China Rerun sees revenues and profits soar


Daqing-based producer's profits almost doubled after introducing newer, cleaner products.

China Rerun list on AIM

A good job well done - China Rerun list on the LSE Image: London Stock Exchange

China Rerun Chemical Group Ltd announced its pre-tax profits rose from 26.9m yuan ($4.3m) to 45m yuan ($7.4m) in the financial year ending in 2013.

Strong results were driven by a 15% like-for-like increase in sales to 14.5 million litres, generating 273m yuan ($45m) of revenue, up from 226m yuan ($37.2) a year earlier.

The company, which is listed on London's AIM market, attributed part of its success to the addition of eight new lubricants products. The new line had quality and specifications superior to its exsisting offerings, which drove profitability as Chinese auto standards also rose.

The good news also created buoyancy in the company's share price, which rose 23.7% to £12.99 ($21.62) on the last day of January.

China Rerun has also appointed four new distributors which will also help drive revenue in the new year.

In a company statement, China Rerun claimed it would be rolling out "mobile lubrication services, via China Rerun branded service vehicles", which would serve as an "additional distributino channel" for its products, "as well as having the added benefit of acting as a strong billboard for China Rerun's products."