Gx Cleantech Regulatory News (CTEK)

28 May 2013

China Chaintek United Co., Ltd

("ChainTek" or the "Company"),

Trading Update

China ChainTek United Holdings Co., Ltd (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to give the following update on trading for the four month period ended 30 April 2013. Financial information contained in this announcement for the four month period is unaudited.

Trading for the period has been slightly ahead of management's expectations with revenue of RMB110.3 million (approximately £11.0 million), which represents a 7% increase to the comparable quarter in 2012. Of this, the logistics services business represented RMB95.1 million (approximately £9.5 million), with the inventory solutions business accounting for RMB15.2 million (approximately £1.5 million).

In line with the Company's stated strategy of diversifying its logistics services' client base, 30% of revenues in the period came from industries other than sport shoes and apparel, compared to 27% in the equivalent period in 2012. Since the start of the year, the Company has added seven new customers in its logistics services business (one in food industries, four in construction materials industries and another two in other industries) and one new customer in its inventory solutions business.

EBITDA for the period was RMB92.6 million (approximately £9.3 million) compared to RMB83.5 million (approximately £8.4million) for the equivalent period in the prior year. PBT was RMB91.6 million (approximately £9.2 million), which represents a 12% increase to the comparable quarter in 2012 of RMB81.8 million (approximately £8.2 million). As at 30 April 2013, the Group had a net cash position of RMB210.5 million (approximately £21.1 million).

As announced on 19 March 2013, the Company intends to build a logistics park which will be located on a plot of land in an industrial zone in Jinjiang just 14km from the Group's existing operational headquarters, and which already houses a number of ChainTek's existing manufacturer customers. The Company has entered into agreements with the local government and the developer of the logistics park to acquire the Land Use Right over the plot of land and will satisfy the final condition of the acquisition when it pays the final tranche of the consideration, which it anticipates doing in Q4 2013. The Company anticipates that construction of the logistics park will also commence in Q4 2013 and will update the market as appropriate.

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