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China Auto Logistics Reports a Doubling of Company's Line of Credit Since 2010 Year End
Published on: 2011-07-13
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 China Auto Logistics Inc. (the "Company" or "CALI") , one of China's leading developers of automobile-related websites, a top seller in China of imported luxury vehicles and a leading provider in China of automobile-related services, reported today the Company's aggregate lines of credit -- included a newly added RMB 80 million ($12.4 million) line from China Minsheng Bank -- have increased to RMB 927 million ($143.2 million). This represents a more than doubling (+127%) of the Company's line of credit from RMB 407 million ($61.5 million) at the end of last year.

"We have been able to achieve this steady strengthening of our credit facility to support the expansion of auto sales and financing services despite an increasingly difficult credit environment for many other companies," stated Mr. Tong Shiping, CEO and Chairman of the Company. He continued, "As China's banks continue to tighten their grip on lending, our success is a positive reflection of our strong banking relationships built mainly on our overall track record of outstanding growth and financial performance."

Mr. Tong noted that the recent 0.5% increase in the deposit reserve rate for China's financial institutions brought it to a new high and was the 12th such announcement since January 2010. Additionally, the benchmark one year deposit rate has been raised five times since the Central Bank of China announced its tight money policy. Mr. Tong explained the result of this policy is that many Chinese companies are seeing their loan requests turned down and reduced or eliminated credit lines.

Company's Ability to Obtain Credit Will Support Future Growth

"In contrast," Mr. Tong stated, "Our demonstrated ability to obtain and expand credit lines as needed positions the Company very well to continue on a strong growth track."

He added, "As China's leading wholesaler of imported luxury vehicles and provider of related financial services, we intend to fully capitalize on the continuing strong demand we are seeing and will expand our credit lines accordingly. Our strong banking relationships will certainly be a key factor in our success going forward including the expansion of our footprint in the much larger domestic auto space."

About China Auto Logistics Inc. (CALI)

China Auto Logistics Inc. operates www.cali.com.cn , which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of www.goodcar.cn , a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com .

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission

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