Sales Representation Agreement for Silicon Carbide Sales in China and Taiwan, Trading Update and Notice of Interims Announcement
28 January 2021
Haydale, (AIM: HAYD), the global advanced materials group, is pleased to announce that it has signed a sales representation agreement ("the Agreement") with Qinhuangdao ENO High-Tech Material Development Co., Ltd., ("ENO"). The Agreement is for an initial period of two years and allows ENO to act as a sales representative for Haydale's ceramic and silicon carbide products in China (including Hong Kong) and Taiwan.
Under the Agreement, ENO expects to buy a minimum of $300,000 of product from Haydale within the first year of the agreement increasing to $500,000 in the second year. The first order under the Agreement for $23,000 has been received by Haydale for immediate shipment.
ENO is a high-tech enterprise in the field of new materials in China. The company specialises in the development, production, and sales of a wide portfolio of high-performance ceramic powders. The products are widely sold in the fields of electronics, oil, metallurgy, automotive, and aviation and Haydale's ceramic products will complement ENO's current offering.
Keith Broadbent, Haydale CEO, said: "We are pleased to announce this agreement and believe the new market opportunities offered by ENO will provide solid commercial prospects for our ceramic and silicon carbide products within these markets."
Trading Update and Notice of Interim Results
As previously announced, the Group has been impacted by the general industrial slowdown caused by Covid-19 and especially the markedly reduced demand in the global aerospace sector, which has led to depressed sales of the Silicon Carbide whiskers and ceramics manufactured at our US facility. The Directors have sought to replace the reduced order pattern from US customers by engaging with new markets and this agreement with ENO is an important development in the extension of our trading footprint.
Despite the challenges posed by the pandemic, the Group's performance has remained resilient in H1 FY21. Whilst the recently enhanced restrictions extant in several key markets increases the economic uncertainty, notably around the medium-term recovery of air traffic, the Directors anticipate that performance will be broadly in line with their expectations and the continuing focus on streamlining its cost base will lead to a reduced Adjusted Operating Loss for the year.
Haydale expects to announce its unaudited interim results for the half year ended 31 December 2020 on 24 February 2021 and further guidance will be given at this time.
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
For further information:
Haydale Graphene Industries plc
Keith Broadbent, CEO
Tel: +44 (0) 1269 842 946
Gemma Smith, Global Head of Marketing
Arden Partners plc (Nominated Adviser & Broker)
Ruari McGirr / Paul Shackleton / Ben Cryer
Tel: +44 (0) 20 7614 5900
Notes to Editors
Haydale is a global technologies and materials group that facilitates the integration of graphene and other nanomaterials into the next generation of commercial technologies and industrial materials. With expertise in graphene, silicon carbide and other nanomaterials, Haydale is able to deliver improvements in electrical, thermal and mechanical properties, as well as toughness through its state-of-the-art functionalisation. Haydale has granted patents for its technologies in Europe, USA, Australia, Japan and China and operates from five sites in the UK, USA and the Far East.
For more information please visit: www.haydale.com