China Chaintek United Co., Ltd Trading Update (6082F)

TIDMCTEK

RNS Number : 6082F

China Chaintek United Co., Ltd

28 May 2013

China Chaintek United Co., Ltd

("ChainTek" or the "Company"),

Trading Update

China ChainTek United Holdings Co., Ltd (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to give the following update on trading for the four month period ended 30 April 2013. Financial information contained in this announcement for the four month period is unaudited.

Trading for the period has been slightly ahead of management's expectations with revenue of RMB110.3 million (approximately GBP11.0 million), which represents a 7% increase to the comparable quarter in 2012. Of this, the logistics services business represented RMB95.1 million (approximately GBP9.5 million), with the inventory solutions business accounting for RMB15.2 million (approximately GBP1.5 million).

In line with the Company's stated strategy of diversifying its logistics services' client base, 30% of revenues in the period came from industries other than sport shoes and apparel, compared to 27% in the equivalent period in 2012. Since the start of the year, the Company has added seven new customers in its logistics services business (one in food industries, four in construction materials industries and another two in other industries) and one new customer in its inventory solutions business.

EBITDA for the period was RMB92.6 million (approximately GBP9.3 million) compared to RMB83.5 million (approximately GBP8.4million) for the equivalent period in the prior year. PBT was RMB91.6 million (approximately GBP9.2 million), which represents a 12% increase to the comparable quarter in 2012 of RMB81.8 million (approximately GBP8.2 million). As at 30 April 2013, the Group had a net cash position of RMB210.5 million (approximately GBP21.1 million).

As announced on 19 March 2013, the Company intends to build a logistics park which will be located on a plot of land in an industrial zone in Jinjiang just 14km from the Group's existing operational headquarters, and which already houses a number of ChainTek's existing manufacturer customers. The Company has entered into agreements with the local government and the developer of the logistics park to acquire the Land Use Right over the plot of land and will satisfy the final condition of the acquisition when it pays the final tranche of the consideration, which it anticipates doing in Q4 2013. The Company anticipates that construction of the logistics park will also commence in Q4 2013 and will update the market as appropriate.

ENQUIRIES:

 
 ChainTek 
                                         +44 (0) 7720 
 Zhining Xu (Investor Relations)               570262 
                                        +65 9227 8485 
                                         +86 159 8597 
 Derrick Wong (Finance Director)                 3034 
 
 ZAI Corporate Finance 
                                          +44 (0) 203 
 John Depasquale / Ivy Wang                  167 2815 
 
 Liberum Capital 
 Steve Pearce / Tom Fyson / Josh      +44 (0) 20 3100 
  Hughes                                         2000 
 
 Cubitt Consulting 
 Simon Brocklebank-Fowler / Gareth        +44 (0) 207 
  David /Cebuan Bliss                        367 5100

This information is provided by RNS

The company news service from the London Stock Exchange

END

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