Sharp rise this morning in this Chinese oil refinery company. Tipped over the weekend in Small Company Share Watch to be the next ReneSola. Changes in the way pricing operates since China joined WTO is set to change the company dramatically, plus results in the coming weeks could surprise on the upside.

www.haikechemical.com

Quarter 1 update

First Quarter 2007 Highlights

- Total revenues increased by 28% to US$ (or '$') 73.9m (2006Q1: $57.9m)

- Petrochemical revenues increased by 15% to $56.1m (2006Q1: $48.6m)

- Speciality chemical revenues increased by 87% to $17.0m (2006Q1: $9.1m)

- Biochemical revenues increased by 300% to $0.8m (2006Q1: $0.2m)

- Gross margin improved to 12.1% (2006Q1: 7.2%) to $8.9m (2006Q1: $4.1m)

- Net profit after tax increased by 625% to $5.8m (2006Q1: $0.8m)

- Net profit (after minority interests) increased by 650% to $4.5m
(2006Q1: $0.6m)





Powered by IST's

Nicely up 25% already this morning

www.haikechemical.com

Not the kindest of spreads ,,,154/ 160 ....But a stock i like very much . ......These were 126p on Friday . Opened today @ 140 by mms who seem to like it . Seems like the market agrees with your analysis with adding a furthur 16p. Very strong buy signals @ 127/8 level ...Think ill wait until profit takers move in Try and get in around 140p .........lf poss, of course. .@+ J.

TFC, the beautiful bit in my mind is that the pricing has been kept back but with the WTO allowing a competitive market this looks a one way bet to me. Refining capacity is expected to increase rapidly producing allowing for a double effect to the bottom line. Results this month I believe.

I managed to sell part of my holding at 155 this morning, just to lock in some profit.
If the chinese bubble is looking shaky now, then all chinese stocks will suffer when the bubble bursts, imo.

Unbelievable - this can only be because I sold last week!!

Harrycat, what you're saying is of course true but think there's a lot of upside here starting with more news before the end of the month.

Small write up on back page of FT today.

Have doubled my position here this morning

And added a third tranche. There's so much good stuff to come here in my opinion. Anyone joining in????

Am still holding. Up 20% so far this morning. I would advise to keep locking in profit, gh.

Fantastic performance today and yet this is still so in its early days.

Some posters are banding around targets of 340p to 600p. Think there is defo more to come here

dp, I would agree but of course the timeframe could be a couple of years. That said I still think this is still so cheap even at these levels and have now taken four tranches here. The profit growth in 2006 was rapid and the new facilities set to open late this year will change things substantially in my opinion.

First quarter results out 24/5

the day before the last results, these went up 15p (12.5%) from memory. Hopefullywe willget a similar or greater jump this time

Good start to the day following Friday's fall of about 8% at one point and coming back to close flat. I expect the move back to 2 could be quick.

Q1 results make excellent initial reading:

Total revenue up 28%
Petrochemicals revenue up 15%
Speciality chemical up 87%
Biochemical revenue increaseedd 300%
Gross marging improved to 12.1%
Net profit increased by 625%

Capacity expansion for both refining and chemical plant on schedule.

Should fly?!

Agricultural Chemical stocks were featured in the FT this week - re fund managers out performance in China and some were talking about fertilisers being the next major growth. Don't forget our increased production of dimethyl carbonate (agricultural pesticides). This is still dirt cheap in my opinion.

have put it on the radar, well done greyhound...

Steveo, I get the impression that not many are watching this yet or are totally unaware of the potential here. With a PE to drop to low single digit figures and sales almost guaranteed (including the expansion volume) for both the oil refining because they are located next to China's second biggest oil field and the chemical side because of the massive demand in rapidly growing Shangdong Province. Seems like a no brainer....but dyor.

just for your info, with no further comment required ......

dramatic Beijing shares crash on way, Greenspan warns ...... sharp rises are "clearly unsustainable"

cynic certainly is - however when Greenspan warned of "irrational exuberance" in 1997 the bubble ran another couple of years....to call the top is also dangerous.

merely pased it on for what it is worth .... originally posted it on WCC for certain bad tempered person on their ...... hoping he will eventually rise to the bait like a lazy chub ..... or do i mean chump?

no problem cynic, you're quite right to do so...risky old game! When to hold 100% cash is the golden question (and maybe which currency)

HAIK will go much higher...very good company...Greenspan often gets it wrong too. He is only human. And getting quite old too. Like some of us. ; )

HaiKe Chemical Group Ltd.
24 May 2007


HaiKe Chemical Group Ltd.

UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2007

HaiKe Chemical Group Ltd ('HaiKe' or the 'Company'), the AIM quoted (AIM:
HAIK) petrochemical and speciality chemical business based in China, is pleased
to announce its unaudited results for the first quarter ended 31 March 2007
('2007Q1').

The results for the first quarter ended 31 March 2006 ('2006Q1'), which are
set out below, are those of the combined results of the Company and its
subsidiaries.

First Quarter 2007 Highlights

- Total revenues increased by 28% to US$ (or '$') 73.9m (2006Q1: $57.9m)

- Petrochemical revenues increased by 15% to $56.1m (2006Q1: $48.6m)

- Speciality chemical revenues increased by 87% to $17.0m (2006Q1: $9.1m)

- Biochemical revenues increased by 300% to $0.8m (2006Q1: $0.2m)

- Gross margin improved to 12.1% (2006Q1: 7.2%) to $8.9m (2006Q1: $4.1m)

- Net profit after tax increased by 625% to $5.8m (2006Q1: $0.8m)

- Net profit (after minority interests) increased by 650% to $4.5m
(2006Q1: $0.6m)

- Basic and diluted earnings per share increased 600% from US 2 cents to US
14 cents

- Successful admission to AIM in February 2007 ('Admission') raising
approximately $17m net of costs and expenses

- Expansion of heavy oil catalytic cracking and isopropyl alcohol production
facilities commenced

Mr. Yang Xiaohong, Executive Chairman, said:

'During the first quarter of 2007, we continued to see strong growth to both
revenues and profits. In order to continue this growth, and as outlined at the
time of our IPO, the construction of the heavy oil catalytic cracking
facilities, together with the expansion of the isopropyl alcohol plant, has
commenced; both are on schedule. We are confident that the increased capacity
brought by these projects will enhance further our growth in the near future.
In addition, we will continue to focus on the high-margin areas of speciality
chemical and biochemical businesses, where we see considerable opportunity to
deliver further growth and value.'

For further information please contact:

HaiKe Johnson Lau, Chief Financial Officer +86 546 8289173
HansonWesthouse Tim Metcalfe / Anita Ghanekar +44 (0) 20 7601 6100
Cardew Group Rupert Pittman / Shan Shan Willenbrock +44 (0) 20 7930 0777


First Quarter 2007 Results

Total revenue increased by 28% from $57.9m to $73.9m in 2007Q1, when compared
with the same period for the previous year. On a segmental basis, the sales of
petrochemical products in 2007Q1 increased by 15% from $48.6m to $56.1m, as a
result of improved operating efficiencies. The sales of speciality chemicals in
2007Q1 grew by 87% from $9.1m to $17.0m due to increased market demand. The
growth in biochemical revenue is significant in percentage terms, if not yet in
overall terms, having increased by 300% from $0.2m to $0.8m in 2007 compared
with the same period for the previous year.

