TIDMCTEK
RNS Number : 1939B
China Chaintek United Co., Ltd
02 April 2013
2 April 2013
China Chaintek United Co., Ltd
("ChainTek", "China Chaintek", the "Company" or the "Group")
Results Announcement for the Year Ended 31 December 2012
ChainTek (AIM: CTEK), the provider of logistics services to
manufacturers of consumer goods in the People's Republic of China
(the "PRC", or "China"), today announces its audited results for
the year ended 31 December 2012.
RMB '000 2012 2011 Change
Revenue - Logistics Services 293,758 238,736 +23%
-------- -------- -------
Revenue - Inventory Solutions 46,827 24,001 +95%
-------- -------- -------
Revenue - Total 340,585 262,737 +30%
-------- -------- -------
Adjusted EBITDA (1) 271,796 202,312 +34%
-------- -------- -------
EBITDA 257,882 202,312 +27%
-------- -------- -------
Adjusted profit before tax
(1) 267,435 199,596 +34%
-------- -------- -------
Profit before tax 253,521 199,596 +22%
-------- -------- -------
Adjusted profit after tax (1) 200,496 149,018 +35%
-------- -------- -------
Profit after tax 186,582 149,018 +25%
-------- -------- -------
Cash 342,712 97,747 +251%
-------- -------- -------
Exchange rate: RMB10 = approximately GBP1.00
(1) Adjusted to exclude share-based payment expenses and
exceptional costs relating to the IPO.
Highlights
-- Revenue growth in the year across both the Logistics Services
and Inventory Solutions divisions.
-- Diversification of customer base in the core Logistics
Services Division, with 19% of total revenues coming from food and
building materials, 71% from shoes and apparel, and a total of 289
customers at the year-end.
-- High revenue growth of 95% in the Inventory Solutions
Division, with five customers at the year-end.
-- Construction of Inventory Solutions CDC in Jinjiang City of 24,200m(2) .
-- Strong and experienced Non-Executive Directors appointed with
a focus on transparency and good governance.
-- Successful admission to the AIM market of the London Stock
Exchange, raising gross proceeds of approximately GBP7.5
million.
-- The Group received a Government grant of RMB1.55 million,
being RMB1.4 million relating to an award from the China Federation
of Logistic & Purchasing and RMB0.15 million for the Group's
investment in logistics software system, giving further validation
of the Government's endorsement of both ChainTek and the wider
logistics industry.
Post year-end
-- Acquisition of Land Use Right relating to a plot of land of
145,6000m(2) , with the intention of building a new logistics park
in line with the Group's growth strategy.
-- Signed new debt facility of RMB50 million (approximately
GBP5.0 million) with the Bank of China.
-- Addition of seven new customers in the Logistics Services
business and one new customer in the Inventory Solutions business
in 2013.
Shufang Zhuang, Executive Director and the Group's founder,
commented:
"2012 was a transformational year for the Group and included the
Company's shares being admitted to trading on the London Stock
Exchange. Total revenues for the year grew 30% compared to 2011,
with adjusted profit before tax increasing by 34% to RMB267
million. In our core Logistics Services Division we were pleased
with the diversification of our customer base, building on our
existing strength in sports shoes and apparel and moving into
growing markets such as food and building materials. The Inventory
Solutions business ended the year with five customers, and we are
pleased with the demand we are seeing for this division.
"We enter 2013 with a RMB343 million cash position, healthy
operational cashflows, and are well positioned to benefit from the
Chinese economy's need for domestic logistics services as it
switches to a model of increasing investment and internal
consumption. Our core business is flourishing and we are looking
forward with confidence to offering increased value and service to
our varied customers."
For further information please visit www.chaintek-united.comor
contact:
ChainTek
Derrick Wong (Finance Director) +86 159 8597 3034 or
+65 9227 8485
Zhining Xu Head of Investor Relations +44 (0)7720 570 262
ZAI Corporate Finance
John Depasquale / Wei Wang +44 (0) 20 7060 2220
Liberum Capital
Steve Pearce / Tom Fyson / Josh Hughes +44 (0) 20 3100 2000
Cubitt Consulting
Simon Brocklebank-Fowler / Gareth David / Cebuan
Bliss +44 (0) 20 7367 5100
Chairman's Statement
Dear Shareholder
It is with pleasure that I present to you the results of China
Chaintek United Co., Limited for the year ended 31 December
2012, the first since China Chaintek was admitted to trading
on the AIM market of the London Stock Exchange in August 2012.
