Executive Summary
HaiKe Chemical Group Ltd is a petrochemical, speciality chemical and biochemical business based in Shandong province, China. The Group is located in close proximity to the Shengli oil field which is the second largest oil field in China and is operated by Sinopec (a State-owned enterprise). The Group's principal products are diesel and other oil-related products produced through oil refining operations, as well as speciality chemical and biochemical products.
Company History
- HaiKe was admitted to AIM on 14 February 2007.
Current Events
Business Model
Products/Services
Key products include:
- Oil Refining Products: The principal products produced through oil refining operations are diesel oil, gasoline, petroleum coke, chemical lighter hydrocarbons, which can be used for many kinds of vehicles.
- Specialty chemical such as Dimethyl Carbonate (DMC is used widely in medical applications, agricultural pesticides and the manufacture of synthetic materials) and Hydrochloric Acid which is mainly used to produce barium chloride and ammonium chloride for us during the process of metallurgy, dyestuff production, tan and dying of leather.
Segments/Customers
Production/Operations
Distribution/Routes to Market
Market & Competition
Market Share
Main Competitors
Competitive Strengths and Weaknesses
Management
Financials
Historicals
The Group’s sales revenues were approximately US$201 million for the year ended 31 December 2005, approximately 84 per cent. of which was derived from the sale of products from the oil refining process and 16 percent from the sale of speciality chemicals and biochemicals.
Current Trading
Forecast Drivers and Issues
Balance sheet
Cashflow
Valuation
Comparable Companies
SWOT Analysis
Strengths
Weaknesses
Opportunities
- Changes in the Chinese government’s domestic oil pricing policy: At present, downstream petrochemical companies in China purchase crude oil at world market prices and sell refined products (such as gasoline and diesel oil) at domestic market prices which are set by the Chinese government. Following China’s ascension to the World Trade Organisation, the Chinese government is expected to establish a more market-oriented pricing mechanism.
Threats
