HaiKe drops on weak margins

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.

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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.

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