Performance
Despite a general slow-down in growth in the PRC during 2012,
the Group, whose business is to provide domestic logistics services
to Chinese manufacturers of light goods, achieved robust growth
with revenues and profit before tax exceeding the Board's expectations.
Group revenues during the year increased by 30% to RMB340.6
million (2011: RMB262.7 million) and profit before tax was up
by 27% to RMB253.5 million over the same period from RMB199.6
million. The Group's well-established Logistics Services Division
contributed an increase of approximately RMB54.0 million to
Group profit before tax year-on-year, and the more recently
established Inventory Solutions Division, now into its second
full year, almost doubled its revenue from RMB24.0 million in
2011 to RMB46.8 million in 2012.
Headquartered in Jinjiang City, the PRC's light manufacturing
heartland in Fujian Province, and one of the fastest growing
metropolises in the PRC, the Group's core Logistics Services
Division is successfully diversifying from a heavy dependence
on a customer base of shoe and apparel manufacturers (79% in
2011 and 71% in 2012) into the food and building materials industries,
for which Fujian is also renowned. These latter industries now
comprise 19% of Group revenues. The growth of the Inventory
Solutions business has also been an encouraging development
in the drive by the Company for greater diversification. Together
with growth in Group revenues, there has been a strong growth
in the Group's cash position, which reached RMB342.7 million
as at 31 December 2012 (2011: RMB97.7 million).
The Group stated at the time of IPO that it intended to seek
debt financing to complete the funding of a new logistics park,
and investment in developing the Group's IT systems. Following
the IPO, the Group has sought further funding from a number
of banking institutions in the PRC and, in March 2013, the Group
arranged a bank loan facility of RMB50 million. The coupon payable
on the facility will be determined at the time of drawdown (but
would be about 6.8%, based upon current rates) and is repayable
one year after the drawdown. It has been provided by Bank of
China and will be used to provide addition working capital for
the Group.
Admission to Trading on AIM
China Chaintek was admitted to trading on AIM on 20 August 2012,
raising GBP7.5 million gross upon admission through the placing
of approximately 4.7 million new Ordinary Shares at a price
of 160p per share. China Chaintek's management retained a majority
shareholding after the placing and they have agreed to a 12
month lock-in. At close of business on 27 March 2012, being
the last practicable date prior to this publication, China Chaintek's
shares traded at a price of 236.50p, a premium of 48% to the
IPO placing price.
Dividend Policy
As stated in the Group's Admission Document at the time of IPO,
the Directors do not intend to pay a dividend for the financial
year ended in 2012, as retained earnings are to be deployed
in growing the Group's businesses through the construction of
new facilities. However, the Board does intend that the Group
shall pay cash dividends to Shareholders in the future when
it is able and appropriate to do so.
Board Governance
On admission to AIM, the Group set out to achieve a careful
balance on the Board between the Executive Management and the
independent Non-Executive Directors tasked with assisting the
Group to maintain standards of transparency and good governance
for the benefit of all its Shareholders. The Board is working
well in accordance with these ideals; regular contact is maintained,
and a schedule of regular Board meetings has been established.
An AIM Committee of the independent Directors has been inaugurated
to monitor the Company's compliance performance; regular liaison
is maintained between the Audit Committee and the Group's auditors
and the Nomination and Remuneration Committees will review annually
the scope, cost and quality of services being provided by the
various service providers to the Group.
Outlook
There is mounting evidence that the PRC is moving from the bottom
of a U-shaped business cycle and manufacturing activity is increasing
in line with a rebalancing of the economy from investment to
consumption; thereby providing a sustainable model for growth.
China Chaintek is expected to benefit from this trend, diversifying
its customer base at a time when experienced logistics providers
and inventory managers are increasingly required by suppliers
of light manufactured goods. The market is currently fragmented,
with no dominant parties, but this is likely to evolve and your
Group is gearing itself to meet the challenges of this trend.
We look forward to a further year of sustainable growth.
I would like to thank all management and staff for their continuing
diligent and energetic hard work. Thank you all.
