Luxury car retailer and automotive website developer China Auto Logistics (NASDAQ:CALI) reported another strong quarter for growth as China`s emerging upper class continued to shell out money for high end imported vehicles.
The NASDAQ listed company reported a 21.5% increase in second quarter (3 months ended June 30) group revenues, driven by a near 64% increase in the group`s web based income.
China Auto Logistics develops websites for buyers and sellers of imported and domestic automobiles, and is a seller in China of imported luxury cars, and auto-related services.
Revenues in Q2 hit $54.8 million, up from $45.1 million in the corresponding period in 2009, pushing revenues for the first half of 2010 to $108.9 million, up 20.7% on the first half last year.
Net income also climbed robustly, hitting $1.86 million, up 40.4% on Q2 2009, or 10 cents per share. For the first half of 2010, net income rose 36% to $3.39 million, or 19 cents per share, compared to approximately $2.49 million, or 14 cents per share in the first half of 2009.
"In a quarter that began with the launch of our exciting new "China Auto Living Internet" portal, followed by our announced plans to acquire the fast-growing automotive consumer website www.goodcar.com.cn, and that also saw the expansion of our auto-related websites to 20 cities in China...” Tong Shiping, CEO and Chairman of the Company, commented. "In [the second quarter] we also saw a 20.32% gain in sales of luxury high-end automobiles.”
In April, China Auto Logistics signed a Memorandum of Understanding (MOU) to acquire Goodcar.com.cn for approximately $7 million in cash and stock.
