are very pleased to deepen our relationship with FAW Group and look forward to working with our strategic partners in the development of Saneguard," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "As the automobile industry in China continues to expand, our participation in this venture will position Lentuo to improve vehicle sales while providing added value for our customers, laying a solid foundation for the Company's continued development."

ThirdQuarter 2011 Financial Performance

• The Company met its previously issued guidance, reporting revenues of RMB 747.6 million ($117.2 million) for the third quarter of 2011, an increase of 14.4% from the second quarter of 2011.

• Net income was RMB 10.8 million ($1.7 million), a decrease of 76.0% from RMB 45.0 million for the same period in 2010. This decrease, driven by reduced gross margin coupled with increased marketing expense, reflects the challenges created by the new traffic control measures introduced in Beijing in December 2010 as well as the Company's continuing efforts to strengthen its competitive position both in and outside of Beijing. While this has negatively impacted the Company's performance, Lentuo believes its peers have experienced an even greater negative impact, which in turn positions the Company to gain more market share in the future.

• Diluted earnings per ADS were RMB 0.36 ($0.06) for the third quarter of 2011 compared to RMB 2.12 for the third quarter of 2010, decreasing 83.0%.

• The Company sold 3,162 vehicles during the third quarter of 2011, representing a 13.6% sequential increase over 2,784 vehicles sold in the second quarter of 2011.

• The Company serviced 37,894 vehicles during the third quarter of 2011, representing a 17.6% increase over 32,210 vehicles in the third quarter of 2010, and an 8.8% increase over 34,818 vehicles in the second quarter of 2011. 

"We were able to meet guidance while achieving another quarter of strong sequential revenue growth, despite continued challenging conditions in Beijing," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "Our ability to rapidly adjust to the challenges posed by the new vehicle registration policy in Beijing is a direct result of the operational expertise of our management team and the growing reputation of our brand.

"Since June, we have nearly doubled our dealership network, including three dealerships in markets outside of Beijing that are unaffected by the vehicle registration lottery," continued Mr. Guo. "This growth beyond the Beijing market, in combination with increased advertising efforts and continued focus on broadening our product portfolio, position Lentuo for substantial long-term sales growth and improved shareholder value."

Financial Outlook

The Company is reaffirming its previously issued fiscal year 2011 revenue guidance of approximately RMB 3.3 to 3.6 billion ($517.4 million to $564.4 million).

Over the long term, the Company believes it will continue to gain market share in Beijing and its operations outside the Beijing market will offset the negative impact resulting from the current vehicle registration policy in Beijing.

This guidance is based on current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

The Chairman concluded, "While we expect continued challenges in the short term as a result of the policy change in Beijing, we believe our multi-pronged strategy to overcome these headwinds, by promoting our higher-margin repair and maintenance services, in combination with the continued expansion of our dealership footprint, will continue to positively impact our financial results. We remain committed to taking the necessary steps to evolve and grow our business to take full advantage of China's large, rapidly growing automobile market and enhance shareholder value."

BEIJING, July 12, 2011 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), the largest non-state-owned automobile retailer in Beijing as measured by new vehicle sales revenue, today announced that it has signed a binding Letter of Intent ("LOI") to acquire a controlling interest in an Audi dealership in Zhejiang Province, People's Republic of China.

The dealership sold 1,800 vehicles and generated RMB 800 million (US $124 million) in revenues during 2010. The Company expects the dealership to contribute approximately RMB 200 million (US $31 million) in revenues to Lentuo for the fourth quarter ending December 31, 2011, and approximately RMB 1 billion (US$154 million) in revenues to Lentuo for 2012. Lentuo is negotiating a definitive agreement with the seller, which will contain customary closing conditions such as the completion of financial and legal due diligence. The Company expects to complete the acquisition by December 31, 2011.

Audi has 45% market share in China's luxury vehicle market. China surpassed Germany earlier this year to become Audi's largest geographic market, with 140,699 vehicles sold in China during the first six months of 2011. J.D. Power and Associates, a global market research firm, forecasts that luxury car sales in China will more than double to 1.5 million vehicles between 2010 and 2015.

