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Wed, November 30, 2011

AutoChina International Announces Filing of Fully Audited 2010 Annual Report on Form 20-F with SEC


Published on 2011-11-30 14:55:29 - Market Wire
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SHIJIAZHUANG, China--([ ])--AutoChina International Limited (aAutoChinaa or the aCompanya) (OTC: AUTC), Chinaas largest commercial vehicle sales, servicing, leasing, and support network, today announced that, on November 30, 2011, it filed its annual report on Form 20-F, including its audited financial statements for the year ended December 31, 2010, (aForm 20-Fa) with the U.S. Securities and Exchange Commission. AutoChinaas full-year 2010 audited financials were audited by Marcum Bernstein & Pinchuk LLP, the Companyas independent accountants for the year ended December 31, 2010.

The Company previously announced that it would be restating its financial statements for the year ended December 31, 2009, to recognize a derivative liability relating to the Earn-out Share Provision (aEarn-outa), which was part of its initial business combination in 2009. This correction in accounting treatment of the Earn-out results in a new liability being reported on the balance sheet, with changes in the valuation of this liability appearing on the income statement as non-cash adjustments. The adjustment for the change in the fair value of the Earn-out obligation for the year endedDecember 31, 2009,is a loss of$89.5 million, and for the year ended December 31, 2010, a loss of $100.4 million. Having cancelled the Earn-out for 2011, 2012, and 2013 earlier this year and completed its audit for the year ended December 31, 2010, AutoChina will fulfill the terms of the Earn-out upon issuing 3,923,153 Earn-out shares to Honest Best Intal Ltd., the sole shareholder of the target acquired in the initial business combination and an entity affiliated with AutoChinaas founder, Chairman, and Chief Executive Officer Mr. Yong Hui Li, for 2010 in accordance with the amended thresholds the Company previously announced.

AutoChinaas Form 20-F can be accessed on the SECas website at [ http://www.sec.gov ], as well as on the Investor Relations page of the Companyas website at [ http://www.autochinaintl.com ]. Shareholders may receive a hard copy of the filing free of charge upon request by contacting AutoChina investor relations.

About AutoChina International Limited:

AutoChina International Limited is Chinaas largest commercial vehicle sales, servicing, leasing, and support network. AutoChinaas operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company owns and operates 385 commercial vehicle financing centers across China; and primarily provides sales-type leasing and support services for local customers. The Companyas website is [ http://www.autochinaintl.com ].

Safe Harbor Statement:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

  • Continued compliance with government regulations;
  • Changing legislation or regulatory environments;
  • Requirements or changes affecting the businesses in which the Company is engaged;
  • Industry trends, including factors affecting supply and demand;
  • Labor and personnel relations;
  • Credit risks affecting the Company's revenue and profitability;
  • Changes in the commercial vehicle industry;
  • The Companyas ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
  • Changing interpretations of generally accepted accounting principles;
  • General economic conditions; and
  • Other relevant risks detailed in the Companyas filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

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