TIDMCTEK
RNS Number : 1535E
China Chaintek United Co., Ltd
07 April 2014
Press Release 7 April 2014
China Chaintek United Co., Ltd
("ChainTek", the "Company" or the "Group")
Final Results
ChainTek (AIM:CTEK), the provider of logistics services to
manufacturers of consumer goods in China, today announces its final
results for the year ended 31 December 2013 (the "period").
Financial Highlights
-- Revenue up 2.9% to RMB350.6 million (2012: RMB340.6 million)
-- Profit before tax up 12.4% to RMB284.9 million (2012: RMB253.5
million)
-- EBITDA up 12.9% to RMB290.5 million (2012: RMB257.3 million)
-- Operating profit margin increased to 81.3% (2012: 74.4%)
-- Cash position of RMB319.3 million (2012: RMB342.7 million)
-- The Group concluded the first stage of its planned logistics
park through the completion of its purchase of land use rights
for a total RMB273 million
-- Maiden interim dividend of 2 pence net per share, in respect
of the six month period ended 30 June 2013, paid on 3 January
2014 to shareholders on the register on 13 December 2013
-- A final dividend of 4 pence proposed in form of a scrip issue
with a cash alternative, giving a total dividend of 6 pence
for the year
Commenting on the final results, Shufang Zhuang, Executive
Director and the Group's founder, said: "The Board is pleased with
the progress in terms of both profit and revenue for the Group
during the period. Our plans for the new logistics park are
continuing to progress, and the land use rights have now been
purchased in full.
"We are particularly pleased to be announcing the Group's final
dividend, which is indicative of the Board's confidence in the
growth potential for ChainTek. The market environment is ideally
poised for the Group, with the accelerating rate of growth in the
e-commerce space, as well as the government's investment into
infrastructure and the reforms that are anticipated to drive growth
in the consumer sector in China, and consequently the logistics
sector. The dynamics of the continuing migration from rural to
urban areas in China, as well as the easing of the one child
policy, also indicate that the outlook for the sector is positive,
and the Board is confident that ChainTek's potential for further
growth is strong."
- Ends -
For further information:
China Chaintek United Co., Ltd www.chaintek-united-ir.com
Derrick Wong (Finance Director) Tel: +65 9227 8485
Tel: +86 159 8597 3034
Nominated Advisor and Joint Broker
ZAI Corporate Finance Ltd
Ray Zimmerman / Wei Wang Tel: +44 (0) 207 060 2220
Joint Broker
Daniel Stewart & Company Plc
Paul Shackleton Tel: +44 (0) 20 7776 6550
Abchurch Communications
Henry Harrison-Topham / Quincy Tel: +44 (0) 20 7398 7702
Allan
henry.ht@abchurch-group.com www.abchurch-group.com
The financial statements for the year ended 31 December 2013
will shortly be available on the Company's website at
www.chaintek-united.com
Chairman's Statement
It is with pleasure that I present to you the report and
consolidated financial statements of China Chaintek for the year
ended 31 December 2013, the second since the Group was admitted to
trading on the AIM market in August 2012.
Performance
This has been an encouraging year for the Group with growth
across each of its operations in line with market expectations.
This is discussed in more detail in the Chief Executive's
Statement. I am delighted to report that Group revenues increased
from RMB340.6 million to RMB350.6 million, Profit Before Tax from
RMB253.5 million to RMB284.8 million and EBITDA by 12.9% from
RMB257.3 million to RMB290.5 million. As a highly cash-generative
business, the Group retained a strong year-end cash position of
RMB319.3 million after having paid the remaining balance of RMB221
million for the purchase of the Land Use Rights for the Group's new
logistics park, referred to in last year's statement. Given the
Group's strong cash position, the Board believes that a progressive
Dividend Policy is appropriate, which is set out in more detail
below.
Strategy
Your Board wishes to emphasise its belief in the strong future
growth of the logistics sector in China in which the Group is
serving. This is an exciting time to be involved with the growth
and development of consumerism in China and the accelerated use of
e-commerce, which is so important to the future growth of the
Group. Investing now in greater logistical supply capacity and in
the information technology systems that support it is as
far-sighted as it is crucial.
Outlook
Evoking the spirit of Deng Xiao Ping in 1978, China is embarking
on far-reaching economic and systemic reforms following the third
plenum of the Central Committee. It is anticipated that these
reforms will enhance the growth of consumerism in China, including
the logistics sector. An easing of the one child policy is helpful
for future market growth as well as the continuing migration of
families from rural to urban areas and the easing of restrictions
on the sale of rural land. The outlook is for many reasons
therefore positive for the sector. The scale of the growth of
e-commerce during 2013, even before these reforms have been
introduced, as outlined in the Chief Executive's report, is an
early indicator of what we believe will be a period of sustainable
development and growth for your Company.
Revenue and Dividends
In my Statement last year, I indicated that the Board intended
to pay cash dividends when it became appropriate and feasible to do
so. We have now reached that point. On 6 November 2013, we
announced our first interim dividend of 2 pence per share, in
respect of the six month period ended 30 June 2013. We are pleased
that we can now declare that for this financial year we are
proposing to pay a final dividend of 4 pence per share, giving a
total dividend of 6 pence per share for this financial year. A
separate circular will be sent to shareholders detailing the
process, timing and mechanism for the payment following the Annual
General Meeting.
Board Governance
The Board meets quarterly including twice a year in China. It
has also met on an ad-hoc basis on three occasions during the
period. Through its Nomination Committee the Board carries out
evaluations of each of its Directors, Chairman, the Board itself
and its committees. The Board also reviews on an ongoing basis each
of its service providers for their scope, cost and quality of
service. Regular liaison is maintained between the Board's Audit
Committee and the Company's Auditors. The Board's Remuneration
Committee maintains an ongoing review of the Company's remuneration
policy.
Revised Reporting Requirements
Shareholders will note that there have been a number of changes
in reporting requirements for listed companies with years beginning
on or after 1 October 2012. As an AIM traded company we aspire
towards meeting these requirements. In particular, there has been
the addition of a Strategic Report and changes to the structure of
the Directors' Remuneration Report in the audited financial
statements. The Strategic Report is designed to replace and enhance
reporting previously included in the Business Review section of the
Directors' Report. Its purpose is to inform members and help them
to assess how the Directors have performed their duties to promote
the success of the Company during the year under review.
Annual General Meeting
This year's Annual General Meeting will be held at Becket House,
36 Old Jewry, London, EC2R 8DD on 20 May 2014. If you have any
detailed questions, you may wish to raise these in advance with the
Company Secretary. Shareholders who cannot attend the Annual
General Meeting in person are encouraged to use their proxy votes.
Shareholders who hold their shares through CREST are able to lodge
their votes electronically.
William Knight
Non-Executive Chairman
7 April 2014
Chief Executive's Review
During the past financial year, China Chaintek has continued to
achieve robust growth across its operations. Group revenues of
RMB350.6 million and profit before tax of RMB284.9 million are in
line with your Board's expectations. The Group remains highly
cash-generative with a year-end cash position of RMB319.3 million
(2012: RMB342.7 million) despite having paid a further RMB221
million to purchase the Land Use Rights for a new Logistics Park. I
am also pleased that our financial strength has enabled the Group
to initiate a progressive dividend policy. Equally importantly, the
Board has taken significant initiatives to ensure that China
Chaintek is well placed to capitalise on the very considerable
opportunities in its market. But markets are dynamic and China
Chaintek will continue to prosper by remaining proactive and
ensuring that the Group is positioned to meet the developing needs
of its customer base and to provide effective solutions to their
problems. In order to achieve this, the Group has, for example,
further developed its Inventory Solutions business, continued to
invest in IT systems and it has also acquired the site for the new
Logistics Park.
The growth of the e-commerce market in China provides China
Chaintek with a superb opportunity for remarkable growth and the
Board is focussed on achieving that.
The past financial year indeed has been an important period of
development for the Group and I have pleasure in providing details
below of the developments to which I have referred above.
Logistics Services Division
This Division achieved, on a like-for-like basis, a 9% increase
in revenues which is in line with the Board's expectations although
the audited revenue figure shows only a 3% increase over the
previous year to RMB303.7 million (2012: RMB293.8 million). This
reflects the introduction of value-added tax ("VAT") to replace
sales tax. The rate for both taxes is 6% but sales tax was
recognised under cost of sales whereas VAT is netted against
revenue. Accordingly, the change resulted in lowering reported
revenues by 6%. It also had the effect of increasing the gross
margin from 90% to 93%.
The Division continued to develop strongly and during the year
won a total of 16 new customers. These included VIPshop, one of
China's leading online discount retailers for brands. The Board has
continued its stated strategy of diversifying the Division's
customer base, notably into the food and building materials
industries which now comprise 22% of the Division's revenues (19%
in 2012). The historic emphasis on shoes and apparel has further
reduced, now comprising 69% of Divisional revenues (72% in
2012).
