Sichuan Changhong has released its financial report for the first half of 2008, which says because of the May 12 earthquake in Sichuan Province, the company's net profit decreased by 90.61% compared with the same period of 2007.
The report shows that in the first half of 2008, Changhong achieved revenue of CNY14.2 billion, a year-on-year increase of 32.79%; its operating profit was CNY317 million, a year-on-year increase of 18.7%. However, its net profit decreased 90.61% to CNY18.8 million.
It is mentioned in the report that over the Wenchuan earthquake in Sichuan, the location of Changhong's headquarters, Mianyang, was seriously affected and its factory in this area suspended production for an undisclosed period. The company suffered losses of CNY149 million in the earthquake, which is the major cause for the net profit decline of the company.
In the main businesses of Chonghong, the revenue of TV sets and air-conditioners decreased by 1.8% and 9.93%, respectively, while the sales of refrigerators and mobile phones increased by 61.89% and 103.87% in addition to an average year-on-year increase of 7.67% in other IT product sectors.
In addition, Changhong says its revenue in domestic Chinese market was CNY12.1 billion in the first six months of 2008, a year-on-year increase of 26.87% and its overseas market contributed only CNY1.88 million, a year-on-year increase of 75.06%.