Guangdong Kelon Electrical Holdings yesterday announced a net loss of 813.87 million yuan for the third quarter, including almost 500 million yuan of suspicious transactions it was investigating.
It brought the company's losses for the first nine months to 1.34 billion yuan.
Kelon, once China's largest refrigerator maker and a leading producer of air-conditioners, expects losses for the year to be more than 50 per cent greater than last year's 64.16 million yuan loss, according to vice-chairman Liu Congmeng.
In the third quarter, the Hong Kong and Shenzhen-listed firm lost 813.87 million yuan, including 491.88 million yuan in unpaid charges, provisions for bad debt and decline in inventory value, as well as stock check losses.
'The items involve huge amounts of expenditure that were paid out before the third quarter and may involve deliberate concealment of spending,' Mr Liu said.
'The board has already requested management conduct an investigation into this matter. If any concealment is found, the board will pursue legal liability against the wrongdoer.'
