China Chaintek United Co., Ltd Further re Transit Warehouse (7521J)

TIDMCTEK

RNS Number : 7521J

China Chaintek United Co., Ltd

09 April 2015

 
 Press Release   09 April 2015 
 

China Chaintek United Co., Ltd

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

Further re Transit Warehouse

Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, announces that the Group has made the final payment of RMB 15.8 million (approximately GBP1.7 million) for its newly acquired transit warehouse first announced on 9 December 2014, following the transfer of the land use rights and completion of all other administrative procedures relating to the purchase.

The newly acquired facility, located near the Chaintek head office in Fujian Province and close to a number of factories belonging to Chaintek's major customers, will help to resolve the capacity issue at the current transit warehouse whilst also allowing Chaintek in the longer term to capture an anticipated increase in demand from the market.

Since operations commenced at the new transit warehouse facility in January, the Group has successfully migrated some 45 per cent. of current logistics services turnover from direct handling solely by our transport agents to short term utilisation of the new transit facility. The transit facility enables Chaintek to use its fleet of 15 smaller trucks for daytime goods movements prior to utilising the larger lorries of our transport agents which are subject to increasing stringent daytime travel restrictions. The new transit warehouse facility is now operating at an estimated 60 per cent. capacity. Approximately 30 per cent. logistics turnover continues to be processed via Chaintek's original head office transit warehouse with the balance handled by our transport agents from manufacturing warehouses outside the restricted zone.

Xu Meijin, Chief Executive Officer of Chaintek, commented: "I am pleased to report completion of the acquisition of our new strategically located transit warehouse and the good progress being made towards integration into our Logistics Services offering. With the final payment now made, the Company can continue to maintain the high quality services that our customers expect.

- Ends -

For further information:

 
 China Chaintek United 
  Co., Ltd 
 Derrick Wong, Finance                                           Tel: [phone] 
  Director                                                        Tel: [phone] 
 
 ZAI Corporate Finance Limited 
 Peter Trevelyan-Clark /                                              Tel: [phone] 
  Ivy Wang (Nomad)                                                                    2220 
  Steven Baird (Broker) 
 
 Abchurch Communications 
 Quincy Allan / Canace Wong                                           Tel: [phone] 
                                                                                      7710 
 [e-mail]                                        www.abchurch-group.com 
 
 

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