HaiKe Chemical Group has issued a correction to the trading update it provided on 20 July which stated the group had delivered unaudited revenue of CNY526.9 million and net profit of CNY11.4 million for the six months ended 30 June.
HaiKe says that due to an administrative oversight, this unaudited revenue figure did not incorporate a net-off of transactions between Haike and two companies, Shandong Hi-Tech Chemical Group and Haiyuan Trading Pte, which had been disposed as part of the company's restructuring to divest its non-core and loss-making refining business in June 2014.
Consequently, under the company's agreed accounting policies, transactions with these two companies are recognised on a net method. As a result, the company's unaudited revenue, for the six months ended 30 June is expected to be CNY350.7 million (HY2015: CNY385.4 million).
The company confirms that this correction does not affect the underlying profitability of the Company. Haike expects to deliver a net profit of CNY 11.4 million (HY2015: CNY 95,000) for the six months ended 30 June 2016, as previously announced. In addition, the company also notes that the comparative results stated in the 20 July announcement were figures for the 12 months ended 31 December 2015.
At 8:02am: (LON:HAIK) HaiKe Chemical Group Ltd share price was -0.75p at 14.75p