Gx Cleantech Regulatory News (CTEK)

China Chaintek United Co., Ltd

("Chaintek" or the "Group")

Pre-Close Trading Update

Chaintek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to provide the following positive trading update ahead of the Group's Preliminary Results for the year ended 31 December 2013, which will be announced on Monday 7 April 2014.

The Board is pleased to confirm that trading for the period is marginally ahead of management's expectations with profit before tax anticipated to show an increase of more than 10% when compared to the prior year. The Group continues to be highly cash-generative, resulting in a cash position at year-end of RMB319.3 million (2012: RMB342.7 million) despite the Group having paid RMB221.0 million for the land use rights of the planned logistics park during 2013.

The Logistics Services business continues to perform robustly and in 2013 a total of 16 new customers were added, including VIPshop, one of China's leading online discount retailers for brands. In line with Chaintek's stated strategy the Group has continued to diversify its Logistics Services Divisions' customer base, particularly into the food and building materials industries which now comprise 22% of divisional revenue (19% in 2012). The division continues to reduce its reliance on shoes and apparel, which comprised 69% of divisional revenue in 2013 (72% in 2012).

The Inventory Solutions business is expected to show a modest increase of 3% in reported revenues, with an increase in underlying revenues of 9% (adjusted to exclude the effects of a move from 6% sales tax to VAT at 6% for 2013) despite no new distribution centre being added in the year. The division added an additional customer in the shoes sector at its regional distribution centre ("RDC") in Guangzhou and the division now accounts for 13% of Group revenues and continues to grow in line with the management's expectations.

Xu Meijin, Chief Executive Officer of Chaintek, said: "The Board is pleased with the strong progress that the Group has made in 2013 which has been marginally ahead of our expectations. This robust performance has been achieved by focusing on Chaintek's strengths and pursuing our strategy for organic growth in logistics services in which the Group has targeted new customers and continued to develop our existing large-scale, long-term relationships through the provision of a full range of high quality service offerings.

"Back in November 2013, we announced a maiden interim dividend of 2 pence per share which reflected the Board's confidence in the strong growth prospects of Chaintek. As stated then, it is our intention to maintain a progressive dividend policy and we envisage that payments will be weighted toward the final dividend. The first of these payments will be declared with our Preliminary Resultsannouncement for the year ended 31 December 2013. With construction also due to commence on the planned logistics park in the second half of 2014, the Board is optimistic about the Group's performance for the current financial year."

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