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Although Haier Groups electric refrigerator and air-conditioning units held the largest mainland Chinese market share in 2005, earnings made public on April 28th showed a 35% year-on-year decline in profits from 2004 to 2005.

Sales revenue reached Rmb16.5bn (US$2.06bn) in 2005, but earnings per share were only Rmb0.2 and total profits were a mere Rmb239m. A large part of declining profits was the HK433m (US$55.8m) loss posted by Haiers mobile-handset manufacturing arm, Haier Electronics.

The loss has prompted the sale of Haier Electronics to its parent group for HK420m, as the company looks to shift focus from mobile handsets to white goods. Haier Group will also sell controlling interests in two mobile-handset producers owned by Haier Electronics: Pegasus Qingdao and Pegasus Electronic.

From TMC

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