Konka Group, a mainland television and mobile-phone maker, said first-half net profit rose 43 per cent on cost reductions and increased gross margins of its handset business.
Net profit grew to 42.47 million yuan for the six months to June, compared with 29.73 million yuan a year earlier. Turnover grew 0.76 per cent to 5.61 billion yuan.
'Our net profit rose because we had implemented strong measures to control costs so as to increase margin,' the Shenzhen-listed company said. 'The increasing gross margin of our handset business also helped.'
The company did not provide details of its first-half television and handset shipments. Konka ranked No1 in the mainland by volume last year, but only the sixth largest by revenue, according to researcher GfK Asia.
Hisense was the mainland's largest television maker by revenue, followed by Hong Kong-listed Skyworth Digital Holdings and Shenzhen-listed TCL Corp, the world's largest television marker.
Konka, which mainly targets the low-priced television market in the United States and Europe, has produced flat-screen televisions and handsets over the past two years. Margins are higher than for traditional cathode ray tube televisions.