19th Nov 2007 07:00
HaiKe Chemical Group Ltd.19 November 2007 HaiKe Chemical Group Ltd. UNAUDITED RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2007 HaiKe Chemical Group Ltd ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK)petrochemical, speciality chemical and biochemical business based in China, ispleased to announce its unaudited results for the third quarter ("2007Q3") andnine months ended 30 September 2007. The results for the third quarter ("2006Q3") and nine months ended 30 September2006, which are set out below for comparative purposes, are those of the Companyand its subsidiaries. Nine Months to 30 September 2007 Highlights - Total revenues increased 54% to US$ ("$") 257.0m (2006: $167.4m)- Petrochemical revenues increased 51% to $199.1m (2006: $132.2m)- Speciality chemical revenues increased 62% to $55.6m (2006: $34.3m)- Biochemical revenues increased 144% to $2.2m (2006: $0.9m)- Gross margin improved to 9.8% (2006: 7.3%)- Profit before tax and AIM Admission costs increased 182% to $14.4m (2006: $5.1m)- Profit after tax and AIM Admission costs increased 238% to $12.5m (2006: $3.7m)- Profit after minority interests increased 211% to $8.7m (2006: $2.8m)- Earnings per share increased from US 11 cents to US 24 cents- Construction of the 800,000 Metric Tonnes ("MT") heavy oil catalytic cracking facility has been completed Mr. Yang Xiaohong, Executive Chairman, said: "I am pleased to present a very encouraging set of results for the third quarterof 2007, which further demonstrates our ability to generate revenue and profitgrowth across all areas of the business, in spite of the challenging environment. The announcement by the PRC National Development and Reform Commission on 31October 2007 to allow price adjustments for certain refined petrochemicalproducts is very encouraging. This, together with the countermeasures which havealready been adopted by the Company to minimise the impact of the high crude oilprices, should ensure that the Group's petrochemical business remainsprofitable and continues to perform in line with expectations. In addition,from December, the operation of the new heavy oil catalytic cracking facilitywill enable the Company to focus on higher margin products. The speciality chemical and biochemical business continues to perform in linewith expectations and the capacity expansion projects announced in September2007 will further shift the weighting of the Company to this area where we seesignificant opportunities to deliver further growth and increase shareholdervalue." For further information please contact: HaiKe Johnson Lau, Chief Financial Officer +86 (0) 546 8289173HansonWesthouse Tim Metcalfe / Anita Ghanekar +44 (0) 20 7601 6100Cardew Group Rupert Pittman / Shan Shan Willenbrock +44 (0) 20 7930 0777 Nine months to 30 September 2007 (the "Relevant Period") Results During the Relevant Period, operating profit increased 130% from $7.6m in 2006to $17.5m in 2007, with 238% growth in profit after tax to $12.5m in 2007 (2006:$3.7m). The gross margin improved from 7.3% in 2006 to 9.8% in 2007. During the Relevant Period, total revenue increased 54% from $167.4m in 2006 to$257.0m in 2007. On a segmental basis, sales of petrochemical products increasedfrom $132.2m in 2006 to $199.1m in 2007, as a result of increases in sellingprices and sales volumes. Sales of speciality chemical products grew from $34.3min 2006 to $55.6m in 2007, due to increased market demand. The growth inbiochemical revenue, which is significant in percentage terms, increased 144%from $0.9m in 2006 to $2.2m in 2007. During the Relevant Period, cost of sales increased from $155.2m in 2006 to$231.8m in 2007, reflecting the sales volume increase. The incremental sellingprices for the petrochemical products were higher and the profit contributionfrom the speciality chemical business increased, both of which contributed to animproved overall gross margin of 9.8% in the first nine months of 2007 (2006:7.3%). Selling and distribution expenses increased 10% from $2.0m in 2006 to$2.2m in 2007 as a result of increased freight charges and promotion costs forthe speciality chemical products. Administrative expenses increased 78% from$3.7m in 2006 to $6.6m in 2007. The increase