Gx Cleantech Discussion Threads

[21trader] 09/2/2015 15:54

wow they have just sliced 6p from the bid in one go what a mad stock ?

[21trader] 09/2/2015 15:52

I do not think anybody has seen this update ?

The price should be up on this news.

[philjeans] 09/2/2015 15:49

Positive update this afternoon and confirmation of another 4p div - excellent news!

Cash held (with no debt!) now totals £47 MILLION STERLING against £24 M M/C on P/E of 1 !!

BUY. $$$$$$$$$$$$$$$$$$$$


China Chaintek United Co., Ltd

09 February 2015

Press Release 9 February 2015


China Chaintek United Co., Ltd

("Chaintek", "the Company" or the "Group")

Trading Update

Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to provide the following trading update ahead of the Group's Preliminary Results for the year ended 31 December 2014, which will be announced on Monday, 16 March 2015.

Revenues for the period are expected to be RMB364 million, an increase of just under 4% over 2013 with unaudited profit before tax at RMB287 million anticipated to be a short 1% ahead of 2013, both slightly below market forecast. The Group continues to be highly cash-generative, resulting in an increased cash position at year-end of RMB 472.1 million, after payments in respect of the new transit warehouse facility of RMB 60 million (2013: RMB 319.3 million after payment of RMB 221.0 million in respect of the planned Logistics Park).

The Logistics Services business added six new customers, including Joeone, a Shanghai Stock Exchange listed men's business and casual wear manufacturer, which contributed approximately 1.76% to the division's total revenues. The division itself is expected to show a modest increase of 3.2% in revenues over 2013. The Group has maintained a diversified customer base in its Logistics Services division with the food and building materials industries comprising 23% (2013: 22%) of divisional revenue, shoes and apparel an unchanged 69%, and other categories 8% of divisional revenue.

The Inventory Solutions business is expected to show a 7.3% increase in revenues, despite no new distribution centre being added in the year. The division accounts for approximately 14% of Group revenues.

As announced on 9 December 2014, the Group has exchanged contracts for the purchase of another transit warehouse for the logistics services division, located near the Chaintek head office in Fujian Province and close to a number of factories belonging to Chaintek's major customers. This facility is expected over time to help resolve the capacity issue at Chaintek's current transit warehouse and to avoid increasingly stringent daytime travel restrictions on larger lorries used by the Group's third party transport carriers. Operations at the new facility have commenced, but divisional revenues are expected to remain broadly static during 2015 despite the increase in operational expense. In the longer term, the facility should allow the Group to capture an anticipated increase in demand from the market.

The Board is disappointed not to be able to report any progress in relation to the planned new Logistics Park. As previously reported, structural government changes in China, the formation of new government bodies and their effect on provincial policy mean that the Company is unable to say when the approval process will be completed.

In its Interim Results released on 22 September 2014, the Company announced an interim scrip dividend of 2 pence or a cash alternative of 1 pence per share. The Company expects to declare an unchanged final dividend of 4 pence per share, however, the constituent parts will be determined by the cash commitment incurred by the Group in implementing its growth plan.

Xu Meijin, Chief Executive Officer of Chaintek, said: "The Board is pleased with the continued progress that Chaintek has made in 2014, set against the Company's capacity constraints and the delayed 2015 Chinese New Year. The Group remains focused on expanding capacity and diversifying its customer base. The new transit warehouse facility will help alleviate capacity constraints and maintain the high standards of service that our customers expect. In the longer term, it will help position the Group to capture the anticipated increase in demand for modernised logistics services.

"We understand uncertainties surrounding the construction of the Logistics Park have been a major concern amongst our shareholders. The Group remains committed to progressing this and will keep the market informed as appropriate."

- Ends -

For further information:

China Chaintek United
Co., Ltd
Derrick Wong, Finance Tel: [phone]
Director Tel: [phone]

ZAI Corporate Finance Limited
(Nomad)
Peter Trevelyan-Clark / Tel: [phone]
Ivy Wang 2220

[philjeans] 06/2/2015 08:09

Could very well be an excellent time to BUY here; Chinese founders and major shareholders can easily buy back the business for peanuts!

Happening now in similar circumstances for other Chinese co's on AIM.
TNCI and FTO.

Meanwhile business making excellent margins and clean cash profits to add to their growing pile!

[philjeans] 05/2/2015 07:40

Try TD Direct Investment.

[21trader] 04/2/2015 18:11

No they would not let me trade the stock at all. Fancied a 5k gamble.

beaufort was the broker

[philjeans] 04/2/2015 16:57

He probably can't get any!

Very illiquid - only 13% in free float.

[21trader] 04/2/2015 15:08

My broker will not let me buy these not sure why ?

