China Auto Logistics Inc. (CALI) Monday reported a sharp decline in profit for full year 2012, reflecting mainly a substantial decrease in web-based advertising sales and impairment charges related to termination of Goodcar advertising services. Annual revenues grew about 31 percent driven by continued luxury auto sales.
Looking ahead, the company said it remains very positive about its future growth outlook. The shares are up about 8 percent.
China-based firm, which is engaged in trading of imported automobiles, said it sold 6,588 automobiles during the year, up from 4,190 automobiles sold in 2011. Meanwhile, average unit selling price in 2012 decreased over 16 percent to about $88,000.
The company said it lowered selling prices and gross margins in the year, to respond to competition from smaller dealers, and with an aim to maintain leadership in the market. However, it experienced higher demand for lower end luxury models of its top selling brands, namely Toyota, BMW and Mercedes.
For the full-year 2012, net income attributable to shareholders plunged to $2.57 million or $0.69 per share from $8.03 million or $2.34 per share in the previous year. Excluding impairment loss of goodwill and intangible assets, adjusted net income attributable to shareholders was $1.76 per share. In the prior year, adjusted net income was $2.60 per share.
Net revenues grew 30.78 percent to $591.32 million, led by luxury imported auto sales which grew 32.43 percent and Financing Services sales which advanced 72.72 percent.
Cost of revenue climbed to $580.06 million from $436.01 million a year ago. Total operating expenses were $7.68 million, higher than $4.76 million in the preceding year.
CALI is currently trading at $5.04, up $0.38 or 8.15 percent on a volume of 141 thousand shares.
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