included a non-recurringshare-based (non-cash) payment to the Chief Financial Officer which amounted to$0.2m and a one-off cost of $1.8m as a result of the Company's Admission to AIMin February 2007. The finance costs increased from $2.6m in 2006 to $5.3m in 2007, due to theincreased average loan balance and increase in interest rates during theRelevant Period. During the second and third quarters, the Company acquiredadditional inventories and increased prepayments to secure crude oil suppliesand other materials at favourable prices, which resulted in an increase inshort-term loans. Tax exemptions were granted for three subsidiaries, namely Hi-Tech Chemical,Hi-Tech Spring and Hi-Tech Shengli, following the restructuring of the Companyinto a foreign owned entity in late 2006. This resulted in no material incometax payments in the first nine months of 2007. The full and partial taxexemptions are valid until December 2010. Profit (after minority interests) attributable to equity holders of HaiKeincreased from $2.8m in the first nine months of 2006 to $8.7m in the sameperiod this year. Basic and diluted earnings per share increased from US 11 cents in the firstnine months of 2006 to US 24 cents in the same period this year. The core construction work for the 800,000 MT heavy oil catalytic crackingfacility has been completed and the testing phase commenced this month. Thefacility is scheduled to be fully operational during December 2007, moving thefocus of the petrochemical business onto higher margin products. It is expectedthat this new facility will enable us to deliver further growth and increaseshareholder value. Third Quarter 2007 Highlights - Total revenues increased 14% to $85.6m (2006Q3: $74.9m)- Petrochemical revenues increased 7% to $64.3m (2006Q3: $60.3m)- Speciality chemical revenues increased 46% to $20.4m (2006Q3: $14.0m)- Biochemical revenues increased 50% to $0.9m (2006Q3: $0.6m)- Gross margin improved to 9.3% (2006Q3: 7.7%)- Profit before tax increased 28% to $4.1m (2006Q3: $3.2m)- Profit after tax increased 64% to $4.1m (2006Q3: $2.5m)- Profit (after minority interests) increased 27% to $2.8m (2006Q3: $ 2.2m)- Earnings per share decreased from US 9 cents to US 7 cents reflecting the higher number of shares in issue following the placing at the time of Admission to AIM Third Quarter 2007 Results and Outlook Results for 2007Q3 showed improvement on the same period in 2006 and haveprovided further evidence of the Company's ability to grow revenue and profitdespite the challenging environment caused by increasing crude oil prices andthe Chinese government restrictions on the selling prices for refinedpetrochemical products which were in place throughout the third quarter of 2007.Overall trading in 2007Q3 was similar to 2007Q2 with profit before tax and AIMAdmission costs of $4.1m compared to $4.3m in 2007Q2, despite significantlyhigher crude oil prices in 2007Q3. As previously stated the Company has adopted a number of countermeasures in thepetrochemical sector to minimise the impact of rising crude oil prices and theChinese government's pricing regime. The Company has shifted production tohigher margin products and restricted production in those areas most affected bythe pricing environment, in addition to adopting a series of stringent costcontrol measures. The construction of the 800,000 MT heavy oil catalyticcracking facility has been completed and is expected to be fully operationalduring December 2007. This facility will enable the Company to focus onproducing higher margin products and use mainly residual oil and petrolatum oilfeedstock, the prices of which are considerably less volatile than crude oil.Going forward the Company also expects to benefit from the announcement by thePRC National Development and Reform Commission on 31 October 2007, allowingupward price adjustments in the selling prices for certain refined petrochemicalproducts. Since the end of the third quarter, HaiKe's speciality and biochemical businesscontinues to trade in line with expectations. The outlook for the speciality andbiochemical business remains positive. The Company is exploring a number ofcapacity expansion projects in addition to those that have already beenannounced during 