TIANJIN, CHINA -- (Marketwire) -- 08/14/12 -- In the news release, "China Auto Logistics Second Quarter Revenues Grew 18.3% on Sustained Growth in Imported Luxury Vehicle Sales," issued earlier today by China Auto Logistics Inc. (NASDAQ: CALI), we are advised by the company that the fourth sentence of the fifth paragraph should read "Gross margins on these sales were 0.95% in the 2012 second quarter, compared with 1.01% a year earlier" rather than "Gross margins on these sales were 1.96% in the 2012 second quarter, compared with 2.94% a year earlier" as originally issued. Complete corrected text follows.
China Auto Logistics Second Quarter Revenues Grew 18.3% on Sustained Growth in Imported Luxury Vehicle Sales
Planned Reduction in Web-Based Advertising Sales Lowers Profits, Despite Sharp Advance in Financing Services
Investor Conference Call Scheduled on Thursday, August 16th at 8:00am ET
TIANJIN, CHINA -- August 14, 2012 -- China Auto Logistics Inc. (the "Company") (NASDAQ: CALI), one of China's leading developers of websites for buyers and sellers of imported and domestic automobiles, a top seller in China of imported luxury cars, and a leading provider of auto-related services, reported today that led by continuing growth in luxury imported auto sales in China, revenues in its second quarter ended June 30, 2012 grew 18.32% to $150,047,968 from $126,810,558 in the same period last year.
At the same time, the Company continued to shift from rapidly growing web-based advertising sales to utilizing its sites as information platforms for promoting automobile sales and its higher margin auto related services. Consequently, despite contributions from other services, and especially strong gains in financing services, net income attributable to shareholders declined by 27.85% to $1,649,461 or $0.07 per share in the 2012 second quarter compared with $2,286,200 or $0.12 per share in the same period last year.
For the six months ended June 30, 2012, revenues reached $257,493,554, up 23.57% from $208,384,546 in the first half of 2011. Net income attributable to shareholders in the first half of 2012 decreased 25.95% to $3,230,938 from $4,363,334 in the same period of 2011, or $0.15 compared with $0.23 on a per share basis respectively. The weighted average number of shares outstanding was 22,163,427 in the 2012 second quarter and 19,163,427 in the same period last year.
Mr. Tong Shiping, CEO and Chairman of the Company stated, "We recognize we are sacrificing some profits at present with our decision to exit the highly competitive website advertising arena, particularly given the low margins in our auto sales. However, we believe we have developed a strong Internet presence with our sites that will bolster continuing growth of our auto sales where there is room for margin growth, and more importantly, present and future high margin auto-related services such as financing, which in the latter case achieved more than a tripling of operating income in this year's second quarter compared with last year. Further, we see continuing rapid growth ahead in luxury auto sales and related services, and will continue to seek to expand our leadership in this niche."
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