HaiKe, the AIM-listed, China-based chemical company has dropped 11% this morning on news that its profitability for 2011 will be "behind market expectations".
HaiKe blames this on falling margins towards the end of the year.
Some news from today's update appears positive, with the refinery division turning a profit last year compared to a loss during 2010.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm sounds a warning, however, over the specialty/salt chemical division, saying that while performance was stable "overall", individual products were "varied".
HaiKe's Executive Chairman, Xiaohong Yang, said the firm was adjusting to improve its margins: "The Board remains conscious of a continuing difficult global economic environment and great emphasis has been placed on tightening costs and increasing operational efficiencies to strengthen the business."
In the last 12 months HaiKe has lost 49% of its value.
bs
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
