Lentuo Q1 Revenues Up 2.9%
Cost of goods sold was RMB519.29m for the first quarter of 2011, compared to RMB515.41m for the same period of 2010.
Selling, marketing and distribution expenses were RMB12.15m for the first quarter of 2011, compared to RMB7.69m for the same period of 2010. General and administrative expenses were RMB10.15m for the first quarter of 2011, compared to RMB8.45m for the same period of 2010.
For the first quarter of 2011, total operating expenses were RMB22.31m, compared to RMB16.15m for the same period of 2010. Operating income was RMB56.58m, compared to RMB49.67m for the same period of 2010.
Interest expenses were RMB10.82m for the first quarter of 2011, compared to RMB10.05m for the same period of 2010. Income before income tax expenses was RMB42.74m for the first quarter of 2011, compared to RMB40.13m for the same period of 2010.
Income from continuing operations was RMB29.9m for the first quarter of 2011, compared to RMB28.69m for the same period of 2010.
The company expects that its revenues for the second quarter of 2011 will be approximately RMB650m to RMB680m ($99.3m to $103.8m), representing a year-over-year decrease of approximately 11.2 percent to 7.1 percent.
Hetong Guo, founder and chairman of Lentuo, said: â€œDespite the challenges posed by Beijingâ€™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.
â€œWe 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.â€
Lentuo operates six franchise dealerships, ten automobile showrooms, one automobile repair shop and one car leasing company in Beijing, the new passenger vehicle market among all cities in China.
Will the firm further increase revenue in Q2?
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