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LONDON (Alliance News) - Chinese logistics company, China Chaintek United Co Ltd saw its share jump Wednesday after it said revenue in the first-half of the year is in line with management expectations, and its pretax profit has grown more than 9% in the period.
China Chaintek shares were up 8.4% Wednesday morning, trading at 105.70 pence.
The provider of logistics for consumer goods makers in China, said revenue and profit growth in the six months to June 30 has been buoyed by new customer wins in its logistics services business.
It said revenue in the period is roughly 4% higher than a year earlier, at RMB173.8 million, while pretax profit is up more than 9% at RMB144.7 million, up from RMB132.8 million in the first-half of last year.
China Chaintek said it continues to be cash-generative, having a cash position at the end of the first-half of RMB411.6 million, compared with RMB249.1 million a year earlier.
The company is currently in the process of planning the construction of a new logistics park, a move it hopes will further strengthen its market share. It had previously said that it expected construction to start in the fourth quarter of this year, however China Chaintek said Wednesday that it is still negotiating with the local government to obtain the preferential policy for the new logistics park. It said it could result in a 20% to 30% rebate on the land price paid to the government.
"Due to structural governmental changes in China... negotiations are taking longer to complete and may cause delays to the commencement of the construction on the new logistics park. The group will update the market upon the conclusion of these negotiations," the company said in its statement.
China Chaintek said it will announce its interim results in late September.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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