China’s Hisense Kelon posts 10.6pc interim profit growth amid sluggish sales in home market

China’s white goods giant Hisense Kelon posted a 10.59 per cent growth in net profit for the first half of the year, buoyed by a growing overseas market despite sluggish refrigerator and air conditioner sales on the mainland.

The company reported a net profit of 559.28 million yuan, up from 505.71 million yuan, although revenue slipped 3.59 per cent to 13.12 billion yuan from 13.61 billion yuan in the same period last year.

Hisense Kelon, which manufactures refrigerators and air conditioners, is one of two publicly listed companies controlled by Hisense Group. Shanghai-listed Hisense Electric Company, which makes TVs, is the group’s largest subsidiary.

Gross profit margins were improved by introducing a new, high-end range of Beiduofen refrigerators, as well as the result of increased sports and marketing in its overseas markets, Hisense Kelon said in its results announcement.

Overall, revenue from its core segments comprising refrigerators and washing machines slipped 1.55 per cent, while the air conditioner segment declined 6.59 per cent.

Demand for white goods on the mainland remained sluggish, with revenue from domestic sales falling 10.36 per cent to 7.5 billion yuan.