Qingdao Haier, China's largest consumer appliance maker, on Tuesday issued a mandatory notice that profits for last year would be more than 50 per cent higher than in 2000. Mainland analysts covering the Shanghai-listed company were unbothered by the remarks. In Hong Kong, only publicly listed companies with lower than expected profits issue profit warnings but mainland-listed companies are required to issue notices if their profits are expected to rise or fall by more than 50 per cent. Haier attributed the surge in last year's profits to its acquisition of Qingdao Haier Air Conditioning. In January last year, Haier issued 100 million new A shares to raise funds to increase its stake in the air-conditioning company to 99.95 per cent from 74.45 per cent. Haier will announce its results for last year on March 29. Mainland analysts had revised their forecasts several months ago after the air-conditioning company's contribution to Haier's balance sheet became evident. China Eagle Securities analyst Chen Xing said: 'Haier's parent, Haier Group, usually takes the more mature companies and injects them into the publicly listed company. 'By mature companies, I mean the companies that can immediately contribute to Haier's profits.' Analysts had been expecting Haier to receive a boost of about 50 per cent in its profits for last year solely from air-conditioning, the company's most profitable business. Beijing Securities analyst Liu Wencheng said: 'The figure is what we expected, which is why Haier's share price didn't go up much after the profit warning.' Haier's A shares inched up 0.82 per cent, or 13 fen, to close at 16.01 yuan yesterday. Some analysts said they would be surprised if Haier's profits rose only 50 per cent last year because its profits would not come solely from air-conditioning. Mrs Chen, who expects Haier's profits for last year to grow at least 75 per cent, said: 'One [factor] is the air-conditioning company, another is Haier's exports. Its exports are growing rather quickly because it has a pretty good reputation in international markets.' Although Haier's key markets in the United States, Europe and Japan were hit by the global economic downturn last year, mainland analysts said the company's exports would show growth because its products were mostly low-end refrigerators and air-conditioners. Haier's strategy of investing in overseas plants to build and sell products there has made it a darling among mainland-based investors. 'Why has every fund manager bought some of Haier's shares? Haier is the 'big brother' of all the publicly listed home-appliance companies. And we expect that its position as the 'dragon head' won't change for the next two or three years,' Mr Liu said. Haier chief executive Zhang Ruimin has set the goal of making the consumer-appliance maker a Fortune Global 500 company. The firm has recently ventured into businesses outside the home-appliance sector. It has formed a life-insurance joint venture with New York Life Insurance and a mobile-phone venture with Hong Kong's CCT Multimedia. Some mainland analysts are speculating that Haier will be one of the constituents in the unified stock index, which will be composed of companies listed on the Shanghai and Shenzhen stock exchanges, when it is eventually established.