H share Dongfang Electrical Machinery's net profit for the first half of the year jumped 75.18 per cent from a year earlier to 9.56 million yuan (about HK$8.91 million). Chairman Yuan Changhe attributed the surge to the drop in yuan loan interest, a 30 per cent rise in income from its principal operations and cost-cutting measures that reduced expenses 15.56 per cent. The sale of its power generators to Ertang Power Plant in Sichuan boosted earnings, accounting for 30 per cent of its income in the period. As of the end of June, the company had 2.28 billion yuan worth of orders on hand, including export orders valued at 980 million yuan. Faced with government restrictions on investment in fire-powered plants - which gives higher gross profit margins - the company intends to diversify into the production of construction material, medicine and other power-generating businesses to maintain earnings growth. Earnings per share rose to 0.021 yuan from 0.012 yuan. Turnover increased to 9.56 million yuan from 5.45 million yuan.