3rd Oct 2014 07:09
LONDON (Alliance News) - Chinese logistics company China Chaintek United Co Ltd said Friday it expects to benefit from the development of Chinese state government policies for the logistics sector in China.
China Chaintek provides logistics for consumer goods makers in China.
A report published by the China's Ministry of Commerce last month, discussed the collaboration between e-commerce companies and logistics companies, encouraging development of one-stop-services in the logistics sector, land rebate policies, improving information flow in the country, and improving transportation network - all of which have been identified as solutions to strengthen the logistics sector in China.
In a statement Friday, China Chaintek said its pleased to see that guidelines have been provided by the Chinese government on implementing a long-term strategy to strengthen the logistics sector.
In the past, China Chaintek said expanding e-commerce activities in China and the relatively undeveloped logistics market represent strong growth opportunities for the company, and said as a result it will need to invest in IT infrastructure and systems in the coming months.
"These guidelines are likely to push forward local governments' effort in collaboration with logistics companies. As a modernised logistics firm committed to providing one-stop logistics services, Chaintek anticipates benefiting from these related government policies. This will provide Chaintek with good foundations to further expand and diversify our business," said Chief Executive Xu Meijin in Friday's statement.
Last month, China Chaintek reported a pretax profit of CNY144.7 million for the first half of 2014, up 9% on the CNY132.8 million profit it reported the prior year, driven by a 4% increase in revenue to CNY173.8 million, and further increases in its load tonnage.
China Chaintek shares were down 2.8% at 70.00 pence at the open Friday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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