The customer list of this Division remains broadly based with
about 300 customers, 75 of whom account for the majority of revenue
with 10 accounting for 34% of revenue. The Division operates from
the Transit Warehouse and Head Office in Jinjiang. To meet current
and projected demand, there is a requirement for additional
facilities. This requirement is being met by the development of a
new Logistics Park, details of which are provided below.
Inventory Solutions Business
This Division maintained its revenue contribution as expected
with audited revenues of RMB46.9 million. The tax changes referred
to above mean that, on a like-for- like basis, the revenues would
have been 6% higher. Gross margins are 48% (43% in 2012) and the
Division accounted for 13% of total Group revenues. Your Board
believes there is significant scope to grow the revenues of this
Division, which is summarised in the 'Strategy for Growth' section
later in this report.
The Division operates from a Central Distribution Centre ("CDC")
in Jinjiang and two Regional Distribution Centres ("RDCs")
including one in Hangzhou and one in Guangzhou. As with the
Logistics Services Division, there is a need for increased
facilities to meet demand. This will be met by the opening of the
new Logistics Park and the opening of further RDCs to meet
demand.
New Logistics Park
The site acquired for the new Logistics Park is strategically
located amongst the Group's existing and potential clients in the
Jinjiang Industrial Zone. The site is 145,600m(2) and is 14km from
the Group's Headquarters. The Land Use Rights ("LUR") have been
acquired by China Chaintek for a total consideration of RMB273
million and construction will take approximately 18 months before
commencement of operations.
The new Logistics Park will enable China Chaintek to satisfy the
growing demand from manufacturers for outsourced logistics. The
Board expects the Logistics Park to be at full capacity within
three years of completion and it will provide China Chaintek with
the ability to double its turnover once full capacity has been
reached. China Chaintek has paid for the Logistics Park from its
own cash resources, as sale and lease back is not currently an
option in China at present, and the Group will also have sufficient
resources to fund the estimated RMB600 million construction costs
to complete the whole project.
In 2013, the Chinese government issued a new policy and
regulation to support the logistics and warehousing industry,
especially in land supply at a favourable price for logistics
companies. The Group is actively negotiating with the local
government to obtain the preferential policy for the new Logistics
Park, being a rebate on the land price paid to the government.
China's e-commerce market
China's e-commerce market has developed more quickly and more
extensively than many envisaged. It has also proved increasingly
dynamic in its offerings and the methods used to make purchases. In
2012 the total value of on-line transactions increased by 67% over
the previous year, reaching US$190 billion. Since then, the Chinese
market has overtaken the US as the world's largest e-commerce
market. The number of people in China purchasing goods and services
online in 2012 was 242 million. With China having an estimated
total population today of 1.3 billion, there is considerable scope
for further growth and research suggests the Chinese e-commerce
market will be valued between US$420 billion and US$650 billion by
2020. It is also worth noting that on "Singles Day" in 2012, online
sales of US$4 billion were generated in China, surpassing the
figure for "Cyber Monday" in the United States in the same
year.
The prevalence of online shopping is not restricted to China's
four Tier 1 Cities but also extends to the 43 Tier 2 Cities as well
as further afield. China Chaintek's operations cover more than 50
of China's major cities with the ability to achieve further
penetration. Unlike other developed e-commerce markets, 70% of the
e-commerce market in China is C2C (consumer to consumer) compared
to less than 10% in most developed markets. This underscores the
importance of smaller businesses in driving growth. Such businesses
need efficient logistics. Chinese consumers in the larger cities
are accustomed to next day delivery and this service is expanding
to meet the expectations of consumers in smaller cities. This
requires fast and efficient fulfilment, home delivery and handing
of returned goods along with greater warehouse capacity. In
summary, the development of e-commerce in China is proving to be
remarkably fast. China Chaintek intends to position itself as a
leading service provider in this fast growing market. The
initiatives summarised under 'Strategy for Growth' below will
assist in this process.
Strategy for Growth
The Group shortly will commence construction of the new
Logistics Park already referred to. This will service and attract
customers for both the Logistics Services and the Inventory
Solutions Divisions.
The Group also intends to build a larger CDC in Jinjiang city,
continue development of its IT systems and open more RDCs. The
latter will be opened to meet proven demand and on average will
cost GBP600,000 each. Finding suitable sites can be challenging but
China Chaintek has tackled this by way of its agreement with Global
Logistic Properties, a Singapore listed property logistics
developer, whereby properties are provided when and where
required.
As previously announced, the Group's Logistics Services business
has been appointed as a Designated Service Provider for VIPshop.
The business will provide VIPshop with just-in-time delivery
services enabling VIPshop's suppliers to deliver goods efficiently
from their manufacturing facilities in Jinjiang to VIPshop's
regional operation centres.
The Board believes that by offering both logistics services and
inventory solutions, allied with the Group's long standing
relationships with major brands in the Jinjiang region, China
Chaintek is providing a robust platform for continued growth. It
will also enable China Chaintek to benefit from the growth of the
e-commerce business of its existing customers as well as enabling
the Group to attract new clients in this rapidly growing
sector.
I would like to thank the management and employees of China
Chaintek for their hard work and professionalism. We have achieved
much since the Group was founded some thirteen years ago. I am
confident that we will continue to grow China Chaintek in the years
ahead to the benefit of our shareholders and staff. I look forward
to meeting Shareholders following the announcement of the Group's
results.
Meijin Xu
Chief Executive Officer
7 April 2014
Consolidated statement of financial position
As at 31 December 2013
(All amounts in RMB unless otherwise stated)
31 December 31 December
2013 2012
Note RMB RMB
Assets
Non-Current
Land use right prepayments 5 302,436,208 30,106,119
Property, plant and equipment 6 80,407,090 75,793,727
-------------------------------- ------ ------------ ------------
382,843,298 105,899,846
Current
Land use right prepayments 5 669,911 669,911
Trade and other receivables 7 97,188,052 144,460,690
Cash and cash equivalents 8 319,283,433 342,712,249
-------------------------------- ------ ------------ ------------
417,141,396 487,842,850
Total assets 799,984,694 593,742,696
================================ ====== ============ ============
Equity and Liabilities
Capital and reserves
Share capital 9 357,254 357,254
Share premium 12 66,838,371 66,838,371
Merger reserve 10 (204,100) (204,100)
Statutory common reserve 11 5,000,000 5,000,000
Capital reserve 12 9,821,903 9,821,903
Warrant reserve 13 13,184,433 13,184,433
Retained earnings 678,183,830 465,794,574
-------------------------------- ------ ------------ ------------
773,181,691 560,792,435
Liabilities
Current
Trade and other payables 14 11,733,085 18,663,909
Current tax payable 15,069,918 14,286,352
-------------------------------- ------ ------------ ------------
Total liabilities 26,803,003 32,950,261
Total equity and liabilities 799,984,694 593,742,696
================================ ====== ============ ============
The financial statements were authorised for issue by the Board
of Directors on 7 April 2014.
