Cost controls, in the face of a market glut, paid off for H-share Harbin Power Equipment as net profit surged 90.6 per cent to 19.1 million yuan (about HK$17.9 million) for the half to June 30. Apart from cost savings, the company attributed the growth to big increases in profit margins for some products. The gain came despite a fall in turnover. It was 1.17 billion yuan, down 16.29 per cent from the 1.39 billion yuan a year earlier. The company indicated the decrease was due to a reduced contribution from its power plant engineering services. Operating profit was 13.92 per cent higher, at 96.82 million yuan. Its operating costs decreased 20.74 per cent, year-on-year, to 906.21 million yuan. A feature of the half was reduced finance costs, 64.17 million yuan against the 71.40 million yuan a year earlier. Harbin Power's earnings per share were 1.61 fen, up from 0.84 fen previously. However there will not be an interim dividend. The company projected an improved performance in the second half after securing 4.46 billion yuan worth of new orders in the first six month - a 125.3 per cent year-on-year rise. Harbin Power attributed the growth to the start-up of the 10th Five Year Plan and Beijing's 'go west' campaign. It had also received more orders from overseas. 'Although the competition in the power equipment market will remain fierce, the demand will continue vigorous with the start-up of the 10th Five Year Plan and the implementation of west development strategy,' the company said. According to the 10th Five Year Plan, national electricity demand is expected to grow at the rate of 5 per cent to 6 per cent during the course of the coming five years. This is an increase of 100 million kilowatt in the mainland's installed capacity.