Haike Chemical Group Regulatory News (HAIK)

19 Nov 2009 12:00



HaiKe Chemical Group Ltd. 

Trading update

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

Since the announcement of the interim results on 24th September 2009, both the petrochemical and speciality chemical businesses have seen increased sales prices and increasing sales volumes. As such, total sales during the second half of the financial year are expected to exceed the first half.

However, despite the increases in volumes, trading conditions have continued to be difficult and the expected upturn in performance after the losses experienced in July and August has not been seen. The Company traded at a loss throughout the third quarter and as a result is now loss making for the year to date. In particular, inflation in petrochemical feedstock prices has severely adversely affected margins compared to the first half of the financial year. 

The Directors are cautiously optimistic that the last quarter of the year will be an improvement on the third quarter and are taking measures to insulate the Company against such price fluctuations in the future.

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