Hisense Electric Co Ltd said yesterday that its 2007 net profit increased more than 50 percent from a year earlier due to rising sales of flat-panel televisions.
Hisense, one of China's biggest TV manufacturers, posted a profit of 125 million yuan (US$17.3 million) in 2006, or 0.25 yuan a share, it said in a statement filed with the Shanghai Stock Exchange. It didn't provide a specific 2007 earnings figure.
Hisense attributed the gain partly to its focus on high-end products and its differentiation strategy to upgrade product structure amid fierce price competition last year.
Sales of flat-panel televisions accounted for 60 percent of the company's sales in 2007, Hisense said. The company also sold a 55-percent stake in Hisense (Beijing) Electrical Appliances Co for 38 million yuan.
Hisense also saw improvements in the business of liquid crystal display televisions as it established the first LCD module production line on Chinese mainland.
The company said in September that it plans to invest 700 million yuan in five LCD production lines.
Another two lines will begin next year and the remaining two will be built by 2009.
Hisense is due to release its audited 2007 financial results on April 29. Shares of the company rose 3.49 percent to 13.35 yuan yesterday.
(Shanghai Daily January 30, 2008)