DESPITE a substantial increase in turnover, cordless telephone manufacturer Double Kingdom Holdings slipped into the red in the six months to June 30 with a loss of $11.4 million. This compares with a profit of $19.2 million in the same period last year. Directors said profit margins had been hit by the strong yen and the weak European economies, and consequently recommended no dividend. The company's performance had also been hit by the opening of its new factory in Dongguan, Guangdong province, in May, which was not operating at full capacity. Company chairman Billy Leung Chun-hung said he expected a further loss in the second half because of a shortage of some key telephone components, which had resulted in the cancellation of some of its major orders.