LSB INDUSTRIES, INC.
(Name of Issuer)

Common Stock, par value $0.10 per share
(Title of Class of Securities)

502160104
(CUSIP Number)

July 7, 2000
(Date of Event Which Requires Filing of this Statement)

13G

1

Jayhawk Investments, L.P.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a)  
(b)  

3

4

Delaware

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH

5

SOLE VOTING POWER

649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of $3.25 Convertible Exchangeable Class C Preferred Stock, Series 2)

6

SHARED VOTING POWER

7

SOLE DISPOSITIVE POWER

649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of $3.25 Convertible Exchangeable Class C Preferred Stock, Series 2)

8

SHARED DISPOSITIVE POWER

9

649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of $3.25 Convertible Exchangeable Class C Preferred Stock, Series 2)

10

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

11

5.2%

12

PN

Item 1(a)

Name of Issuer.

LSB Industries, Inc.

Item 1(b)

Address of Issuer's Principal Executive Offices.

16 South Pennsylvania
Oklahoma City, OK 73107

Item 2(a)

Name of Person Filing.

Jayhawk Investments, L.P.

Item 2(b)

Address of Principal Business Office, or, if none, Residence.

8201 Mission Road, Suite 110
Prairie Village, KS 66208

Item 2(c)

Citizenship or Place of Organization.

Jayhawk is organized under the laws of Delaware as a limited partnership.

Item 2(d)

Title of Class of Securities.

Common Stock, par value $0.10 per share (the "Common Stock").

Item 2(e)

CUSIP Number.

502160104

Item 3

If this statement is filed pursuant to Sections 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a)

Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

(b)

Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

(c)

Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

(d)

Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8).

(e)

An investment advisor in accordance with Section 240.13d-1(b)(1)(ii)(E).

(f)

An employee benefit plan or endowment fund in accordance with Section 240.13d-1(b)(1)(ii)(F).

(g)

A parent holding company or control person in accordance with Section 240.13d-1(b)(1)(ii)(G).

(h)

A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(i)

A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3).

(j)

Group, in accordance with Section 240.13d-1(b)(1)(ii)(J).

If this statement is filed pursuant to Rule 13d-1(c), check this box.

Item 4

Ownership.

(a)

Amount beneficially owned:  649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of $3.25 Convertible Exchangeable Class C Preferred Stock, Series 2 (the "Series 2 Stock"))

(b)

Percent of class:  5.2% (determined by dividing:  649,350 shares of common stock issuable on conversion of the Series 2 Stock beneficially owned by Jayhawk, divided by the sum of (x) 11,900,779 shares of common stock issued and outstanding as of June 20, 2000 according to LSB's definitive proxy statement filed June 20, 2000, plus (y) 649,350 shares of common stock issuable on conversion of the Series 2 Stock beneficially owned by Jayhawk.)

(c)

Number of shares as to which the person has:

(i)

Sole power to vote or to direct the vote:  649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of Series 2 Stock)

(ii)

Shared power to vote or to direct the vote: None

(iii)

Sole power to dispose or to direct the disposition of:  649,350 (includes 649,350 shares of common stock receivable upon conversion of 150,000 shares of Series 2 Stock)

(iv)

Shared power to dispose or to direct the disposition of:  None

Item 5

Ownership of Five Percent or Less of a Class.

Not Applicable.

Item 6

Ownership of More Than Five Percent on Behalf of Another Person.

Not Applicable.

Item 7

Identification and Classification of the Subsidiary which Acquired the Security Being Reported On by the Parent Holding Company.

Not Applicable.

Item 8

Identification and Classification of Members of the Group.

Not Applicable.

Item 9

Notice of Dissolution of Group.

Not Applicable.

Item 10

Certification.

JAYHAWK INVESTMENTS, L.P.

By: Jayhawk Capital Management, L.L.C.,
     its general partner

By:  /S/ Kent C. McCarthy
    _______________________________
    Kent C. McCarthy
    Manager