Derrick Wong
Finance Director
Consolidated statement of comprehensive income
for the financial year ended 31 December 2013
(All amounts in RMB unless otherwise stated)
Year ended Year ended
31 December 31 December
2013 2012
Note RMB RMB
Revenue 15 350,625,538 340,585,459
Cost of sales (44,702,868) (57,026,047)
--------------------------------- ------ ------------- -------------
Gross profit 305,922,670 283,559,412
Other income 16 955,929 3,230,675
Distribution expenses (642,892) (736,408)
Administrative expenses (21,327,814) (32,532,210)
--------------------------------- ------ ------------- -------------
Profit before taxation 17 284,907,893 253,521,469
Income tax expense 18 (72,518,637) (66,939,720)
--------------------------------- ------ ------------- -------------
Profit for the year 212,389,256 186,581,749
Other comprehensive income:
Other comprehensive income (at
nil tax) - -
--------------------------------- ------ ------------- -------------
Total comprehensive income for
the year 212,389,256 186,581,749
================================= ====== ============= =============
Earnings per share (RMB)
- Basic 22 3.88 3.61
- Diluted 22 3.77 3.56
================================= ====== ============= =============
Consolidated statement of changes in equity
for the financial year ended 31 December 2013
(All amounts in RMB unless otherwise stated)
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
2012 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
(Note 14) - - - 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
Total comprehensive income
for
the year
- Profit for the year - - - - - 212,389,256 212,389,256
---------------------------- ----------- ---------- ---------- ---------- ----------- ------------ ------------
Total comprehensive income
for
the year - - - - - 212,389,256 212,389,256
Balance as at 31 December
2013 67,195,625 (204,100) 5,000,000 9,821,903 13,184,433 678,183,830 773,181,691
============================ =========== ========== ========== ========== =========== ============ ============
Consolidated statement of cash flow
for the financial year ended 31 December 2013
(All amounts in RMB unless otherwise stated)
Year ended Year ended
Note 31 December 31 December
2013 2012
RMB RMB
Cash Flows from Operating Activities
Profit before taxation 284,907,893 253,521,469
Adjustments for:
Amortisation of land use rights
prepayments 5 669,911 669,910
Depreciation of property, plant
and equipment 6 5,785,860 3,691,087
(Gain) Loss on disposal of property,
plant and equipment 17 (68,975) 61,125
Interest income 16 (886,954) (617,125)
Equity-settled share-based payment
expense - 4,977,160
Operating profit before working
capital changes 290,407,735 262,303,626
Changes in trade and other receivables (4,727,362) (26,240,725)
Changes in trade and other payables 44,451 888,946
----------------------------------------- ------ --------------- --------------
Cash generated from operations 285,724,824 236,951,847
Income tax paid (71,735,071) (65,267,568)
----------------------------------------- ------ --------------- --------------
Net cash generated from operating
activities 213,989,753 171,684,279
Cash Flows from Investing Activities
Acquisition of property, plant
and equipment (10,435,248) (7,091,920)
Acquisition of land use rights (221,000,000) -
Proceeds from disposal of property,
plant and equipment 105,000 32,376
Interest received 886,954 617,125
----------------------------------------- ------ --------------- --------------
Net cash used in investing activities (230,443,294) (6,442,419)
Cash Flows from Financing Activities
Repayment of advance from a
Shareholder (6,975,275) -
Advance from a Shareholder - 4,648,279
Net proceeds from issue of shares
upon Initial Public Offering - 75,075,459
----------------------------------------- ------ --------------- --------------
Net cash (used in) generated
from financing activities (6,975,275) 79,723,738
Net (decrease) increase in cash
and cash equivalents (23,428,816) 244,965,598
Cash and cash equivalents at
beginning of year 342,712,249 97,746,651
----------------------------------------- ------ --------------- --------------
Cash and cash equivalents at
end of year 8 319,283,433 342,712,249
========================================= ====== =============== ==============
The annexed notes form an integral part of and should be read in
conjunction with these consolidated financial statements.
Notes to the consolidated financial statements
for the financial year ended 31 December 2013
1 General information
China Chaintek United Co., Ltd. ("China Chaintek" or the
"Company") was incorporated as an exempted limited liability
company in the Cayman Islands on 13 April 2011. The Company's
registered office is at P. O. Box 1990, 3rd Floor, First Caribbean
House, Cardinal Ave, KY1-1104, 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 as indicated in Note
4.
2(a) Restructuring exercise and historical information
On 3 March 2000, Fujian Xingtai Logistics Co., Ltd. ("Fujian
Xingtai") was incorporated as a limited liability company in the
People's Republic of China (the "PRC") controlled by Mr Shufang
Zhuang (Mr Zhuang). The registered office is located at Mei Ling
Industrial Park, Jinjiang City, Fujian Province, PRC.
On 5 March 2010,Fujian Xingtai became a wholly owned entity of
Mr Zhuang and his wife Mrs Meijin Xu (Mrs Xu).
On 7 December 2010, Chaintek United Holdings Ltd
("ChaintekUnited") was incorporated as a limited liability company
in Hong Kong SAR. ChaintekUnited, an investment holding company,
has its registered office at Room 1613, 16F, Tai Yau Building, 181
Johnson Road, Wan Chai, Hong Kong SAR. ChaintekUnited is wholly
owned by Mr Zhuang and Mrs Xu.
On 29 January 2011, ChaintekUnited acquired 100% of the equity
interest of Fujian Xingtai for a purchase consideration of
RMB10,204,100, fully paid in cash with an advance from Mrs Xu.
On 13 April 2011, the Company was incorporated in the Cayman
Islands for the proposed listing of the Company's shares on the AIM
market of the London Stock Exchange. The Company is majority owned
and controlled by Mr Zhuang and Mrs Xu.
On 27 June 2011, the Company acquired 100% of the equity
interest of ChaintekUnited for a purchase consideration of
HK$10,000 based on the nominal issued share capital of
ChaintekUnited.
The acquisitions of Fujian Xingtai by ChaintekUnited and
ChaintekUnited by the Company were a combination of businesses
under common control by Mr Zhuang and Mrs Xu. As a result, the
Company accounted for the acquisitions in a manner similar to a
pooling of interests.
2(b) Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standardsas
adopted by the European Union.
(b) Basis of measurement
The financial statements have been prepared on the historical
cost basis.
(c) Functional and presentation currency
The consolidated financial statements are presented in Renminbi
(RMB), which is the presentation currency of the Group and the
functional currency of the principal operating subsidiaries of the
Group. All financial information has been presented in RMB, unless
otherwise stated.
The accounting policies set out below have been applied
consistently to all periods presented in these consolidated
financial statements, and have been applied consistently by Group
entities.
(d) Use of estimates and judgements
The preparation of the financial information in accordance with
this basis of preparation requires the use of judgements, estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial information and the reported amounts of
revenues and expenses during the financial year. Although these
estimates are based on management's best knowledge of current
events and actions, actual results may differ from those
estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
Critical judgements
Classification of land use right prepayments as operating
leases
Within the PRC it is the practice for the State to issue land
use rights to individuals or entities. Such rights are evidenced
through the granting of a land use rights certificate, which gives
the holder the right to use the land (including the construction of
buildings thereon) for a given length of time. An upfront payment
is made for these rights. The Directors judge that the substance of
these arrangements is an operating lease over the land, and that
the upfront payment represents prepaid lease rentals. As such, a
prepayment is recognised in the statement of financial position,
analysed between current and non-current assets. The prepayment is
amortised to spread the lease cost over the duration of the term of
the land use rights, as specified in the lease certificate.
Critical accounting estimates and assumptions
Useful lives of property, plant and equipment
Property, plant and equipmentare depreciated on a straight-line
basis over their estimated useful lives. The Group performs annual
reviews on whether the assumptions made on useful lives continue to
be valid. As changes in the expected level of usage, competitors'
actions and technological obsolescence arising from changes in the
market demands or service output of the assets could impact the
economic useful lives and the residual values of these assets, this
could lead to potential changes in future depreciation charges,
impairment losses and/or write-offs. A 5% difference in the
expected useful lives of these assets from management's estimates
would result in approximately 0.1% (2012: 0.1%) variance in the
Group's profit for the financial year ended 31 December 2013.
Impairment of land use rights and property, plant and
equipment
Land use rights and property, plant and equipment are reviewed
to determine whether there is any indication that the carrying
value of these assets may not be recoverable and have suffered
impairment loss. If any such indication exists, the assets are
tested for impairment. The recoverable amounts of the assets are
estimated in order to determine the extent of the impairment loss,
if any. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. Such impairment loss is
recognised in profit or loss.
The use of estimates is required in the area of asset
impairment, particularly in assessing: (1) whether an event has
occurred that may indicate that the related asset values may not be
recoverable; (2) whether the carrying value of an asset can be
supported by the net present value of future cash flows which are
estimated based upon the value-in-use calculation; (3) the
appropriate key assumptions to be applied in preparing cash flow
projections including whether these cash flow projections are
discounted using an appropriate rate. Changing the assumptions
selected by management to determine the level, if any, of
impairment, including the discount rates or the growth rate
assumptions in the cash flow projections could materially affect
the net present value used in the impairment test and as a result
affects the Group's results.
Allowance for bad and doubtful debts
The Group makes allowance for bad and doubtful debts, if any,
based on an assessment of the recoverability of trade and other
receivables. Allowances are applied to trade and other receivables
where events or changes in circumstances indicate that the balances
may not be collectible. The identification of bad and doubtful
debts requires the use of judgement and estimates. Where the
expected outcome is different from the original estimate, such
difference will impact carrying value of trade and other
receivables and doubtful debt expenses in the year in which such
estimate has been changed. At 31 December 2013, there is no
objective evidence that any of the trade and other receivables are
impaired.
Income tax
Significant judgement is involved in determining the provision
for income taxes. There are certain transactions and computations
for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognises liabilities for
expected tax issues based on estimates of whether additional taxes
will be due.
Where the final tax outcome of these matters is different from
the amounts that were initially recognised, such differences will
impact the income tax and deferred tax provisions in the period in
which such determination is made.
