Interim Results

China Chaintek United Co., Ltd

("Chaintek", the "Company" or the "Group")

Interim Results

Chaintek (AIM:CTEK), one of the largest logistics distribution providers for sports shoe and apparel manufacturers in China, today announces its interim results for the six months ended 30 June 2014 (the "period").

Financial Highlights

Operational Highlights

Since the start of the year, the Group has added six new customers to its Logistics Services business (sectors including shoes and apparel, food, building materials, andtextiles) of which, Joeone, a Shanghai Stock Exchange listed shoes and apparel manufacturer is considered by the Group as a significant customer contributing approximately 3% to the Logistics Services revenue.In addition, the Group has further increased its load tonnage in the period by 3% to 1.25 million tons (H1-2013: 1.21 million tons).

The management team continues to focus on a strategy for growth as a public company. A key ingredient, as previously outlined, is the construction of a new Logistics Park. The regional government of Fujian Province is currentlyevaluating the ‎Company's application to commence construction of the Logistics Park and for the Company to be granted a rebate in the region of 25-30 % on the land price the Company has paid to the government for the land use as a logistics park. The granting of a rebate is in accordance with government policy to encourage the growth and development of logistics companies in China. On receipt of the approvals, construction would commence without further delay.

Shufang Zhuang, Executive Director and the Group's founder, commented:

"Trading in the first half of the current financial year hasbeen in linewith management's expectations and the Board anticipates that the full year will also be in line with current market expectations. Total revenues for the period grew 4% compared to the same period in 2013, with profit before tax increasing by 9% to RMB145 million.

"In our core Logistics Services Division we were pleased with the diversification of our customer base, building on our existing strength in sports shoes and apparel and moving into growing markets such as food and building materials. In respect of our InventorySolutions business, we are pleased with the demand we are seeing for this division. The expanding E-commerce activities in China and the relatively undeveloped logistics market represent strong growth opportunities for Chaintek. To meet the fast-moving requirement in E-Commerce activities, we will need to invest in IT infrastructure and systems in the coming months.

"The Group's cash position at 30 June 2014 was RMB412 million and we are well positioned to benefit from the Chinese economy's need for efficient domestic logistics services as it switches to a model of increasing investment and internal consumption. Our core business is flourishing and we are looking forward with confidence to offering increased value and service to our varied customers. As a local modernised logistics firm, Chaintek fully expects to benefit from the Chinese government's policy to develop the logistics sector. The construction of our new Logistics Park represents an important milestone for the Company in providing an integrated service to our customers, which will help the Group to further strengthen its market share. In addition, having regional distribution centres (RDCs) in strategic locations will help us progress towards our aim to become a national logistics company."

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Chairman's Statement

Results of China Chaintek United Co., Ltd. ("the Group", "the Company" or "Chaintek") for the six months ended 30 June 2014.

Performance

Chaintek has made encouraging progress over the reporting period with growth across each of the business operations in line with management's expectations. I am delighted to report that revenues increased by 4% to RMB 173.8 million, EBITDA rose by 9% to RMB 147.6 million (profit before tax being RMB 144.7 million) at a profit margin of 83%. As a highly cash-generative business, the Company's cash position was RMB 411.7million at 30 June 2014. The strong cash position will allow the Company to invest in its strategy to become a national logistics company.

Outlook and Strategy

The Company has three key goals for the continued successful growth of its business.

1. Diversification of the customer base for the Logistics Services business to cover a broader range of consumer products;

2. Expansion of the Inventory Services business; and,

3. Achieving a meaningful share of the logistical requirements for the fast-growing e-commerce sector across China.

The Board confirms that these objectives are being achieved. This is happening against a background of slower economic growth at national level but compensated by the growth of a consumer-led demand for products and brands of Chinese origin and the essential requirement for strong, modern logistics companies to deliver to the end-user in what hitherto has been a fragmented and young service supply sector.

To achieve these aims, Chaintek is accelerating its investment in technology, extending its nation-wide reach with plans for more RDCs and in the announced Logistics Park, the flagship logistics hub for the Company in Jinjiang. The land use rights for the Logistics Park have been paid for and the application for granting the rebate of the land use rights has been lodged with the Fujian Provincial government. Once the approval has been obtained, the Company is ready to commence construction without further delay.

Revenue and Dividends

On 7 April 2014, the Company announced a final dividend of 4 pence per share, in respect of the year ended 31 December 2013, giving a total dividend of 6 pence per share for the financial year. The Directors consider that the business has the opportunity for rapid growth which will lead to the creation of shareholder value. In order to exploit these opportunities the Company will need to invest its resources carefully, however the Directors are aware of the importance of the Dividend to shareholders and accordingly the Company will pay an interim scrip dividend of 2 pence or a cash alternative of 1 pence. A separate circular will be sent to shareholders detailing the process, timing and mechanism in due course. The Company remainsconfident in the outturn for the year as a whole. The Company intends to pay afinal dividend, the constituent partsof which will be determined by the cash commitments incurred by the Company in accelerating its growth plan as outlined above.

The Company retains strong cash reserves crucial for achieving its growth objectives referred to above.

William Knight

Non-Executive Chairman

22 September 2014

Interim consolidated statementof financial position

(All amounts in RMB unless otherwise stated)

Interim consolidated statement of comprehensive income

(All amounts in RMB unless otherwise stated)

Interim consolidated statement of changes in equity

(All amounts in RMB unless otherwise stated)

Unaudited

Interim consolidated statement of cash flow

(All amounts in RMB unless otherwise stated)

1. General information

The Company was incorporated as an exempted limited liability company in the Cayman Islands on 13 April 2011 as a result of a group restructuring in preparation for the proposed listing of the Company's shares on the AIM market of the London Stock Exchange. The Company's registered office is at SOLARIS CORPORATE SERVICES LTD., P. O. Box 1990, 3rd Floor, First Caribbean House, Cardinal Ave, KY1-1104, Cayman Islands.The Company's shareswereadmitted to trading on the AIM market of the London Stock Exchange on 20 August 2012.

The principal activities of the Company are those related to investment holding. The principal activities of the subsidiaries are logistics services and inventory solutions.

These financial statements are the unaudited interim consolidated financial statements for the six month period ended 30 June 2014 (hereafter the 'interim period'). The interim financial statements have been approved for issue by the Board of Directors on 19 September 2014.

2.Historical information

On 3 March 2000, Fujian Xingtai Logistics Co., Ltd. ("Fujian Xingtai") was incorporated as a limited liability company in the People's Republic of China (the "PRC") controlled by Mr Shufang Zhuang (Mr Zhuang). The registered office is located at Mei Ling Industrial Park, Jinjiang City, Fujian Province, PRC.

On 5 March 2010, Fujian Xingtai became a wholly owned entity of Mr Zhuang and his wife Mrs Meijin Xu (Mrs Xu).

On 7 December 2010, Chaintek United Holdings Ltd ("Chaintek United") was incorporated as a limited liability company in Hong Kong SAR. Chaintek United, an investment holding company, has its registered office at Room 1613, 16F, Tai Yau Building, 181 Johnson Road, Wan Chai, Hong Kong SAR. Chaintek United is wholly owned by Mr Zhuang and Mrs Xu.

On 29 January 2011, Chaintek United acquired 100% of the equity interest of Fujian Xingtai for a purchase consideration of RMB 10,204,100, fully paid in cash with an advance from Mrs Xu.

On 13 April 2011, the Company was incorporated in the Cayman Islands for the proposed listing of the Company's shares on the AIM market of the London Stock Exchange. The Company is majority owned and controlled by Mr Zhuang and Mrs Xu.

On 27 June 2011, the Company acquired 100% of the equity interest of Chaintek United for a purchase consideration of HK$10,000 based on the nominal issued share capital of Chaintek United.

The acquisitions of Fujian Xingtai by Chaintek United and Chaintek United by the Company were a combination of businesses under common control by Mr Zhuang and Mrs Xu. As a result, the Company accounted for the acquisitions in a manner similar to a pooling of interests.

