TIDMCHRR

RNS Number : 7916S

China Rerun Chemical Group Ltd

29 September 2014

29 September 2014

CHINA RERUN CHEMICAL GROUP LTD

("China Rerun", the "Company" or "Rerun")

Fourth 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 31 August 2014 (unaudited).

-- Revenues for the period grew by 8.2% to RMB84.1m (GBP8.3m) (Q4 2013: RMB77.7m (GBP7.7m)), largely driven by the underlying growing demand for high quality lubricant oils in the domestic marketplace

-- Gross margins increased slightly to 29.8% (Q4 2013: 28.2%) as a result of the continued focus on high quality lubricant oils

-- Sales volumes for the financial year to 31 Aug 2014 increased by 9.9% to 15,922,196 litres (FY2013: 14,488,965 litres)

-- China Rerun has appointed Mr. Shengli Meng as Head of Sales and Marketing. Mr. Meng brings a wealth of experience in domestic lubricant oil sales, having spent more than 15 years in sales management roles at China Shell, China Mobil and most recently as Director of Sales for the lubricant oil production and distribution business, Jiangsu Longpan Petroleum. Mr. Meng holds a bachelor's degree in Economics from Hebei University of Economics and Business

-- Distributor numbers remained steady at 42 and the Company remains committed to its policy of only retaining the highest quality distribution partners

Commenting, Mr Xinghe Wu, Executive Chairman of China Rerun, said:

"Our strategy of focusing on the sale of high margin lubricant oil continues to drive the performance of the business. Furthermore, as part of our plan to increase market presence, we have appointed Mr. Shengli Meng to the Company and are delighted that someone of his experience has agreed to come on board. We look forward to working with Mr. Meng and benefitting from his considerable sales and marketing expertise."

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, north eastern 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

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