William Knight
Chairman
28 March 2013
Chief Executive's Review
I am pleased to report that China Chaintek has made significant
operational and financial progress during the past financial
year. We have achieved the goals we set for ourselves at the
beginning of last year, including the admission to trading on
AIM, and have delivered another year of sound organic growth
by providing first class services in both logistics and inventory
solutions to our customers. Group revenues of RMB340.6 million
and profit before tax of RMB253.5 million, both of which have
grown consistently year on year, are testaments to the strength
of the Group. The Group continues to be highly cash-generative,
resulting in a cash position at year end of RMB342.7 million
(2011: RMB 97.7 million).
The strong performance of the Group has been delivered by focusing
on its strengths and pursuing its strategy for organic growth
for its core business in logistics services. This has been achieved
by targeting new customers and also continuing to develop its
existing large-scale, long-term relationships by providing a
full range of high quality service offerings. In addition, the
launch in 2010 of our Inventory Solutions Division has enabled
our customers to reduce their overall logistics and warehousing
costs and, importantly, assist in retaining and strengthening
the Group's relationships with customers.
Logistics Services Division
This division achieved full year revenues of RMB293.8 million,
an increase of 23% over the previous year. Significant progress
has been made in diversifying the customer base into new sectors,
such as food and building materials. The new sectors accounted
for 19% of the division's revenues. The net margin has been
increased from 89% to 90% in 2012. The Group has identified
other sectors into which to expand and also expects to benefit
from increasing revenues from existing sectors.
Overall Chinese Logistics Market
The PRC is the second largest economy in the world with a GDP
in 2012 of approximately RMB51.9 trillion. It is expected that
the PRC will remain as the world's second largest economy for
the near future, with some commentators expecting that the PRC
could overtake the USA as the world's largest economy by 2020.
The PRC is also undergoing a structural economic shift from
an economy fuelled by exports to one of investment and internal
consumption. The rapid growth of domestic income in the PRC
is driving consumption, especially in respect of food, consumer
goods and health care. Such economic adjustments continue to
increase demand for logistics services in the PRC. Logistics
costs are relatively high in the PRC where they were estimated
to represent approximately 18% of GDP in 2010, compared to less
than 10% of GDP in Europe and the USA in the same year.
The logistics market can be broadly divided into three categories,
namely first party logistics, second party logistics and third
party logistics (1PL, 2PL and 3PL). 1PL means logistic functions
are carried out internally by a Group, and 2PL is the actual
carrier and operator of a particular logistics service, for
example DHL. 3PL describes logistics businesses like Chaintek,
which provide freight forwarding services and which offer integrated
solutions as well as subcontracted logistics and transportation
services.
The size of the Chinese domestic logistics market as a whole
is expected to double during the period of the PRC's "twelfth
five-year plan", which ends in 2015. The continuing development
of the PRC's logistics sector and the increase in operational
efficiency is likely to further support and expedite the PRC's
economic development. The logistics industry has become a growth
driver for national economic development and is supported at
Government level.
In a Chinese Government White Paper Plan of Adjustment and Revitalization
of the Chinese Logistic Industry, published in 2009, the logistics
industry was the only service industry listed in Government
supported projects. Further, in August 2011, the State Council,
or the PRC's cabinet, issued new guidelines to promote the development
of the country's logistics industry. These guidelines include
reduced taxation and land policies geared towards logistics
enterprises.
Jinjiang City Logistics Market
Low market concentration is a key characteristic of the Chinese
logistics market. There are more than 700,000 logistics companies
in the PRC and none has a market share over 2% of the total
Chinese logistics market. This is in contrast, for example,
to the USA, where the top eleven logistics companies accounted
for approximately 66% of the USA logistics market.
Number of Customers
The fall in customer numbers in 2012 to 289, from 309 in 2011,
was due to China Chaintek having fewer smaller individual customers.
However, there was a significant increase in the sales of bigger
customers in 2012.
Since the beginning of 2013, China Chaintek has continued to
win new business in both the logistics service and inventory
solutions segments. To date, a total of eight new customers
have been added, with seven in the logistics service business
in Jinjiang City, covering the sectors of food, building material
and automobile parts, and one in the inventory solutions business
in the shoes sector in a regional distribution centre ("RDC")
in Guangzhou.
