China Chaintek United Co., Ltd AGM Trading Update (4885M)

TIDMCTEK

RNS Number : 4885M

China Chaintek United Co., Ltd

08 May 2015

 
 Press Release   8 May 2015 
 

China Chaintek United Co., Ltd

("Chaintek" or the "Company")

AGM Trading Update

Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to announce the following trading update ahead of its Annual General Meeting which is being held at 9:00 a.m. (BST) today at the Group's Chinese Head Office at MeiLing Industrial Park, Jinjiang City, Fujian Province, 362200 PRC.

The Group's trading for the first quarter of the year to end March showed unaudited revenues some 21 per cent. down on those in the first quarter of 2014. March revenues were in total 34 per cent. below the equivalent period in 2014 with the inventory solutions division, at 14 per cent. of total revenues, performing marginally better than logistics services. As stated with our final results for 2014, the Company continues to expect full year revenues and profits before tax to be substantially below those of 2014, in line with the guidance previously given.

However, integration of the Company's newly acquired transit warehouse is progressing, thereby enabling the Company to provide its end customers with a more convenient service, less impacted by transport restrictions and capacity constraints. The Company continues to target the opening of one or more strategically located regional distribution centres (RDCs) to progress its aim of becoming a national logistics company within the PRC.

We thank shareholders for their patience as the Chinese economy evolves and our manufacturing customers adapt their business models. The Company is well placed to provide the efficient, modern and cost effective logistical services necessary to service the accelerating use of e-commerce in China.

- Ends -

For further information:

 
 China Chaintek United          www.chaintek-united-ir.com 
  Co., Ltd 
 Derrick Wong (Finance 
  Director)                              [phone] 
 
 ZAI Corporate Finance 
 Peter Trevelyan-Clark 
  / Wei Wang (Nomad) 
  Steven Baird (Broker)               [phone] 
 
 Abchurch Communications 
 Henry Harrison-Topham 
  / Quincy Allan                      [phone] 
 [e-mail]        www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGMGCGDUDUGBGUR