Haier, the world’s fourth-largest white goods manufacturer, on Monday posted a 21.30% increase year-on-year in its net profit to reach 666 million yuan in the first half of 2009.
According to its semi-annual report, the Qingdao (China) based company gained a 65.58% increase from the previous year to 111 million yuan in investment income, or 16.54% of the net profits.
Haier is China’s largest household appliance producer and has reached zero inventory since its business model changed from a large scale production to BTO (built-to-order). By adopting the method of ready money for ready goods, the company achieved 366 million yuan in cash flow during the first half, up 1,051.95% year-on-year.
Haier gained 803.7 million yuan, or almost a half of its revenue from refrigerator sales from the January-June period, a rise of 8.45% from a year earlier.
However, the report indicated a 12.15% loss of operating revenue at 16.60 billion yuan by the end of the first half of the year.
Wang Xiaoying, securities analyst of Sinolink Securities noted three factors, an increasing yield, a decreasing loss from asset devaluation and strong refrigerator sales, are the reason for its shrinking revenue but rising net profit.
Haier sounded a more optimistic tone on its prospects for the second half of 2009. The company says its global business will be further advanced by strategically cooperating with another world famous brand that was not named in its report.
So far there is no indication of who the mystery brand could be.