[philjeans] 04/2/2015 14:56

Next week - last year it was 7/2. This next one will update us on the entire 12 months to 12/14. This is what they said in December about the 9 months to 30/9.

So we know it's pretty damn good already!

$$$$$$$$$$$$$$$$$$$$$

China Chaintek United Co., Ltd

09 December 2014

Press Release 9 December 2014


China ChaintekUnited Co., Ltd

("Chaintek" or the "Group")

Trading Update

Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to provide the following trading update. Financial information contained in this announcement for the nine month period ended 30 September 2014 is unaudited.

The Board is pleased to confirm that trading for the period is in line with market expectations with revenues of approximately RMB 281.5 million (GBP28 million*), which represents a 4.8% increase to the comparable period in 2013. Of this, the logistics services business represented approximately RMB 242 million (GBP24 million*), with the inventory solutions business accounting for approximately RMB 39.4 million (GBP4million*).

Profit before tax shows an increase of more than 3% when compared to the prior year at RMB 231.3 million (nine month period 2013: RMB 224.5 million) with the Group maintaining a strong profit margin of 82% (nine month period 2013: 83%).The Group continues to be highly cash-generative, resulting in a cash position of RMB 470.3 million as at 30 September 2014 (30 September 2013: RMB 309.7 million) up 52%.

The Board is also pleased to announce the purchase of a transit warehouse for the logistics services division. The facility is located near the Chaintek head office in Fujian Province and is within proximity of a number of factories belonging to Chaintek's major customers. The warehouse will cost RMB 75.8 million (GBP8million^) of which RMB 60 million (GBP6 million^) has already been paid to secure the facility. The outstanding balance of RMB15.8 million (GBP2million^) will be paid once the land use rights ("LUR") and other administrative procedures have been completed, which is expected to occur in Q1 2015. However, due to a clause in the purchase agreement, the ready to use facility could be utilised before December 31 2014.

The enlarged facility (19,650 m(2) ) will help to resolve the capacity issue at the current transit warehouse (7,108 m(2) ) whilst also allowing Chaintek to capture an anticipated increase in demand from the market. The acquisition represents a rare opportunity to acquire a ready to use, centrally located, enlarged facility at a reasonable price. Due to delays in obtaining the LUR for the logistics park, the need to capture more market share and competition to buy land, the Board acted swiftly in order to secure the new facility.

As previously outlined, the management team remain focused on the planned strategy for growth and construction of the new Logistics Park. The regional government of Fujian Province is currently evaluating Chaintek's application to commence construction of the Logistics Park and for the Group to be granted a rebate in the region of 25-30 % on the land price the Group has paid to the government for the land use as a logistics park. The granting of a rebate is in accordance with government policy to encourage the growth and development of logistics companies in China. On receipt of the approvals, construction would commence without further delay.

Xu Meijin, Chief Executive Officer of Chaintek, said: "The Board is happy with the continued progress that Chaintek has made in 2014 and we remain confident about the future growth prospects for the Group.

"With construction at the Logistics Park unable to proceed until the government rebate has been received, we have in the interim period been successful in acquiring an enlarged transit warehouse. This centrally located facility enables us to keep on capturing market share without disrupting existing operations or high service levels to our current customers."

- Ends -

$$$$$$$$$$$$$$

[rupe1958] 04/2/2015 13:41

philjeans - when do you expect a trading update here?

[21trader] 04/2/2015 13:16

Any idea what those 3 x 3 clumps of trades at mid price are then ?

Shorts closing maybe ?

[philjeans] 04/2/2015 09:23

Reassuring T/S from CAMK sees them up 63% early doors as I write - and that's with a 12% forecast drop in profits!

CTEK, on the other hand, is on track and the T/s due now will see these nicely ahead.

[philjeans] 21/1/2015 13:58

Just six piddly BUYS and we're up 10%!

The good news due in a couple of weeks time will send this soaring - absolutely NO stock about!

Just 13% in public hands.

[philjeans] 21/1/2015 09:54

Good to see some sensible BUYS down here at this ridiculous price!

P/E 1 ; yielding 12% and looking for an increase this year; trading statement all on track last month; business expanding fast and new premises already being used.

[philjeans] 20/1/2015 13:38

stuffee - I agree the non exec's holdings are paltry - and now would be an excellent time to BUY. Perhaps they will after next month's figures!

With regard to an independent review - that would be very welcome - but there is nothing amiss with this one - so far. It all checks out well.

Just sentiment against Chinese AIM stocks.

Even cheaper now!

[stuffee] 20/1/2015 10:21

Director shareholdings (or lack thereof)

PJ, agreed the two non-execs appear to be well experienced both of quoted companies and Asia, who would not wish to risk reputation of association with any scam - one of the factors which gave me confidence to buy a few CTEK.

