HUALING Holdings is seeking a flotation in Hong Kong to finance the expansion of its Guangzhou subsidiary, China Refrigeration Industry Co, in order to consolidate its leading position in the mainland market.
The float has already been approved by Beijing, but a timetable for the listing is not yet fixed.
China Refrigeration was established in 1985 to tap the huge domestic market for refrigerators by importing manufacturing equipment and technology from Japan.
Annual output has surged from 78,000 units in 1989 to 264,000 in 1992. Total output is expected to reached 350,000 this year.
Hualing managing director Bi Qing said demand for China Refrigeration's products was so strong this year that only half the orders could be filled.
Although the retail price was fixed at 2,830 yuan (about HK$3,792 at the official rate), some businessmen in Guangzhou bought units from the company's showrooms and re-sold them for 3,300 yuan.