Cost of sales increased by 21% from $53.7m in 2006Q1 to $65.0m in 2007Q1, due to
increased sales volume. The incremental selling prices of the petrochemical
products were higher and this contributed to an improved gross margin in the
first quarter. In addition, the increased weighting of sales towards the
high-margin speciality chemical and biochemical products contributed to the
improved gross margin of 12.1%. Sales and distribution expenses fell by 17% from
$0.7m in 2006Q1 to $0.6m in 2007Q1 as a result of the tightened control over
freight charges and promotion costs for speciality chemical products.
Administrative expenses increased by 33% from $1.2m in 2006Q1 to $1.6m in
2007Q1. The increase included a non-recurring share-based (non-cash) payment for
a director which amounted to $0.2m. Furthermore, additional administrative costs
were incurred as a result of the Company becoming publicly listed on AIM in
February 2007.

Operating profit increased by 169% ($4.4m) from $2.6m in 2006Q1 to $7.0m in
2007Q1, which is in line with the growth in the profit before income tax of
$4.0m or 222%. The gross margin improved from 7.2% in 2006Q1 to 12.1% in 2007Q1.

Tax exemptions were granted for three subsidiaries, Hi-Tech Chemical, Hi-Tech
Spring and Hi-Tech Shengli, following the restructuring of the Company into a
foreign owned entity in late 2006. This resulted in income tax falling by 91%
from $1.1m in 2006Q1 to $0.1m in 2007Q1.

Net profit (after minority interests) attributable to equity holders increased
by 650% ($3.9m) from $0.6m in 2006Q1 to $4.5m in 2007Q1.

Basic and diluted earnings per share increased 600% from US 2 cents in 2006Q1 to
US 14 cents in 2007Q1.

Business Highlights

In the first quarter, we completed Admission to AIM and successfully raised
approximately $17m (net of costs and expenses) for our planned expansion in
petrochemical and speciality chemical businesses. Our successful IPO has not
only enhanced the future prospects of the Company but has also provided the
opportunity to diversify the product range, particularly within the speciality
chemical business.

During the first quarter, we have also acquired additional inventories and have
increased prepayments to secure the sources of crude oil and other materials,
which have resulted in a temporary increase in short-term loans.

We have commenced construction phases of the previously detailed expansion
projects. It is expected that the construction and testing phases will be
completed by the end of 2007 and these facilities are expected to generate
further revenues and profits to the Company in 2008.

Outlook for Second Quarter 2007

Trading in April is in line with our expectations, and on a like for like basis,
the performance of both the petrochemical and speciality chemical businesses are
showing improvements on the comparable period last year.

We are confident of achieving further growth in both revenues and profits in the
remainder of 2007. We anticipate that this growth will be driven principally by
our existing areas of business supported by increased domestic demand for our
products.

I've had a go at calculating future EPS, based on the current 38.4m shares in issue.

Current EPS would be 11.79 cents/share.

x4 = 47.16 for the full year.

divide by 2.00 for Sterling = 23.58p EPS for full year 2007.

With SP at 200p, that's PE 8.5.

Please feel free to disagree.

Kicking myself for selling (was clearly not having one of my better days when I made that decision!), but might make up for it by having a T+25 play tomorrow.

Funny how the stock traded in a tight range today, though - pretty much within the spread of 196/200.

Good luck to all.

FWIW, the house broker predicted FY 2007 EPS of 19p a share at the beginning of Arpil. I guess the Q1 results warrant a rerating?

End of waffle - as of tomorrow I'm back on board!

ST out.

7p EPS for Q1 (07) annualised = 28P plus capacity plans completion kicks in around Oct. 07 = full year? = 30p EPS. Petrol price limit removals by state may add around another 2 or 3p to that full year figure. = tops = 32P EPS for 2007. thats a prospective pe of around 6.5 for future earnings growth of around 95%. Cheap as chips. Speciality chemicals side expansion - excellent growth

Current accounts state margin improvements to around 12.5% from 8%..pricing power indications - good sign

debt needs to be paid down this year though - thats the only weakness.

high barriers to entry - high capex.

no position as yet but looking at it seriously

f18

while 8.5 may be a fairly modest p/e, do remember that this just after Q1 so to extrapolate same for full year MAY be brave especially if you think about 300 is the target ..... at least today had good volume to support, which is more than can be said for yesterday (17k!)

F18, that's great, but you haven't taken account of the increased number of shares resulting from the flotation (Q1 figures were calculated using average number of shares in issue, which is a false friend). That's why my figures use quarterly earnings of just under 6p.

Cynic, 300p would be nice but for my purposes around 15% over a couple of weeks would suit :o)

Yes, I've turned into a short-term share-shark!

I believe that once new capacity is taken into account, Hanson Westhouse are expecting sales to be in excess of US$500m for 2008 and we should also continue to benefit from favourable tax rates for the next few years.

sensible chap soul* ..... i think all should also remember that though there are 40m shares in issue (i think i have that right), only 30% of these are actually "free float", thus severely restricting liquidity.

Greyhound, Hanson's estimate for 2008 EPS was 33p, but could also be in line for an upgrade?

Cynic, thanks. But with only 30% of the stock in free float, do you think the MM's will be able to cover my order? ;o)

(They did - got in at 200p dead. And the SP hasn't moved! Only 25K traded so far. Slow day ahead? Wait for the broker upgrades!)

Expect this to reach 250p within months or weeks.

Thanks Mitzy - that's certainly what I am hoping for :o) The fundamentals appear supportive (otherwise I wouldnt have got back in), so let's hope reality plays out that way!

Very small mention on back page of FT today but nothing to really light the fire!

Good call soul traders, lol, I thought is was just me that crashed shares.

Chuckle - nope! Anything I look at and decide is too pricy will add a minimum of 50% within a week (same goes for anything I sell!) and anything I buy will have the a*se ripped out of it until I sell, at which point the first part of the above Murphy's law will kick into effect.

Okay, that's not quite true - I have done well one one or two things recently, but have had more than my fair share of bad timing. Still, you live and learn, I hope.

Am sure that HAIK will recover given a new broker estimate (pleeeeze??!!) or some concerted insitutional buying.

I bort haik at 179p, managed to crash it to 165p, lol, bort 20,000 cpnr at 6.1p, managed to crash it to 1.75p, bl**dy brokers wouldn't even show them in my portfolio as having any value, so managed to dump them at the first trading oportunity, (4.6p)...doh, doh!!

You and me, Canada, we'd make such a team. Maybe we should enter that televised ice-dancing competition together!

Better still, you tell me what your buying and selling and I'll do the opposite, then I'll tell what I'm buying and selling and you can do the opposite, then we can divi up at the end of the year.

LMAO - might just work! I'll keep you posted! So I take it you've sold HAIK today? ;o)

Well done st, looks like you killed this one stone dead, ffs don't buy zoo and kill that one too ;o)

:o) Nope, ZOO I killed last time it started looking frisky

Are you sure you didn't buy any zoo, it was 42.25p to sell when I left, it's only 35p now!!

Good to see a little upward momentum returning in light of the continued "China bubble" debate.

Yep, enjoying a nice little bounce back today: HAIK Bid: 186p Offer: 192p Change: 10

Only 100k traded, mind.

not that i am buying any of the following (today at least), but i suspect in order of preference, i would buy SOLA first with WCC next (much as it pains me!) and HAIK last.

with regard to SOLA, would very much like to see some trading update from them before doing anything

HAIK Bid: 190p Offer: 193p Change: 12.5

This is more like it (and thank goodness, because Canada1 has now cancelled the contract he took out on my life for jinxing this stock!).

Hopefully the beginning of another upturn.



Volume of 137K is about to breach the average, showing how thinly this stock is usually traded.

Out of curiosity cynic why do you put SOLA ahead of HAIK? Fully aware Sola have the ability to expand capacity rapidly versus HaiKe, however HaiKe have high barriers to entry with expected very low PE in 2008. I'm long both incidentally.

probably only because I rather like SOLA's product/sector and I have managed to make some decent money from it both as a bull and a bear!

HAIK Bid: 191p Offer: 197p Change: 15

Director sales. Don't ask me why, but this guy had a tiny stake anyway and has sold it over the course of the last few days.

HaiKe Chemical Group - Director/PDMR Shareholding
RNS Number:6312X
HaiKe Chemical Group Ltd.
01 June 2007

HaiKe Chemical Group Ltd

('HaiKe' or the 'Company')


Director Shareholding

The Company has been notified that Mr Eugene Wong, a non-executive director of
the Company, today disposed of 20,000 Ordinary Shares of US$0.002 in the Company
at a price of 1.83 per share. Following the disposal Mr Wong no longer holds an
interest in the issued share capital of the Company.

Contract cancelled, soul. Just got back from lunch at the beach, got sh*t on by a seagull the size of a Giant Condor, so looking good for next week!, I see you've sold zoo, (thanks).

LOL - I'm on my way down to Bournemouth now. Will have to visit the beach and see if I can get "daubed" as well - it's supposed to bring luck.

Have a good weekend :o)

ST

Which begs the question was Mr Wong right?

Mr Wong would not sell if he thinks HAIK would continue to rise.

You know him personally then?

What a stupid comment!

Of course, he's my cousin, dickhead

Now now, children! Mind you, Hlyeo, that's a bit of a coincidence; I've got a Chinese cousin called Dickhead as well!

Personally I think Wong had some kind of personal financial issues and needed to clear out his shares. Probably got some expensive geisha on the go in Beijing.

(I hope he can't read this, as it's surely libellous. Maybe he's just buying a new Jag.).

Seriously (or as seriously as I can manage at 8 p.m. on a Friday), Wong was not a big shareholder - he held only a tiny fraction of a percent, so I really don't think his sale is representative.

Geisha or no geisha.

Hopefully next week will see us above 2.

Don't forget that the Chinese stock market has been at panic stations this past week or so, so Wong could have had all sorts of reasons for having a clear-out.

hlyeo, you have a genius for posting short sweeping statements across the whole of this BB, normally after the move has already taken place. I've lost count of how many times other posters have commented to me what a waste of space you are.

st. Exactly right.

in some ways i find it worrying that despite the fallout on the Chinese market, with it being quite likely that there is more to come, that the likes of SOLA, HAIK and WCC have held up very well ..... is this a sign of strength or mere indian rope trick?

lets not forget these stocks are on a different exchange under different rules, and are not the subject of widespread speculative trading by complete novices as in china share frenzy, so I don't see there being any reason why these shares should suffer the same % falls as the chinese listed stocks might (or should I say will). presumably they are not being overbought to anything like the same degree, latest figures have china index on p/e of 40+, whats this? alot less..

Aso re comments about Greenspan a week ago, he is now looking a bit of a fool for dropping US interest rates so far for so long, created a lovely bubble. So he's certainly not infallible.

may be on a different exchange but not on a different planet! ...... an article well worth reading in today's Sunday Times biz section - "Briton curbs China bosses".

It's a long article, but a small extract is below ......

".... this year's bubble in the Chinese stock markets could set off a chain of consequences for global investors. Undoubtedly there is going to be a huge correction at some point. It builds up like snow on a mountain."

That does not of course mean all will come tumbling tomorrow or even during the remainder of 2007, but the odds and timiing must surely be ever shorter.

Granted in any correction there are drops across the board, just saying I wouldn't expect the correction for HAIK to be as significant as China A and B shares.

Note though the article states "could".. there are other brokers stating that the global % in china is still not significant to upset rest of world too much, more concerning is USA, feb correction was a culmination of China and US sub-prime fears climaxing together. Since then there has been conflicting data suggesting US may not be sruggling as much as feared (also plenty saying it is), although it probably won't be long until the next data suggest otherwise and we all end up scratching our heads again!!! Truth is no one knows, ever changing hence it's attraction to the likes of us.

Your words of caution are wise, question is do you want to miss the subsequent rises waiting for something that may not happen for a while. My solution is to sell original stakes while building up equity from the profits, if it falls its in for free, will hopefully get more when it comes back up.

my portfolio is currently "full" and as i am going on hol in a couple of weeks and as i shall not be able to watch throughout the day as i do at the office, i shall assuredly be taking some money off the table.

i don't currently hold HAIK (did a few months back) but looking at the chart, albeit that it is such a new flotation, its value is limited, sp looks to have got too far ahead of itself ...... a correction back to about 160 (25 dma) is easily possible, even without any general market fallout

Interesting comments today and also in the Sunday Times article which is good to reflect on. Whilst corrections in HAIK shouldn't be ruled out at any time and we're likely to see 10/20% rises and falls or more, I'm not so sure I agree that we'll head back to 160. I'm more of the opinion that we're likely to see something in the region of 200/250p and then consolidation holding around 2 initially. The reason being is that we're more likely to see good news coming out of HAIK, be it expansion on target or ahead of target, sales increasing, changes to domestic pricing, rapid progression on the chemicals side. Supporting all this is a low PE for 2008 which irrespective of moving averages, RSI etc. still makes this look very cheap.

have a look too at my post on Drivers Tips re another article in Sunday Times

At the moment I am waiting on this one as well as off on holiday wednesday, hope to pick it up on my return

200p/205p soul traders!, you are excused.

Was Mr Wong wrong....

Morning all!

Mr. Wong doesn't care, as he has a new Jag and his geisha is happy.

Thanks, Canada, I feel profoundly relieved :o)

No new broker forecasts, but at 200p we're on a PE of 6 for 2008 according to existing predictions.

Any broker who wants to make my day is welcome to release an uprated forecast . . . .

china down 8.5% rest of the world not too bothered

This is why I think guys like Wong have been selling - covering his a***, either to make up for losses on his punts on the Chinese market, or just being ultra-prudent (and not playing the usual British director's game of holding on to his shares like grim death).

Morning soul traders, up and down day today, haik down, hawk up,lol.

Morning Canada! I guess a little bit of P/T is to be expected after last week's recovery. Hangin' in there!

confess i am truly amazed that none of the UK-Chinese stocks have reacted at all to the grim fallout in Shanghai ..... nowt as strange as folks, nor share price movements it would seem!

I don't think the UK-Chinese stocks have been subject to quite the same bubble that has been going on in China. If you look at the massed mobilisation of liquidity (sorry - lots of PI's putting their life savings into stocks in a hurry!) in China then it's no surprise. Ebbs and flows, etc.

lng taking a bit of a kicking, waiting for some signs of a bottom, shudda taken the 23p high..doh!, brokers 67p target kept me holding. ldr results in the morning, pix unconditional on the 8th, hoping for more.

Looks like HAIK is starting to experience the crisis from the downslump of China stocks today...down 11p now.

sp has been in o'bought rsi territory for a while so is due for a correction ...... today's general market fallout is widespread with TMC being a very honourable exception ..... in fact, i think i saw that Shanghai had rallied sharply o'night, buyt i could be mistaken

Where's soul traders today?, it wasn't him throwing himself on the popemobile begging for forgiveness for trashing haik and hawk.

Nope, I threw myself under a train out of remorse over my lousy-stockpicking, but managed to get my timing wrong even there and when I fell off the platform it had already gone.

I didn't half feel like a twit having to pick myself up and walk back past all those commuters.

So I'm afraid I'm back to plague you :o)

LOL soul traders, never mind, you can do me a favour and buy axi, I missed the chance to top up this morning, so need them to drop back to 8p.

Another nice rise here so far this morning as general awareness starts to become greater.

I've decided to add another tranche here as I expect to see an earnings update before too long. Whether we see that before Q2 results I'm not sure.

Chart looking good for a retest of 205p now and a break there should signal new ground.

I think the AGM maybe tomorrow(?); may see an indication how Q2 is trading.

Fortune Oil will invest in new shares totalling 51 per cent of Green
Energy, which operates China's first commercial LNG liquefaction plant, CNG
stations and a fleet of LNG/CNG distribution vehicles.



Fortune Oil will provide RMB 71.4 million (4.7 million) of new equity to
Green Energy in cash in return for the new shares and will also provide a
loan to Green Energy of RMB 74.3 million (4.9 million). The funds will be
drawn from the loan facility signed in April 2007.



The funds will be used to finance new investments and to repay a RMB 90
million (6 million) loan to Sinopec.



Green Energy is one of the most significant centres of excellence for LNG
technology in China. For Fortune Oil this acquisition seals a major aspect
of the technology and resource required to develop a gas distribution
network in the world's second largest energy industry.





Prior to Fortune Oil's acquisition Green Energy was called Henan Zhongyuan Green
Energy Hi-Tech Co. Ltd. and was owned by its employees as a result of a recent
privatisation from Sinopec. After Fortune Oil's 51 per cent investment Green
Energy will be a sino-foreign joint venture with a minority 49 per cent held by
the 491 staff. These shareholders will be represented on the board of Green
Energy by two directors who had been instrumental in developing this LNG
business in Sinopec, Mr Zhang Kong Ming (Chairman) and Mr Xie Xin (previous
General Manager). Fortune Oil will appoint three directors to the board and it
is expected that Green Energy will be treated as a subsidiary of the Company for
accounting purposes.



Green Energy is based at Puyang in Sinopec's Zhongyuan oil and gas field in
Henan Province. The LNG production plant was constructed by Sinopec at Puyang
in 2002 and it was the first commercial LNG production plant operating in China.
The LNG is delivered by specialised road tankers to LNG storage tanks at end
users in cities such as Beijing and Qufu, where Fortune Oil first delivered LNG
from Puyang in 2004. Green Energy currently owns a fleet of 18 LNG and CNG
distribution trucks.



The LNG production plant has a design capacity of 55 million cubic metres per
year which is expected to be achieved after installation of new compressors in
July 2007. Green Energy also sells 34 million cubic metres per year of CNG from
its eight stations that supply natural gas fuel to a local user base of 5,000
buses and taxis. Green Energy has investments in another three CNG stations and
plans to develop further CNG stations in the Puyang area.



As a result of the employee privatisation from Sinopec, Green Energy benefits
from many government and Sinopec incentives, for example relating to taxation
and land rights. Sinopec has provided commitments on gas supply to Green Energy
from the Zhongyuan field that will enable the company to expand both its LNG and
CNG sales in the coming years. The employees have committed significant
financial support to Green Energy, demonstrating their confidence in the future
of their LNG technologies in China.



Fortune Oil expects that the existing assets of Green Energy will generate an
annual net profit of 1-2 million in the initial years and that the acquisition
will be earnings enhancing in 2007. Prior to the forthcoming increase in LNG
production capacity the LNG plant had been operating at a small loss because of
the low throughput. The pro forma gross assets of Green Energy were RMB 223
million (14.8 million) at end December 2006 and turnover for the year to
December 2006 was RMB 144 million (9.6 million) based on PRC accounting
standards. Fortune Oil plans to refinance its shareholder loan via local bank
financing in order to increase equity returns.



Green Energy has unique skills in China to design and implement gas distribution
technologies, given its background as Sinopec's LNG base. Green Energy has
already been providing technical assistance in the development of other LNG
liquefaction plants now operating or under construction in China. These plants
enable gas to be trucked to end-users that are not otherwise accessible by
pipeline. As more independent gas fields are developed, for example at Fortune
Oil's Liulin coal bed methane block, there will be an increasing demand for
small-scale LNG plants to monetise the gas.





Mr Qian Benyuan, Chairman of Fortune Oil, commented:



'This is a major step for Fortune Oil, acquiring not only assets to produce and
distribute LNG and CNG, but also acquiring the best LNG expertise in China. For
many of China's recent gas developments such as coal bed methane, LNG offers the
most economic way of transporting gas to end-users, as it will be many years
before the country's pipeline infrastructure can be fully developed. Green
Energy's assets and expertise fit very well with our coal bed methane and gas
distribution companies as we create China's first independent integrated gas
company.'

Nothing new out of the AGM but good to see reaffirmed that HaiKe sees:

continued growth for 2007

strong demand for products

cracking facility on track, production to commence Dec07

and confident of expansion plans

Two good AGM statements at the same time Greyhound, axi just posted as well!

Few sellers taking the price a bit lower with general market malaise. Volume low and pretty insignificant. Bound to be fairly large percentage swings up and down. Nice buying opportunity for some no doubt.

Something I was posting on another thread....

The HaiKe placing document makes interesting reading albeit almost 100 pages. Here are some abbreviated bullets points taken from the report:

High barriers to entry, which help to strengthen the Group's position, including:

Regulatory environment - strict regulation, new entrants subject to series of approval processes and certification.

Capital Expenditure - Group has significant production facilities and significant investments in plant and equipment making it difficult for new entrants to replicate without capital expenditure

Labour - Group has skilled technicians. Directors believe it would be difficult for market entrants to obtain similarly high calibre workforce.


Large customer base. No reliance on individual distribution channel. Hi Tech Chem's 5 largest customers accounted for only 14.4% of revenue in 2005, 28% in 2006.

HaiKe operates 1000 acre salt field with a 3rd party. Production capacity is over 50k tonnes of salt - abundant raw material for production process.

Group has established an office in Zhejiang Province and developed relationships in Hebei Province in order to expand sales outside Shandong Province.

The Group has installed various types of anti-pollution equipment in its facilities to reduce, treast and where feasible recycle waste generated in the manufacturing process. The Group has a number of certificates from government environmental agencies and the Directors believe the Group complies with all applicable environmental laws and regs.

Intellectual prop. In collaboration with an academic inst. in China, HaiKe developed a new method for producing isopropyl alcohol. In Jan 04 Group signed a technology transfer contract with Dalian Inst. of Chem. Physics which grants it the right to use this method for 5 years. The method can significantly increase production, reduce the consumption of energy and lower costs (thereby increasing margin).

That's enough for today - maybe more to follow if I can maintain enthusiam!

RSI fallen to its lowest, think we'll see this heading higher now.

I'm not too sure about that...resistance has been breached.

Had a good chat with the CFO this morning, catching him in HongKong. Very positive and approachable. Obviously it's difficult to try and get hold of anything new, but I get the impression Q2 has gone well. Q2 is possibly one of the lower quarters with Q4 traditionally being the best. I also get the impression that the new capacity facilities are running slightly ahead of schedule. Specialty chemicals margins quite wide, somewhere between 10-20%. Discussions regarding oil pricing are ongoing and naturally it's all something we would like to see progressed but again I get the impression it's nothing untoward just local bureaucracy. Results Sep. Looking overdone to me here but I'm not concerned.

After a long profit taking stretch, we're seeing gains two days running. The RSI turns bullish and we jump 8% today. Still believe this is very undervalued.

Results only a few weeks away and this is picking up again after these topsy-turvy days we're experiencing.

I had another chat with our CFO as well and whilst naturally there's nothing new, he remains very postive and I believe all is running to schedule for the capacity expansion. We talked about the oil price and the removal of pricing restrictions in China. I understand that Petrofina and Sinopec are also petitioning the government but these things take time. I guess it could happen any day or be months away. That said we wait until 7/9 for the Q2 results and hopefully any pressure being experienced on the petro side will be offset by the high performing specialty chems.

Another good set of results today coming out of HaiKe. Good all round improvement with excellent gains coming from specialty/bio chemicals. The Petro revenues were better than I had expected but we didn't see the highest crude prices during early Q2.

This stock is now looking very undervalued to me and perhaps we can look to some broker update soon.

and it's chinese too!!!

And on schedule for capacity increase in the autumn.

Don't think Haike will go up...China just announced that its inflation rate is 6%...will have more interest rate increases.

It's not so much the inflation rate impacting business but the price of crude. As a means of countering this, as indicated in their statement yesterday they are able to focus on the higher margin areas in order to balance the petro side but are still confident of meeting their expectations. The new facility is on track however and price of residual oil is less than crude, so there will be further benefits here.

114p now.

Kin'ell, Eugene Wong knew what he was doing when he sold out at 1.90p, 1.88p and 1.84p..doh!!

perhaps i am looking through yellow-coloured glasses, but it does seem that so many of these chinese stocks, so strongly touted by a good number on this BB, are being or already have been walloped - e.g. SOLA, HAIK, WCC and even TAIH ..... i know the markets in general are pretty freaky at the moment, but the low liquidity of these stocks + the (now) general view of chinese stocks makes these reactions of little surprise, to me at least

It has been a dismal performance but I'm reluctant to go yet despite losses. It's somewhat tempered for me by my gains in shorting Sola. Perhaps hindsight will prove me wrong but I would have thought around here we're overdue a move higher. Having spoken to the CFO I'm still reasonably confident over the medium term. Even holding something like Alliance and Leicester is a risky business these days...

99p today. Time to cut losses.

for goodness sake guys!! ..... what is with you?? ..... why did you not cut your losses before? .... the writing has been on the wall for a while .... this is another of these damn chinese stocks into which so many of you have allowed yourselves to be suckered when clearly from day 1 there was limited free market and liquidity.

I'm already out but should have stuck with rigid stop-loss. C'est la vie!

glad to hear it, though i agree it is sometimes tough to obey the discipline ..... could point the finger at myself re TMC which not so long ago was running at a really good profit, but has now been sent to the dungeon to contemplate its sins against humanity.

I still think it is a good company but generally I'm changing my view from being a bull to thinking that the real turmoil in the markets is yet to happen. Recession maybe.

It doesn't always work to cut your losses, I bailed out of sola when it dropped from 234p to 181p, only to see it go to over 600p !

True but that was only some 22% fall on thoses prices. I still think the fundamentals are good and the oil price doesn't effect the company as severely as being interpreted but I don't see any support now from a charting perspective. If we do tumble I may revisit....

and SOLA has today struggled back up to 300 ..... in fact, by judicious trading (one i got right almost the whole time by good fortune) there was a lot of money to be made in both directions

HAIK is 87.5p today.

HAIK is shit ...... SOLA merely tries to emulate!

Total shite...it smells...HAhaha

hlyeo98 suggest you read your posts 27 & 28 great company!!

not a fair gibe ..... back in May the prospects for the company and sp looked very rosy, as was (briefly) proven ...... however, things change, as is now the case here ..... a similar parrallel could be drawn with NRK!

I'm no longer a holder and have lost money but I don't believe it is a bad company. It is actually performing very well and is expanding its high margin speciality chemicals business. It has been effected by the rising oil price however I've spoken to management on a number of occasions and this is where they could have better educated the market place as they're able to switch products so that they are not so greatly effected. It will probably fall further but I wouldn't write it off.

She's away, can't buy any now!!!!!!

As I mentioned above they should have advised the market of this some time back and managed this better!

this is a chinese company .... don't expect transparency in anything

With Turkey hotting up now as well with the PKK issue, things could get exciting on oil prices and perhaps new highs again. All we need now is a good cold winter and we might see the elusive 100$ a barrel, which of course is not good news for the likes of HAIK.


http://money.cnn.com/2007/10/24/markets/oil_eia/index.htm?

Oil surges after surprise inventory drop

Inventory report shows unexpected declines in crude, gasoline, and distillate supplies.

By Keisha Lamothe, CNNMoney.com staff writer
October 24 2007: 3:45 PM EDT

NEW YORK (CNNMoney.com) -- Oil prices rallied Wednesday after a government report showed an unexpected drop in inventories.

U.S. light crude for December delivery settled up $1.83 to $87.10 a barrel on the New York Mercantile Exchange. Oil traded down 22 cents to $85.05 just prior to the report's release, then rose as high as $87.20 before pulling back a little.

In its weekly inventory report, the Energy Information Administration said crude stocks plunged by 5.3 million barrels last week. Analysts were looking for an increase of 300,000 barrels, according to a Dow Jones poll.

"Crude should have been able to maintain a more modest decline, if not some growth," said John Kilduff, an energy analyst at MF Global in New York. "Now there are renewed worries over supplies."

Gasoline supplies fell by 2 million barrels while distillates, used to make heating oil and diesel fuel, slipped by 1.8 million barrels. Analysts were expected gasoline stockpiles to grow by 1.1 million and distillates to rise by 200,000.

"Distillates and gasoline supplies compared to last year are down significantly," Antoine Halff, head of energy research at Fimat in New York.

Refinery activity fell last week by 0.2 percentage point to 87.1 percent of capacity. Analysts ...................................

http://www.resourceinvestor.com/pebble.asp?relid=38972

High Price of Oil is Chinese Petroleum Industry's Biggest Woe

By Terry Wang
21 Dec 2007 at 09:11 AM GMT-05:00


SHANGHAI (Interfax-China) -- The high price of oil is the Chinese petroleum and chemical industry's biggest problem, in addition to over investment and a low number of purchases, the China Petroleum and Chemical Industry Association (CPCIA) said in a report released on Tuesday in Beijing.

According to the report, high oil prices have diminished profit margins. Furthermore, an overabundance of investment, a common phenomenon in China, has caused overcapacity. Meanwhile, too few purchases has led to oversupply.

The report also said that some coal chemical projects can take advantage of these problems to be more competitive.

Some analysts expressed different opinions about the chemical industry's profitability in regards to high oil prices.

Shi Xuesong, a chemical industry analyst with China International Capital Corp., told Interfax that domestic demand for chemical products will be strong in 2008 because of rapid economic development. Downstream petrochemical companies, except for refining companies, can transfer the pressure of high costs to consumers.

But Liu Yanwei, a senior engineer with the China National Petroleum & Chemical Planning Institute, said that some chemical projects, which are fed with oil and gas, will experience additional pressure because of production costs.

"Because of rapid economic growth, the chemical industry will indeed have a large potential and will develop rapidly in coming years," Liu said. "However, the industry's profit margin will go down because of higher production costs."

According to the CPCIA report, China's petroleum and chemical industry's profits for 2007 will reach RMB 500 billion ($67.67 billion), up 20% year-on-year.

Liu said that most of the profits go to the upstream sector of the industry. Some Purified Tetrathalyc Acid (PTA) projects, a part of the downstream sector, have even suspended production recently because of high oil prices, he said.

Liu also said that the rise of chemical product prices do not match increases in production costs, so some downstream companies have had to lower the workload of their projects or carry out maintenance on production facilities, a common practice that forces the closure of facilities when it is unprofitable to operate them.

Liu said that natural gas prices are also very high for industrial users.

The National Development and Reform Commission (NDRC) released a notice in September limiting natural gas utilization in ammonia production and banning new natural gas-based methanol projects, with the intent of giving priority to city gas utilization. "Even if there was no such notice, natural gas prices are already too high to bring companies sufficient profits anyway," Liu said.

Liu agreed with the CPCIA report that coal chemical projects will have an opportunity to become more competitive if oil prices stay at such a high level.

"Coal prices are also increasing, but they will not skyrocket like oil prices. In addition, some alternative energy products, including methanol and dimethyl ether, which are produced from coal, will also have a promising future, since they will have lower production costs compared to gasoline and diesel," he said.

If the local producers refuse to make it at a loss, then import more and pressure the local producers margins even more. Such is the Communist system, the people come first and business last when it comes to emotive subjects like fuel prices, which can ultimately effect the support of the Communist Party, into such a big event as the Olypmics, don't want any riots or rallies provoked by high fuel prices now do we............ ;)


http://www.abcmoney.co.uk/news/262007188800.htm

China to cut import tariff on gasoline, diesel, jet fuel to one pct - UPDATE

Published : Wed, 26 Dec 2007 09:39
By : Agencies

BEIJING (XFN-ASIA) - China will cut import tariff on gasoline, diesel and jet fuel to one pct from the current 2 to 6 pct, from January 1, the Ministry of Finance said.

The import tariff for naphtha will be cut to one pct from the current 2 pct, while the duty on fuel oil will remain at 3 pct, it said.

The ministry also said that export tariff on crude oil will remain at 5 pct.

The move is aimed at curbing oil products exports amid surging domestic demand.

China, the world's second largest energy consumer, has faced fuel shortages since October due to gap between surging international crude prices and domestic state-capped fuel prices.

PetroChina and China Petroleum & Chemical Corp (Sinopec) have been urged to boost fuel imports to ease the supply crunch, although the firms will incur a loss on sales.

China imported 31.15 mln tons of oil products in the 11 months to November, down 9 pct from the same period last year, according to recent data from the Customs.

86p to 141p, not bad for a heap of c***, any chance of popping over to the bxp thread and slagging them off, they pay a nice 15% dividend but the shareprice is in the toilet.

you are more than welcome to your Chinese stocks, but don't come crying if/when all ends in tears ..... i don't see that 205 down to 140 is much to crow about either, even if you were frightfully clever and caught the falling knife at the bottom of the latest plunge!

Whatever your view on Chinese stocks I'm not so sure you're appreciating the growth from the specialty chemicals side of the business with the new plant operational.

it would be a great benefit to the end-users if the Chinese (and to some extent the Indians) started producing quality chemicals to spec! ..... time and time again, the stuff delivered is severely sub-standard and causes all sorts of problems ...... further proof that what looks cheap is often expensive.

the same can be said of their steel

http://www.bloomberg.com/apps/news?pid=20601089&sid=aCD53QGjW9Ec&refer=china

Sinopec Leads Decliners Among Asian Energy Stocks (Update1)

By Wang Ying

March 7 (Bloomberg) -- China Petroleum & Chemical Corp., Asia's biggest refiner, fell in Hong Kong trading and was the worst-performing stock in the MSCI AC Asia Pacific Energy Index on concerns that record crude costs will reduce earnings.

Sinopec, as China Petroleum is known, slumped as much as 8.1 percent to HK$7.53, the biggest drop of the day among the index's 50 members. Oil rose to a record $105.97 a barrel in New York overnight.

``Sinopec will see a drop in first-half profit due to record crude costs and the government's reluctance to raise fuel prices,'' Grace Liu, an oil analyst with Guotai Junan Securities Hong Kong Ltd., said by telephone from the southern city of Shenzhen.

Goldman Sachs Group Inc. cut Sinopec to ``neutral'' from ``buy'' in a research report today after raising its oil-price forecasts. China restricts Sinopec's ability to pass on soaring raw material expenses in a bid to shield the nation's 1.3 billion people from inflation.

The Beijing-based company's loss from turning crude oil bought at record prices into fuels sold under state controls was widest in December, January and February, Zhou Yuan, vice president at parent China Petrochemical Corp., said yesterday.

China Petrochemical will receive a government subsidy to help cover its refining losses, Zhou said in an interview in Beijing. The state will pay ``a certain amount'' to the refiner because the state-owned company has shouldered ``social responsibility'' to ensure fuel supplies.

Price Increase `Improbable'

The listed unit received a 9.42 billion yuan ($1.3 billion) subsidy in 2005 and 5 billion yuan in 2006 to compensate it for soaring raw material costs. Zhou was unable to say whether the latest subsidy will be reflected in Sinopec's financial accounts.

The prospect of China raising fuel prices this year ``is increasingly improbable,'' Goldman analysts including Kelvin Koh said in today's report.

Benchmark New York oil prices have jumped 71 percent in the past 12 months, increasing the bill Sinopec must pay for importing most of its raw material.

PetroChina Lanzhou Petrochemical Co., a unit of the nation's largest oil company, is losing 1 billion yuan a month processing crude because prices for the commodity are above $100 a barrel, a company official said.

Controls on fuel prices to curb inflation mean that the refinery needs crude to cost less than $60 a barrel for its oil processing operation to be profitable, Yu Baocai, Lanzhou Petrochemical's general manager, said today in Beijing. The plant, in Western China's Gansu province, lost 4 billion yuan refining oil last year. The refinery is owned by PetroChina Co.

The future for the "specialist chemical side" also looks full of competiton, more and more competion and suppliers.....

http://www.purchasing.com/article/CA6539321.html

Petrochem capacity expansions coming for China

Shanghai Petrochemical aims to increase production by 450,000 metric tons
By Dave Hannon -- Purchasing, 3/7/2008 8:48:00 AM

If the Chinese government gives the green light, Shanghai Petrochemical will expand its ethylene capacity by 450,000 metric tons. If approved, the total ethylene capacity at an existing unit from 150,000 metrics tons to 600,000.

Shanghai Petrochemical President Rong Guangdao told Reuters recently that Supply and demand of fuels in our country is more or less balanced, but there are shortages of petrochemicals. So we are focused on expanding this output, but to do this you also have to expand your refining capacity."

The move is only the latest in a recent onslaught of capacity expansions and joint ventures aimed at increasing Chinas petrochemical output. Also this week, Chinas biggest chemical refiner Sinopec Group said it would by a 60% stake in Australias AED Oils Puffin and Talbot oilfields in the Timor Sea.

China National Petroleum Corp., the country's largest oil and gas producer by capacity, has signed a memorandum of understanding with a unit of state-owned Qatar Petroleum to set up a petrochemical plant in China with an annual production capacity of 1 million metric tons, reports MarketWatch.

And Saudi Aramco, Saudi Arabia's state-owned oil company, said this week it will take a 50% stake in a $1.8 billion oil refinery that Sinopec is building.

The troubles of costs and losses is known, but the interesting thing, like in the Daqing story, is that they are all getting more into the chemicals side, and expanding the chemcials side. Which can only mean before too long the chemicals side prices will collapse on far too much supply, so they will all be back to square one and struggling with margins and profits again.




http://www.chinatradeinformation.net/china-trade-news/petrochina-unit-refining-loss-is-140-million-a-month.html

PetroChina Unit Refining Loss Is $140 Million a Month

PetroChina Lanzhou Petrochemical Co., a unit of the nations largest oil company, is losing 1 billion yuan ($140 million) a month processing crude because prices for the commodity are above $100 a barrel, a company official said.

Controls on fuel prices to curb inflation mean that the refinery needs crude to cost less than $60 a barrel for its oil processing operation to be profitable, Yu Baocai, Lanzhou Petrochemicals general manager, said today in Beijing. The plant, in Western Chinas Gansu province, lost 4 billion yuan refining oil last year.

Chinas curbs on fuel prices limit the ability of PetroChina Co. and China Petroleum & Chemical Corp., or Sinopec, its two biggest refiners, to pass on the rising cost of crude oil, their main raw material. Sinopecs parent said yesterday there have beenhuge losses at the groups refineries.

Chinas refineries are facing extremely high operational pressures on record crude costs, Grace Liu, an oil analyst with Guotai Junan Securities Hong Kong, said by telephone from the southern city of Shenzhen.

While the plant is losing money processing crude, it posts a profit of about 300 million yuan a month on its petrochemical business, Yu said. Chemical sales help to pare the refinerys monthly loss to about 700 million yuan, he said.

Different to Sinopec

Unlike Sinopec, PetroChinas refining losses can be offset by its profitable upstream business and we still estimate PetroChinas profit will rise in the first half of this year,Liu said.

Benchmark crude oil in New York was at $105.38 a barrel in after-hours electronic trading at 12:04 p.m. Beijing time. Yesterday, futures settled at $105.47, the highest close since trading began in 1983, and earlier touched a record $105.97.

Lanzhou Petrochemical will reduce capacity by between 400,000 and 500,000 metric tons in May for maintenance lasting about a month, Yu said while attending parliamentary sessions in Beijing.

The refinery processed 10.56 million tons of crude oil last year, and will maintain similar volumes in 2008, Yu said. Production of ethylene, a key raw material for plastics, will rise about 3 percent to 700,000 tons.

PetroChina will complete an oil-product pipeline from Lanzhou to Zhengzhou in central Chinas Henan province by end of this year, Yu said. Almost all Lanzhou Petrochemicals oil products could be transported by pipeline next year.

PetroChina Petroleum Sinopec

This entry was posted on Friday, March 7th, 2008 at 10:19 pm and is filed under China Trade News. You can follow any responses to this

**************************

http://news.tradingcharts.com/futures/0/9/106096990.html

Daqing Petrochemical Lost CNY2bn in Oil Refining




DAQING, Mar 14, 2008 (SinoCast via COMTEX) -- PetroChina Daqing Petrochemical Company, an affiliate of the country's oil titan China National Petroleum Corporation (CNPC), suffered a CNY 2 billion loss in its oil refining business in 2007, revealed the general manager, Mr. Yang Jigang.

Currently, the international crude oil prices are on the surge and the Chinese Central Government requires that related companies and institutions should not lift prices of crude oil, natural gas, electric power, as well as public utility recently. Therefore, Daqing Petrochemical, as one of CNPC's key oil refineries, has to face more pressure.

The general manager added that the company had planned not to cut production, with a view to ensuring a stable refined oil supply and narrowing the price inversion. In addition, Daqing Petrochemical wants to produce more high value-added chemicals in the near future, and then further upgrade its profitability.

At the end of 2007, it started creating a 1.2-million-ton ethylene extension project in Daqing, a major oil-refining city in northeast China. With a total investment of CNY 14 billion, this project is regarded as an important part of Daqing City's long-term development scheme.

On June 1, 2007, the National Development and Reform Commission, China's macro-economy regulator, officially allowed Daqing Petrochemical to upgrade its 1.2-million-ton ethylene project, which is forecasted to see its annual ethylene production capacity grow to 1.2 million tons, including existing 600,000 tons.

Meanwhile, the company will build five facilities of 300,000-ton polypropylene, 600,000-ton pyrolysis gasoline hydrogenation catalyst, 400,000-ton aromatic hydrocarbon, as well as 250,000-ton and 300,000-ton polyethylene with various density.

Benefiting from the abundant light hydrocarbon lying around Daqing City and a 12-million-ton oil refining capacity of Daqing Petrochemical, the foregoing project will introduce advanced technologies from overseas, said people familiar with the matter.

The builder is expected to see its yearly sales revenue and after-tax income separately enlarge CNY 7.97 billion and CNY 920 million, after putting the project into production. Besides, its profitability and after-tax yield will likely rise 14.34% and 13.03%, respectively.

Now, the country's fast-growing economy spurs an urgent demand for oil and chemical products, and thus Daqing Petrochemical is to boost its production capacity and cater to more market needs, on the strength of the project under construction.

Previously, PetroChina Co., Ltd. (SHSE: 601857;SEHK: 0857; NYSE: PTR), as an important listed arm of CNPC, promised to aggregately pour CNY 6 million into Daqing Petrochemical's 1.2- million-ton ethylene extension project.

BASF news item just out.

HAIK will be announcing results next Monday, I feel the results would be undesirable.

I agree hlyeo98, what a crip set if results.

91p now.

106p/110p now.

Good volume today, must be expecting good results in the morning.

Things to watch for Q1 results :

General :

Q4 07 Gross Profit Margin was 9.78% Q1 08 = ??? (Should go up)


Working cap and cash :

Q4 07 Inventory Levels were 44.858m Q1 08 = ??? (Should do down)

Q4 07 Trade Receivables were 27.862m Q1 08 = ??? (Should go down)

Q4 07 Cash level was 24.319m Q1 08 = ??? (Should go up)


Debts :

Q4 07 Short term debts were 82.453m Q1 08 = ??? (Should go down)

Q4 07 T/O payables were 41.039m Q1 08 = ??? (Should go down)


Will they have been reducing debt, reducing outstanding payables, reducing receivables and inventories and building cash ???????? or have they been increasing debt, increasing payables and also increasing working cap and reducing cash levels again ?


Soon to find out.

Thanks pp and hlyeo98, saved me a few hundred quid.

Good increase in chemical side profit and margin. Need a good read of the detail...

Results, gross profit margin down. Debts higher, inventories higher, trade receivables higher.......

Pretty damn poor........as was expected.

Frightening when you read this. When other companies go to quarterly reporting for more transparency, HAIK now go away from quarterly reporting.

What is their to hide ahead, must be the question..................no need to change unless you know unpleasant things are coming imo.


The Company has decided that it will be moving to half yearly reporting with effect from the interim results for the six months ended 30 June 2008.