2007. During October 2007 the petrochemical business remainedprofitable and continued to perform in line with expectations. CONSOLIDATED INCOME STATEMENT Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ US$'000 US$'000 US$'000 US$'000 Unaudited Unaudited Unaudited Audited Revenue 85,563 74,871 256,991 167,375Cost of sales (77,628) (69,106) (231,761) (155,212) __________ __________ __________ __________Gross profit 7,935 5,765 25,230 12,163 Other operating income 414 460 1,410 1,502Selling and distributionexpenses (722) (809) (2,242) (2,036)Administrative expenses (1,444) (1,269) (6,557) (3,688)Other operating expenses (119) (26) (365) (320) __________ __________ __________ __________Profit from operations 6,064 4,121 17,476 7,621Finance income 120 11 311 59Finance costs (2,051) (983) (5,282) (2,600)Share of results ofassociate 8 37 53 61 __________ __________ __________ __________Profit before income tax 4,141 3,186 12,558 5,141Income tax benefit (expense) (56) (717) (57) (1,466) __________ __________ __________ __________Profit for the period 4,085 2,469 12,501 3,675 ========== ========== ========== ==========Attributable to:Equity holders of the parent 2,811 2,186 8,673 2,839Minority interest 1,274 283 3,828 836 __________ __________ __________ __________ 4,085 2,469 12,501 3,675 ========== ========== ========== ========== Earnings per shareBasic $0.07 $0.09 $0.24 $0.11 ========== ========== ========== ==========Diluted $0.07 $0.09 $0.24 $0.11 ========== ========== ========== ========== CONSOLIDATED BALANCE SHEET 30 Sep 2007 30 Sep 2006 31 Dec 2006 __________ __________ __________ US$'000 US$'000 US$'000 Unaudited Audited AuditedASSETSNon-current assetsProperty, plant and equipment 88,395 54,035 54,220Intangible assets 2,612 1,808 1,886Investments in associates 182 174 188Investment securities 653 620 628Deferred tax assets 1,059 1,189 1,074 __________ __________ __________ 92,901 57,826 57,996 __________ __________ __________Current assetsInventories 18,162 23,662 17,024Trade and other receivables 27,862 18,413 25,344Amounts due from related parties 802 5,648 839Financial assets at fair value 1,598 - -through profit or lossCash and cash equivalents 34,973 5,424 2,528 __________ __________ __________ 83,397 53,147 45,735 __________ __________ __________Total assets 176,298 110,973 103,731 ========== ========== ========== LIABILITIESCurrent liabilitiesShort-term loan 82,453 46,593 49,836Trade and other payables 41,039 44,945 30,260Deferred income 133 128 128Income tax payable 1,544 3,883 3,078Amounts due to related parties 1,203 496 189 __________ __________ __________ 126,372 96,045 83,491 __________ __________ __________Non-current liabilitiesLong-term loan - 4,167 2,638Deferred income 1,028 1,065 1,046 __________ __________ __________ 1,028 5,232 3,684 __________ __________ __________Total liabilities 127,400 101,277 87,175 ========== ========== ========== 30 Sep 2007 30 Sep 2006 31 Dec 2006 __________ __________ __________ US$'000 US$'000 US$'000 Unaudited Audited AuditedCAPITAL AND RESERVESShare capital 77 50 50Share premium 18,338 - -Consolidation reserve 4,259 4,259 4,259Share option reserve 251 - -Statutory reserves 2,351 1,319 2,351Foreign currency translation reserve 1,786 252 433Retained earnings 13,826 704 5,105 __________ __________ __________Equity attributable toequity holders of the parent 40,888 6,584 12,198Minority interest 8,010 3,112 4,358 __________ __________ __________Total equity 48,898 9,696 16,556 __________ __________ __________Total liabilities andequity 176,298 110,973 103,731 ========== ========== ========== CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of the parent Foreign currency Share Share Other Statutory Retained translation Minority Total capital premium reserves reserve earnings reserve Total interests equity US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Nine months ended30 September 2006AuditedBalance as at1 January 2006(Audited) - - 4,259 1,319 (816) 113 4,875 2,915 7,790 ________ ________ ________ ________ ________ ________ ________ ________ ________Foreign currencytranslation - - - - - 139 139 46 185 ________ ________ ________ ________ ________ ________ ________ ________ ________Net income recognizeddirectly in