Breakdown of Customers / Customer Concentration
The Group has continued to diversify its customer base, particularly
into the food and building materials industries which now comprise
19% of total revenue (11% in 2011). The division continues to
reduce its reliance on shoes and apparel, which comprised 72%
of revenue in 2012 (79% in 2011). The rest of the customers
(i.e. bathroom products (bathtubs, basins and toilets), toys,
outdoor recreational equipment and metal hardware) are relatively
insignificant (about 10%).
Inventory Solutions Division
This division is focused on providing outsourced inventory storage
and management services including sorting, packing, labelling
and short term storage. The division achieved revenues of RMB46.8
million, an increase of 95% over the previous year. The division
now accounts for 14% of Group revenues and, since its establishment
in 2010, continues to grow in line with our strategy and expectations.
Net margins have been increased from 27% to 47% in 2012.
The number of customers of the division remained unchanged (at
five) in 2012, but the Group sees significant scope for growing
the revenues of this division, which is explained under the
Overall Group Strategy below.
Overall Group Strategy
In addition to a robust operational and financial performance,
the Group also completed a significant corporate milestone by
successfully listing on the AIM market of the London Stock Exchange
in August 2012.
China Chaintek plans to build a new logistics park, including
a larger CDC, open more RDCs in more regions and to continue
developing its IT systems to strengthen its leading position
in both logistics services and inventory solutions markets.
China Chaintek is continuing to explore a number of strategies
in order to seek avenues of financing available to complete
the Group's capital project, but the Group is confident that
the business can continue to grow with its existing facilities.
In March 2013 the Group arranged a bank loan facility of RMB50
million. The coupon payable on the facility will be determined
at the time of drawdown (but would be about 6.8%, based upon
current rates) and is repayable one year after the drawdown.
It has been provided by Bank of China and will be used to provide
additional working capital for the Group.
Our management team has worked incredibly hard and performed
exceptionally well to achieve this growth during the year and
I would like to thank them for their commitment and efforts,
without which we would not have been able to deliver such high
quality, value added services for our customers.
Meijin Xu
Chief Executive Officer
28 March 2013
Consolidated statement of financial position
as at 31 December 2012
31 December 31 December
2012 2011
RMB RMB
Assets
Non-Current
Land use right prepayments (note 2) 30,106,119 30,776,029
Property, plant and equipment 75,793,727 72,486,395
------------------------------------- ------------ ------------
105,899,846 103,262,424
Current
Land use right prepayments (note 2) 669,911 669,911
Trade and other receivables (note
3) 144,460,690 118,219,965
Cash and cash equivalents 342,712,249 97,746,651
------------------------------------- ------------ ------------
487,842,850 216,636,527
Total assets 593,742,696 319,898,951
===================================== ============ ============
Equity and Liabilities
Capital and reserves
Share capital 67,195,625 327,439
Merger reserve (204,100) (204,100)
Statutory common reserve 5,000,000 5,000,000
Capital reserve 9,821,903 -
Warrant reserve 13,184,433 -
Retained earnings 465,794,574 279,212,825
------------------------------------- ------------ ------------
560,792,435 284,336,164
Liabilities
Current
Trade and other payables (note 4) 18,663,909 22,948,587
Current tax payable 14,286,352 12,614,200
------------------------------------- ------------ ------------
Total liabilities 32,950,261 35,562,787
Total equity and liabilities 593,742,696 319,898,951
===================================== ============ ============
Consolidated statement of comprehensive income
for the financial year ended 31 December 2012
Year ended Year ended
31 December 31 December
2012 2011
RMB RMB
Revenue (note 5) 340,585,459 262,736,832
Cost of sales (57,026,047) (44,985,958)
------------------------------------ ------------- -------------
Gross profit 283,559,412 217,750,874
Other income 3,230,675 643,827
Distribution expenses (736,408) (1,225,047)
Administrative expenses (32,532,210) (17,573,673)
------------------------------------ ------------- -------------
Profit before taxation (note 6) 253,521,469 199,595,981
Income tax expense (note 7) (66,939,720) (50,578,254)
------------------------------------ ------------- -------------
Profit for the year 186,581,749 149,017,727
Other comprehensive income:
Other comprehensive income (at nil -
tax) -
------------------------------------ ------------- -------------
Total comprehensive income for the
year 186,581,749 149,017,727