However, I do find their modest shareholdings disappointing and surprising - Knight has 11,000 and Lane has nil.

Now if in next Chairman's statement, Knight could refer to some independent review re no funny business associated with share issues and sales of founder shares (not used to pay normal costs etc) or other Chinese scams and both non-execs took a reasonable shareholding (review and then dealing, not vice versa), I believe confidence could rapidly see CTEK's rating restored.

[philjeans] 20/1/2015 08:40

Board of Directors

Mr. Christopher William Knight
Independent Non-Executive Chairman

William Knight, a co-founder of Emerisque Brands, is Chairman of JP Morgan Chinese Investment Trust Plc, Myanmar Investments International Ltd and MCS Apparel (HK) Ltd. He is also a director of Fidelity Asian Values Trust Plc, Ceylon Guardian Investment Trust Plc, Axis Fiduciary Ltd and LG India Fund Ltd. He is an alternative asset investment specialist who has spent almost his entire career with the financial development of growth companies in developing economies, with particular emphasis on Asia. Since 1991, based in London, he has served in a wide range of non-executive positions as an independent director or adviser. His involvement with China began in 1978, when he made his first visit. Between 1979 and 1982 he was head of the Far East merchant banking activities of Lloyds Bank International based in Hong Kong and he was a member of the first delegation to China by the World Economic Forum in the 1980s. His experience covers involvement with a number of listing jurisdictions including AIM in his capacity as an independent non-executive director.

Mr. Stuart Christopher Lane
Independent Non-Executive Director

Stuart Lane is an experienced financial adviser with an established reputation for advising the boards of quoted and private companies. Mr Lane has been lead adviser to the board of many successful IPOs and other transactions. Over recent years, he has gained extensive experience with Asian and particularly Chinese companies. After graduating from Edinburgh University, he was a Captain in the British Army and subsequently served as Principal Private Secretary to a number of Cabinet and other Ministers within the British Government. He has worked in the City of London for over 28 years holding senior executive and board director positions at Cazenove & Co., Beeson Gregory Limited, Collins Stewart Limited, Seymour Pierce Limited and Northland Capital Partners Limited

[philjeans] 20/1/2015 08:39

Figures next month are on track, as we know from the December T/S.

Historic yield 12% and could be higher this year.

Two VERY impressive Brits on the board, including Non Exec Chairman with some high powered directorships to boot - I don't think he'll want to be art of some crooked scam!

LOL.

[philjeans] 20/1/2015 08:36

This was the T/S last month ;

09 December 2014

Press Release 9 December 2014
China ChaintekUnited Co., Ltd
("Chaintek" or the "Group")
Trading Update
Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to provide the following trading update. Financial information contained in this announcement for the nine month period ended 30 September 2014 is unaudited.
The Board is pleased to confirm that trading for the period is in line with market expectations with revenues of approximately RMB 281.5 million (GBP28 million*), which represents a 4.8% increase to the comparable period in 2013. Of this, the logistics services business represented approximately RMB 242 million (GBP24 million*), with the inventory solutions business accounting for approximately RMB 39.4 million (GBP4million*).
Profit before tax shows an increase of more than 3% when compared to the prior year at RMB 231.3 million (nine month period 2013: RMB 224.5 million) with the Group maintaining a strong profit margin of 82% (nine month period 2013: 83%).The Group continues to be highly cash-generative, resulting in a cash position of RMB 470.3 million as at 30 September 2014 (30 September 2013: RMB 309.7 million) up 52%.
The Board is also pleased to announce the purchase of a transit warehouse for the logistics services division. The facility is located near the Chaintek head office in Fujian Province and is within proximity of a number of factories belonging to Chaintek's major customers. The warehouse will cost RMB 75.8 million (GBP8million^) of which RMB 60 million (GBP6 million^) has already been paid to secure the facility. The outstanding balance of RMB15.8 million (GBP2million^) will be paid once the land use rights ("LUR") and other administrative procedures have been completed, which is expected to occur in Q1 2015. However, due to a clause in the purchase agreement, the ready to use facility could be utilised before December 31 2014.
The enlarged facility (19,650 m(2) ) will help to resolve the capacity issue at the current transit warehouse (7,108 m(2) ) whilst also allowing Chaintek to capture an anticipated increase in demand from the market. The acquisition represents a rare opportunity to acquire a ready to use, centrally located, enlarged facility at a reasonable price. Due to delays in obtaining the LUR for the logistics park, the need to capture more market share and competition to buy land, the Board acted swiftly in order to secure the new facility.
As previously outlined, the management team remain focused on the planned strategy for growth and construction of the new Logistics Park. The regional government of Fujian Province is currently evaluating Chaintek's application to commence construction of the Logistics Park and for the Group to be granted a rebate in the region of 25-30 % on the land price the Group has paid to the government for the land use as a logistics park. The granting of a rebate is in accordance with government policy to encourage the growth and development of logistics companies in China. On receipt of the approvals, construction would commence without further delay.
Xu Meijin, Chief Executive Officer of Chaintek, said: "The Board is happy with the continued progress that Chaintek has made in 2014 and we remain confident about the future growth prospects for the Group.
"With construction at the Logistics Park unable to proceed until the government rebate has been received, we have in the interim period been successful in acquiring an enlarged transit warehouse. This centrally located facility enables us to keep on capturing market share without disrupting existing operations or high service levels to our current customers."