2(c) New accounting standards and interpretations
a) Standards, amendments and interpretations effective in 2013:
The following new standards and amendments to standards are
mandatory for the first time for the Group for the financial year
beginning 1 January 2013. The implementation of these standards did
not have a material effect on the Group:
Standard Impact on initial application Effective date
======================= ===================================== ================
IFRS 13 Fair value measurement 1 January 2013
IAS 19 (Amendment
2011) Employee benefits 1 January 2013
IFRS 7 (Amendment Disclosures - offsetting financial
2011) assets and financial liabilities 1 January 2013
IAS 16 (improvements) Classification of servicing equipment 1 January 2013
----------------------- ------------------------------------- ----------------
b) Standards, amendments and interpretations that are not yet
effective and have not been early adopted:
Standard Impact on initial application Effective date
----------------- ----------------------------------------- -----------------
IAS 32 (Amendment Offsetting financial assets and financial
2011) liabilities 1 January 2014
IFRS 11 Joint arrangements 1 January 2014*
IFRS 10 Consolidated financial statements 1 January 2014*
IFRS 12 Disclosure of interest in other entities 1 January 2014*
IAS 27 (Amendment
2011) Separate financial statements 1 January 2014*
IAS 28 (Amendment Investments in associates and joint
2011) ventures 1 January 2014*
IFRIC 21 Levies 1 January 2014
IFRS 9 Financial instruments No effective date
----------------- ----------------------------------------- -----------------
* Effective date 1 January 2014 for the EU.
The Group does not expect the pronouncements to have a material
impact on the Group's earnings or shareholders' funds.
3 Summary of significant accounting policies
Basis of Consolidation
Business combinations
The consolidated financial statements relate to the Company and
its subsidiaries (together referred to as the "Group"). As
explained in note 1 the acquisitions of Fujian Xingtai by Chaintek
United and Chaintek United by the Company were a combination of
businesses under common control by Mr Zhuang and Mrs Xu and were
therefore accounted for in a manner similar to a pooling of
interests.
Subsidiaries
Subsidiaries are entities controlled by the Group. Control
exists when the Group has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that
presently are exercisable or convertible are taken into account.
The financial information of subsidiaries is included in the
consolidated financial statements from the date that control
commences until the date that control ceases.
Transactions eliminated on consolidation
All inter-company balances and significant inter-company
transactions and resulting unrealised profits or losses are
eliminated on consolidation and the consolidated financial
statements reflect external transactions and balances only.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the
respective functional currencies of the Group entities at the
exchange rate at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the reporting date
are translated to the functional currency at the exchange rate at
the reporting date. Non-monetary items that are measured in terms
of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.
Foreign currency differences arising on translation are
recognised in the statement of comprehensive income.
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost less
accumulated depreciation and impairment losses, if any.
The cost of property, plant and equipment includes expenditure
that is directly attributable to the acquisition of the items.
Dismantlement, removal or restoration costs are included as part of
the cost of property, plant and equipment if the obligation for
dismantlement, removal or restoration is incurred as a consequence
of acquiring or using the asset.
Depreciation is computed utilising the straight-line method to
write off the cost of these assets over their estimated useful
lives as follows:
Buildings 30 years
Plant and machinery 10 years
Computers and office equipment 2 - 10years
Motor vehicles 5 - 10 years
No depreciation is provided on construction work-in-progress.
Depreciation will commence when the asset is completed and ready
for its intended use.
The residual values, depreciation methods and useful lives of
property, plant and equipment are reviewed and adjusted as
appropriate at the reporting date.
Subsequent expenditure relating to property, plant and equipment
that has already been recognised is added to the carrying amount of
the asset when it is probable that future economic benefits, in
excess of the standard of performance of the asset before that
expenditure was made, will flow to the Group and the cost can be
reliably measured. Other subsequent expenditure is recognised as an
expense during the financial year in which it is incurred.
For acquisitions and disposals during the financial year,
depreciation is provided from the month of acquisition and to the
month before disposal respectively. Fully depreciated property,
plant and equipment are retained in the books of accounts until
they are no longer in use.
The gain or loss arising on disposal or retirement of an item of
plant and equipment is determined as the difference between the
sales proceeds and the carrying amounts of the asset and is
recognised in profit or loss.
Land use rights
The land use rights are stated at cost less accumulated
amortisation and any impairment losses. Amortisation is calculated
on a straight-line basis to write off the cost of the land use
rights over the period for which the rights have been granted.
Financial assets
The Group's financial assets include loans and receivables.
The Group initially recognises loans and receivables and
deposits on the date they are originated.
Derecognition of financial instruments occurs when the rights to
receive cash flows from the investments expire or are transferred
and substantially all of the risks and rewards of ownership have
been transferred. An assessment for impairment is undertaken at
least at each reporting date whether or not there is objective
evidence that a financial asset or a groupof financial assets is
impaired.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. They arise when the Group provides money, goods or services
directly to a debtor with no intention of trading the receivables.
They are included in current assets, except for maturities greater
than 12 months after the reporting date which are classified as
non-current assets.
Loans and receivables are recognised initially at fair value
plus any directly attributable transaction costs. Subsequent to
initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less provision
for impairment.
The Group considers evidence of impairment for loans and
receivables at both a specific asset and collective level. All
individually significant loans and receivables are assessed for
specific impairment. All individually significant receivables found
not to be specifically impaired are then collectively assessed for
any impairment that has been incurred but not yet identified. Loans
and receivables that are not individually significant are
collectively assessed for impairment by grouping together loans and
receivables with similar risk characteristics.
In assessing collective impairment, the Group uses historical
trends of the probability of default, the timing of recoveries and
the amount of loss incurred, adjusted for management's judgement as
to whether current economic and credit conditions are such that the
actual losses are likely to be greater or less than suggested by
historical trends.
An impairment loss in respect of a financial asset measured at
amortised cost is calculated as the difference between its carrying
amount and the present value of the estimated future cash flows,
discounted at the asset's original effective interest rate. Losses
are recognised in profit or loss and reflected in an allowance
account against loans and receivables. Interest on the impaired
asset continues to be recognised. When a subsequent event (e.g.
repayment by a debtor) causes the amount of impairment loss to
decrease, the decrease in impairment loss is reversed through
profit or loss.
Loans and receivables comprise cash and cash equivalents, trade
receivables, other receivables, deposits and prepayments, other
than land use right prepayments, which are prepaid operating lease
expenses and deposits for acquisition of land use rights.
Cash and cash equivalents
Cash and cash equivalents include cash and bank balancesthat
have maturities of three months or less from inception.
Impairment of non-financial assets
The carrying amounts of non-financial assets subject to
impairment are reviewed at the end of each reporting period to
determine whether there is any indication of impairment. If any
such indication exists, the asset's recoverable amount is
estimated.
Dividends
Final dividends proposed by the Directors are not accounted for
in Shareholders' equity as an appropriation of retained earnings,
until they have been approved by the Shareholders in a general
meeting. When these dividends have been approved by the
Shareholders and declared, they are recognised as a liability.
Interim dividends are simultaneously proposed and declared,
because the Articles of Association of the Company grant the
Directors the authority to declare interim dividends. However,
interim dividends are not charged to reserves until the relevant
date of payment to shareholders.
Statutory common reserve
The subsidiary incorporated in the PRC is required to transfer
between 5% and 10% of its profit after taxation to the statutory
common reserve until the common reserve balance reaches 50% of the
registered capital. For the purpose of calculating the transfer to
this reserve, the profit after taxation shall be the amount
determined under the PRC accounting standards. The transfer to this
reserve must be made before the distribution of dividends to
Shareholders. The statutory common reserve can only be used to set
off against accumulated losses or to increase the registered
capital of the subsidiary, subject to approval from the PRC
authorities.
The statutory common reserve is not available for dividend
appropriation to the Shareholders.
Share capital
Ordinary Shares are classified as equity.
Incremental costs directly attributable to the issue of Ordinary
Shares and share options are recognised as a deduction from
equity.
Warrants
The fair value of Warrants issued to vendors and Shareholders is
measured using the Black-Scholes option pricing model. Measurement
inputs include the share price on the measurement date, the
exercise price of the instrument, expected volatility, expected
term of the instrument, expected dividend, and the risk-free
interest rate.
Financial liabilities
The Group's financial liabilities include trade and other
payables.
Trade and other payables are initially recognised at fair value,
and subsequently carried at amortised cost using the effective
interest method.
Financial liabilities are recognised when the Group becomes a
party to the contractual agreements of the instrument. All
interest-related charges are recognised as an expense in "finance
costs" in profit or loss. Financial liabilities are derecognised if
the Group's obligations specified in the contract expire or are
discharged or cancelled.
Gains and losses are recognised in profit or loss when the
liabilities are derecognised.
Related parties
For the purposes of this consolidated historical financial
information, parties are considered to be related to the Group if
the Group has the ability, directly or indirectly, to control the
party or exercise significant influence over the party in making
financial and operating decisions, or vice versa, or where the
Group and the party are subject to common control or common
significant influence. Related parties may be individuals or other
entities.
Leases
Leases of assets in which a significant portion of the risks and
rewards of ownership are retained by the lessor are classified as
operating leases.
