Hisense Kelon H1 revenue drops by almost 40%

Hisense Kelon Electrical Holdings Co Ltd., a manufacturer of refrigerators and air-conditioners in China, announced on Friday its financial results for the first half of this year in a statement with the Hong Kong Stock Exchange.

The Foshan, Guangdong province-based company booked a net profit of RMB 70.66 million during the period, representing a year-on-year decrease of 39.79%. Gross profit fell 19.59% to RMB 77.20 million, while revenue from its core business rose slightly by 3.98% to RMB 5.05 billion. Its operating profit decreased by 22.11% year-on-year to RMB 113 million.

The decrease mainly resulted from the surging cost for energy and raw materials, which have brought most of the air-conditioner manufacturers a even lower profit margin.

During the period, HIsense Kelon's gross profit margin from its air-conditioner manufacturing business dropped 2.34% year on year, while that of the refrigerator and components fell 14.73%.