Guangdong Kelon Electrical Holding's unaudited consolidated net profit in the first half of this year made a 5.23 per cent increase from a year earlier to 428.11 million yuan (about HK$399.19 million). The company's operating profit rose 0.21 per cent to 471.29 million yuan. Guangdong Kelon's turnover surged 70.34 per cent to 3.44 billion yuan. The company attributed the difference between earnings growth and turnover to provisions made for inventory costs. Also attributable were increased operating costs. Earnings per share edged up to 48 fen from 46 fen a year earlier. No dividend was recommended. Chairman Wang Guoduan said the results were satisfactory, given the mainland's deflation, slowing economic growth and competitive electric appliances market. Mr Wang also said the company was not worried by a possible currency devaluation and foreign competition brought about by the mainland's entry to World Trade Organisation.
