Lentuo International Inc. (LAS), a Beijing-based automobile retailer, Tuesday reported a decline in net income for its second quarter, despite an increase in revenue. The results reflected a rise in operating expenses.
In the second quarter, the company's net income declined to RMB 8.69 million, or $1.3 million, from RMB 11.78 million last year, and on a per share basis, profit dipped to RMB 0.14 from RMB 0.20 in the prior year.
Operating expenses for the quarter, including general, administrative and selling expenses, rose to RMB 40.21 million from RMB 28.87 million last year.
For the quarter, revenues, however, rose by 21.2 percent to RMB 792.5 million, or $124.7 million, from RMB 653.8 million in 2011, helped by automobile sales, which increased by 24.3 percent to RMB 709.9 million or $111.7 million.
During the quarter, the company sold 4,301 vehicles, representing an increase of 54.5 percent from 2,784 vehicles in the prior year quarter.
Monday the stock closed at $1.84 on the NYSE.
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