China Rerun Chemical Group Ltd Trading Statement (4137L)
July 04 2014 - 2:00AM
UK Regulatory
TIDMCHRR
RNS Number : 4137L
China Rerun Chemical Group Ltd
04 July 2014
CHINA RERUN CHEMICAL GROUP LTD
("China Rerun", the "Company" or "Rerun")
Third Quarter 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"),
reports on trading for the three months to 30 May 2014
(unaudited).
-- Revenues for the period grew by 17.7% to RMB88.3m (Q3 2013:
RMB75.0m) largely driven by the underlying growing demand for high
quality lubricant oils in the domestic marketplace.
-- Our stated strategic goal to focus on high quality oils
enabled higher average selling prices and helped maintain profit
margins. The quality and branding upgrades allowed us to pass on
price increases to our customers with average selling prices
increasing by 25.2% compared to the same period last year. Gross
margins increased to 30.0% (Q3 2013: 25.9%).
-- Sales volumes for the year to date have increased by 16.6% to 12,035,133 litres.
-- Distributor numbers have increased by 50% to 42 (Q3 2013: 28)
and the quality of our network remains a key focus. We are pleased
with the progress made with our distribution partner Tianxia
Runyuan (Beijing) Technology Co., Ltd ("Tianxia") in developing a
new brand to be sold across 300 new cities. This new brand which
includes automotive lubricant oils, is premium and will be sold at
higher prices thus enabling strong profit margins. Tianxia focuses
largely on long-term, corporate clients who tend to make larger
orders. The Company continues to seek new commercial partnerships
for joint distribution agreements.
Commenting, Mr Xinghe Wu, Executive Chairman of China Rerun
said:
"We are pleased with the progress made in the quarter under
review. We have, again, increased revenues and average selling
prices with a continued commitment to high quality branded
products. We are actively seeking new commercial partnerships and
acquisition opportunities, looking to grow our distribution network
and increase brand awareness. The Board remains confident that the
results for the full year ended 31 August 2014 will be in line with
its expectations."
Indicative exchange rate as at 3 July 2014: GBP1: RMB10.56
Source: www.oanda.com
For enquiries, please visit www.chinarerun.com/or contact:
China Rerun Xinghe Wu +86 459 666 9777
Yan Liu www.chinarerun.com/
Nick Lyth +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
-------------------------- ----------------------- -----------------------------
Cardew Group Shan Shan Willenbrock +44 20 7930 0777
(Financial PR) Georgina Hall
Tom Horsman chinarerun@cardewgroup.com.
-------------------------- ----------------------- -----------------------------
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
END
TSTFMGGNDFKGDZM
China Rerun (LSE:CHRR)
Historical Stock Chart
From May 2024 to Jun 2024
China Rerun (LSE:CHRR)
Historical Stock Chart
From Jun 2023 to Jun 2024
