HaiKe Chemical Group Ltd. Result of AGM and Company Update (0821J)

TIDMHAIK

RNS Number : 0821J

HaiKe Chemical Group Ltd.

26 June 2017

HaiKe Chemical Group Ltd ("HaiKe" or the "Company")

Result of AGM and Company Update

HaiKe Chemical Group Limited, the AIM quoted (AIM: HAIK) speciality chemical business based in Shandong Province, China, is pleased to announce that at its Annual General Meeting held on 25 June 2017 all the resolutions, as set out in the Notice of the Annual General Meeting, were passed.

The annual planned shutdown of the plant was implemented during May and June and is now largely complete. During this period, the Company has carried out additional upgrades to support the planned focus on high-end products and comply with new national environmental regulations in China. The 2017 shutdown period was taken in H1 as compared with H2 in previous years and, as a result, revenue and profit for H1 2017 is expected to be in line with H1 2016.

The Company expects a further upgrade to the IPA plant in September to fit a new catalyst which is anticipated to take no longer than one month. As a result of increased heating demand for our higher-end products, the Company is building a new pulverized coal stove. This is also expected to prolong the length of time between shutdown periods going forward and will allow the Company to meet environment regulations. Construction of the stove has begun, with completion expected toward the year end.

In order to manage heating capacity prior to the completion of the stove, the Board has decided to reduce the operating capacity of the DMC plant which produces lower margin products. The DMC plant is expected to be fully operational by the year end, in line with the completion of the coal stove.

For further information please contact:

 
HaiKe Chemical         Jes Cui, Chief Financial   [phone] 
 Group                  Officer                    [e-mail] 
                                                   [e-mail] 
                       Richard Johnson /          [phone] 
Stockdale Securities    Antonio Bossi              6100 
                       Shan Shan Willenbrock 
                        / 
                        Emma Crawshaw             [phone] 
Cardew Group            [e-mail]      0777 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 26, 2017 02:00 ET (06:00 GMT)