China Rerun Chemical Group Ltd First Day of Dealings on AIM (5755Q)

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RNS Number : 5755Q

China Rerun Chemical Group Ltd

16 October 2013

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN

16 October 2013

China Rerun Chemical Group Ltd

First day of Dealings on AIm

China Rerun Chemical Group Ltd ("China Rerun", "the Group", or, "the Company") an established and profitable producer of lubricant products (or 'lube') for the Chinese domestic automotive, industrial and agricultural markets operating in the People's Republic of China, is pleased to announce that the Company's ordinary shares have today been admitted to trading on the AIM market of London Stock Exchange plc ("Admission") and that dealings in the Ordinary Shares have commenced under the ticker symbol CHRR.L.

The Company has raised approximately GBP181,000 before expenses through a subscription (the "Subscription") of 1,810,000 new ordinary shares at 10p per share (the "Subscription Price"). At the Subscription Price, the Company has a market capitalisation of approximately GBP25.58 million on Admission.

Cairn Financial Advisers LLP is the nominated adviser and Beaufort Securities Limited is the broker to the Company.

Commenting on the Company's AIM listing, Mr Xinghe Wu, Executive Chairman of China Rerun said:

"Having established this business as a start up some 20 years ago, I am delighted that we have successfully admitted to AIM which represents a significant milestone for China Rerun. Demand for premium quality lubricant oils remain strong, supported by the growing domestic automotive and industrial sectors. With our high quality products and well known brands, we are strongly placed to take advantage of this significant opportunity and this, together with our listing on AIM, will provide a platform for future growth."

Further enquiries:

 
 China Rerun                 Xinghe Wu 
  http://chinarerun.com/      Kenny Chow              [phone] 
--------------------------  -----------------------  -------------------- 
 Cairn Financial Advisers 
  LLP                        Jo Turner 
  (Nominated Adviser)         Liam Murray             [phone] 
--------------------------  -----------------------  -------------------- 
 Beaufort Securities 
  Limited                    Chris Rourke 
  (Broker)                    Guy Wheatley            [phone] 
--------------------------  -----------------------  -------------------- 
                             Shan Shan Willenbrock 
                              Georgina Hall 
 Cardew Group                 Tom Horsman             + 44(0)20 7930 0777 
--------------------------  -----------------------  -------------------- 
 

The Admission Document is available on the Company's website at http://chinarerun.com/.

Notes to Editors

-- China Rerun Chemical Group Ltd ("China Rerun", "the Group", or, "the Company") is an established and profitable producer of lubricant products (or 'lube') for the Chinese domestic automotive, industrial and agricultural markets. Based in Daqing, northeastern China, it operates principally under the "Runyuan" and "Black E" brands. The Company places strong emphasis on Research and Development and branding and has an established track record. For the year ended 31 August 2012 (audited), the Group generated revenues of RMB226.13 million and profit before tax of RMB26.87 million. For the six months ended 28 February 2013 (unaudited), the Group generated revenues of RMB122.58 million and profit before tax of RMB19.44 million. The Group has received a number of awards including Well Known Brand of China.

-- The Group's products are sold through a network of third party distributors across 13 provinces and two municipalities of the PRC to end users, some of whom operate branded automotive garages. In 2012, the Group also commenced a programme of directly operating mobile lube oil replacement and servicing vans with the aim of growing this business into a nationally recognised chain.

-- The Group produces 29 types of lubricating oil, which are categorised into three areas, as well as antifreeze. The products are of 68 grades and are further packaged into different volume containers making a total range of 109 products. The Group's products are graded according to the PRC national oil quality and grading certification standards. The Group's automotive products are graded according to the blend and differentiated by logos on the containers as follows; Black E, Panther, Tiger, Deer and Horse.

-- The Group has attained ISO 9001 accreditation for its quality control procedures. It has also attained ISO 14001 accreditation for environmental controls and OHSAS 18001 accreditation for health and safety. The PRC has established its own independent oil quality and grading certification.

BOARD AND MANAGEMENT

Board of Directors

Mr Xinghe Wu, Executive Chairman

Mr Wu, aged 41, has been involved in the operation of the Runyuan Brand since 1993 and has since established a number of Companies including: Daqing Development Zone Runyuan Chemical Co., Ltd.; Daqing Runyuan Construction Decoration Project Co., Ltd.; Daqing Runyuan Trade Co., Ltd.; Daqing Runyuan Advertising Decoration Design Co., Ltd. He is Executive Chairman of China Rerun Chemical Group Limited; and CEO of Heilongjiang Runyuan Chemical Co., Ltd, at the same time as the vice president Heilongjiang Province Auto Sports Association, and a committee member of Daqing Democratic Progressive Party High-tech Zone Enterprise Branch Committee and other social positions.

Mr Zhongzhi Zhao, Executive Director

Mr Zhao, aged 61, has worked since 1984 as the factory director in the No.3 and No. 4 Oil Production Companies of Daqing Oilfield Limited. He has significant experience of economic management and the oil industry. Mr Zhongzhi Zhao is a senior economist and a representative of the Ninth Session of People's Congress of Sartu District Daqing Municipality.

Mrs Jane Zhu, Non-executive Director

Mrs Zhu, aged 61, held the position of Head of Asia Pacific for the London Stock Exchange in Hong Kong from 2004 to 2011,having joined the London Stock Exchange in 1998 in the international business development department. Prior to joining the London Stock Exchange, Mrs Zhu worked with the London International Financial Futures and Option Exchange (LIFFE) and held various senior positions in project finance, venture capital and technology transfer industries in Europe, Hong Kong and China. Mrs Zhu is bilingual in Mandarin and English and holds a BA in English Literature from Northeast Normal University, China and a MBA in International Finance from Middlesex University in London, United Kingdom.

Mr Nicholas Lyth, Non-executive Director

Mr Lyth, aged 47, is an experienced finance professional, having spent 12 years as a financial director of UK companies, with extensive experience of working with Chinese companies, including Paterson Lighting Company, China Molybdenum Ltd, Taihua plc, Univision plc, China New Energy and has lived and worked in China.

Mr Lyth is a non-executive director with AIM quoted Taihua plc, a China-based pharmaceutical company, and Univision Engineering Limited, a Hong Kong-based supplier of CCTV and security systems. He has previously held board positions with Avon Equipment Limited, Belle Engineering (Sheen) Limited, Belle Holdings Limited, Defiant Diamond Tools Limited, Errut Products Limited and Panther International Engineering Limited. Mr Lyth is a qualified accountant and speaks and writes Mandarin.

This information is provided by RNS

The company news service from the London Stock Exchange

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