![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
China Rerun | LSE:CHRR | London | Ordinary Share | KYG216261092 | ORD USD0.000007874 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMCHRR
RNS Number : 5768O
China Rerun Chemical Group Ltd
29 May 2015
China Rerun Chemical Group Limited
("China Rerun" or the "Group")
Half-yearly results for the six months ended 28 February 2015
China Rerun Chemical Group Ltd (CHRR.L), the producer of lubricant products for the domestic automotive, industrial and agricultural markets in the People's Republic of China ("PRC"), today announces its unaudited half year results from 1 September 2014 to 28 February 2015 ("the period").
Financial Highlights
Unaudited Audited Growth HY2015 ended HY2014 ended (HY2015 and 28 Feb 2015 28 Feb 2014 HY2014) Revenue RMB139.7m RMB164.7m -15.2% -------------- -------------- ------------- Gross profit RMB34.8m RMB50.7m -31.4% -------------- -------------- ------------- Gross margin 24.9% 30.8% 59Bps -------------- -------------- ------------- Pre-tax profit RMB16.3m RMB32.7m -50.2% -------------- -------------- -------------
Indicative exchange rates as at 26 February 2015: GBP1: RMB 9.52
Source:www.oanda.com
Financial Review
I am pleased to announce the half-yearly results to 28 February 2015. The figures are not particularly positive, as sales of lubricating oils were heavily down, but mask some improvement in the company's trading.
In the period under review, the Group generated revenue of RMB139.7m (HY 2014:RMB164.7m) representing decline of 15.2%. The Group achieved gross profit of RMB34.8m a decrease of 31.4% compared to the prior year period (HY 2014: RMB50.7m). Gross margin decreased by 5.9 percentage points to 24.9 per cent. year-on-year (HY 2014: 30.8%). The deterioration on gross profit was mainly driven by sales volume decreased by 13.6% to 7.0 million litres compared with HY2014.
Sales and distribution expenses increased to RMB14.1m (HY 2014: RMB11.2m). This increase was mainly driven by increased sales commission rates, distributors' rebates and distribution costs.
During the period under review, administrative expenses were RMB4.1m. The Group achieved a pre-tax profit of RMB16.3m in HY 2015, down 50.2% (HY 2014: RMB 32.7m). Operating margin decreased by 8.2 percentage points to 11.6% (HY 2014: 19.8%). The Group's PRC operating subsidiary is subject to an income tax rate of 25 per cent., which is in accordance with the PRC Enterprise Income Tax Law.
At 28 February 2015, cash increased by RMB116.1m to RMB207.5m (HY 2014: RMB91.4m) and it was mainly attribute to settle the group's various tax liabilities which increased by RMB64.5m to RMB135.6m (HY 2014: RMB71.1m).
The Board remain conscious that we need to improve the company's trading position. Ever endeavour will be made to continue the growth that the company has enjoyed over the past 10 years
Commenting on the results, Mr Xinghe Wu, Executive Chairman of China Rerun said:
"After a long period of sustained top and bottom line growth it is disappointing to see a period when key financial metrics have worsened.
We have experienced a more competitive environment that has been the case in the past and some market share has been lost. We continue to invest in product development, human resources and equipment. We believe that this is the correct response to more challenging market conditions. This strategy has been successful for many years and we believe it will be successful again. We are hopeful that the lost market share can be recovered through this investment
The fundamental drivers of the Chinese lubricating oil market remain strongly positive. GDP growth, whilst lower than in recent years, remains high. Car ownership is increasing quickly"
For further enquiries, please visit www.chinarerun.com or contact:
China Rerun Xinghe Wu +86 459 666 9777 Nick Lyth www.chinarerun.com/ +44 776 990 6686 Cairn Financial Advisers LLP Jo Turner (Nominated Adviser) Liam Murray +44 20 7148 7900 -------------- --------------------- Beaufort Securities Limited (Broker) Chris Rourke +44 20 7382 8300 -------------- ---------------------
Condensed consolidated statement of comprehensive income
for the six months ended 28 February 2015
6 months 6 months 12 months ended ended ended 28 Feb 28 Feb 31 Aug 2015 2014 2014 Unaudited Unaudited Audited RMB'000 RMB'000 RMB'000 Revenue 139,724 164,703 319,332 Cost of sales (104,878) (114,014) (232,353) ---------- ---------- ---------- Gross profit 34,846 50,689 86,979 Selling and distribution expenses (14,112) (11,267) (25,231) Administrative expenses (4,053) (6,848) (8,296) Listing costs (574) - (4,735) Finance income 157 86 266 ---------- ---------- ---------- Profit before tax 16,264 32,660 48,983 Income tax expense (4,533) (9,163) (13,855) ---------- ---------- ---------- Profit for the period 11,731 23,497 35,128 Other comprehensive income Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign operations (6) 29 4 ---------- ---------- ---------- Total comprehensive income for the period 11,725 23,526 35,132 ========== ========== ========== Profit for the period attributable to: Equity Shareholders of the Company 11,731 23,497 35,128 Total comprehensive income for the period Attributable to: Equity Shareholders of the Company 11,725 23,526 35,132 Earnings per ordinary share Basic (in RMB 1.00) 0.046 0.092 0.137 Diluted (in RMB 1.00) 0.046 0.092 0.136
Condensed consolidated statement of financial position
as at 28 February 2015
