Luxury Auto Sales Propel 78.3% Increase in China Auto Logistics

Luxury Auto Sales Propel 78.3% Increase in China Auto Logistics 2012
Third Quarter Revenues 
Investor Conference Call Scheduled for Thursday, November 15th at
8:00am ET 
TIANJIN, CHINA -- (Marketwire) -- 11/14/12 --  China Auto Logistics
Inc. (the "Company") (NASDAQ: CALI), a top seller in China of luxury
imported automobiles, a leading provider of auto-related services and
developer and operator of one of China's leading automobile portals
and three major auto-related websites, today reported it achieved
substantial year over year revenue gains in the three-month and
nine-month periods ended September 30, 2012. 
Financial Highlights 

--  2012 third quarter revenues grew 78.3% to $170,456,821 led by an 83.4%
    increase in Automobile Sales revenues to $168,360,743 and a 22%
    increase in Financing Services sales to $1,491,170.
--  Net income attributable to shareholders in the 2012 third quarter was
    $1,517,549, or $0.41 per share on 3,693,912 diluted shares outstanding
    (reflecting the Company's recent 1 for 6 reverse split). This compared
    with net income attributable to shareholders in the prior year period
    of $2,477,747 or $0.68 per share on 3,661,296 diluted shares
    outstanding. The decline is primarily attributable to a planned
    decrease in higher margin web-based advertising revenue which was not
    offset by gains achieved in the Company's other high margin services
    businesses, or its lower margin automobile sales.
--  In the nine months ended September 30, 2012, revenues grew to
    $427,950,375, up 41% from the prior year period, led by a 43.2 % year
    over year increase in Automobile Sales revenues.
--  Net income attributable to shareholders in the first nine months of
    2012 was $4,748,487or $1.29 per share on 3,693,912 diluted shares
    outstanding. This compared with $6,841,081 or $2.04 per share a year
    earlier on 3,351,414 diluted shares outstanding.

Growth Strategy 
Mr. Tong Shiping, CEO and Chairman of the Company, stated, "We
believe our growth strategy will have increasingly clear benefits
over time. In essence, we are sacrificing our web-based advertising
revenue and higher profits it might generate in the near term in
order to create the opportunities that develop from being a much
bigger company and the clear leader in China in luxury auto sales and
auto related services. While focusing on the growth of our luxury
auto sales we are also exploring opportunities for higher bottom line
growth with new services as well as our existing auto-related
services. The sharp jump in Auto Sales revenues in this year's third
quarter reflects well on our decision, as does the growth, in
particular, of our Financing Services." 
Segment Review 
The largest contributor in the third quarter to the Company's
revenues and profits was its luxury auto sales business. During the
quarter the Company sold 2,004 automobiles, up 130% from 871 vehicles
in the third quarter of 2011. The average unit price per sale was
$84,012 in the 2012 quarter, down from $105,411 per unit in the third
quarter last year. The Company continued to price its vehicles very
competitively to expand its market share and maintain its leadership
position in the industry. The contribution to operating income from
Automobile Sales in the 2012 third quarter was $1,124,528 and was
$3,777,411 through the first nine months of the year. 
Revenues from Financing Services increased 22% year over year in the
2012 third quarter to $1,491,170. In order to provide financing to
its customers, on which it earns a service fee, the Company utilizes
bank facility lines of credit, provided by some of the leading
commercial banks in China. As of September 30, 2012, the Company had
approximately $60 million drawn on aggregate lines of approximately
$119 million. The contribution to operating income from Financial
Services in the quarter was $771,255, up from $426,417 in the same
period last year.  
As per the Company's strategic decision, the contribution to
operating income from web-based advertising services in the 2012
third quarter was reduced to $109,551 from $1,194,991 a year earlier.
Other services businesses which contributed to profits in the quarter
were Automobile Value Added Services and Auto Mall Management
Mr. Tong commented further, "Looking ahead we remain confident that
we will maintain our leadership position in the luxury auto sales
industry, with continued anticipated support from our automobile
portal and websites which are now established in 50 cities throughout
China and we intend to extend to 60 cities. Our aim is to capitalize
on this leadership position with an expansion of our current high
margin services and the addition of new ones. Underlying our growth
strategy is our belief that growth rates for the high-end automobile
market in China will continue to exceed those of the mainstream auto
market, a view that is shared by several market forecasters."  
Conference Call Invitation 
The company will discuss 2012 third quarter and nine month results
during a live conference call and webcast on Thursday, November 15,
at 8:00am ET.  
To participate in the call, interested participants should call
1-877-941-8418 when calling within the United States or
1-480-629-9809 when calling internationally. Please ask for the China
Auto Logistics 2012 Third Quarter Earnings Conference Call,
Conference ID: 4575617. There will be a playback available until
11/22/12. To listen to the playback, please call 1-877-870-5176 when
calling within the United States or 1-858-384-5517 when calling
internationally. Use the Replay Pin Number: 4575617. 
This call is being webcast by ViaVid Broadcasting and can be accessed
by clicking on this link
or at ViaVid's website at  
About China Auto Logistics Inc.  
China Auto Logistics Inc. is one of China's top sellers of imported
luxury vehicles, and also manages China's largest imported auto mall
in Tianjin. Additionally, it operates, one of the
leading automobile portals in China, as well as three major websites
serving China's auto dealers and their customers. The Company also
provides a growing variety of "one stop" automobile related services
such as short term dealer financing. Additional information about the
Company is available at 
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. 