"Following our recent Honda dealership acquisition in Tianjin, this agreement further demonstrates our ability to execute on our growth strategy," stated Mr. Hetong Guo, Founder and Chairman of Lentuo. "This acquisition will expand our geographic footprint into one of China's most affluent provinces and better position us to serve the nation's thriving luxury car market. We continue to seek growth opportunities that provide us with entry intoChina's rapidly developing second- and third-tier cities."

Mr. Guo continued, "In 2011, we expect to generate total revenues of RMB 3.5 billion to 4.0 billion, or $541 million to $618 million USD. Not only are we confident in our near-term financial outlook, through our aggressive expansion efforts we are also building a strong foundation for continued revenue and earnings growth in the years to come."

BEIJING, July 7, 2011 /PRNewswire-Asia/ -- Lentuo International Inc. (NYSE: LAS) ("Lentuo" or the "Company"), a leading automobile dealer in Beijing, China, today announced the resignation of its chief financial officer, Ping Yu, for personal reasons, effective July 7, 2011.

"Ms. Yu has been a valuable member of our management team, and we wish her all the best in her future endeavors," said Mr. Hetong Guo, Chairman of Lentuo. "I would like to thank her for helping the Company successfully complete its IPO in 2010 and making great enhancements to our financial management and internal control systems, as well as building strong relationships with the investment community."

Lentuo is currently seeking a suitable candidate to serve as the Company's CFO following Ms. Yu's departure. Ms. Jiangyu Luo, Lentuo's financial controller, will serve as Acting CFO effective July 8, 2011, until the appointment of a new CFO is finalized. Mr. Guo commented, "I am confident that with support from Ms. Yu, Ms. Luo and the other members of our finance team, we will have a smooth transition ahead of the appointment of a new CFO."

First Quarter Results:

• Revenues for the first quarter of 2011 increased 2.9% year-over-year to RMB 598.2 million ($91.3 million).
• The average unit price for new vehicle sales in the first quarter of 2011 increased 24.4% year-over-year to RMB 209,048 ($31,924).
• Net income was RMB 29.9 million ($4.6 million), an increase of 4.2% from RMB 28.7 million for the same period in 2010.
• Diluted earnings per American depositary share ("ADS") were $0.16 vs. $0.22

Mr. Hetong Guo, Founder and Chairman of Lentuo, stated: "Despite the challenges posed by Beijing’s new traffic control measures, we grew revenues and substantially improved our profitability in the first quarter. These positive results underscore our operational expertise and the strength of our brand name. In the months ahead, we will focus on increasing service-driven revenues as a percentage of total sales, broadening our product portfolio to align with market trends, and expanding our dealership network through accretive acquisitions and new dealership openings. We recently opened a new FAW-Volkswagen dealership in eastern Beijing and expect to complete another one of our key expansion projects, the acquisition of a controlling interest in a Honda dealership in Tianjin, during the second quarter of 2011."

The Company estimates that its revenues for the second quarter of 2011 will be approximately RMB 650 million to RMB 680 million ($99.3 million to $103.8 million), representing a year-over-year decrease of approximately 11.2% to 7.1%.

Fourth Quarter Highlights:

• Revenues in the fourth quarter of 2010 increased 70.0% year-over-year to RMB1.1 billion ($167.4 million).
• The number of vehicles sold in the fourth quarter of 2010 increased 61.5% year-over-year to 6,292 units.
• The average unit price in the fourth quarter 2010 increased 8.2% year-over-year to RMB164,879.
• Net income was RMB49.0 million ($7.4 million), an increase of 40.2% from RMB34.9 million in the comparable period of 2009. Diluted earnings per American depositary share ("ADS") were RMB1.01 ($0.15).

Mr. Hetong Guo, Founder and Chairman of Lentuo, commented, "We are pleased with our solid fourth quarter financial results. Our rapid revenue growth in the fourth quarter of 2010 again demonstrates our strong brand and proven business model. Although new traffic control measures in Beijing may negatively impact certain aspects of Lentuo’s business, they may create new opportunities for us as well. We intend to broaden our portfolio of luxury brands, increase the relative contribution of maintenance services to our total revenues, and leverage our leading brand in the Beijing market, stronger financial position, and operational scale to acquire smaller dealerships at attractive prices."

The Company estimates that its revenues for the first quarter of 2011 will be approximately RMB550 million (US$83.3 million) to RMB580 million (US$87.9 million), representing a year-over-year decrease of approximately 5.4% to 0.2%.