Rentals on operating leases are recognised in profit or loss on
a straight-line basis over the lease term unless another systematic
basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed. Lease incentives
received are recognised as an integral part of the total lease
expense, over the term of the lease. Penalty payments on early
termination, if any, are recognised in profit or loss when
incurred.
The land use rights held by the Group are regarded as operating
leases. The amounts paid for these rights are treated as lease
prepayments and are amortised over the period for which the rights
have been granted in accordance with the land use rights
certificate.
Government grants
Grants that compensate the Group for expenses incurred are
recognised in profit or loss as other income on a systematic basis
in the same periods in which the expenses are recognised.
Employee benefits
Short-term employee benefits
Short-term benefit obligations are measured on an undiscounted
basis and are expensed as the related service is provided.
Defined contribution plans
Payments made to state-managed retirement benefit schemes, such
as the social security plans in the PRC, are dealt with as
contributions to defined contribution plans. The contributions were
recognized when the payment obligation existed.
The PRC subsidiary is required to contribute a certain
percentage of its employees' payroll costs to the state-managed
retirement benefit scheme operated by the municipal government.
The local municipal government undertakes to assume the
retirement benefit obligations of all existing and future retired
employees of the PRC subsidiary. The PRC subsidiary has no further
payment obligations once the contributions have been paid.
Key management personnel
Key management personnel are those persons having the authority
and responsibility for planning, directing and controlling the
activities of the entity. Directors and certain key executive
officers are considered key management personnel.
Income taxes
Income tax expense comprises current and deferred tax. Income
tax expense is recognised in the income statement except to the
extent that it relates to items recognised directly in equity, in
which case it is recognised in equity or other comprehensive
income.
Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted or substantively enacted at
the reporting date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following
temporary differences: the initial recognition of goodwill, the
initial recognition of an asset or liability in a transaction that
is not a business combination and that affects neither accounting
nor taxable profit, and differences relating to investments in
subsidiaries to the extent that the timing of the reversal of the
temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable
future.
Deferred tax is measured at the tax rates that are expected to
be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted at the
reporting date.
A deferred tax asset is recognised for unused tax losses, tax
credits and deductible temporary differences, to the extent that it
is probable that future taxable profits will be available against
which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and
assets and they relate to income taxes levied by the same tax
authorities on the same taxable entity, or on different tax
entities, provided they intend to settle current tax liabilities
and assets on a net basis or their tax assets and liabilities will
be realised simultaneously.
Earnings per share
The Group presents basic and diluted earnings per share ("EPS")
data for its Ordinary Shares. Basic EPS is calculated by dividing
the profit or loss attributable to Ordinary Shareholders of the
Company by the weighted average number of Ordinary Shares
outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to Ordinary Shareholders
and the weighted average number of Ordinary Shares outstanding,
adjusted for the effects of all dilutive potential Ordinary Shares,
which comprise Warrants.
Operating segments
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to
transactions with any of the Group's other components. Operating
segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief
operating decision-maker has been identified as the Chief Executive
Officer who makes strategic resources allocation decisions.
Revenue recognition
The Group derives its revenues from two principal sources: 1)
logistics services; and 2) inventory solutions.
Logistics services
Logistics services involving land transportation are provided
with the use of independent transportation contractors (carriers).
The Group bills the carrier its logistics arrangement fee after the
goods have been delivered by the carrier but recognises revenue at
the date that the logistics arrangement has been completed which is
regarded as the date the goods are transferred to the
responsibility of the carrier. The carrier bills the receiver
directly andbears the risk of loss of the goods during transit to
the receiver.
Inventory solutions
Inventory solutions relate to the provision of inventory storage
and custody, goods receipts and issues, packaging, changing product
labels and related services. The customer is billed a fixed fee per
unit of goods managed by the Group for all of these services. The
Group bills the customer directly for these services as the goods
are collected by the carrier and recognises revenue at this same
time.
Interest income
Interest income is recognised on a time proportion basis using
the effective interest method.
4 Subsidiaries
Country
of
incorporation
Name of subsidiary and operations Percentage of equity Principal activities
held
31 December 31 December
2013 2012
Held by Company
Chaintek United Holdings
Ltd Hong Kong 100% 100% Investment holding
Held by Chaintek
United
Holdings Ltd
Fujian Xingtai Logistics Provision of
Co., PRC 100% 100% logistics
Ltd. services and
inventory solutions
5 Land use rights prepayments
31 December 31 December
2013 2012
RMB RMB
Cost
At 1 January 33,495,525 33,495,525
Additions 273,000,000 -
--------------------------------- ------------ ------------
At 31 December 306,495,525 33,495,525
Accumulated amortisation
At 1 January 2,719,495 2,049,585
Amortisation for the year 669,911 669,910
--------------------------------- ------------ ------------
At 31 December 3,389,406 2,719,495
================================= ============ ============
Carrying amount at 31 December 303,106,119 30,776,030
================================= ============ ============
Presented as:
Current assets 669,911 669,911
Non-current assets 302,436,208 30,106,119
--------------------------------- ------------ ------------
303,106,119 30,776,030
================================= ============ ============
On 6 March 2013, the company signed an agreement with the PRC's
land authorities towards the right to use a parcel of land for
construction of a warehouse. As at 31 December 2013, the Group had
fully paid for the full amount of land use rights but yet to obtain
the land use right certificate to commence use of the parcel of
land, and amortisation has not yet commenced on this land use
rightsaccordingly.
6 Property, plant and equipment
Computers
Plant and and office Motor Construction
Buildings machinery equipment vehicles work in-progress Total
----------- ---------- ----------- ------------ ----------------- ------------
RMB RMB RMB RMB RMB RMB
Cost
At 1 January 2012 23,834,423 1,336,300 6,076,772 6,195,730 43,100,000 80,543,225
Additions - 129,600 459,613 80,707 6,422,000 7,091,920
Transfers 49,522,000 - - - (49,522,000) -
Disposals - - - (405,000) - (405,000)
-------------------------- ----------- ---------- ----------- ------------ ----------------- ------------
At 31 December 2012 73,356,423 1,465,900 6,536,385 5,871,437 - 87,230,145
Additions 1,795,799 356,606 6,500,000 1,782,843 - 10,435,248
Disposals - (55,000) - (1,355,000) - (1,410,000)
-------------------------- ----------- ---------- ----------- ------------ ----------------- ------------
At 31 December 2013 75,152,222 1,767,506 13,036,385 6,299,280 - 96,255,393
========================== =========== ========== =========== ============ ================= ============
Accumulated depreciation
At 1 January 2012 3,054,800 270,190 1,384,507 3,347,333 - 8,056,830
Depreciation charge for
the year 1,848,064 211,290 1,052,133 579,600 - 3,691,087
Disposals - - - (311,499) - (311,499)
-------------------------- ----------- ---------- ----------- ------------ ----------------- ------------
At 31 December 2012 4,902,864 481,480 2,436,640 3,615,434 - 11,436,418
Depreciation charge for
the year 3,580,153 261,156 588,663 1,355,888 - 5,785,860
Disposals - (49,041) - (1,324,934) - (1,373,975)
-------------------------- ----------- ---------- ----------- ------------ ----------------- ------------
At 31 December 2013 8,483,017 693,595 3,025,303 3,646,388 - 15,848,303
========================== =========== ========== =========== ============ ================= ============
Net book value
At 31 December 2012 68,453,559 984,420 4,099,745 2,256,003 - 75,793,727
========================== =========== ========== =========== ============ ================= ============
At 31 December 2013 66,669,205 1,073,911 10,011,082 2,652,892 - 80,407,090
========================== =========== ========== =========== ============ ================= ============
7 Trade and other receivables
31 December 31 December
2013 2012
RMB RMB
Trade receivables 86,394,975 79,573,035
Rental deposits* 9,009,030 9,128,460
Deposit for acquisition of land use
rights** - 52,000,000
Advance payment to information technology
vendor - 3,250,000
Insurance prepayments 465,466 509,195
Prepayment of interim dividend to
share registrar
(Note 25) 1,318,581 -
10,793,077 64,887,655
Total 97,188,052 144,460,690
============================================ ============ ============
The Group allows an average credit period of 90 days to its
trade customers.
Trade and other receivables are denominated in RMB, except
prepayment of interim dividend to share registrar which is
denominated in GBP.
* Rental deposits relate to refundable security deposits placed
with lessors for operating leases of warehousing facilities and
fall due for repayment within 12 months.
** This relates to deposit payments made to the PRC's land
authorities towards the right to use a parcel of land for
constructions of a warehouse. The agreement was signed on 6 March
2013. As at 31 December 2013, the Group had fully paid for the full
amount of land use rights but yet to obtain the land use right
certificate to commence use of the parcel of land. It has been
classified in Note 5 Land use rights prepaymentsin 2013.