                          CHINA AUTO LOGISTICS INC.                         
                           Three Months Ended          Nine Months Ended    
                              September 30,              September 30,      
                       -------------------------- --------------------------
                           2012          2011         2012          2011    
                       ------------  ------------ ------------  ------------
Net revenue            $170,456,821  $ 95,613,591 $427,950,375  $303,998,137
Cost of revenue         167,673,580    91,356,637  418,587,823   291,609,816
                       ------------  ------------ ------------  ------------
    Gross profit          2,783,241     4,256,954    9,362,552    12,388,321
                       ------------  ------------ ------------  ------------
Operating expenses:                                                         
  Selling and marketing     287,372       364,738      715,762     1,103,381
  General and                                                               
   administrative           343,749       519,739    1,583,544     1,869,573
                       ------------  ------------ ------------  ------------
    Total operating                                                         
     expenses               631,121       884,477    2,299,306     2,972,954
                       ------------  ------------ ------------  ------------
Income from operations    2,152,120     3,372,477    7,063,246     9,415,367
Other income (expenses)                                                     
  Interest income           128,167        15,855      156,839        43,537
  Interest expense         (154,883)            -     (381,527)            -
  Loss on disposal of                                                       
   property and                                                             
   equipment                (12,719)            -      (84,793)            -
  Miscellaneous                   -        22,043         (114)       11,466
                       ------------  ------------ ------------  ------------
    Total other income                                                      
     (expenses)             (39,435)       37,898     (309,595)       55,003
                       ------------  ------------ ------------  ------------
Income before income                                                        
 taxes                    2,112,685     3,410,375    6,753,651     9,470,370
Income taxes                591,893       901,453    1,991,566     2,543,573
                       ------------  ------------ ------------  ------------
Net income                1,520,792     2,508,922    4,762,085     6,926,797
Less: Net income                                                            
 attributable to                                                            
 interests                    3,243        31,175       13,598        85,716
                       ------------  ------------ ------------  ------------
Net income attributable                                                     
 to shareholders of                                                         
China Auto Logistics                                                        
 Inc.                  $  1,517,549  $  2,477,747 $  4,748,487  $  6,841,081
                       ------------  ------------ ------------  ------------
Earnings per share                                                          
 toshareholders of                                                          
 China Auto Logistics                                                       
  - basic and diluted  $       0.41  $       0.68 $       1.29  $       2.04
                       ------------  ------------ ------------  ------------
Weighted average number                                                     
 of common shares                                                           
  - basic and diluted     3,693,912     3,661,296    3,693,912     3,351,414
                       ------------  ------------ ------------  ------------

Sun Jiazhen 
Ken Donenfeld
DGI Investor Relations Inc.
Tel: 212-425-5700
Fax: 646-381-9727 
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