Third Quarter 2010 Financial Highlights

• Revenues in the third quarter of 2010 increased 56.0% year-over-year to RMB945.9 million ($141.4 million).

• The number of vehicles sold in the third quarter of 2010 increased 29.5% year-over-year to 4,871 units.

• The average unit price for the third quarter 2010 increased 23% year-over-year to RMB176,000.

• Net income was RMB45.0 million ($6.7 million), an increase of 2.5% from RMB43.9 million in the comparable period of 2009. Diluted earnings per American depositary share (“ADS”) were RMB1.06 ($0.16). Each ADS represents two ordinary shares of the Company.

Mr. Hetong Guo, Founder and Chairman of Lentuo, commented, “We are pleased with our third quarter financial results and our first quarter reporting as a public company. Our rapid revenue growth in the third quarter of 2010 again demonstrates our unique competitive position. Driven by our strong brand, proven business model, and experienced management team, we are very proud that we have grown to become the #1 non-state-owned dealership group in Beijing. Although new traffic control measures in Beijing may negatively impact certain aspects of Lentuo’s business, they may create new opportunities for us as well. We intend to broaden our portfolio of luxury brands, increase the relative contribution of maintenance services to our total revenues, and leverage our leading brand in the Beijing market, stronger financial position and operational scale to acquire smaller dealerships at attractive prices.”

Ms. Ping Yu, Chief Financial Officer of Lentuo, added, “We are delighted to have delivered record revenues in the third quarter. Despite Beijing’s new quota system for new licenses, we remain optimistic about the automobile market potential in Beijing. According to the Provisional Regulations, the quota for new vehicle license plates for 2011 is 240,000. In addition, purchasers of automobiles to replace old vehicles may continue to use the previous license plates and are not subject to the quota. Recent statistics indicate that the number of new vehicles purchased to replace old automobiles, or upgrades, has been approximately 250,000 to 300,000 per year in recent years in Beijing. Therefore, assuming this trend of upgrading continues, and taking into account the 240,000 new licenses to be granted, we believe it is reasonable to estimate the total number of new vehicle purchases in Beijing in 2011 to range from 490,000 to 540,000 units. This range would be similar to the 2009 sales level of 520,000 units, and considerably higher than the 2008 level of 350,000 units. We believe Lentuo is well-positioned to execute on our expansion plans, deliver sustainable financial results and create more value for our shareholders.”

Strategic Adjustments and Financial Outlook

In light of the new regulations in Beijing, the Company has quickly and proactively made some key changes to its expansion strategy for 2011, including (i) adjusting Company’s target of new dealership openings from 6 in Beijing and 4 outside of Beijing, to 3 in Beijing and at least 7 in other cities, (ii) stepping up the proposed pace of merger and acquisition activities in the first quarter of 2011, (iii) continuing to increase the proportion of the contribution of maintenance services to overall revenues and profit, and taking necessary measures to achieve this and (iv) further adjusting the mix of brands sold and models sold to drive more sales of high-end vehicles.

The Company estimates that its revenues for the fourth quarter of 2010 will be approximately RMB1,180 million (US$176 million) to RMB1,220 million (US$182 million), representing a year-over-year growth rate of approximately 81% to 88%.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Lentuo International Inc. plans for Initial Public Offering

Company Snapshot:

The largest non-state-owned automobile retailer in Beijing, China 

Industry Snapshot:

• According to China Association of Automobile Manufacturers, or CAAM, and Ward's Automotive Group, or Ward's, China's automobile industry has experienced significant growth over the past several years, resulting in China surpassing the United States as the world's largest automobile market in 2009. According to CAAM, total new automobile sales volumes, including passenger and commercial vehicles, during 2009 were 13.6 million units, representing a 45.5% growth rate over 2008 and a CAGR of 23.7% from 2006 to 2009. According to CAAM, 10.3 million, or 75.7%, of the 13.6 million total automobile sales for 2009 were passenger vehicle sales, positioning China as the world's largest passenger vehicle market. China's passenger vehicle unit sales grew by 52.8% from 2008 to 2009 and had a CAGR of 25.9% from 2006 to 2009. According to the CADA, China's automobile market is expected to grow 10.3% from 2009 to 2010 and reach 20.0 million units by 2015.