All very positive and so we have a thriving and expanding business with;

No debt
Massive cash resources - even after spending £8 M on a new distribution warehouse
Super margins
Highly cash generative
Big yield from regular dividends
Very good reporting and accounting reports
Excellent website
Four UK iNSTITUTIONS on board
Two UK Directors
S/P down from 250p last year

and a P/E of 1 and M/C far less than net cash!!

Just because the lying shorters say it's Chinese - so it must be a fraud!

Looks good to me - and adding.As are Utilico.

[soul limbo] 14/1/2015 09:14

stuffee.. take a look at qpp.... theyve done that

[stuffee] 14/1/2015 09:04

Topvest et al

Re your interesting post,

Do you have any fears that these companies could have gifted shares pre IPO to third parties, who could have used the proceeds from subsequent sale to create effective slush funds? These funds could be used to pay suppliers or other creditors, thereby saving costs in the revenue accounts. The apparent reported profits would have been over inflated for a few years until slush funds all absorbed.

I have seen similar tricks in the UK a few years ago with gifted shares to employees, thereby saving on salaries and inflating profits for a year or two. Shares also occasionally given to key suppliers, which always raised my suspicions.

I should add that I have no evidence that CTEK involved in such practise and I always had some comfort from the reputation of the Chairman, who is also Chairman of JP Morgan China Investment Trust plus other non-exec appointments.

[papillon] 13/1/2015 23:11

Excellent posts topvest and Soul Limbo. Investors would do well to heed their advice and ignore philjeans.

[soul limbo] 13/1/2015 19:08

add CICC to the list. Chinese related.. claimed to have loads of assets/gold licenses which gave the company a steep NAV. Made paper profits in the millions (paper profits because they were accrued).... gave shareholders paper dividends . BUT thosr paper profis never arrived in the form of cash... and so write offs expected... restate those paper profits to massive losses.

Turns out those assets/gold licenses really didn't exist - had to be revalued to zero. Company delisted back in early 2014.

Now trying to make another attempt to relist, so it can fleece new investors all over again.

[topvest] 12/1/2015 08:17

Well I’ve learnt a lesson on these Chinese AIM stocks, so thought I would post a warning as far as I see it. There are 3 companies that are ALL very similar. I’m sure there are more than this on AIM but these are the 3 I have come across, and unfortunately lost money on two being Naibu and Camkids because I didn’t spot the “gifted” shares stunt and chose to ignore the warnings until it was too late. I have to say that all the warnings on this Billboard were spot-on.

I haven’t lost much, and done well on Prosperity Minerals and Fortune Oil to nearly balance these two out, but I think of myself as a relatively experienced investor and so I am not pleased with myself for making this error of judgment and will learn by mistake. I will never invest in a Chinese AIM company again.

Naibu, Camkids and China ChainTek (which I don’t know as well, but looks similar). The remarkable similarities are:

- All are connected to the sports shoe market in Fujian Province and listed at a similar time.
- All listed at a very low valuation, fantastic financials and using “lower quality” NOMADs.
- On each listing the Founder inexplicably “gifted” shares to mysterious locked-in holder’s pre-IPO. There is no mention of who these parties are or really why it was done.
- These holders then sold ALL of their shares at the earliest opportunity after good results reported and after the 12 month lock-in.
- Then after about 12-18 months each Company started to make excuses and reduce their cash dividend despite having enormous cash piles.
- The Founder then takes a scrip dividend to regain control of the company as the company valuation is so low that even a pathetic dividend enables him to do this.
- Next step is probably a de-listing. It’s very clear who is winning and who is losing. I’m amazed that the LSE haven’t launched some kind of investigation into what is potentially happening here.

Please help others and add to my list of companies that you think might be up to the same trick, so that investors in these companies are warned of the risks involved. Of course, they could be genuine companies with shareholders’ interests at stake, but I very much doubt it to be honest.