Haier boosts half-time profit as consumers seek smarter options
Net profit rises 3pc to 1.130b yuan, as revenues slips 8.1pc to 28.79b yuan
Haier Electronics Group, China’s second largest home appliances maker, posted slightly disappointing first half net profit on Wednesday, as it continues to struggle with bloated inventories amid weak domestic demand.
Net income climbed three per cent to 1.130 billion yuan from 1.096 billion yuan a year earlier, marginally below analyst consensus estimates of 1.135 billion yuan polled by Reuters, while its revenue declined 8.1 per cent to 28.79 billion yuan from a year earlier.
The underwhelming earnings painted a gloomy picture for the world’s largest white goods market dampened by an oversupply amid an economic slowdown, although a recently recovering housing sector appears to have spurred some demand for household devices.
The company declared no interim dividend, the same as last year.
“Consumers are more selective and discretionary when it comes to choices of consumer brands, and the traditional tenets of competitive advantage, such as the first-mover advantage, are no longer relevant,”said Haier Electronics chairman Zhou Yunjie in a statement.