3. Basis of preparation

The interim consolidated financial statements (the interim financial statements) are for the six months ended 30 June 2014 and are presented in Renminbi (RMB), which is the presentation currency of the Group and the functional currency of the principal operating subsidiaries of the Group. The interim accounts have been prepared in accordance with recognition and measurement principles of IFRS as endorsed for use in the European Union using accounting policies that are expected to be applied in the full financial statement for the year ended 31 December 2014.

4. Interim management report

Principal Risks and Uncertainties

The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework. The Group's risk management policies are established to set out its overall business strategies, tolerance of risk and general risk management philosophy. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.

The main risks which the Group faces are market risk (comprising interest rate, foreign currency and price risk), credit risk and liquidity risk. Further details are given in note 23 to the full financial statement for the year ended 31 December 2013.

Related Parties Transactions

For the purposes of this interim financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

During the six months of the current financial period, there are no transactions with related parties will have taken place which materially affect the financial position and performance of the Company.

Going Concern

Based on the Group's current expectations and projected cash flows, the Board believes that the Group will be able to satisfy its working capital requirements for at least the next twelve months. The Board has therefore concluded that it is appropriate to continue to adopt the going concern basis in preparing the interim financial statements.

5. Estimates

The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and the disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgments at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

6.Financial Risk Management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2013.

7.Land use rights prepayments

8. Property, plant and equipment

9. Earnings per share

The Group presents basic and diluted earnings per share ("EPS") data for its Ordinary Shares. Basic EPS is calculated by dividing the profit or loss attributable to Ordinary Shareholders of the Company by the number of Ordinary Shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to Ordinary Shareholders and the number of Ordinary Shares outstanding, adjusted for the effects of all dilutive potential Ordinary Shares, which comprise Warrants.

10. Dividends

During the financial period, the Group paid for the following:

(i) On 13 November 2013, the Group announced an interim maiden dividend of 2 pence net per share, in respect of the six month period ended 30 June 2013, paid on 3 January 2014 to shareholders on the register on 13 December 2013, offered as a scrip dividend with a cash alternative. In consequence, a total cash dividend payment of GBP131,412.22 (approximately RMB1,394,348) was made on 3 January 2014 to shareholders so electing, and a total of 681,675 new ordinary shares was issued on 3 January 2014 in respect of the scrip dividend.

(ii) On 7April 2014, the Group announced a final dividend of 4 pence net per share, in respect of the year ended 31 December 2013, paid on 9 June 2014 to shareholders on the register on 21 May2014, offered as a scrip dividend with a cash alternative. In consequence, a total cash dividend payment of GBP440,000 (approximately RMB4,670,305) was made on 9 June 2014 to shareholders so electing, and a total of 1,674,441 new ordinary shares was issued on 9 June 2014 in respect of the scrip dividend.

11.Operating segments

For management reporting purposes, the Group is organised into the following reportable operating segments:

(a) Logistics services- includes the provision of land transportation services.

(b) Inventory solutions - includes the provision of warehousing services.

Segment accounting policies are the same as the policies described above. Intra- and inter-segment transactions were carried out at terms agreed between the parties during the financial year. Intra- and inter-segment transactions were eliminated in preparing consolidated financial information.

Segment revenue and expense:

Segment revenue and expenses are the operating revenue and expenses reported in the Group's statement of comprehensive income that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment assets and liabilities:

Segment assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Capital expenditure includes the total cost incurred to acquire plant and equipment directly attributable to the segment.

Group cash resources, financing activities and income taxes are managed on a group basis and are not allocated to operating segments. Unallocated assets comprise cash and cash equivalents. Unallocated liabilities comprise income tax payable.

The Group Chief Executive Officer ("Group CEO") monitors the operating results of its operating segments for the purpose of making decisions about resource allocation and performance assessment.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Group CEO.

Operating segments (Cont'd)

Operating segments (Cont'd)

Geographical information

The Group's operations are located in the PRC and all of the Group's revenue is derived from services provided to customers in the PRC. Hence, no analysis by geographical area of operations is provided.

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