14th Sep 2015 07:23
LONDON (Alliance News) - HaiKe Chemical Group PLC on Monday said its first half trading was in line with its expectations but said it has taken a hit so far in the second six months from the turbulence in the Chinese economy.
The specialty chemicals company, which is based in China's Shandong Province, said it expects to post a CNY95,000 profit for the first six months, compared to a CNY361,000 loss a year earlier, as revenue for the half to the end of June fell to CNY385.4 million from CNY460.0 million, mainly due to price reductions on key products.
But the company said it has seen continued pressure on its products since the end of June as a result of the deteriorating economic environment in China and ongoing fears about economic growth in the country slowing down. This has particularly hit both revenue and margins for its primary products, including DiMethyl Carbonate and Isopropyl.
As a result of this, the group said it is "at risk" of failing to achieve a full-year profit and said it recorded losses in both July and August due to the tough economic conditions.
HaiKe said it will focus on cost control and improving its product mix to mitigate the problems and is considering further options to counteract the issues it faces, though it did not provide any details on what those options may be.
Shares in HaiKe were down 23% in early trade to 10.00 pence, the worst performer in the London market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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