SHIJIAZHUANG, CHINA--(Marketwired - Jul 30, 2013) - AutoChina International Limited ("AutoChina" or the "Company") (
Second Quarter 2013 Business Update The Company announced that it recorded 3,149 new leases of commercial vehicles (primarily Class 8 heavy trucks) as part of the Company's sales-type leasing program in the second quarter of 2013, an increase of 86.3% compared to 1,690 in the second quarter of 2012. At June 30, 2013, the Company had 13,128 leased vehicles under its sales-type leasing program. Since launching its commercial vehicle sales and leasing business in March 2008, the Company has leased over 41,000 trucks. An additional 38 trucks were leased under AutoChina's used commercial vehicle sale-leaseback program during the second quarter of 2013, compared to 244 in the prior-year period.
During the 2013 second quarter, the Company established an additional commercial vehicle financing and service center in Fujian province. As of June 30, 2013, the Company operated 535 financing and service centers in 26 provinces.
During the 2013 second quarter, AutoChina signed agreements with three additional major insurance companies to sell insurance: China Continent Property and Casualty Insurance Co., Ltd, China Pacific Insurance Group, and People's Insurance Company of China. The Company now has seven such agreements in place, and continues working to build partnerships and secure additional regulatory licenses that will allow it to sell insurance in each of the remaining regions in which it has a presence.
Mr. Yong Hui Li, Chaiman and CEO of AutoChina, stated, "We were encouraged by the number of heavy truck leases we achieved during the 2013 second quarter, which was primarily a result of improved performance at our commercial vehicle financing and service centers that were part of the Company's previous expansion efforts into southern China in 2011 and 2012. We continue to believe that China's ongoing development of its infrastructure and economy will be a growth driver for the heavy truck industry in the long term and intend to move forward with our methodical expansion efforts and explore opportunities to better serve our customers while growing AutoChina's business."
Results of Annual Shareholder Meeting AutoChina also announced the results of its annual shareholder meeting that was held on July 24, 2013. All of the proposals submitted to shareholders at the 2013 annual meeting were approved. Specifically, shareholders approved:
1) Re-election of Yong Hui Li, Hui Kai Yan, James Cheng-Jee Sha, Diana Chia-Huei Liu, and Leon Ling Chen to the Board of Directions of the Company, each to serve until his or her term has expired and until his or her successor is duly elected and qualified; and 2) Ratification of the appointment of Marcum Bernstein & Pinchuk LLP as the Company's independent auditor for the year ending December 31, 2013.
About AutoChina International Limited: AutoChina International Limited is China's largest commercial vehicle sales, servicing, leasing, and support network. AutoChina's operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. As of June 30, 2013, the Company owned and operated 535 commercial vehicle financing centers in 26 provinces across China, and primarily provides sales-type leasing and support services for local customers. The Company's website is http://www.autochinaintl.com .
Safe Harbor Statement: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
- Continued compliance with government regulations;
- Changing legislation or regulatory environments;
- Requirements or changes affecting the businesses in which the Company is engaged;
- Industry trends, including factors affecting supply and demand;
- Labor and personnel relations;
- Credit risks affecting the Company's revenue and profitability;
- Changes in the commercial vehicle industry;
- The Company's ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
- Changing interpretations of generally accepted accounting principles;
- General economic conditions; and
- Other relevant risks detailed in the Company's filings with the Securities and Exchange Commission.
The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.
CONTACT At the Company Jason Wang Chief Financial Officer (858) 997-0680 jcwang@kywmall.com Investor Relations The Equity Group Inc. Carolyne Yu Senior Associate (415) 568-2255 cyu@equityny.com Adam Prior Senior Vice President (212) 836-9606 aprior@equityny.com
