HaiKe Chemical Group's total revenues decreased by 9.0% to CNY350.7million in the six months to the end of June but gross profit increased by 47.6% to CNY61.2million.
Profit for the period from continuing operations was CNY11.4 million (H1 2015: profit of CNY95,000) and the group had cash and cash equivalents of CNY73.5 million (31 December 2015: CNY CNY35.4 million).
Total borrowings as at 30 June 2016 were CNY80.0 million (31 December 2015: CNY80.0 million).
Executive chairman Xiaohong Yang said: "I am pleased to report the satisfactory performance for the Group over the first half of 2016, especially given the challenging trading environment.
"The improvement in profitability was driven by the decisive actions taken by the Board last year to better position the business in the current environment and improve performance. We are pleased these are starting to bear fruit and we will continue our efforts in this area.
"The Group has entered the second half of the year in a strong position and while we believe market conditions will remain difficult, we are well-positioned and look to the future with confidence."
At 9:05am: (LON:HAIK) HaiKe Chemical Group Ltd share price was +1p at 13.5p