Hualing fails to stem slide in earnings despite turnover rise

Investor enthusiasm towards Hualing Holdings may cool as the group posted a fall in profit for a second straight year since it was listed.

The air-conditioner and refrigerator maker reported a drop of 57 per cent to $40 million for last year.

This was way below market consensus of a 9 per cent slide in profit to $86 million, quoted by this month's edition of the Estimate Directory. The result came despite a 32.5 per cent rise in turnover to $1.39 billion.

Chairman Bi Qing said the group's result was far from satisfactory because Beijing's tight monetary policy had hit consumer demand, but added the group was still in an investing and developing stage.

'We believe returns will greatly improve once the group completes its investing and developing stage,' he said.

Earnings per share were $0.067.