8th May 2015 07:42
LONDON (Alliance News) - Chinese consumer goods logistics provider China Chaintek Ltd Friday said its revenue fell in the first quarter, with March revenue declining significantly as the company was hit by manufacturing reform in China.
The group said revenue in the first quarter to the end of March was down 21%, exacerbated by a 34% decline during March, with its inventory services business performing slightly better than its logistics arm. China Chaintek reiterated its expectation that revenue and profit in 2015 will be substantially lower year-on-year.
In March, the company warned its profit will halve this year amid a push by the Chinese government for manufacturers to switch from a traditional model of producing large volumes sold over a lengthy period with promotions and discounting, to one that produces more innovative designs to meet customer demand and capable of shorter production runs requiring timely and efficient delivery.
The group said the integration of its transit warehouse is progressing, allowing to the company to provide a better service to its clients.
Shares in China Chaintek were down 16% to 37.00 pence in early trade, one of the worst performers in the London Main Market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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