equity - - - - - 139 139 46 185 ________ ________ ________ ________ ________ ________ ________ ________ ________Net profit for the financial period - - - - 2,839 - 2,839 836 3,675 ________ ________ ________ ________ ________ ________ ________ ________ ________Total recognizedincome and expense forthe financial period - - - - 2,839 - 2,839 836 3,675Issue of share capital 50 - - - - - 50 - 50Dividend paid toshareholders - - - - (1,319) - (1,319) (685) (2,004) ________ ________ ________ ________ ________ ________ ________ ________ ________Balance as at 30 September 2006 50 - 4,259 1,319 704 252 6,584 3,112 9,696 ======== ======== ======== ======== ======== ======== ======== ======== ======== Attributable to equity holders of the parent Foreign currency Share Share Other Statutory Retained translation Minority Total capital premium reserves reserve earnings reserve Total interests equity US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Nine months ended 30September 2007Unaudited Balance as at 1 January 2007 (Audited) 50 - 4,259 2,351 5,105 433 12,198 4,358 16,556 ________ ________ ________ ________ ________ ________ ________ ________ ________Share issue costs - (1,816) - - - - (1,816) - (1,816)Share-based payment - - 251 - - - 251 - 251Foreign currencytranslation - - - - - 1,353 1,353 150 1,503 ________ ________ ________ ________ ________ ________ ________ ________ ________Net income (loss)recognized directly in equity - (1,816) 251 - - 1,353 (212) 150 (62) ________ ________ ________ ________ ________ ________ ________ ________ ________Net profit for the financial period - - - - 8,673 - 8,673 3,828 12,501 ________ ________ ________ ________ ________ ________ ________ ________ ________Total recognizedincome and expense for the financial - - 251 - 8,673 - 8,924 3,828 12,752period ________ ________ ________ ________ ________ ________ ________ ________ ________Dividend paid this period - - - - - - - (278) (278)Issue of share capital 27 20,154 - - - - 20,181 - 20,181Transfer fromminority interests - - - - 48 - 48 - 48Transfer to majorityinterests - - - - - - - (48) (48) ________ ________ ________ ________ ________ ________ ________ ________ ________Balance as at30 September 2007 77 18,338 4,510 2,351 13,826 1,786 40,888 8,010 48,898 ======== ======== ======== ======== ======== ======== ======== ======== ======== Other reserves comprise the consolidation reserves and the options issued. CONSOLIDATED CASH FLOW STATEMENTS Note Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ US$'000 US$'000 US$'000 US$'000 Unaudited Unaudited Unaudited Audited Cash flow fromoperating activities a 7,523 5,949 28,080 11,618 __________ __________ __________ __________Cash flow frominvesting activitiesPurchase of property,plant and equipment (15,530) - (34,601) (4,697)Purchase of intangibleassets (5) - (856) -Purchase of investmentsecurities (10) - (1,568) 157Proceeds from disposal of investment securities 6 107 6 -Purchase of shares insubsidiary fromminorities - - (15) -Proceeds from disposal of property, plant andequipment 11 1,035 60 213 __________ __________ __________ __________ Cash flow from/(used in)investing activities (15,528) 1,142 (36,974) (4,327) __________ __________ __________ __________ Cash flow from financingactivitiesIssuance of ordinaryshares for publicoffering - - 20,181 -Share issue expenses - - (1,816) -Increase in long-term loan - 5 - 2,572Repayment of long-term loan (79) (2,922) (79) (2,922)Increase in/(repaymentof) short-term loan 7,906 (690) 27,843 (1,822)Interest paid (2,051) (869) (5,282) (2,486)Dividends paid toshareholders - (2) - (1,029)Dividends paid to minorities - (1) (278) (485) __________ __________ __________ __________Cash flow from/(used in) financingactivities 5,776 (4,479) 40,569 (6,172) __________ __________ __________ __________ Net increase/(decrease) in cash and cashequivalents (2,229) 2,612 31,675 1,119Cash at beginning of period 36,840 2,719 2,528 4,203Foreign currency translation differences 362 93 770 102 __________ __________ __________ __________Cash at end of period 34,973 5,424 34,973 5,424 ========== ========== ========== ========== NOTES TO THE CONSOLIDATED CASH FLOW STATEMENTS (a) Cash from operating activities Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ US$'000 US$'000 US$'000 US$'000 Unaudited Unaudited Unaudited Audited Profit before income tax 4,141 3,186 12,558 5,141Adjustments for:Amortization of intangibleassets 62 14 204 191Allowance for doubtful tradereceivables 81 12 102 63Allowance for non-tradereceivables (259) 354 (475) 259Depreciation of property,plant and equipment 1,827 1,630 5,352 4,616Loss/(gain) on disposal ofproperty, plant andequipment 36 121 40 112Amortization of deferredcapital grants - (383) (65) (425)Share-based payment - - 431 -Gain from debt restructuring (3) 388 (381) (36)Share of results of associate (8) 24 (53) -Loss on disposal of short-terminvestment - 8 - 8Finance income (120) (11) (311) (59)Finance costs 2,051 983 5,282 2,600 __________ __________ __________ __________Operating cash flows beforeworking capital changes 7,808 6,326 22,684 12,470 Working capital changes:(Increase)/decrease in:Inventories 1,913 469 (454) (4,833)Trade and other receivables (4,053) (1,626) (4,218) 3,023Amounts due from relatedparties 1,575 (3,627) 114 (1,593)Increase/(decrease) in:Trade and other payables (565) 4,796 9,713 4,081Amounts due to relatedparties 988 (460) 988 (475) __________ __________ __________ __________Cash generated fromoperations 7,666 5,878 28,827 12,673 Interest received 120 11 311 59Foreign currencytranslation differences 4 38 4 38Income tax paid (267) 22 (1,062) (1,152) __________ __________ __________ __________Net cash generated fromoperating activities 7,523 5,949 28,080 11,618 ========== ========== ========== ========== NOTES TO THE FINANCIAL STATEMENTS 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES The financial information comprises the unaudited consolidated results for thethree and nine month periods ended 30 September 2007, the audited consolidatedresults for the nine month period ended 30 September 2006 and for the unauditedconsolidated results for three month period ended 30 September 2006 and theconsolidated balance sheets at 30 September 2007 (unaudited), 30 September 2006(audited) and 31 December 2006 (audited). The Company's published financialstatements for the year ended 31 December 2006 have been reported on by theCompany's auditors. The auditors' report on those financial statements wasunqualified. The financial information has been prepared in accordance with the basis ofpreparation and accounting policies set out in the full financial statements forthe year ended 31 December 2006. Full details of the basis of preparation andaccounting policies are available in our annual report issued on 27 April 2007. 2. TAXATION The tax charge for the period is close to nil due to the tax exemptions andavailability of tax losses. The income tax expense shown in the income statementis arising from the recognition of deferred tax assets. 3. SEGMENTAL ANALYSIS (a) Business segmentsThe following table presents information about the Company's revenues andresults by business segment for the three and nine month periods ended 30September 2007 and 2006, respectively. Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ US$'000 US$'000 US$'000 US$'000 Unaudited Unaudited Unaudited Audited Sales to externalcustomersPetrochemical 64,277 60,276 199,150 132,255Chemical products 21,286 14,595 57,841 35,120 __________ __________ __________ __________ 85,563 74,871 256,991 167,375 ========== ========== ========== ==========Profit (loss) for theperiodPetrochemical 1,719 2,017 7,948 2,569Chemical products 2,686 1,169 7,071 2,572Unallocated expenses (264) - (2,461) - __________ __________ __________ __________Profit from operationbefore income tax 4,141 3,186 12,558 5,141Income tax benefit(expense) (56) (717) (57) (1,466) __________ __________ __________ __________Profit for the period 4,085 2,469 12,501 3,675 ========== ========== ========== ==========Other segment informationCapital expenditure onproperty, plant and equipment and intangibleassetsPetrochemical 17,968 625 36,038 2,174Chemical products - 1,197 1,852 5,167 __________ __________ __________ __________ 17,968 1,822 37,890 7,341 ========== ========== ========== ==========Depreciation andamortizationPetrochemical 656 520 1,873 1,613Chemical products 1,233 1,124 3,683 3,194 __________ __________ __________ __________ 