Lentuo International (LAS) Swings to Q1 Loss; Updates on Expansion
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Lentuo International (NYSE: LAS) reported Q1 EPS of (RMB0.14), versus RMB0.28 reported last year. Revenue for the quarter came in at RMB700.5 million, versus RMB756.8 million reported last year.
Expansion Strategy Update
Construction of the new FAW-Volkswagen flagship store in Beijing has been completed and is currently going through trial-operations. The flagship store is expected to officially open during the third quarter of 2013.
Part of the FAW-VW flagship store will house Lentuo's centralized pre-owned car center which will sell used vehicles and provide other value added services. Previously managed by individual dealerships, the pre-owned car center will consolidate and centralize the pre-owned car business activities 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. The pre-owned car center will officially launch at the same time as the flagship store.
The Company's joint venture agreement with Itochu, a Fortune Global 500 company, received approval from the Beijing government in May 2013. The approval marks the most critical step in the series of government approvals the Company must first obtain before operations can begin. The joint-venture 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 joint-venture will also scale up its higher margin repair and maintenance services.
For earnings history and earnings-related data on Lentuo International (LAS) click here.
Expansion Strategy Update
Construction of the new FAW-Volkswagen flagship store in Beijing has been completed and is currently going through trial-operations. The flagship store is expected to officially open during the third quarter of 2013.
Part of the FAW-VW flagship store will house Lentuo's centralized pre-owned car center which will sell used vehicles and provide other value added services. Previously managed by individual dealerships, the pre-owned car center will consolidate and centralize the pre-owned car business activities 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. The pre-owned car center will officially launch at the same time as the flagship store.
The Company's joint venture agreement with Itochu, a Fortune Global 500 company, received approval from the Beijing government in May 2013. The approval marks the most critical step in the series of government approvals the Company must first obtain before operations can begin. The joint-venture 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 joint-venture will also scale up its higher margin repair and maintenance services.
For earnings history and earnings-related data on Lentuo International (LAS) click here.
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