8 Cash and cash equivalents
31 December 31 December
2013 2012
RMB RMB
Cash and bank balances 319,283,433 342,712,249
========================= ============ ============
As at 31 December 2012 and 2013, bank balances of approximately
RMB342,630,000 and RMB319,214,000 are interest earning. The
weighted average effective interest rate of these interest-earning
bank balances as at 31 December 2012 and 2013 was 0.38% per annum,
respectively.
Cash and bank balances are denominated in the following
currencies:
31 December 31 December
2013 2012
RMB RMB
Chinese Renminbi 258,479,068 274,315,950
United States Dollar 16,169 40,092
British Pound 60,768,983 68,354,411
Singapore Dollar 1,478 1,796
Hong Kong Dollar 17,735 -
----------------------- ------------ ------------
319,283,433 342,712,249
======================= ============ ============
9 Share capital
31 December 31 December
2013 2012
No. of Ordinary No. of Ordinary
Shares Shares
Authorised:
Balance at beginning of year
* Ordinary Shares of US$1 each - 50,000
* Ordinary Shares of US$0.001 each 200,000,000 -
Share subdivision** - 49,950,000
Increase in authorised share capital - 150,000,000
----------------------------------------- ---------------- ----------------
Balance at end of year
* Ordinary Shares of US$0.001 each 200,000,000 200,000,000
========================================= ================ ================
Issued and fully paid:
Balance at beginning of year* 54,696,875 50,000
Share subdivision** - 49,950,000
Issue of shares pursuant to the initial
public offer of shares (fully paid)*** - 4,696,875
----------------------------------------- ---------------- ----------------
Balance at end of year 54,696,875 54,696,875
========================================= ================ ================
RMB RMB
Value in RMB
Authorised:
Balance at beginning of year 1,272,067 327,439
Increase in authorised share capital - 944,628
----------------------------------------- ---------------- ----------------
Balance at end of year 1,272,067 1,272,067
========================================= ================ ================
31 December 31 December
2013 2012
RMB RMB
Issued and fully paid:
Balance at beginning of year* 357,254 327,439
Issue of shares pursuant to the initial
public offer of shares - 29,815
----------------------------------------- ------------ ------------
Balance at end of year 357,254 357,254
========================================= ============ ============
* The Company was incorporated in the Cayman Islands in April
2011 with an authorised share capital of US$50,000 divided into
50,000 shares of US$1 each.
** Pursuant to an ordinary and special resolutions passed on 1
August 2012, the Company's Shareholders approved the subdivision of
the Ordinary Shares, with each Ordinary Share of US$1 each
subdivided into 1,000 Ordinary Shares of US$0.001 each; and the
increase in the authorised share capital of the Company from
US$50,000 comprising 50,000,000 Ordinary Shares of US$0.001 each to
US$200,000 comprising 200,000,000 shares of US$0.001 each.
*** In August 2012, the Company issued 4,696,875 shares at
GBP1.60 per share pursuant to its initial public offer of shares on
the AIM market of the London Stock Exchange which raised
GBP7,515,000 (equivalent to RMB75,075,459).
In connection with the IPO, the Company issued 586,913 free
Warrants to certain vendors for their services rendered and
1,098,437 free Warrants attached to 2,196,875 Ordinary Shares
issued to three new Shareholders. Each Warrant carries the right to
subscribe for one new Ordinary Share in the capital of the Company
at an exercise price of GBP1.60. The IPO proceeds of RMB75,075,459
were allocated to Ordinary Shares and Warrants issued to
Shareholders using the fair value of the two instruments on a
pro-rata basis on the IPO date. As a result, RMB66,868,186 was
recorded within share capital and share premium and RMB8,207,273 in
the Warrant reserve (Note 13).
The holders of Ordinary Shares are entitled to receive dividends
as declared from time to time and are entitled to one vote per
share at meetings of the Company. All shares rank equally with
regard to the Company's residual assets.
In the current year, the Company has disaggregated share capital
between share capital and share premium, as a consequence the share
premium balance has increased and the share capital balance has
decreased by RMB 66,838,371 in the previous year.
10 Merger reserve
The merger reserve represented the excess of the purchase
consideration for the acquisition of the subsidiaries under common
control in the Restructuring Exercise described in Note 2(a) over
the combined paid-up registered capital of those subsidiaries.
11 Statutory common reserve
31 December 31 December
2013 2012
RMB RMB
Statutory common reserve
- Balance at beginning and end of
year 5,000,000 5,000,000
============ ============
According to PRC Company Law, Fujian Xingtai is required to
transfer between 5% and 10% of its profit after taxation to the
statutory common reserve until the statutory common reserve balance
reaches 50% of the registered capital. The amount of net profit
after taxation transferred to the statutory common reserve reached
50% of the registered capital during the year ended 31 December
2009.
12 Other reserves
Capital reserve
31 December 31 December
2013 2012
RMB RMB
Advance from a Shareholder waived
(Note 14) 9,813,688 9,813,688
Amounts owing to Shareholders waived
(Note 14) 8,215 8,215
9,821,903 9,821,903
======================================= ============ ============
Share premium
31 December 31 December
2013 2012
RMB RMB
Issue of shares at a premium to
par value 66,838,371 66,838,371
---------------------------------- ------------ ------------
13 Warrant reserve
The Warrant reserve comprises the cumulative value of the
portion of IPO proceeds ascribed to the attached Warrants, as
described in share capital above. When a Warrant is exercised, the
related balance in the Warrant reserve will be transferred to share
capital. A number of warrants were granted to certain service
providers as part of the listing process in 2012. The directors
consider that these warrants primarily related to services in
support of the listing process rather than in supporting the main
fund raising process and therefore have recorded the costs as a
share based payment expense of RMB4,977,160 for the year ended 31
December 2012.
Each Warrant carries the right to subscribe for one new Ordinary
Share in the capital of the Company at an exercise price of
GBP1.60.
The 1,500 Warrants issued to the vendors are exercisable at any
time for a period of three years from 20 August 2012. The fair
value of the Warrants was determined using the Black-Scholes option
pricing formula with the following assumptions: volatility of
55.71%; risk free interest rate of 0.23%; and expected life of
three years.
The 1,683,850 Warrants issued to the Shareholders and vendors
are exercisable at any time for a period of five years from 20
August 2012. The share price at date of grant was 160p per share.
The fair value of the Warrants was determined using the
Black-Scholes option pricing formula with the following
assumptions: volatility of 62.80%; risk free interest rate of
0.62%; and expected life of five years.
14 Trade and other payables
31 December 31 December
2013 2012
RMB RMB
Other payables
Deposits from transportation agents 4,000,000 4,000,000
Advance from a Shareholder* - 6,975,275
Accrued payroll costs 3,029,986 3,073,536
Accrued professional fees 700,000 1,106,700
Accrued social insurance 931,552 868,004
Other tax payables 2,715,454 2,398,501
Amounts owing to Shareholders** - -
Others 356,093 241,893
-------------------------------------- ------------ ------------
11,733,085 18,663,909
11,733,085 18,663,909
====================================== ============ ============
* At 31 December 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. The remaining amount of
RMB6,975,275 has been fully repaid in 2013.
** On 27 June 2011, in connection with the restructuring
exercise described in Note 2(a), 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.
Other payables are denominated in the following currencies:
31 December 31 December
2013 2012
RMB RMB
Chinese Renminbi 11,733,085 10,581,934
United States Dollar - 1,513,518
British Pound - 4,074,009
Singapore Dollar - 2,494,448
----------------------- ------------ ------------
11,733,085 18,663,909
======================= ============ ============
15 Revenue
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Logistics services 303,685,617 293,758,400
Inventory solutions 46,939,921 46,827,059
--------------------- ------------- -------------
350,625,538 340,585,459
===================== ============= =============
16 Other income
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Interest income 886,954 617,125
Gain on disposal of property, plant 68,975 -
and equipment
Exchange gain - 1,063,550
Government grant - 1,550,000
------------------------------------- ------------- -------------
955,929 3,230,675
===================================== ============= =============
Government grant received by the Group during the year ended 31
December 2012 relates to a subsidy for the logistics business with
no conditions attached.