• According to the CADA, the Beijing metropolitan area is the largest automobile retail market among all cities in China as measured by annual new passenger vehicle registrations. According to the CADA, Beijing's passenger vehicle market grew 50.1% in 2009 over 2008, with 519,000 new passenger vehicle registrations. According to the CADA, for the year ending December 31, 2010, Beijing's passenger vehicle market is expected to grow 9.6% year over year, with 569,000 new passenger vehicles expected to be registered.

• According to CAAM, China's automobile after-sales market, which consists of the repair and maintenance market and the accessories market, has grown at a CAGR of 27.3% from 2000 to 2008 and is expected to grow in the future as the automobile ownership in China continues to grow. China's used passenger car market has also experienced substantial growth and continues to demonstrate strong growth potential. According to the CADA, approximately 2.0 million used passenger vehicles were sold in 2009, representing approximately 21.4% growth over 2008. The volume of used passenger vehicle sales is expected to reach approximately 2.4 million units in 2010 and 3.5 million units in 2012, according to the CADA.

• In China, 4S dealerships provide the dominant platform for passenger vehicle sales and are highly fragmented. According to the CADA, as of December 31, 2009, there were approximately 13,000 4S dealerships in China, among which approximately 10,000 4S dealerships were selling passenger vehicles. According to the CADA, 177 passenger vehicle dealerships, or approximately 1.7% of all 4S passenger vehicle dealerships in China, had annual revenues of RMB500.0 million ($73.7 million) or above as of the end of 2009. According to the CADA, there were 8,962 4S passenger dealerships, or approximately 85.8% of all 4S passenger vehicle dealerships in China, that had less than RMB100.0 million ($14.7 million) in annual revenues as of the end of 2009.

Use Of proceeds:

• approximately $58.0 million, representing approximately 70% of the total net proceeds, to expand the size and scope of our dealership network through the establishment of new dealerships and acquisitions;
   
• approximately $8.0 million, representing approximately 10% of the total net proceeds, to enhance our higher margin products and services, increase sales at our existing dealerships and implement our other growth strategies, such as hiring additional service staff and technicians, upgrading and modifying the showrooms at our dealerships, further developing our company-wide management tools and databases, expanding training programs for our employees, adding new service bays, upgrading service equipment and developing fleet car leasing and used car sales; and
   
• the remaining amount to fund our working capital requirements and for other general corporate purposes.

Underwriter:

• Cowen and Company
• HSBC
• Macquarie Capital

Proposed offering price: $11.50 and $13.50

Post IPO Share Calculation: (Using a 2 to Ordinary to 1 ADS conversion ratio).

• 22,968,956: Pre IPO fully diluted share count used in EPS calculation.
•   7,500,000: Newly issued ADS shares
•   1,125,000: Underwriter over-allotments ADS shares 

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 2 to 1: 32,718,956

Financial Snapshot: December Year End 

2009 vs. 2008

• Revenues: $345.3 million vs $280.5 million 
• Adjusted Net Income: $18.9 million vs. $11.4 million

Six Months june 2010 vs 2009

• Revenues: $193.6 million vs. $195.9 million
• Adjusted Net Income: $9.9 million vs. $7.5 million 

Pro Forma Valuation: Using mid point offering price of $12.50 and new share count

• Trailing EPS (ADS): $0.65
• Trailing P/E: 19.2

We believe that our current cash and cash equivalents, anticipated cash flow from operations and the proceeds from this offering will be sufficient to meet our expected cash requirements, including for working capital and capital expenditure purposes, for at least 12 months following this offering.

Our business and expansion plan will require significant working capital and capital expenditures. We expect that our current cash and cash equivalents, cash flow from operations and the proceeds from this offering will be sufficient to meet our anticipated cash needs, for both working capital and capital expenditures, for at least 12 months following this offering. If, however, there are unforeseen changes in general business conditions or unexpected developments in our business or expansion, we may require additional cash resources. We may seek to sell additional equity or debt securities or obtain a credit facility. The sale of convertible debt securities or additional equity securities could result in additional dilution to our shareholders. Furthermore, if we incur more debt, we will be liable for increased debt service costs and might have to agree to operating and financing covenants that would restrict our operations and liquidity.