Haike Chemical Group Regulatory News (HAIK)

HaiKe Chemical Group Ltd

Trading Update

HaiKe Chemical Group Limited ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, today provides an update on current trading.

Since the end of the first half of 2010, trading conditions across all of the Company's businesses have materially improved.

Revenue for the period from 1 July to 31 October 2010 has exceeded that in the first half of the current financial year and both the refinery and specialty chemicals businesses have returned to profitability. In particular, the refinery operations have benefited from increased diesel oil volumes and selling prices.

Whilst overall business conditions remain challenging the improved performance in the second half of 2010 is expected to offset the majority of the losses made in the first half with the Company expecting to approach breakeven after tax for the full 2010 financial year.

HaiKe also announces that Mr. Nick Su has tendered his resignation as Chief Finance Officer and leaves the Company on 30 November 2010 to pursue other business interests. Mr. Dongguang Liu, financial controller, has been appointed Acting CFO with immediate effect. Mr. Liu has over 20 years of experience in finance and accounting, and has been with the Company for over 10 years. The Board has commenced the process to find a suitable successor for the CFO position and will provide an update in due course. The Board thanks Mr. Su for his valuable contribution to the Company and wishes him well in his future endeavors.

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