17 Profit before taxation
(a) The following items have been included in arriving at profit before taxation:
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Amortisation of land use rights 669,911 669,910
Equity-settled share-based payment
expense - 4,977,160
(Gain) Loss on disposal of property,
plant and equipment (68,975) 61,125
Depreciation of property, plant and
equipment 5,785,860 3,691,087
Operating lease expense 7,008,002 7,609,484
Exchange loss (gain) 662,004 (1,063,550)
Staff costs
Key management personnel:
- Directors
------------- -------------
- Directors' remuneration 2,064,080 1,578,767
- Contributions to defined contribution
plans 2,750 2,508
- Other than Directors
- Salaries, wages and other related
costs 1,224,500 1,215,719
- Contributions to defined contribution
plans 7,355 5,705
Other than key management personnel:
- Salaries, wages and other related
costs 19,933,753 21,500,116
- Contributions to defined contribution
plans 2,538,777 2,294,869
------------- -------------
25,771,215 26,597,684
------------- -------------
Key management personnel includes Xu LiangYi, Group Chief
Operating Officer, who is a brother of Mrs Xu. Key management
personnel compensation for Chief Operating Officer is as
follows:
Included in:
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Salaries, wages and other related
costs 324,000 358,000
Contributions to defined contribution
plans 1,855 2,534
-------------------- -------------------
325,855 360,534
-------------------- -------------------
(b) Amortisation of land use rights, depreciation of property,
plant and equipment, operating lease expense and staff costs
included in cost of sales, distribution expenses and administrative
expenses are as follows:
Included in:
Cost of Administrative
sales expenses Total
RMB RMB RMB
Year ended 31 December 2013
Amortisation of land use rights 588,617 81,294 669,911
Depreciation of property, plant
and equipment 4,353,612 1,432,248 5,785,860
Operating lease expense 7,008,002 - 7,008,002
Staff costs
Key management personnel:
- Directors
--------------- ----------------- --------------
- Directors' remuneration - 2,064,080 2,064,080
- Contributions to defined contribution
plans - 2,750 2,750
* Other than Directors
- Salaries, wages and other
related costs - 1,224,500 1,224,500
- Contributions to defined contribution
plans - 7,355 7,355
--------------- ----------------- --------------
Subtotal - 3,298,685 3,298,685
Other than key management personnel:
- Salaries, wages and other
related costs 18,328,450 1,605,303 19,933,753
- Contributions to defined contribution
plans 2,255,558 283,219 2,538,777
--------------- ----------------- --------------
20,584,008 5,187,207 25,771,215
--------------- ----------------- --------------
Included in:
Cost of Administrative
sales expenses Total
RMB RMB RMB
Year ended 31 December 2012
Amortisation of land use rights 588,617 81,293 669,910
Equity-settled share-based payment
expense - 4,977,160 4,977,160
Depreciation of property, plant
and equipment 2,167,377 1,523,710 3,691,087
Operating lease expense 7,609,484 - 7,609,484
Staff costs
Key management personnel:
* Directors
------------ --------------- ------------
- Directors' remuneration - 1,578,767 1,578,767
- Contributions to defined contribution
plans - 2,508 2,508
* Other than Directors
- Salaries, wages and other
related costs - 1,215,719 1,215,719
- Contributions to defined contribution
plans - 5,705 5,705
------------ --------------- ------------
Subtotal - 2,802,699 2,802,699
Other than key management personnel:
- Salaries, wages and other
related costs 17,233,313 4,266,803 21,500,116
- Contributions to defined contribution
plans 2,018,139 276,730 2,294,869
------------ --------------- ------------
19,251,452 7,346,232 26,597,684
------------ --------------- ------------
18 Income tax expense
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Current taxation 72,518,637 66,939,720
====================================== ============= =============
Reconciliation of effective tax rate
Profit before taxation 284,907,893 253,521,469
====================================== ============= =============
Tax at the PRC statutory rate of
25% (2012: 25%) 71,226,973 63,380,367
Differences in foreign tax rate - 2,613,403
Tax exempt income - (387,500)
Non-deductible expenses - 149,513
Deferred tax assets on losses not
recognised 1,291,664 1,183,937
-------------------------------------- ------------- -------------
72,518,637 66,939,720
====================================== ============= =============
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 RMB13,950,000 (2012: RMB9,356,000) attributable to a
subsidiary.
The Group has not recognised a deferred tax asset in respect of
the tax losses because management believes that it is not probable
that these tax losses would be allowed by the tax authorities.
19 Commitments
Capital commitment
At the reporting date, the Group was committed to making the
following capital commitment in respect of property, plant and
equipment.
31 December 31 December
2013 2012
RMB RMB
Capital expenditure contracted but not
provided for
in the financial statements:
- Construction of a Central Distribution
Centre warehouse - 4,672,000
============================================ ============= ============
Operating lease commitments
At the reporting date, the Group was committed to making the
following rental payments in respect of operating leases of
warehouses.
Year ended Year ended
31 December 31 December
2013 2012
RMB RMB
Not later than one year 4,942,268 6,784,536
Later than one year and not later
than five years - 3,045,731
Later than five years - -
----------------------------------- ------------- -------------
4,942,268 9,830,267
=================================== ============= =============
These leases expire between July 2014 and September 2014, with
renewal options at prevailing market rents.
20 Significant related party transactions
Other than as disclosed on Notes 12 and 17, there were no
transactions with related parties during the financial years ended
31 December 2012 and 2013.
21 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.
Segment accounting policies are the same as the policies
described in Note 3. 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.
Segment revenue and expense:
Segment revenues and expenses are the operating revenues and
expenses reported in the Group's statement of comprehensive income
that are directly attributable to a segment and the relevant
portion of such revenue and expense that can be allocated on a
reasonable basis to a segment.
Segment assets and liabilities:
Segment assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis. Capital expenditure includes the total cost
incurred to acquire plant and equipment directly attributable to
the segment.
Group cash resources, financing activities and income taxes are
managed on a Group basis and are not allocated to operating
segments. Unallocated assets comprise cash and cash equivalents.
Unallocated liabilities comprise income tax payable.
The Group Chief Executive Officer ("Group CEO") monitors the
operating results of its operating segments for the purpose of
making decisions about resource allocation and performance
assessment.
Information regarding the results of each reportable segment is
included below. Performance is measured based on segment profit
before income tax, as included in the internal management reports
that are reviewed by the Group CEO.
Logistics services Inventory solutions Consolidated
Year Year Year Year Year Year
ended ended ended ended ended ended
31 31 31 31 31 31
December December December December December December
2013 2012 2013 2012 2013 2012
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Sales to external
customers 303,686 293,758 46,940 46,827 350,626 340,585
------------- ------------- ------------ ------------ ---------- -----------------
Segment revenue 303,686 293,758 46,940 46,827 350,626 340,585
Segment results 284,387 265,572 22,483 22,149 306,870 287,721
Reconciling items (21,962) (34,200)
Profit before
taxation 284,908 253,521
Income tax expense (72,519) (66,940)
---------- -----------------
Profit for the year 212,389 186,581
---------- -----------------
Assets and
liabilities:
Segment assets 91,538 82,951 369,294 145,195 460,832 228,146
Unallocated assets 319,283 342,712
Reconciling items 19,870 22,885
Total assets 799,985 593,743
---------- -----------------
Segment liabilities 8,629 5,157 1,794 1,831 10,423 6,988
Unallocated
liabilities 15,070 14,286
Reconciling items 1,310 11,676
---------- -----------------
Total liabilities 26,803 32,950
---------- -----------------
Other segment
information:
Non-current assets 14,631 12,993 349,696 73,558 364,327 86,551
Reconciling items 18,516 19,349
---------- -----------------
382,843 105,900
Acquisition of land
use right - - 221,000 - 221,000 -
Acquisition of
property,
plant and equipment 258 10 8,314 5,084 8,572 5,094
Reconciling items 1,863 1,998
---------- -----------------
10,435 7,092
Depreciation 566 299 3,787 1,868 4,353 2,167
Reconciling items 1,433 1,524
---------- -----------------
5,786 3,691
Amortization of
land use rights
prepayments 140 140 449 449 589 589
Reconciling items 81 81
---------- -----------------
670 670
====================== ============= ============= ============ ============ ========== ================
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 customers
None of the customers accounted for more than 10% of the
Company's total revenues for the years ended 31 December 2012 and
2013. However, five of the transport agencies used as an
intermediary, account individually for more than 10% of total
revenue in both the current and prior year.
22 Earnings per share
Year ended Year ended
31 December 31 December
2013 2012
Net profit after taxation (RMB) 212,389,256 186,581,749
======================================== ============= =============
Weighted average number of Ordinary
Shares used in calculation of basic
earnings per share 54,696,875 51,724,332
Effect of dilutive potential Ordinary
Shares from weighted average number
of Warrants 1,683,850 618,181
---------------------------------------- ------------- -------------
Weighted average number of Ordinary
Shares used in calculation of diluted
earnings per share 56,380,725 52,342,513
======================================== ============= =============
Earnings per share -
Basic (RMB) 3.88 3.61
Diluted (RMB) 3.77 3.56
======================================== ============= =============
23 Financial risk management
Financial risk management objectives and policies
The Board of Directors has overall responsibility for the
establishment and oversight of the Group's risk management
framework. The Group's risk management policies are established to
set out its overall business strategies, tolerance of risk and
general risk management philosophy. Risk management policies and
systems are reviewed regularly to reflect changes in market
conditions and the Group's activities.
