LONDON (ShareCast) - China-based chemical and biochemical business HaiKe, which listed on AIM in February, said it expects profits for the year to be in line with expectations.

The group said its speciality chemical and biochemical businesses continue to trade strongly and capacity expansion projects previously announced remain on track to provide further growth during 2008.

HaiKe has seen significantly improved performance from its petrochemical business after the Chinese government said it will increase its guideline selling price for certain refined petrochemical products from November 2007.

It added that its 800,000 tonne heavy oil catalytic cracking facility, built using funds raised from the AIM listing, was now fully operational.

By mainly making products from residual oil and petrolatum feedstock, the facility will help reduce the company’s exposure to high crude prices.

“This has been an exciting and important year for HaiKe and excellent progress has been made across all businesses,” said executive chairman Yang Xiaohong.

“We have been able to deploy the funds raised at the time of admission to AIM in February to significantly enhance and improve the performance of the business,” he added.

• News Channel