8th Jan 2016 10:58
LONDON (Alliance News) - HaiKe Chemical Group Ltd said Friday that it expects to report a moderate profit for 2015, as overall profitability recovered slightly in the final quarter despite a slowdown in the third quarter.
The China-based speciality chemical business said revenue fell to CNY728 million, or around GBP73 million, from CNY973 million, or GBP98 million, mostly as a result of a lower average realised selling price of its products, as well as depressed oil prices.
Gross margin rose slightly to 11.6% from 10.7% in 2014 as the company focused on its more profitable, higher-end products.
The company noted that its High-Tech Spring manufacturing arm has faced severe competition for one of its major products, Isopropyl Alcohol, and in light of this it has accelerated its efforts to move to more profitable, higher end products to try and maintain its overall margins.
Shares in HaiKe were up 3.1% at 4.89 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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