==================================== ============= =============
Earnings per share (RMB)
- Basic (note 9) 3.61 2.98
- Diluted (note 9) 3.56 2.98
==================================== ============= =============
Consolidated statement of changes in equity
for the financial year ended 31 December 2012
Statutory
Share Merger common Capital Warrant Retained
capital reserve reserve reserve reserve earnings Total
RMB RMB RMB RMB RMB RMB RMB
Balance as at 1 January 2011 10,000,000 - 5,000,000 - - 130,195,098 145,195,098
Total comprehensive income for
the year
- Profit for the year - - - - - 149,017,727 149,017,727
---------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------ -------------
Total comprehensive income for
the year - - - - - 149,017,727 149,017,727
Transactions with owners recognised
directly in equity
Contributions by and distributions
to owners
* Restructuring Exercise (10,000,000) (204,100) - - - - (10,204,100)
* Issue of share upon incorporation 6 - - - - - 6
* Issue of shares 327,433 - - - - - 327,433
---------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------ -------------
Total transactions with owners 327,439 (204,100) - - - - (9,876,661)
Balance as at 31 December 2011 327,439 (204,100) 5,000,000 - - 279,212,825 284,336,164
Total comprehensive income for
the year
- Profit for the year - - - - - 186,581,749 186,581,749
---------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------ -------------
Total comprehensive income for
the year - - - - - 186,581,749 186,581,749
Transactions with owners recognised
directly in equity
Contributions by and distributions
to owners
* Advance from a Shareholder waived - - - 9,821,903 - - 9,821,903
* Issue of shares upon Initial Public Offering 66,868,186 - - - - - 66,868,186
* Issue of Warrants - - - - 13,184,433 - 13,184,433
---------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------ -------------
Total transactions with owners 66,868,186 - - 9,821,903 13,184,433 - 89,874,522
Balance as at 31 December 2012 67,195,625 (204,100) 5,000,000 9,821,903 13,184,433 465,794,574 560,792,435
==================================================== ============= ========== ========== ========== =========== ============ =============
Consolidated statement of cash flows
for the financial year ended 31 December 2012
Year ended Year ended
31 December 31 December
2012 2011
RMB RMB
Cash Flows from Operating Activities
Profit before taxation 253,521,469 199,595,981
Adjustments for:
Amortisation of land use rights prepayments 669,910 445,576
Equity-settled share-based payment -
expense 4,977,160
Depreciation of property, plant and
equipment 3,691,087 2,270,119
Loss on disposal of property, plant
and equipment 61,125 71,516
Interest income (617,125) (257,419)
--------------------------------------------- ------------- -------------
Operating profit before working capital
changes 262,303,626 202,125,773
Changes in trade and other receivables (26,240,725) (43,244,151)
Changes in in trade and other payables 888,946 3,974,057
--------------------------------------------- ------------- -------------
Cash generated from operations 236,951,847 162,855,679
Income tax paid (65,267,568) (46,580,203)
--------------------------------------------- ------------- -------------
Net cash generated from operating
activities 171,684,279 116,275,476
Cash Flows from Investing Activities
Acquisition of land use rights - (22,433,400)
Acquisition of property, plant and
equipment (7,091,920) (49,566,883)
Proceeds from disposal of property,
plant
and equipment 32,376 719,320
Interest received 617,125 257,419
--------------------------------------------- ------------- -------------
Net cash used in investing activities (6,442,419) (71,023,544)
Cash Flows from Financing Activities
Advance from a Shareholder 4,648,279 2,264,023
Net proceeds from issue of shares 75,075,459 -
upon Initial Public Offering
--------------------------------------------- ------------- -------------
Net cash generated from financing
activities 79,723,738 2,264,023
Net increase in cash and cash equivalents 244,965,598 47,515,955
Cash and cash equivalents at beginning
of year 97,746,651 50,230,696
--------------------------------------------- ------------- -------------
Cash and cash equivalents at end of
year 342,712,249 97,746,651
============================================= ============= =============
Notes to the Results
for the financial year ended 31 December 2012
1 General information
China Chaintek was incorporated as an exempted limited liability
in Cayman Islands on 13 April 2011 as a result of a group restructuring
(the "Restructuring Exercise") in preparation for the proposed
listing of the Company's shares on the AIM market of the London
Stock Exchange. The Company's registered office is at P.O. Box
1034, Grand Cayman KY1-1102, Cayman Islands. The Company's shares
were admitted to trading on the AIM market of the London Stock
Exchange on 20 August 2012.
