Haike Chemical Group Regulatory News (HAIK)

12 Dec 2007 11:15

HaiKe Chemical Group Ltd.12 December 2007 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, ispleased to provide an update on current trading ahead of the end of itsfinancial year on 31 December 2007. Following the announcement by the PRC National Development and Reform Commissionon 31 October 2007 that the Chinese government would increase the guidelineselling prices for certain refined petrochemical products from 1 November 2007,HaiKe has seen a significantly improved performance from its already profitablepetrochemical business. In addition, the construction of the 800,000 metric tonne heavy oil catalyticcracking facility has been completed. The facility is now fully operational andproviding a positive contribution to the Company. This facility, constructedusing funds raised at the time of the Company's admission to AIM in February,will enable the Company to focus on producing higher margin products that usemainly residual oil and petrolatum oil feedstock, the prices of which areconsiderably less volatile than crude oil. HaiKe's speciality chemical and biochemical businesses continue to tradestrongly and the capacity expansion projects that have been previously announcedremain on track to provide further growth during 2008. Overall for the 12 months to 31 December 2007, the Company expects profits to bein line with its expectations at the time of admission to AIM. Mr. Yang Xiaohong, Executive Chairman, said: "This has been an exciting and important year for HaiKe and excellent progress has been made across all businesses. We have been able to deploy the funds raised at the time of admission to AIM in February to significantly enhance and improve the performance of the business. Overall we expect the results for 2007 to be in line with our expectations at the time of admission to AIM, despite the global increase in the price of crude oil. We have demonstrated our ability to generate revenue and profit growth despite challenging market conditions and believe we are well-positioned to deliver further shareholder value in 2008." For further information please contact: +------------------+------------------------------+---------------------+|HaiKe |Johnson Lau, Chief Financial |+86 (0) 546 828 9173 || |Officer | |+------------------+------------------------------+---------------------+|HansonWesthouse |Tim Metcalfe / Anita Ghanekar |+44 (0) 20 7601 6100 |+------------------+------------------------------+---------------------+|Cardew Group |Rupert Pittman / Shan Shan |+44 (0) 20 7930 0777 || |Willenbrock | |+------------------+------------------------------+---------------------+ This information is provided by RNS The company news service from the London Stock Exchange