28 Feb 28 Feb 31 Aug 2015 2014 2014 Unaudited Unaudited Audited RMB'000 RMB'000 RMB'000 ASSETS Non-current asset Property, plant and equipment 2,767 3,393 3,087 Intangible assets -* -* -* 2,767 3,393 3,087 Current assets Inventories 8,767 8,799 2,596 Trade and other receivables 34,730 37,590 34,487 Director loan account 5,358 - 110,984 Cash and cash equivalents 207,493 91,391 51,960 ---------- ---------- -------- 256,348 137,780 200,027 ---------- ---------- -------- Total assets 259,115 141,173 203,114 ========== ========== ======== EQUITY AND LIABILITIES Capital and Reserves Share capital 12 12 12 Share premium 2,414 2,414 2,414 Statutory reserves 2,287 4,013 2,287 Warrant reserve 496 497 496 Translation reserves 106 137 112 Retained earnings 62,925 37,837 51,194 ---------- ---------- -------- Equity attributable to owners 68,240 44,910 56,515 Minority Interest - - - ---------- ---------- -------- Total equity 68,240 44,910 56,515 ---------- ---------- -------- Non-current liabilities Borrowings 3,897 - 3,891 ---------- ---------- -------- 3,897 - 3,891 ---------- ---------- -------- Current Trade and other payables 51,326 25,193 37,418 VAT payable 109,942 54,599 84,127 Corporate income tax payable 25,710 16,471 21,163 186,978 96,263 142,708 ---------- ---------- -------- Total liabilities 190,875 96,263 146,599 ========== ========== ======== Total equity and liabilities 259,115 141,173 203,114 ========== ========== ======== *Amount is less than RMB 1,000
Condensed consolidated statement of cash flows
for the six months ended 28 February 2015
6 months 6 months Year Ended Ended ended 28 Feb 28 Feb 31 Aug 2015 2014 2014 Unaudited Unaudited Audited RMB'000 RMB'000 RMB'000 Profit before income tax 16,264 32,660 48,983 Adjustments for: Interest expense - - 8 Interest income (145) (84) (274) Warrant charge - 497 496 Depreciation of property, plant and equipment 320 317 639 Operating profit before working capital changes 16,439 33,390 49,852 Decrease/(increase) in inventories (6,171) (6,144) 59 Increase in trade and other receivables (243) (20,988) (17,885) Increase in trade and other payables 39,737 35,661 82,047 ---------- ---------- ---------- Cash generated from operations 49,762 41,919 114,073 Tax paid - - - ---------- ---------- ---------- Net cash generated from operating activities 49,762 41,919 114,073 Investing activities Interest received 145 84 274 Purchase of property, plant and equipment - (11) (25) Net cash from/(used in) investing activities 145 73 249 Financing activities Interest paid - - (8) Loan from/(to) director 105,626 769 (110,984) Proceed from issue of shares - 1,794 1,794 Net cash inflow from/(used in) financing activities 105,626 2,563 (109,198) Net increase in cash and cash equivalents 155,533 44,555 5,124 Cash and cash equivalents at beginning of period 51,960 46,836 46,836 Effect of foreign exchange rate changes -* -* - ---------- ---------- ---------- Cash and cash equivalents at end of period 207,493 91,391 51,960 ========== ========== ==========
Condensed consolidated statement of changes in equity
for the period ended 28 February 2015
Share Share Statutory Warrant Translation Retained Non-controlling Capital Premium reserve reserve reserve earnings Total interest Total RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 At 31 August 2013 12 620 2,287 - 108 16,066 19,093 - 19,093 ======== ============ ========= ======== =========== ========= ======= =============== ======= Profit for the period - - - - - 23,497 23,497 - 23,497 Transfer to statutory reserve - - 1,726 - - (1,726) - - - Exchange difference - - - - 29 - 29 - 29 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Total comprehensive income for the year - - 1,726 - 29 21,771 23,526 - 23,526 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Issue of shares -* 1,794 - - - - 1,794 - 1,794 Warrant granted - - - 497 - - 497 - 497 At 28 February 2014 12 2,414 4,013 497 137 37,837 44,910 - 44,910 ======== ============ ========= ======== =========== ========= ======= =============== ======= At 31 August 2013 12 620 2,287 - 108 16,066 19,093 - 19,093 ======== ============ ========= ======== =========== ========= ======= =============== ======= Profit for the period - - - - - 35,128 35,128 - 35,128 Transfer to statutory reserve - - - - - - - - - Exchange difference - - - - 108 - 4 - 4 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Total comprehensive income for the year - - 2,287 - 108 35,128 35,132 - 35,132 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Issue of shares -* 1,794 - - 4 - 1,794 - 1,794 Warrant granted - - - 496 - - 496 - 496 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- At 31 August 2014 12 2,414 2,287 496 112 51,194 56,515 - 56,515 ======== ============ ========= ======== =========== ========= ======= =============== ======= Profit for the period - - - - - 11,731 11,731 - 11,731 Transfer to statutory reserve - - - - - - - - - Exchange difference - - - - (6) - (6) - (6) -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Total comprehensive income for the year - - - - (6) 11,731 11,725 - 11,725 -------- ------------ --------- -------- ----------- --------- ------- --------------- ------- Issue of shares - - - - - - - - - Warrant granted - - - - - - - - - At 28 February 2015 12 2,414 2,287 496 106 62,925 68,240 - 68,240 ======== ============ ========= ======== =========== ========= ======= =============== =======
Notes to the condensed consolidated financial statement
1. General information
China Rerun Chemical Group Limited ("China Rerun" or the "Company") was incorporated on 30 May 2012 in Cayman Islands. The registered office of the Company is located at 89 Nexus Way, Camana Bay, Grand Cayman Y1-9007, Cayman Islands.