(a) Market risk
Interest rate risk
Interest rate risk is the risk that the fair value or future
cash flows of the Group's financial instruments will fluctuate
because of changes in market interest rates.
The Group is exposed to interest rate risk, in respect of
interest-bearing cash balances at variable rates, which is not
material.
Sensitivity analysis - Interest rate risk
A 30 basis points increase/decrease in interest rates on
interest-bearing cash balances at the reporting date would
increase/decrease profit before tax and equity by approximately
RMB1,028,000 and RMB958,000 for the financial years ended 31
December 2012 and 2013, respectively. This analysis has not taken
into account the associated tax effects and assumes that all other
variables, in particular foreign currency rates, remain
constant.
Foreign currency risk
The Group carries on its business operations in the PRC through
Fujian Xingtai with sales and purchases, capital expenditure and
operating expenses denominated in RMB, which is the currency of all
Group entities.
At 31 December 2012 and 2013, the Group is exposed to foreign
currency risk in respect of transactions, primarily proceeds from
the initial public offer of shares and professional fees that are
denominated in a currency other than RMB. The currencies in which
these transactions primarily are denominated are theUnited States
Dollar (USD), British Pound (GBP). Transactions denominated in
Singapore Dollar (SGD) and Hong Kong Dollar (HKD) is immaterial to
the Group.
The Group does not hold or issue derivative financial
instruments to hedge against fluctuations in foreign exchange.
Sensitivity analysis for foreign currency risk
A 5% strengthening/weakening of the above currencies against RMB
at the reporting date would have increased/decreased equity and
profit before tax by the amounts shown below. This analysis is
based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the end of the reporting
period. This analysis has not taken into account the associated tax
effects and assumes that all other variables, in particular
interest rates, remain constant.
Profit before tax Equity
increase/(decrease) increase/(decrease)
RMB RMB
31 December 2013
USD against RMB
- strengthened (808) (808)
- weakened 808 808
GBP against RMB
- strengthened (3,104,378) (3,104,378)
- weakened 3,104,378 3,104,378
31 December 2012
USD against RMB
- strengthened (73,671) (73,671)
- weakened 73,671 73,671
GBP against RMB
- strengthened 3,214,020 3,214,020
- weakened (3,214,020) (3,214,020)
================== ==================== ====================
Market price risk
Market price risk is the risk that the value of a financial
instrument will fluctuate due to changes in market prices.
The Group is not exposed to any movement in market price risk as
it does not hold any quoted or marketable financial
instruments.
(b) Credit risk
Credit risk refers to the risk that counterparties may default
on their contractual obligations resulting in financial loss to the
Group. The Group's exposure to credit risk arises primarily from
trade and other receivables.
The Group's objective is to seek continual growth while
minimising losses arising from credit risk exposure. For trade
receivables, the Group adopts the policy of dealing only with
customers of appropriate credit history, and obtaining sufficient
security where appropriate to mitigate credit risk. The Group
closely monitors and avoids any significant concentration of credit
risk. In addition, receivable balances and payment profile of the
debtors are monitored on an ongoing basis with the result that the
Group's exposure to bad debts is not significant. For other
financial assets, the Group adopts the policy of dealing only with
high credit quality counterparties.
The Group establishes an allowance for impairment that
represents its estimate of incurred losses in respect of trade and
other receivables. The allowance account in respect of trade and
other receivables is used to record impairment losses unless the
Group is satisfied that no recovery of the amount owing is
possible. When the asset becomes uncollectible, it is written off
against the allowance account.
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial assets as follows:
31 December 31 December
2013 2012
RMB RMB
Financial assets
Financial assets measured at amortised
cost:
Trade and other receivables* 95,404,005 91,951,495
Cash and cash equivalents 319,283,433 342,712,249
---------------------------------------- ------------ ------------
414,687,438 434,663,744
======================================== ============ ============
* excluded deposit for acquisition of land use rights, insurance
prepayments and prepayment of interim dividend to share
registrar.
The aging analysis of trade receivables not impaired is as
follows:
31 December 31 December
2013 2012
RMB RMB
Financial assets
Not past due 86,394,975 79,573,035
Past due one month or less - -
---------------------------- ------------ ------------
Trade receivables (Note 7) 86,394,975 79,573,035
============================ ============ ============
At the reporting date, no allowance for impairment is required
in respect of trade and other receivables based on the
creditworthiness of the counterparties and credit quality and past
collection history of the customers.
At the reporting date, fivecustomers accounted for approximately
72% (2012: 69%) of trade receivables. Other than this, there is no
concentration of credit risk.
Cash and cash equivalents are placed with financial institutions
which are regulated.
(c) Liquidity risk
Liquidity or funding risk is the risk that an enterprise will
encounter difficulty in raising funds to meet commitments
associated with financial instruments. Liquidity risk may result
from an inability to sell a financial asset quickly at close to its
fair value.
The Group's exposure to liquidity risk arises primarily from
mismatches of the maturities of financial assets and liabilities.
As part of its overall prudent liquidity management, the Group
maintains a sufficient level of cash to meet its working capital
requirement.
The table below analyses the maturity profile of the Group's
financial liabilities based on contractual undiscounted cash
flows.
Contractual cash flows
Carrying Less than Between Over 5
2
amount Total 1 year and 5 years
years
RMB RMB RMB RMB RMB
At 31 December 2013
Trade and other
payables 11,733,085 11,733,085 11,733,085 - -
===================== =========== =============== =============== =========== =========
At 31 December 2012
Trade and other
payables 18,663,909 18,663,909 18,663,909 - -
===================== =========== =============== =============== =========== =========
It is not expected that the cash flows included in the maturity
analysis could occur significantly earlier, or at significantly
different amounts.
(d) Financial instruments by category
31 December 31 December
2013 2012
RMB RMB
Financial assets
Financial assets measured at amortised
cost:
Trade and other receivables* 95,404,005 91,951,495
Cash and cash equivalents 319,283,433 342,712,249
---------------------------------------- ------------ ------------
414,687,438 434,663,744
======================================== ============ ============
* excludes deposit for acquisition of land use rights, insurance
prepayments and prepayment of interim dividend to share
registrar.
31 December 31 December
2013 2012
RMB RMB
Financial liabilities
Financial liabilities measured at
amortised cost 9,017,631 16,265,408
=================================== ============ ============
(e) Fair values of financial instruments
The carrying amounts of other financial assets and liabilities
with a maturity of less than one year (including trade and other
receivables, cash and cash equivalents, and trade and other
payables) approximate their fair values because of the short period
to maturity.
24 Capital management
The Group's objectives when managing capital are:
(a) To safeguard the Group's ability to continue as a going concern;
(b) To support the Group's stability and growth; and
(c) To provide capital for the purpose of strengthening the
Group's risk management capability.
The Group actively and regularly reviews and manages its equity
capital structure to ensure optimal capital management and
Shareholder returns, taking into consideration the future capital
requirements of the Group and capital efficiency, prevailing and
projected profitability, projected operating cash flows, projected
capital expenditures and projected strategic investment
opportunities.
The Group manages its equity capital structure and makes
adjustments to it, whenever necessary, in the light of changes in
economic conditions. No changes were made in the objectives,
policies or processes during the financial years ended 31 December
2012 and 2013. The Group may consider debt financing options from
time to time to bolster its capital structure.
The Group recognises the importance of a cash dividend and has
therefore decided to commence an initially modest and progressive
dividend policy in 2013. In the future the Board intends to declare
dividends, subject to it being prudent to do so, with the financial
results twice a year.
The Group monitors capital using the Gearing Ratio, which is net
debt divided by total equity. Net debt represents borrowings less
cash and cash equivalents.
The Company and its subsidiaries are not subject to externally
imposed capital requirements.
31 December 31 December
2013 2012
RMB RMB
Total borrowings - 6,975,275
Less: Cash and cash equivalents (319,283,433) (342,712,249)
----------------------------------------- -------------- --------------
Net cash (319,283,433) (335,736,974)
Total equity 773,181,691 560,792,435
----------------------------------------- -------------- --------------
Net-debt-to-total-equity ratio (times) # #
========================================= ============== ==============
# Not applicable. The Group had a net cash position.
25 Subsequent Events
On 13 November 2013, the Group announced an interim maiden
dividend of 2 pence net per share, in respect of the six month
period ended 30 June 2013, payable on 3 January 2014 to
shareholders on the register on 13 December 2013, offered as a
scrip dividend with a cash alternative. In consequence, a total
cash dividend payment of GBP131,412.22 (approximately RMB1,318,581)
was made on 3 January 2014 to shareholders so electing, and a total
of 681,675 new ordinary shares was issued on 3 January 2014 in
respect of the scrip dividend.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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