The principal activities of the Company are those related to
investment holding. The principal activities of the subsidiaries
are logistics services and inventory solutions.
Full notes to the financial information are disclosed in the
Group's Report and Consolidated Financial Statements, which the
Board expects to release by 10 April 2012.
2 Land use rights prepayments
31 December 31 December
2012 2011
RMB RMB
Cost
At 1 January 33,495,525 11,062,125
Additions - 22,433,400
------------------------------------------- ---------------- ---------------
At 31 December 33,495,525 33,495,525
=========================================== ================ ===============
Accumulated amortisation
At 1 January 2,049,585 1,604,009
Amortisation for the year 669,910 445,576
------------------------------------------- ---------------- ---------------
At 31 December 2,719,495 2,049,585
=========================================== ================ ===============
Carrying amount at 31 December 30,776,030 31,445,940
=========================================== ================ ===============
Presented as:
Current assets 669,911 669,911
Non-current assets 30,106,119 30,776,029
------------------------------------------- ---------------- ---------------
30,776,030 31,445,940
=========================================== ================ ===============
3 Trade and other receivables
31 December 31 December
2012 2011
RMB RMB
Trade receivables 79,573,035 52,432,277
Non-trade amounts due from Shareholders - 327,439
Rental deposits 9,128,460 13,021,860
Deposit for acquisition of land use
rights 52,000,000 52,000,000
Advance payment to information technology -
vendor 3,250,000
Insurance prepayments 509,195 405,473
Others - 32,916
------------------------------------------- ------------ ------------
64,887,655 65,787,688
Total 144,460,690 118,219,965
=========================================== ============ ============
4 Trade and other payables
31 December 31 December
2012 2011
RMB RMB
Trade payables 4,560,104 3,582,527
Other payables
Deposits from transportation agents 4,000,000 4,000,000
Advance from a Shareholder* 6,975,275 12,140,684
Accrued payroll costs 729,790 778,917
Accrued professional fees 1,106,700 1,709,918
Accrued social insurance 209,593 163,484
Other tax payables 840,554 505,113
Amounts owing to Shareholders** - 8,215
Others 241,893 59,729
-------------------------------------------- -------------- ---------------
14,103,805 19,366,060
18,663,909 22,948,587
============================================ ============== ===============
* At 31 December 2011 and 2012, the advance from a Shareholder
related to an advance from Mrs Xu to provide working capital
for Chaintek United. The advance from a Shareholder was
unsecured, interest-free and repayable in cash on demand.
Pursuant to an agreement entered into with Mrs Xu, the
Shareholder waived a portion of the advance amounting to
RMB9,813,688 during the financial year ended 31 December
2012. The advance amount waived was considered as a capital
contribution from the Shareholder and recognised directly
in equity under capital reserve.
** On 27 June 2011, in connection with the restructuring exercise,
the Company acquired 100% of the equity interest of Chaintek
United for a purchase consideration of HK$10,000 (RMB8,215)
based on the nominal issued share capital of Chaintek United.
The purchase consideration was outstanding at 31 December
2011. During the financial year ended 31 December 2012,
the former Shareholders of Chaintek United, Mr Zhuang and
Mrs Xu, waived the amount which was unsecured and interest
free. Mr Zhuang and Mrs Xu are Shareholders of the Company
after the restructuring exercise. The amount waived was
considered as capital contributions from the Shareholders
and recognised directly in equity under capital reserve.
