Qingdao Haier increases profits on overseas market

Qingdao Haier Co. Ltd.<600609>, China's home appliance maker, announced Thursday that first-half net profits have increased.

Qingdao Haier, one of Haier Group's two listed subsidiaries, said net profits were up by 36.9%, compared with results from the first-half in 2006. The company reported net profits of RMB 364 million, for the first six months of 2007, on revenues of RMB 17.1 billion.

The increase in net profit was attributed to the company's expansion into the international high-end market. In April, the Shanghai-listed company won big orders for its refrigerators from the U.S. and Europe at the Import and Export Fair. The selling price of the product was about 20 times higher than the average price of China's exported refrigerators, Xinhua reported.

The rise in profits was also attributed to Qingdao Haier's acquisition of Haier Group's four other subsidiaries, which were more profitable, the report said.

Qingdao Haier Co., Ltd. is a manufacturer and seller of household electrical appliances, under the brand name of Haier. Based in Qingdao, it held a 26.6% share in the home market for refrigerators and 16.3% share in the air conditioner market, as reported by Thursday's Shanghai Securities News.