Dongfang Electrical Machinery expects to post net profit growth of more than 200 per cent in the first nine months of the year as it continues to benefit from the mainland's power plant building boom.
The Sichuan province-based, state-controlled firm yesterday posted a 630 per cent rise in net profit to 265.23 million yuan for the first half to June, as turnover rose 31.97 per cent to 1.17 billion yuan, based on international accounting standards.
Company secretary Gong Dan said the profit jump was mainly due to a change in accounting estimates, which cut its profit substantially in last year's first half.
The company last year changed the percentage of bad-debt provision for receivables and the depreciation period and method for fixed assets, which resulted in a 167.87 million yuan downward adjustment to profit.
Excluding last year's accounting changes, first-half profit growth would have been 29.89 per cent.
In the first half, the company completed 1,414.5MW of hydro power generators and 5,910MW coal-fired generating units.
Gross profit margin of its core equipment manufacturing operation fell 0.5 percentage point to 34.1 per cent year on year.