5 Revenue
Year ended
Year ended 31 31 December
December 2012 2011
RMB RMB
Logistics services 293,758,400 238,735,518
Inventory solutions 46,827,059 24,001,314
--------------------- --------------- ----------------
340,585,459 262,736,832
===================== =============== ================
6 Profit before taxation
The following items have been included in arriving at profit
before taxation:
Year ended 31 Year ended
December 2012 31 December
2011
RMB RMB
Amortisation of land use rights 669,910 445,576
Equity-settled share-based payment 4,977,160 -
expense
Loss on disposal of property, plant
and equipment 61,125 71,516
Depreciation of property, plant and
equipment 3,691,087 2,270,119
Operating lease expense 7,609,484 7,281,203
Exchange gain 1,063,550 386,408
Staff costs
Key management personnel:
- Directors
--------------- -------------
- Directors' remuneration 1,578,767 755,400
- Contributions to defined contribution
plans 2,508 6,129
- Other than Directors
- Salaries, wages and other related
costs 1,215,719 870,200
- Contributions to defined contribution
plans 5,705 8,540
Other than key management personnel:
- Salaries, wages and other related
costs 21,500,116 17,045,624
- Contributions to defined contribution
plans 2,294,869 1,223,500
--------------- -------------
26,597,684 19,909,393
--------------- -------------
7 Income tax expense
Year ended 31 Year ended
December 2012 31 December
2011
RMB RMB
Current taxation 66,939,720 50,578,254
====================================== =============== =============
Reconciliation of effective tax rate
Profit before taxation 253,521,469 199,595,981
====================================== =============== =============
Tax at the PRC statutory rate of 25%
(2011 - 25%) 63,380,367 49,898,995
Differences in foreign tax rate 2,613,403 185,828
Tax exempt income (387,500) -
Non-deductible expenses 149,513 132,706
Deferred tax assets on losses not
recognised 1,183,937 360,725
-------------------------------------- --------------- -------------
66,939,720 50,578,254
====================================== =============== =============
No deferred tax asset or liability is recognised, principally
as a result of the Group's taxable profit equating to its accounting
profit, and there being no differences between the tax basis
of assets and liabilities and the carrying values in the statement
of financial position.
At the reporting date, the Group has unabsorbed tax losses of
approximately RMB9,356,000 (2011: RMB2,186,000) attributable
to a subsidiary.
The Group has not recognised a deferred tax asset in respect
of the tax because management believes that it is not probable
that these tax losses would be allowed by the tax authorities.
8 Operating segments
For management reporting purposes, the Group is organised into
the following reportable operating segments:
(a) Logistics services - includes the provision of land transportation
services.
(b) Inventory solutions - includes the provision of warehousing
services.
(c) Corporate - includes investment holdings and Corporate Office
which incurs general corporate expenses.
Intra- and inter-segment transactions were carried out at terms
agreed between the parties during the financial year. Intra-
and inter-segment transactions were eliminated in preparing the
consolidated financial statements.
Geographical information
The Group's operations are located in the PRC and all of the
Group's revenue is derived from services provided to customers
in the PRC. Hence, no analysis by geographical area of operations
is provided.
Major customer
Five of the customers accounted for more than 10% of the Group's
total revenues for the years ended 31 December 2011 and 2012.
9 Earnings per share
Year ended 31 Year ended 31
December 2012 December 2011
RMB RMB
Net profit after taxation (RMB) 186,581,749 149,017,727
=========================================== =============== ===============
Weighted average number of Ordinary
Shares used in calculation of basic
earnings per share 51,724,332 50,000,000
Effective of dilutive potential Ordinary
Shares weighted average number of
Warrants 618,181 -
------------------------------------------- --------------- ---------------
Weighted average number of Ordinary
Shares used in calculation of diluted
earnings per share 52,342,513 50,000,000
=========================================== =============== ===============
Earnings per share -
Basic (RMB) 3.61 2.98
Diluted (RMB) 3.56 2.98
=========================================== =============== ===============
10 Subsequent Events
(a) Acquisition of land use right
On 18 June 2010, Fujian Xingtai entered into a letter of intent
with the People's Government of Cizao Town, Jinjiang City,
Fujian Province, the PRC, to acquire a land use right for construction
of central distribution facilities. As of 31 December 2012,
Fujian Xingtai had paid a deposit of RMB52 million (Note 7).
In March 2013, Fujian Xingtai was granted a land use right
certificate by the local authority for a land area of approximately
145,600 square meters at a fee of RMB273 million. Subsequently,
Fujian Xingtai has made a payment to the local authority amounting
to RMB81.9 million. Payment of the remaining balance of RMB133.9
million is due in September 2013.
(b) Loan facility
In March 2013 the Group arranged a bank loan facility of RMB50
million. The coupon payable on the facility will be determined
at the time of drawdown (but would be about 6.8%, based upon
current rates) and is repayable one year after the drawdown.
It has been provided by Bank of China and will be used to provide
addition working capital for the Group.
--- ENDS ---
This information is provided by RNS
The company news service from the London Stock Exchange
END
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