Haier's profit hits 666m in H1

Haier, the world's fourth-largest white goods manufacturer, on Monday posted a 21.30 percent increase year-on-year in its net profit to reach 666 million yuan in the first half of 2009.

According to its semi-annual report, the Qingdao-based company gained a 65.58 percent increase from the previous year to 111 million yuan in investment income, or 16.54 percent of the net profits.

China's largest household appliances producer has reached zero inventory since its business model changed from a large scale production to BTO (built-to-order). By adopting the method of ready money for ready goods, the company achieved 366 million yuan in cash flow during the first half, up 1,051.95 percent year-on-year.

Haier gained 803.7 million yuan, or almost a half of its revenue from refrigerator sales from the January-June period, a rise of 8.45 percent from a year earlier.

However, the report indicated a 12.15 percent loss of operating revenue at 16.60 billion yuan by the end of the first half of the year.

Wang Xiaoying, securities analyst of Sinolink Securities noted three factors, an increasing yield, a decreasing loss from asset devaluation and strong refrigerator sales, are the reason for its shrinking revenue but rising net profit.

Haier sounded a more optimistic tone on its prospects for the second half of 2009. The company says its global business will be further advanced by strategically cooperating with another world famous brand that was not named in its report.

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