China Rerun Chemical Group Ltd Trading Statement (3869D)

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RNS Number : 3869D

China Rerun Chemical Group Ltd

28 March 2014

CHINA RERUN CHEMICAL GROUP LTD

("China Rerun" or the "Company")

Trading Update

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"), makes the following update on trading ahead of its half yearly results to be announced in May 2014.

Unaudited results for the period from 1 September 2013 to 28 February 2014 ("H1" or the "period")

-- Sales for the period grew by 34.4% to RMB164.7m (H1 2013: RMB122.5m) and like-for-like sales volume was 8.1 million litres, up 31.7%. The growth in sales and volume were driven by an increase in demand particularly for the Company's car petrol engine, construction and agricultural oils. In addition, the Company has increased the range of construction and agricultural oils to meet market demand.

-- Gross margins have continued to improve and were 30.8% for the period (FY 2013: 26.1% and H1 2013: 27.3%), as a result of selling higher quality products and benefitting from economies of scale as volumes have increased.

-- The number of distributors has increased to 42 (H1 2013: 28) with six additional distribution partners appointed since the last financial year ended 31 August 2013.

-- The Company is pleased to announce that China Rerun has been accredited as a training centre by the Economic and Management College of China University of Petroleum. The training centre will offer an Executive Master of Business Administration programme for delegates in the oil and gas sectors. The management believes this important accreditation will enhance the Company's reputation and raise brand awareness.

Mr Xinghe Wu, Chairman of China Rerun, said: "I am pleased to report that we continue to make good progress in growing our lubricant oils business. We remain resolutely focused on creating shareholder value, and the Company is seeking out good value opportunities to enhance profitability and our brand awareness."

Indicative exchange rate as at 27 March: GBP1: RMB 10.17

Source: www.oanda.com

For enquiries, please visit www.chinarerun.com/or contact:

 
 China Rerun                 Xinghe Wu                [phone] 
                              Yan Liu                  www.chinarerun.com/ 
 
                              Nick Lyth                [phone] 
--------------------------  -----------------------  ----------------------------- 
 Cairn Financial Advisers 
  LLP                        Jo Turner 
  (Nominated Adviser)         Liam Murray             [phone] 
--------------------------  -----------------------  ----------------------------- 
 Beaufort Securities 
  Limited 
  (Broker)                   Guy Wheatley             [phone] 
--------------------------  -----------------------  ----------------------------- 
 Cardew Group                Shan Shan Willenbrock    [phone] 
  (Financial PR)              Georgina Hall 
                              Tom Horsman              [e-mail]. 
--------------------------  -----------------------  ----------------------------- 
 

Notes to Editors

China Rerun Chemical Group Ltd is an established and profitable producer of lubricant products for the PRC's domestic automotive, industrial and agricultural markets. Based in Daqing, northeastern China, it operates principally under the "Runyuan" and "Black E" brands. The Group's products are sold to end users through a network of third party distributors, some of whom operate branded automotive garages.

This information is provided by RNS

The company news service from the London Stock Exchange

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