China Auto Logistics · OTC:CALIQ
China Auto Logistics — Investor Presentation (September 2009)
31 slides from China Auto Logistics's investor presentation, Sep 8, 2009
Slide 1: China Auto Logistics Inc.
CHINA AUTO LOGISTICS INC. Stock Symbol: CALI A Leader in Modernizing China’s Rapidly Expanding Auto Industry
Slide 2: Safe Harbor
SAFE HARBOR Information in this presentation may contain statements about future expectations, plans, prospects or performance of China Auto Logistics Inc. (the Companys that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Refo
Slide 3: A leader in the dynamic and rapidly evolving Chinese auto market
A leader in the dynamic and rapidly evolving Chinese auto market capitalizing on the growth in auto sales and the growing use of the Internet by businesses and consumers- providing consumers information they need, and auto dealers (4S shops) the opportunity to grow their businesses. Transforming the
Slide 4: CALI has grown to become one of China's leading sellers of imported autos
= CALI has grown to become one of China’s leading sellers of imported autos with a base of 3000 customers nationwide. = Revenues of $190 million in 2008; $90.2 million in first half of 2009. = CALI also is the leading “one-stop” provider of imported auto related services and dealer financing in Tian
Slide 5: Founded in 1995 by Mr. Tong Shipping
= Founded in 1995 by Mr. Tong Shipping, CEO, a highly experienced auto industry exec. = Anauto-related internet pioneer, CALI created www.at188.com, now the ONLY website in China for buyers and sellers of imported autos. = To help sell autos the Company also pioneered the packaging of import dealer
Slide 6: National city-by-city website expansion
Following the success of its first domestic auto website in Tianjin, last year CALI began national city by city expansion. Current coverage is 12 cities. Aim to complete expansion to 15 cities this year. Honed new growth strategy of limiting imported auto sales and expanding highly profitable domest
Slide 7: Corporate structure: Hengjia, Ganghui, Zhengji
Tianjin Hengjia Port Logistic Corp. Hengjia: Unique one-stop service for financing, customs clearance and storage of imported automobiles Tianjin Ganghui Tianjin Zhengji Information International ‘Technology Corp. "Trading Corp. Ganghui: Real-time automobile trading information and internet marketin
Slide 8: Transform from imported car trader to web-based services leader
= Transform from a successful imported car sales trader (low margin) to a fast growing leader in auto-related websites and web-based services (high margin) in the much larger domestic car market. = Steadily improve auto sales profits by focusing on luxury vehicles only and de-emphasizing unit sales
Slide 9: Improve profitability and build bottom line growth
Improve profitability and build year-over-year bottom line growth. By 2011 expand www.at160.com geographically to 60 cities. Add web-related value added services such as online insurance and online financing, and achieve 50-50 split in website revenues between ads and subscriptions and new services
Slide 10: Financial Highlights
Financial Highlights 2005-2008 Continuously Pre-Tax Income From Net Income Up 26% ~ Increasing Revenues Operations Up 65% “In millions * In millions “tn millions sa 4 . | 150. si sin “| 3 a 4 41 0 2005-2006 20072008 2007 208 “All figures in USO 5 "Excludes comprehensive income of $1,248,146 n 2008 a
Slide 11: Second Quarter Revenues and Net Income
‘Second Quarter Revenues Second Quarter Net Income Three months ended June 30, Three months ended June 30, eons ions _an760770__ 2009 *Services and Websites contributed more than 50% to operating income; imported auto sales declined following strong sales gain in Quand decreased focus on unit sales
Slide 12: First Half Revenues and Net Income
First Half Revenues First Half Net Income Six months ended June 30, 2009 Six Months Ended June 30, 2008 2 90.242727 246,410 = Auto sales up 11+% = Websites, Services & Financing achieved nearly 50:50 split with auto sales in Operating profit = Website Coverage achieved in 12 cities, ahead of plan 2
Slide 13: Contributions to Operating Income
Contributions to Operating Income hc Sales of Autos 28.0% MFinancing Services 52.7% Web-basedadvertising services 13
Slide 14: The #1 site in China for imported autos, related services and financing
The # I site in China for imported autos, related services and financing ‘wwww.atl88.com Local website for domestic car buyers and dealers in 12 cities and National Portal A wowatiéo.com
Slide 15: at188.com imported automobile website
RecearhWNS oie onthe high Pace Cave onrerr or ine chineae ieerted automobile market. The biggest website specializing in imported automobiles, www.ati88.com provides first hand trading and quotation information. The two biggest web portals, www.sohu.com and www.sina.com, both utilize data and inform
Slide 16: Imported auto sales and one-stop dealer services
(Importe ; provides not only the most timely industry and market information ported automobiles, but also has permitted the Company to establish a stable client base throughout China of more than 3000 long-term clients. As the biggest imported automobile port in China, Tianjin has about 200 dealers/
Slide 17: China auto sales growth and 4S shops
With accelerated increasing household income, further boosted by government programs, China’s auto sales continue to grow In 2007-2008 alone, there were more than 100 models launched in the market, making comparisons very difficult for the average customer. 48 Shops (4S stands for sale, spare parts,
Slide 18: Domestic websites success in Tianjin
Domestic Websites ess in Tianjin ‘The popularity of CALI’s interactive, colorful site in Tianjin aimed at domestic car buyers, has rapidly and has been the model for expansion to a total of 12 key ies throughout China. The Tianjin site has 1.5 million average hits per day; the highest record is more
Slide 19: National website at160.com
In May 2008, aunched national website sswvw.ati60,com, specifically for dealers and buyers of domestically manufactured automobiles. Also now serves as portal to all local city sites. These trading and marketing platforms feature complete, accurate, authorized auto information. Web initiatives will
Slide 20: CALI provides service to 4S shops as well as consumers
CALI provides service to 4S Shops as well as consumers. Service station instead of simple dealership: in China, most 4S shops generate only 25% of profit from car sales and 15% from selling of spare parts. Around 60% of the profit is generated by providing maintenance and after-sale services. Rapid
Slide 21: Each 4S shop needs
Each 4S shop needs: Cheap & effective procurement and national logistics to cut cost; Common platform to expand the customer base; Enhanced after-sale service support to increase margins; Advanced technology to obtain immediate market information; Extensive data for strategic decisions. www.ati60.co
Slide 22: Chinese automobile market growth
‘= The Chinese automobile market has experienced accelerating development since China became a World Trade Organization member in 2001. In 2008, China surpassed Japan to become the 2 biggest automobile market in the world. In 2009, China has become the world’s largest automobile market', = 8.8 milli
Slide 23: Government incentives supporting auto demand
(1) Automobile market demand is currently benefiting from the incentive support from Chinese central government. (2) Although big portion of capital in the “US$700 Billion Stimulation Plan” is invested in the infrastructure, Chinese government also provided sufficient funds to boost the automobile m
Slide 24: Further incentive policies and approaches
posted in 30. 6% increase in re 1.6L or Hee Rehicle fleeing amount from January to April 2009. = §2.92B (RMB208) grants for the purchasing of new-energy/alternative fuel vehicle. = The result of the stimulation plan increased aggregated retail value of social consumption goods to $7148 (RMB4877B) fr
Slide 25: Auto ownership, luxury goods and Internet user growth
By end of 2008, China recorded total of 64,672,053 automobiles, 64.53% of which are privately-owned. But even in Beijing, the possession capacity of private-owned cars per 100 household is only 24. Passenger cars have great market potential in China. According to <China-New Luxury Trend> by Ernst &
Slide 26: Online purchasing and advertising growth in China
Nearly 70% Chinese Internet users had online purchase experience and cu. 90% users will use online data and information as shopping reference. According to CCID, website advertisements in 2008 totaled $2.64B (RMB18B), in 2009, total sum will exceed $4.03B (RMB27.5B), a 37% higher investment in onlin
Slide 27: Active cash flow and no long term debt
Most car sales deals close within a week, permitting an active and positive cash flow (with almost no receivables). High margin, web-based diversified profit contributors should further increase and strengthen profits and multiply the Company’s growth opportunities. The Company has no long term debt
Slide 28: Website business growth and investment summary
Website business grew more than 20% in 2008 and contributed 20%+ to. profits; easily could have been higher except for discounts and free ads to new customers in expansion phase. In Q2 2009, website advertising grew 79% and contributed approximately 30% of operating income. Still inthe earliest phas
Slide 29: Maintain leading position and focus on websites and services
maintain its leading position and focus on rapid development of highly profitable website and services businesses. Continuing growth of China and its automobile market despite world economic conditions provides tremendous growth opportunity to support this strategy. Extensive client base provides th
Slide 30: Management team
47 years old, Bachelors degree in computer science, founded the Company as the Shisheng Group in 1995 and led Group from startup to over $30M annual sales in less than 10 years. Under his management, the Company was honored as a “Top Hundred Enterprises” by The Ministry of Commerce in 2005. Mr. Tong
Slide 31: Contact Info
China Auto Logistics — Investor Presentation (September 2009) on 6ix