The principal activity of the Company is that of an investment holding company and the principal activities of the Group are production and distribution of lubricating oil for the automotive, agricultural and certain industrial markets in PRC. The principal place of business is at No 99, Zhongsan Road, Sa'ertu district, Daqing, Heilongjiang Province, PRC.
These condensed financial statements present information about the group and are set out in Renminbi ("RMB") of the PRC, which is the functional currency of the group.
2. Basis of preparationand accounting policies
These condensed financial statements have been prepared on the basis of the accounting policies set out in the last audited consolidated financial statements, which are in accordance with International Accounting Standard 34 Interim Financial Reporting.
The interim report is unaudited and does not constitute the company's statutory accounts for the six months ended 28 February 2015.
The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may subsequently differ from those estimates.
3. Taxation
A company is deemed to be resident in PRC if it is established in PRC or its effective management is in PRC. Residents are taxed on their worldwide income. Non-residents are taxed on PRC source income and income effectively connected with their establishments in PRC.
China Rerun is regarded as resident for the tax purposes in Cayman Islands. There are no applicable taxes in the Cayman Islands for the company.
The Group is regarded as resident for the tax purposes in PRC and subject to national income tax at 25%.
The taxation charge is based upon the expected effective rate for theperiod ended 28 February 2015.
4. Warrant charge
Details of the warrants outstanding at 28 February 2015 are as follows:
Date of grant: 15 Oct 2013 Number of warrants: 2,576,200 Option price: 10 pence Exercise period: 15.10.2013 - 14.10.2018 5. Earnings per share
Basic profit per share
Basic profit per share is calculated by dividing the profit for the period attributable to equity shareholders of the company by the weighted average number of ordinary shares in issue during the period.
28 Feb 2015 28 Feb 2014 31 Aug 2014 Unaudited Unaudited Audited RMB'000 RMB'000 RMB'000 Profit attributable to equity holders of the company 11,731 23,497 35,128 ============ ============ ============ Weighted average number of shares '000 '000 '000 in issue (thousands) 255,810 254,963 255,390 ============ ============ ============
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares in the company are share options. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary rights attached to outstanding share options. The number of shares calculated above is compared with the number of shares that would have issued assuming the exercise of the share options.
Weighted average number of ordinary shares (diluted):
28 Feb 2015 28 Feb 2014 31 Aug 2014 Unaudited Unaudited Audited '000 '000 '000 Weighted average number of shares in issue (thousands) 255,810 254,963 255,390 Effect of conversion of warrants 229 1,921 2,251 At the end of period 256,039 256,884 257,641 ============ ============ ============ 6. Share capital
The issued share capital of the company as at 28 February 2015 is RMB 12,410 fully paid. There were no movements in the issued share capital of the company in the current interim reporting period.
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.
7. Related party transactions
The company made several large payments, totaling RMB 120m in 2014, intended to settle the group's various tax liabilities. Due to the method of settlement, which was subsequently reversed, the transaction was recorded as a director's loan. All balances have been settled after the Period end.
At 28 February 2015, the amount recorded as due from Mr Wu was RMB5.36m
8. Contingencies
Since 1 March 2013, the Group commenced to trade (taking over lubrication oil business from Daqing Runyuan for nil consideration) and it has not operated its taxation affairs in accordance with the legislation within the PRC. All relevant tax returns were filed incorrectly. These taxation procedures mean that substantial liabilities, corporation tax and Value-added taxes (VAT), are accruing (and being reflected in the Statements of Financial Position) but are not being settled by the Group. It is unclear whether any penalties or interest will be charged by the PRC tax authorities when the liabilities are eventually settled.
Except for the above issues, the Group had no significant contingent assets or liabilities at any of the financial position dates.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUQCAUPAPGR
1 Year China Rerun Chart |
1 Month China Rerun Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions