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)





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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!