1,889 1,644 5,556 4,807 ========== ========== ========== ========== 30 Sep 2007 30 Sep 2006 31 Dec 2006 __________ __________ __________ US$'000 US$'000 US$'000 Unaudited Audited Audited Segment assetsPetrochemical 124,882 82,500 77,088Investment in associate 182 174 188 __________ __________ __________ 125,064 82,674 77,276Chemical products 63,085 50,085 50,060Unallocated assets 6,682 - -Elimination (18,533) (21,836) (23,605) __________ __________ __________ 176,298 110,923 103,731 ========== ========== ========== Segment liabilitiesPetrochemical 96,391 73,613 59,743Chemical products 46,072 47,513 47,933Unallocated liabilities 3,470 - -Elimination (18,533) (19,849) (20,501) __________ __________ __________ 127,400 101,277 87,175 ========== ========== ========== (b) Geographical segments The following table provides an analysis of the Company's sales by geographicalmarket. Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ US$'000 US$'000 US$'000 US$'000 Unaudited Unaudited Unaudited Audited Sales to external customersPeople's Republic of China 82,019 72,698 248,096 161,712Exports 3,544 2,173 8,895 5,663 __________ __________ __________ __________ 85,563 74,871 256,991 167,375 ========== ========== ========== ========== 4. EARNINGS PER SHARE Earnings for the purpose of basic and diluted earnings per share are the profitfor the three and nine months attributable to equity holders of the parent ofUS$2,811,000 and US$8,673,000 (2006: US$2,186,000 and US$2,839,000),respectively. The weighted average number of ordinary shares used in the calculation ofearnings per share has been derived as follows: Three Three Nine Nine months months months months ended 30 ended 30 ended 30 ended 30 Sep 2007 Sep 2006 Sep 2007 Sep 2006 __________ __________ __________ __________ Unaudited Unaudited Unaudited Audited Weighted average numberof ordinary shares-basic 38,353,571 25,500,000 36,281,933 25,500,000Dilutive effect ofshare options 356,047 - 356,047 - __________ __________ __________ __________Weighted average numberof ordinary shares-diluted 38,709,618 25,500,000 36,637,980 25,500,000 ========== ========== ========== ========== 5. SHARE CAPITAL The Company was incorporated on 20 June 2006 with an authorized share capital of50,000 US$1 ordinary shares. One US$1 ordinary share was issued at par onincorporation, and a further 49,999 US$1 ordinary shares were issued on the sameday as the acquisition of the Company's interest in the Group. Details of changes in share capital during the nine month period ended 30September 2007 are as follows: - On 14 February 2007, the authorized share capital was increased to$51,000 by the creation of an additional 1,000 US$1 ordinary shares, and the51,000 authorized ordinary shares were subdivided into 25,500,000 ordinaryshares of US$0.002 each. All such shares are fully paid.- On 14 February 2007, the authorized share capital of the Company wasfurther increased from US$51,000 to US$86,100 by the creation of an additional17,550,000 ordinary shares of US$0.002 each.- On 14 February 2007, 12,738,854 ordinary shares of US$0.002 each wereissued on the Company's Admission to AIM. All such shares are fully paid. - On 14 February 2007, the Company issued 114,717 ordinary shares ofUS$0.002 each to JSL Consulting Co., a company controlled by Mr. Johnson Lau, aspart of Mr. Lau's remuneration. Pursuant to the option agreements dated 5 February 2007, Hanson WesthouseLimited and Shanghai Riemann Investment Advisory Ltd., have each been grantedoptions to subscribe for up to 383,536 ordinary shares of US$0.002 each within24 months of the Admission to AIM, exercisable at the admission price ofUS$1.57. The fair value attributed to these options in accordance with IFRS 2 isUS$251,000 (GBP 0.17 per option share), which has been expensed. 6. CONTINGENCIES Up to 30 September 2007, as a guarantor, the Group has guaranteed the bank loansof third parties to an aggregate amount of US$40,114,450 (30 Jun 2007:US$39,561,000, 31 March 2007: US$23,959,000 and 31 December 2006:US$25,010,000). The latest available financial statements of the guaranteesindicate that the debtors are able to pay their debts as they mature. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Haike Chemical Group