HaiKe Chemical Group Limited (LON:HAIK) saw more than a third eroded from its share price after the Chinese specialty chemical business said it was mulling the possibility of cancelling its AIM listing.
Full-year profits more than halved to £0.73mln in the 12 months ended 31 December (2016: £1.91mln), despite revenues rising to £96mln from £82.2mln a year earlier.
HaiKe blamed a “critically difficult market” for the dive in profitability, as well as a reduction in output due to plant shutdowns for upgrade purposes.
In light of the poor performance, the company said it is exploring all of its future options, including the possibility of delisting from the junior market and continuing as a private company.“In such circumstances, the Company would seek to arrange facilities for shareholders to exit their investment at a small premium to current market levels, although there can be no certainty such facilities can be arranged or at what level,” read Tuesday’s update.
Shares fell 35.7% to 18p early on Tuesday afternoon, making it the top faller in London.