Yes, that is pretty frightening. Glad I'm not holding.

This was a simple short...now 66p. How could this be the next ReneSola???

Its an awful situation.

Do not know how so many got away with trying to ramp it up.

Down through 50p soon ?

RNS Number : 7191Z
HaiKe Chemical Group Ltd.
23 July 2008


Trading update


HaiKe Chemical Group Ltd ('HaiKe' or the 'Company'), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, today announces that it is temporarily shutting down its oil refinery facilities for a major overhaul.

As a result of consistently high oil prices and in the absence of further price adjustment notices for oil products, the margins of the petrochemical side of the business have reduced to a level at which operations are not profitable. The Directors of HaiKe have therefore determined that now is an appropriate time for essential maintenance to be carried out, which will involve a complete shut-down of the refining operations and help reduce the Company's exposure to further risk at this current time.

The Company does not anticipate any near-term increases in the price of refined oil products. However, the Directors of HaiKe do expect further price adjustments to be announced by the PRC National Development and Reform Commission prior to the end of the current financial year. As a result, the Directors of HaiKe expect oil refining operations to resume during the current financial year, following an increase in the price of refined oil products.

However, with the majority of privately-owned refiners in China having either already ceased operations or being in the process of doing so, the Company will closely monitor the market situation and determine the most opportune time to resume operations.

This shut-down of the refining operations will enable senior management of the Company to focus their energy on the operation and management of the speciality chemical and biochemical businesses, which have been the largest contributors to profit during this financial year. These businesses will not be impacted by the closure of the refining operations and the Directors' expectations for the financial performance for this division, in the current financial year, remain unchanged.

With this temporary shut-down, the Company expects debt levels to fall back from their increased June 2008 level. As a result of the shut-down, future capital expenditure plans for the petrochemical side of the business have been deferred; however, speciality chemical expansion plans will continue as previously announced.

This is bad news under cover - directors bull-sh-tting

Be careful with this one, the China Petrochemcial sector is still in trouble, see the link below. If you are looking for Chinese companies who will benefit from the Stilumus, look to WCC (and also CHNS) is my view.


http://www.chinabidding.com/news.jhtml?method=detail&channelId=277&docId=3449489

Profits of China's Major Oil Companies Rise as Demand Recovers

Apr 25,2009

China's top five oil companies saw profits up 13.2 percent in March from the same period a year ago, as stimulus package pushed up energy demand, according to a report released by the China Petroleum and Chemical Industry Association (CPCIA).

Their March profits rose 160 percent from February to 28.25 billion yuan (4.15 billion U.S. dollars), according to the report released on Thursday.

The "top five" includes China National Petroleum Corporation, China Petroleum and Chemical Corporation, China National Offshore Oil Corp, Sinochem Corporation, and Shaanxi Yanchang Petroleum (Group) Co. Ltd.

The negative impacts of the global financial crisis on China's petrochemical sector was deepening, but the month-on-month figure showed signs of recovering as prices of some petrochemical products began to stabilize, said the report.

Analysts said the profit increase was due to the government decision to raise the prices of oil products. PetroChina's president Zhou Jiping said last month that the price rise would add 1.26 billion yuan of profits for the company every month.

However, the industrial value through January-March dropped 14 percent from a year ago, to 1.26 trillion yuan. The figure for March alone was 498.35 billion yuan, down 8.4 percent year on year, according to the report.

It is the first time in more than a decade that the petrochemical sector has seen declines in both industrial value and sales revenue. It is likely that the falling trend would continue in the second quarter, said Feng Shiliang, CPCIA deputy secretary.

He said the exports would continue to deteriorate, and the overcapacity would still be prominent.

HAIK is a proven lame duck.

another crap rocket and stick chinese stock to accompany TAIH
WCC is indeed the exception, though that is another very thinly traded stock

HAIK is still not moving despite China doing well.

Looks like this is on the move ..great % move on the last two trading day's,,,very few free float and results Sept. all IMO & DYOR

Just a pump and dump... nothing to be excited about.

39p bid opening on results to a current 17p offer online or lower.

Results were abysmal, might be some short closing for a bounce but
that's about it.

This will close shop soon.

This has 5p written all over it.

How wrong you are.

Another pump and dump, mitzy.

mitzy - make your mind up .... your usual crap is now enhanced by being totally contradictory

.

Grow up.

Perhaps Hlyeo got herself confused with mitzy?

perhaps mitzy is not only going but is using her potty

sp up 20% so far today?

HaiKe warns of full-year loss in 2012


HaiKe Chemical Group warns it will report a full-year loss after market conditions deteriorated.

The company says that while it continued to make good progress in developing niche speciality chemical products to generate higher margins, 2012 was difficult year for the refinery industry in China.

It says that while trading began positively in the second half, a deterioration in market conditions significantly affected trading in the last quarter, particularly in December, and as a result the company will report a loss for the year.

Other factors which affected performance included tighter margins, lower utilisation rates in the refinery division, and negative contribution from Hebang in its first year in operation.

The growth in trading of oil products has also been a major contributing factor to the increase in turnover.

Executive chairman Xiaohong Yang said: "2012 was a difficult year for the refinery industry in China. Despite the anticipated easing of the pricing mechanism, we expect the operating environment and domestic economy to remain a challenge for refineries in the current year.

"The speciality/salt and biochemicals divisions, our core growth businesses, delivered a profitable performance and looking forward, the board remains focused on the company's long term growth by continuing to develop and expand its higher margin speciality chemicals which we believe will improve the profitability of the group."

post 162 (nov 2009!) says it all .....

the CFO on their interims: interview

Trading Update
HaiKe Chemical Group Limited the AIM quoted (AIM: HAIK) specialty chemical business based in Shandong Province, China, today provides an update on trading ahead of its final results for the twelve-month period ended 31 December 2016.

The Group has delivered a positive operational performance in the second half of the year driven by the Company's focus on higher margin chemical products, product innovation and cost controls. As a result, the Group anticipates that it will report a profit for the year ended 31 December 2016 considerably ahead of last year.

· Unaudited profit for the year was CNY18.1 million (2015: CNY4.1 million).
· Unaudited total revenues were CNY725.9 million, marginally below FY2015 (2015: CNY727.5 million).
· Unaudited gross margins increased to 15.8% (2015: 11.6%) as the Company continued to adjust its product mix. Sales of more profitable, high-end products accounted for 8.1% of 2016 sales (2015: 3.0%).
· Unaudited overall sales volumes were 125,395 tons which were comparable to FY2015 (2015: 125,098 tons).
· Unaudited average selling prices decreased by 1.8% to CNY5,529 / ton (2015: CNY5,629 / ton), in the face of strong competition.
· Unaudited selling expenses rose by 16.7% to CNY40.5 million (2015: CNY34.7 million) due to more aggressive sales and marketing activities in restrained market conditions.
· Unaudited general and administrative expenses increased by 22.2% to CNY50.3 million (2015: CNY41.2 million). This was attributable to increases in labour costs and R&D expenses of 15.9% and 35.6% respectively.
· Unaudited interest expenses dropped to CNY3.9 million (2015: CNY20.7 million) following repayment of bank loans during 2015. Total borrowings at 31 December 2016 were CNY80 million (30 June 2016: CNY80 million).
· At 31 December 2016 the Company's cash and cash equivalent balances were CNY57.2 million (30 June 2016: CNY73.5 million).